With the summer
home-buying season underway, house hunters are looking for loan
options that will help them make the move to home ownership. Whether
they are first-time buyers or looking to move up or downsize, loan
programs are available to fit all types of needs.
more good news: Buyers no longer need to save up for a 20 percent down
payment. There are also loan programs for borrowers with
less-than-stellar credit scores and large student-loan debts.
Credit Union recently introduced a loan program that offers 100
percent financing with no private mortgage insurance. The program
loans up to $1 million in purchase money to qualified borrowers.
default rate on this product is lower than national averages, since
savvy home shoppers tend to select this loan as a way of keeping their
cash in the bank rather than tying it up for years in a single
property," said Bill Pearson, spokesman for Navy Federal Credit
looking for a loan with a low down payment, consider a Federal Housing
Administration or VA loan. These offer high income ratios and generous
flexible credit-score guidelines with down payments of as little as
3.5 percent. Note that FHA loans have a $612,950 limit in San Diego
For those with
student debt, Fannie Mae has made it easier to get a home loan.
Borrowers participating in the federal reduced-payment plan are able
to report their actual monthly payments toward their debt-to-income
ratios. Until recently, lenders needed calculate 1 percent of the
student loan balance as the monthly payment on the student loan,
greatly increasing the debt ratio, which made it difficult to find a
are also available. Low- to moderate-income borrowers have a number of
loan options available, from rural-living mortgages and loans for the
self-employed to down-payment assistance programs with a 5 percent
grant for closing costs or down payments.
home can be a complex, intimidating process. There are a large number
of discouraged customers who were impacted by the 2008 crisis with
good credit history that want to get back into market," said Doug
Smith of Caliber Home Loans. "These are people who had an event
that disqualifies them for an agency product: VA, FHA and conventional
conforming and jumbo financing.
quality, non-agency eligible borrowers who demonstrate the ability to
repay are a newly emerging market. Recently, products have been
introduced into the market allowing lenders to continue the highest
standards of underwriting and risk management to work with these
customers in a responsible way. It is with this in mind, Caliber Home
Loans developed a number of portfolio products designed to play a
complementary role to traditional financing."
In other words,
if you want to buy a home, chances are there’s a mortgage out there
designed to help you make it happen. Do your homework before finding a
Before you fall
in love with a home, look at your credit score and your finances.
Gather several years of tax documents and three to six months of the
most recent bank statements and paystubs. Know what your needs or
challenges are and tell your lender about them. What they don’t know
can hurt you, so ‘fess up and take control of the loan process.
important thing is that you work with a financial institution you
trust, who works as your financial advisor," Pearson said.
With the right
financial partner on your side, you can march into a sales office
armed with a pre-approval in your hand.
Credit Union, http://nfcu.me/1ef0eY4
VA loan, http://bit.ly/Mg6CXZ