It may be tougher to qualify, but people still get mortgage loans

There may be road blocks experienced when attempting to qualify for a home loan however it’s often not as difficult as assumed. Rates remain at or near record lows and programs still remain available for those with no equity OR who owe more than their home is worth. Those that allow home owners to reduce rates (even without an appraisal in some cases…) and either reduce payment and the mortgage length.  With the uncertainty of the stock market, taking advantage of the opportunity to reduce one’s loan term is paramount for many to eventually retire. Some lenders have recently introduced reduced credit score standards allowing some to qualify through FHA and VA with credit score as low as 600!

Unfortunately, the media often overshadows the positives of the market. As a result housing inventory often remains stubbornly high, people struggle more with their financial situation, and still many believe they have no options. Some may not know where to turn to get answers, are told negative and often misinformed information from friends or colleagues. As a result, they don’t even attempt to improve their situation when help is usually available. Some common complaints heard today is I don’t have enough money for a down payment to buy or I don’t have the equity needed to refinance my loan to reduce my payments. Still rates remain near record lows over the last year, yet many still have rates much higher than they need to have.

While lenders may take a closer look at the income, asset, & employment detail as well the appraisal more closely than ever before there’s the potential of great benefits to homeowners. Home prices in a lot of markets are more competitively priced than they have been in years. Such value buys are a tremendous way to gain rental income or take advantage of any future upturn in real estate. Current homeowners, potentially affected by layoffs and declining home prices, are able to reduce their rates and often the terms of their current loans. In an economy where gas is nearing $4/gallon and consumer staples have risen rapidly, such cash savings is paramount for many just to keep ends meet.  Even when it is not possible for financing, there is a national website set up for free housing counseling (or in Maryland). While the news is often negative these days, take advantage of what is positively available today, before these options run out. For more information on how these programs may benefit you, contact us now!