Mortgage Loans - 1st Time Buyers?

Question

Is it true that now a days people with almost any type of credit score can qualify for a home loan if they are able to afford it have little to no debt? I mean... very little debt!

Also, can you get a loan for 100% of the home price with no down?

Answer 1

ALMOST anyone can get a house, yes. people with scores below a 520 middle score have a very very hard time getting ANY loan, but it is still feasible for them to get a loan. not a great one but a loan anyways.

little debt may likely mean very few tradelines which is something that lenders look for in your credit report. keep in mind no credit is just as bad as bad credit. either way you're a lending risk. Tradelines means a variety of different credit types in your possession. the "best" tradelines to have are generally 2-3 credit card, a mortgage, and an auto loan. this in addition to alternative credit like utilities, phone bills, cell phone and insurance can also help as well.

generallym anyone with a middle score of about 650-680 can qualify for a 100% loan depending on the lender. anything lower than that will usually require a down payment of anywhere between 3-20% depending on how bad the credit is.

Answer 2

Hello - Here is the answer to your questions.

No to your first question and Yes to your second.

Here is some additional details. Due to recent defaults on mortgages, the stated-stated loans have come under far greater scrutiny.

The same qualifications for a zerodown loan, would be needed for a low FICO score.
Gone are the days when a qualified buyer needed $10,000+ in savings as a down payment just to qualify for a home mortgage. In the last few years, a number of new and exciting homeownership programs have been established to help qualified buyers afford a home with NO down payment whatsoever!

Homeownership has some great advantages. You can build equity, while getting a tax break at the same time. And then there’s the pride of owning something you can truly call your own. There is no place like home, and it’s time you owned your piece of the American Dream.Here’s how it works:First, you have to meet some pre-qualifications. While we can provide mortgage loans to just about anybody, including those with some credit problems, the ZERO down loan is reserved for those individuals who meet the criteria set forth below.

NOTE: If you DON’T meet the criteria, we can still help you! Click here to schedule a FREE pre-qualification,http://www.freemortgageinformationsoutherncalifornia.com
We can show you how you can qualify -- even with bad credit!
To Qualify for ZERO Down Home Loan, here is what you need:

Item #1- Proof of 3 Years Stable Employment HistoryYou will be required to show proof of employment for the past 3 years. Proof will come in the form of a written verification of employment from your employer.Note: If you are self-employed, you can still qualify! You will simply need to provide 3 years worth of financial statements proving a stable income.

Item #2 - Reasonable Debt-to-Income RatioWe want to make sure you are comfortable and not struggling to make your payments each month once we grant you a loan. Therefore, we will need to know about any monthly payments you currently make. If you have credit card balances, auto loans, or student loans, that’s OK, so long as they do not exceed a certain percentage of your monthly income.

Item #3 - A Good Credit HistoryAlthough we can even loan money to people with some credit problems, for a ZERO DOWN loan, it is imperative that you have a clean credit history. This means that you have been keeping current with your monthly payments for other liabilities and have also not had any serious delinquencies in the last few years.

Item #4 - Property Types are LimitedYou cannot buy an apartment complex or commercial property with a ZERO Down Loan. Properties that you CAN purchase using a ZERO Down Loan include detached or semi-detached homes, single-family properties, certain town-homes, and condominiums. For more information on what property types qualify, contact us. So, do you meet the criteria set above? If so, we look forward to telling you: “Congratulations - You’re Approved!

”NEW! - FREE 24-HOUR ZERO DOWN PRE-APPROVAL

Fill out our quick and easy “secure online pre-approval form”.
https://secure2.realssl.com/dmeade0804/preapproval.aspx
We’ll run the numbers, and then contact you right away to let you know what amount you are approved for.

Answer 3

Yes if you can walk and talk and have verifable income you can probably in many cases get a loan. Noticed you may be a female single females have special loans to qualify for where you can borrow better also. Yes you can even borrow up to 120-130% of the value of the home...

However if you truely want to be a home owner and keep it thru thick and thin and get some appreciate out of it plan on keeping it for at least 3-5 years or much longer. Then instead of going for those big loans if you get a loan where you put down 20% you will get into the property with less Up Front Cost and Less Monthly Costs. You will also avoid PMI and having the lender take out of your monthly payments Taxes and Insurance. You can do better paying your own taxes and shopping for home owners insurance than the lender plus keeping it paid on time and in full...

good luck...

Answer 4

Lender will give you money for sure. Probably charge you a higher interests rate and extra insurance on the loan for not having the down payment or good credit.

Would you consider delaying your plan? As housing market continues to slump, it might save you 10% simply by waiting for a few months. Another way to look at it, you can increase profit by 10% when you are ready to sell it.

http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514

As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.

Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).

Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.

Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.

Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!

Good luck!

Good article when you want to put in bid, negotiation.
http://biz.yahoo.com/brn/060909/19463.html

Answer 5

Combining the cc debt into the non-public loan is a sturdy theory whilst there is fairness on the abode. although, considering you're a widespread time client and don't have a house yet, that may not achieveable. How lots down charge are you questioning to positioned on the apartment? counting on that quantity, it may desire to be achieveable to pay off the cc debt extremely of the down charge and get a miles better loan charge extremely. i'm a Realtor and a private loan agent, so I help human beings confirm circumstances like that at times. in case you provide me extra element, i will attempt that may assist you artwork out the thank you to attitude this.

Answer 6

The % of the purchase price you can borrow is directly linked to your credit score. Your debt and income determine how large of a loan you can have. Little debt means nothing if you have little income. First time home buyer rates are the same as others.

Contact me if you want a loan in MN, WI, IO, ND, or SD.
[e-mail]

Answer 7

Yes it's true and the interest rates are killers. I just got 100% financing for a purchase. I got a stated income loan. Your credit score has to be at least an 620 and thats the middle score.

Answer 8

yes, poor credit can get a loan, but at a higher interest rate. if u can get a loan is mostly determined by what u can afford. what the loan costs is mostly determined by your credit.
yes, there are programs that will give you 100% or even more, but, once again, it will make the loan more expensive.

Answer 9

I found lots of good information here.

Answer 10

Don't think so