Home Loan Resources

As of October 1st, the government has banned all seller funded Down Payment Assistance programs.  The whole legality and ethical battle of why these programs should or should not be allowed is a whole another story.

However, with all the foreclosures on the market today, we really need to sell these to willing buyers to help stabilize the real estate market.  Over the last 6 months, 90% of our business came from first time home buyers utilizing DPA (or DAP) from the sellers who otherwise couldn’t buy a house at this time.

These buyers have good credit and make good money to pay their monthly mortgage, however, saving for a down payment just hasn’t been possible.  Thet=y deserve to own a home and enjoy the benefits of owning rather than renting.

I am really curious to see the number of home loan applications over the next few months to confirm that this ban on these programs has truly affected our real estate market in the opposite way.  Only time will tell.

In some cities and communities there are still organizations with programs that offer down payment assistance to qualified borrowers , so look to see what may be available in your town.

Qualifying for a home loan is more than just applying in today’s market.

Today’s home loan standards are changing almost every day.  It is a combination of the declining home values in some cities and the sub-prime mortgage “melt-down”.

There was a time not too long ago where all you had to do to qualify for a home loan was to apply.  Well, it was a little harder than that, but it seems like it was that easy.

You didn’t need a down payment and you didn’t need to make a lot of money.  At least that is what some home loan lenders would lead you to believe.

Now, for the most part, you will need a down payment and you will have to verify that you make enough money to afford the home that you are buying.  That sounds like commom sense if you ask me, however that is where the industry has put itself.

The down payments do not have to be large, they can be as little as 3-5% of the purchase price and there are still a few ways to obtain 100% financing.  You need to talk to your home loan lender or mortgage company and find out what is available today.