YOU CAN BUY A HOME FOR NOTHING DOWN AND NO OUT OF POCKET EXPENSE!

Have you seen these types of ads before? As recently as the end of 2007, there were still a few of these loans available, but due to the fallout of the Sub-prime mortgage market, this type of loan is no longer available. And that's a good thing. Let me tell you why....

Many people fell victim to shady lenders that had 'loans for everyone". These loans put many good people into bad financial situations. Fannie Mae and Freddie Mac have made it a little more difficult for folks with less than perfect credit to get loans but on the positive side, rates are very competitive and foreclosure rates are reducing because of the changes that have been made.

Here's what's going on in the market today: At the time of this printing (5/2008), the only type of loans that are available are what the industry calls "conforming, full-documentation loans". This means that you will have to verify your income through your W2 statement and tax returns. The 'stated-income" loans for self-employed or 1099 borrowers are nearly extinct. 100% LTV loans are no longer available. Credit scores are once again extremely important to a borrowers ability to get a favorable loan. 620 is the minimum credit score for a conforming loan with an LTV between 80 and 95%. Credit scores under that will require over 20% down. Credit scores over 720 will be rewarded with excellent rates. Jumbo rates (loans over $417,000) are getting hit a little harder right now - usually 1-2% more than conventional rates. FHA has reduced the underwriting guidelines to make it easier for folks with limited credit, but the collection history and late payments must be non existent. As always, FHA rates are very low , but the cost of this type of loan is expensive for most first-time buyers.

SO, what's the good news? If you are a looking to buy a home in the $100,000-400,000 range and have good credit, mortgage money is realtively inexpensive and home prices are low. There are some great first-time homebuyer programs for workers in the healthcare, military and public sector that have under median average incomes. Today, your dollar is going alot further than it has in years past in the housing market. Loans are available with just a minimum of 5% down, unlike the 1960's and 70's when you couldn't even think about buying a home with less than 20% down.

IF YOU ARE INTERESTED IN FINDING OUT WHAT YOU CAN QUALIFY FOR, JUST GIVE ME A CALL OR CLICK ON THE PRE-APPROVAL LINK TO GET STARTED. 

I'LL GET YOU PRE-APPROVED AND WE CAN BE OUT LOOKING FOR HOMES THIS WEEKEND.