Mortgage Money Is Available!
Yes, contrary to popular belief you can still borrow money to buy a home. Your down payment requirement will be based on credit, income, & assets - while this is not a new concept, the public has been lead to believe that documenting a loan is a new fad. There may also be some other misconceptions as you observe the message delivered by the media on a daily basis.
Let's debunk some of the myths out there regarding mortgage lending:
MYTH: I heard from a friend that you need at least 20% down now to purchase a home.
TRUTH: ABSOLUTELY NOT! There are still down payment requirements as low as 3-5% down, even with not perfect credit. FHA requires 3.5% down and conventional loans will go as low as 5% down. Also, on FHA loans you as the buyer can ask a seller to contribute up to 6% of the sales price to go towards closing costs, but not to exceed actual costs. The FHA loan limit is $303,750. Conventional loans with 10% or less down will allow for you to ask for up to 3% of the sales price towards closing costs & when doing 10% down or more you can ask for up to 6%. The conventional loan limit is $417,000.
MYTH: There are no 100% financing programs available.
TRUTH: VA loan eligible veterans can still obtain 100% financing. A VA eligibility certificate is required. VA can lend up to $417,000. Also, for qualified areas & homebuyers there is the USDA Rural Housing loan that will allow for 102% financing.
MYTH: I heard investors are not lending money & there is none available for home buyers.
TRUTH: The money you are hearing of is money available for small businesses & commercial loans - there is plenty of money to lend to homebuyers at still historically low rates.
MYTH: Interest rates must be high since there is very little money available for homebuyers.
TRUTH: There IS money available and interest rates have remained under 6.5% for the majority of 2008. We have had some good rides where rates even dropped below the 6% mark, call your Allen Tate Mortgage Consultant today to inquire where rates are for the day.
MYTH: Jumbo loans are to risky and are not being done
TRUTH: Absolutely incorrect. In fact, the fixed term Jumbo (loans from $417,000- $3,000,000) rates are in the Low 5% range, better than a year ago!! You can even obtain this money with as little as 5-10% down.
MYTH: This mortgage crisis must mean this is not the time for me to buy or sell my home.
TRUTH: This is a great time to buy! You may get less on the selling end of the deal - that is reality, but you will realize a WIN on the buyside!
TAKE AWAYS.
- THERE IS MONEY TO LEND FOR THE PURCHASE OF A NEW HOME!
- THERE ARE STILL PROGRAMS WITH MINIMAL DOWN PAYMENT REQUIREMENTS
- THERE ARE STILL GREAT INTEREST RATES AVAILABLE!
- THERE ARE STILL WAYS TO PURCHASE A HOME WITH VERY LITTLE IN CLOSING COSTS!
- YOU STILL NEED TO QUALIFY FOR A HOME AS ALWAYS - SHOWING INCOME, ASSETS & A REVIEW OF CREDIT
"How's the Real Estate Market in the Carolinas?" - click here to find out
All the best,
Brad D. Dinkel
Sr. Mortgage Consultant, Allen Tate Mortgage Services
704-634-2918 Direct
980-233-3909 Fax
"Focusing on Strategic Mortgage Planning and Wealth Advancement"
To get Pre-Qualified now, click the link below so that I can assist you as quickly as possible:
http://www.bradmortgage.com/
