Costs Associated with a Home Loan
What does it actually cost me to purchase a home?
Lenders over the last few years have tightened up the lending guidelines and by doing so have given the general public the perception that it cost 20% to 30% down payment plus closing cost, plus cash reserves’ to purchase a home. While the lending guidelines are now similar to those of the late 1970″s and early 1980’s, the cost of acquiring a home still remains quite low.
You can obtain homeownership with as little as 3.5% down payment plus closing cost and a few months of cash reserve requirements under the FHA (Federal Housing Administration) lending guidelines. You can even get the seller to pay for some of your non-recurring closing costs. You can even have “less than perfect “credit.
Under the VA (Veterans Administration) you can obtain home ownership with no money down and just pay closing costs and have some cash reserves on-hand. You can even get the seller to pay for some of your non-recurring closing costs.
If you choose to get a conventional loan thru Freddie Mac or Fannie Mae, they offer similar programs because they are in direct competition with the FHA.
If you have the cash to put down more money, say 10% to 30%, you have other options, available. You can even have less then perfect credit. There are millions of people who have poor credit due to the downturn in the economy and think they cannot get a loan. Yet, these people still make good money and can qualify for a home. We at LendPlus Financial have all kinds of lending solutions for all types of situations.
Take the case of the person who purchase a home in 2004 for 1.2 million and took on first and second trust deed and put down 20%. Now the home is 45% less in it value and the homeowner can no longer make the payment because there income has changed to the down turn in the economy. They had to sell the home for less than it was worth in a short sale and wait a while from the time the home was sold. This person may qualify for a home now, because the incident was a “One Time Life Occurrence” under many lending guidelines. In this case, it would be wise to see if they fit any guidelines for purchasing now or in the near future.
Always remember, lending guidelines change from time to time to reflect the lending conditions, market conditions of the seasons. After all, lenders want to lend money, in most cases; that is why they are in the business. They have bills to pay too and want to push money out the door. They just need to find the people interested in home ownership.
One last thing, if someone told you that you could not qualify for a home loan, get a second opinion. We have had countless times where another loan agent from some small company told the buyer they could not qualify and they actually could. We get people approved all the time because we have the direct resources to do so. Take the opportunity to contact one of our loan agents, today!