Home ownership is one of the key ingredients to building wealth in this country.  Take any 100 people at retirement age and here is what you will find.

                        1 in 4 will be wealthy and financially secure

                        5 will still be working to make ends meet

                        36 will be dead

                        54 will be dependent upon family or charity for their support

By owning your own home you can start to build equity and create wealth.  You will also no longer need to put up with noisy neighbors and landlords who don’t fix things and keep raising your rent.

But What If I Have Had a Bankruptcy or Other Credit Problems

Let me make something very clear here:

YOU DO NOT HAVE TO PUT DOWN A LOT OF MONEY OR PAY HIGH RATES EVEN IF YOU HAVE HAD A BANKRUPTCY OR OTHER CREDIT ISSUES.

Bankruptcies are at an all time high.  These occur for many different reasons:

1.      Divorce

2.      Business failure

3.      Job layoff

4.      Loss of income for work injury

5.      Illness

6.      Death in the family

I recently had a client come in who had filed a bankruptcy and was discharged 1 year ago.  During our meeting she explained to me that she and her husband separated and he was obligated to pay her child support.  During their marriage they had made bills which they were able to pay with both incomes.  Now, they were separated and she was left with the bills to pay on her income alone.  To make matters worse for her, he didn’t pay the child support he was ordered to pay.  She was left with no choice but to file bankruptcy.

There are several MAJOR MYTHS that buyers, realtors and even some lenders have about working with buyers who had a bankruptcy or less than perfect credit.

            MYTH:  You have to wait 7-10 years after a bankruptcy before you can get a home.

            REALITY:  Since there are 2 different types of bankruptcy filings, let’s look at each one separately.

                        Chapter 7: You may be eligible for a mortgage 2 years from the date of discharge.  HOWEVER, if your bankruptcy was due to a situation beyond your control and you have re-established good credit, you may be eligible after only 1 year from the date of discharge.

                        Chapter 13: You may be eligible after making 12 on-time payments.  Also, you must get a letter from the trustee of the court that purchasing a home will not interfere with your Chapter 13 repayment plan. 

            MYTH:  I don’t have a lot of money to put down.

            REALITY:  If you are able to meet the standards I just mentioned, your down payment will be 2 ¼ %.  If you are a veteran you may be able to obtain a mortgage with 0 DOWN.

            MYTH:  I will have to pay rates so high that I won’t be able to afford it.

            REALITY:  We currently offer single digit low interest rates.  Currently rates are at the lowest level in almost 30 years.  It is a perfect time to buy a home with an affordable payment.