Is this the question that you are constantly asking yourself? How can I buy a home even if I don’t qualify for a sub-prime loan? What if I told you that you still could buy a home even when you get turned down for a home loan. I bet you are kind of scratching your head right now... How is that possible? How can I get in a home even when I don’t qualify for conventional financing?
Well here are a few answers:
1. You will have to be creative in your offer to the seller.
2. You need seller’s who has a need to sell: Relocating, etc
3. You need sellers who are open minded to listening to another way of getting there property sold.
So why no one every told me that there was a different way? Well because a lot of people don’t know how to think differently. I was talking with a group the other day and it seem like they where saying that if a new pair of jeans come out and it becomes stylish then we all tend to buy them based on the crowd. It’s the same way as buying a home. We have become so use to hearing lenders say no until after the third no we usually give up. What I want you to do is snap out of it! Stop allowing the no's to keep you from moving forward in trying to purchase a home. I've learned that you have to get pass the no's to get to a YES..... Just like right now you are ready to buy your next home and your lender has turned you down..... Here is the question to ask your lender:
1.” If I don’t qualify for 100% financing what amount do I qualify for? Do you qualify for a 95% loan or do you qualify for 90% loan or do you qualify for a 85%..... Find out what you can qualify for....
2. If you find out that your credit is below the minimum credit score then what other strategies are there?
(A.) You can ask that seller can you rent there home for at least 12 months to 2 years and have an option to buy the home.
(Note: Within this period you need to make sure that you are
re-establishing credit and doing debt settlement with some creditors
that want come off of your credit report. )
(B.) You can ask the seller will they owner finance there home to you with a little money down.. This amount can be 3% or more down.... What does this do for you? It helps you to qualify because you are not dealing with conventional financing guidelines.
(C.) You can check out FHA guidelines to see if you qualify for FHA financing.
Did you know that
FHA has come out with new guidelines? Look below to see some of the following things.
No minimum FICO score- FHA allows “common-sense” decisions.
Maximum loan amount for Dallas, Kaufman, Collin, Denton, Rockwall and Hunt Counties is $200,160 (Sales price of 204,760 with the 2.25 down payment)
Minimum Down Payment is 2.250%, but can roll in all cost with $0 out of pocket.
Buyer must make a 3% investment unless down payment is paid as a Grant/Charity (DAP) contribution.
Seller can contribute up to 6% of the Sales Price without using a Charity (DAP) contribution.
No Termite Inspection Required.
No Non-Allowables required for the seller.
Buyer can currently be in a Chapter 13 Bankruptcy.
It is an assumable loan (important when rates go to 8% and they are at 6%).
Buyer can have Federal Tax Liens and not have to pay them off!
(D.) Did you know that if you serviced in the USA army, Airforce, Marines or Etc you may qualify for a VA loan... Just look below at some of the guidelines:
NO Minimum FICO score is required*
There is NO down payment required!
Seller can pay any/all of reasonable buyer’s closing cost!
Buyer CAN currently be in chapter 13 BANKRUPTCY*
Sales Price can go up to $417,000*
Can have unpaid collections
Can go as low as an 4.20 Fixed Rate if used in conjunction with a Texas Veterans Land Board program.*
*Some limitations apply
(Note: Above information on FHA and VA loans where provided by one of my loan officers:
Linda Davidson. If you would like to receive her information feel free to contact me....)
The above information lets you know that yes you still can buy a home. You might have a things to do list. But, don’t you think it would be worth giving it a try? So don't give up. Keep your goals before you and like the old saying: "If first you don’t succeed, then try, try again." Don't give up on the dream of home ownership. You can have a home too!
Your Next Action Plan:
1. Find a Realtor and Lender that understands FHA and VA guidelines. Also find out what you can qualify for.
2. Get your credit report and see what things need to be settled and what things can be taken off.
3. Find sellers who will agree to terms of allowing you to rent and then give you an option to buy.
4. Talk with Sellers and see if they will Owner Finance there home.
Author: Calvin Wright
Comments