Why are YOU Still Paying Rent?

In this market, home values are sinking to reasonable levels, interest rates remain attractive, it's a great time to buy! There are a TON of 1st time homebuyer mortgage programs that are meant to assist a 1st time homebuyer to get into the housing market.

When you figure out how much rent you're paying, that you're throwing out the window, you can probably own a home for roughly the same as what you're paying! And...the interest you pay on the loan and the property tax may be tax deductible (speak to your accountant).
Whatever your situation, your mortgage professional can evaluate your current situation and your goals, and fit the right mortgage to meet your needs. Here are just a few programs that are out there:

Rehab loans: The lender will lend the cost of the house plus repairs. They will escrow the repair money and your contractor will draw the money after each repair is made. This is the perfect program if you want to save some money buying a fixer-upper.

FHA loans: FHA requires that you put 3% down on the purchase of a 1-4 family owner-occupied home. Your credit has little impact on this type of loan. There is no PMI (private mortgage insurance) on this type of loan, as it is backed by FHA.

100% finance loans: These loans are alive and well. Be prepared to document your income! Gone are the days when banks will lend any amount of money.

Stated income/stated asset: If you're like me, and all of your deductions eat up your income, you may fall in this category. Here, you will tell the lender how much you make and/or tell them how much you have in the bank (between savings accounts, stocks, mutual funds, 401(k), etc). The interest rate is marginally higher. Be prepared to have excellent credit for this type of loan though. The lender may require you to put 5-10% down on the home.
This is just the tip of the iceburg. There are many, many loan programs out there. Your mortgage professional can help you find just the right one that works for you.

Happy house hunting!


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