Posts Tagged ‘foreclosure’

Holding onto the past

October 29, 2009

The past can hold a lot of great memories… birthdays, wedding day, graduation, one’s favorite TV show that was cancelled by FOX… OK, that last one was a personal example, but you get the idea.

Some people I talk to still reminisce about the “good old days” of buying a home when it was easy to get financing. By fixating on that thought, one may begin to believe that no one can get financing now. That is simply not true!

Banks are still lending money, but they now prefer “safer and more predictable” loans (in other words, fixed financing) instead of the no doc, stated income/stated asset, subprime, etc. programs that helped usher in the current financial crisis we are all struggling through.

Borrowers can still qualify to buy homes with little money down, less than average credit, and can choose from a variety of loan programs. Some examples:

  • Borrowers only need 620 credit score to qualify for an FHA loan
  • A down payment as little as 3.5% can get someone into a home with an FHA loan (5% for a conventional loan)
  • Some foreclosed homes are eligible to be bought with only $100 down, and still others are available with no money down
  • Adjustable Rate Mortgages (ARMs) are also available with as little as 5% down
  • Interest Only ARMs do exist, but the down payment requirement is now 20%

If you are looking to buy or refinance your current home, get in contact with me. We can discuss “how things were” vs. “how things are” and make sure you are ready to move forward with your next loan.

Sometimes it is just best to let go of the past no matter how tough it may be… If we stay in the past, we might miss out on the best buyers market (low rates and lower home values) in years.

One might also miss out watching an actor from their favorite TV show star in his new show on ABC.  If that were true for me, I would have missed this great Halloween episode moment when he paid tribute to his character from the cult TV show FOX cancelled 5 years ago – Malcolm Reynolds from “Firefly”. Enjoy!

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Buy a home with a $100 down payment

May 11, 2009

Yes, you read that correctly.  Regardless of what you may hear in the news (must have a 20% down payment), there are homes available to buy with only a $100 down payment.  All a potential buyer needs is $100 for the down payment, 600+ credit score, the home must be their primary residence, and well, a pulse!

For more details on the program, you can go to HUD’s website here.  For a quick look at some of the highlights:

– The home must be owned by HUD and requires an FHA loan to purchase the property.

– Buyer must give a full price offer on the home.

– Provisions are made to offset some (if not all) of the closing costs.

The pros to this program are obvious – a home buyer only needs $100 for a down payment and can use an FHA loan (with flexible credit qualifying) to buy the home.

The biggest downside to this program is location, location, location.  The only properties eligible for the program must be owned by HUD.  This makes targeting a home with a certain number of beds/baths, a specific neighborhood, or school district a little more difficult.  It just depends on what is available.

Interested?  If so, you need to find see the homes available. To do that, try this link.  If you are in Georgia, go here.

Don’t believe everything you see on TV or read on the internet.  You don’t need a 20% down payment to qualify for a mortgage.  Homes can be purchased for as little as $100 down through this special FHA program.  Generally, FHA loans only require a 3.5% down payment, and conventional loans only need 5% down.  That is a far cry from the “20% needed” you may hear on the news!

Clay Jeffreys is a Mortgage Consultant with Dunwoody Mortgage Services, Inc. and writer for “Blog Pertaining to the Acquisition of a Mortgage to Purchase a Domicile.”  Dunwoody Mortgage Services seeks to provide mortgage brokerage services with the highest standards of service, care, honesty, integrity and value; concentrating on owner-occupied, residential financing.  For more information about Dunwoody Mortgage and available programs, please visit www.dunwoodymortgage.net.