Noah did not get a Sub Prime or Exotic Mortgage and neither should you.

by Michael Mapes, The Responsible Mortgage Lender  

Sometime around Noah's 500^th birthday God commissioned Noah to build an Ark.  While I can not imagine what Noah looked like at 500 or what he looked like when the flood came when he was 600.  What I can tell by all accounts is that it took Noah the better part of 100 years to build the Ark.

I am not even sure if they had banks or money lenders back then.  What I do know is that the Ark was 450 feet long and 75 feet wide and 45 feet high.  That takes a lot of lumber, patience and planning.  Not to mention nails, hammers, saws and other raw materials to build this massive ship.  Noah had to have a plan, after all The Ark was going to be his home and that of his family and two of every kind of animal.

How did he build this massive structure?  I am not sure anyone will know.  What I am sure of is that Noah planned out ever detail.  He knew what the end goal was and designed a plan to get there.

Much like today, when people want to buy a home they need to have a plan.  Every plan has a foundation and a goal.  Include in that plan what I can comfortably afford to pay for a house payment.  This plan should take into account your other obligations as well.  If you have kids what are there needs are going to be as they get older?  Your plan for successful home ownership should also include a reserve fund of at least three to six months obligations.  This allows you to survive most unforeseen storms. 

A sound financial plan for responsible home ownership is key to building wealth and protecting equity.  In the 100 years it took Noah to build the Ark I am sure his financial plan did not include purchasing 100% of the materials and labor cost on a deferred interest rate loan or sub prime loan with a 50% debt ratio.  What I am confident in is that Noah had help.  Help from people he trusted who gave him good advice on how to acquire the materials needed to build his Ark. Help in constructing a way to pay for it as he went along.  Much like today's responsible mortgage lenders and realtors whose true calling is to serve people and help them acquire the most valuable asset they will ever have, a home of their own.

Obtaining credit to purchase a home is still widely available.  In fact today there are still hundreds of ways to responsibly finance a home.  The traditional 30 year mortgage are still a tried and true product, 40 year mortgages are very safe and yes there are still 100% financing products available for people with reasonable credit.

If you have a plan for responsible home ownership there are ways for you to get there.  Maybe it is not that $400,000.00 home you are in love with.  But a $200,000 home you can afford is a lot better than paying rent and eventually you can sell it make a profit and possible then you can afford that dream home. 

By all accounts Noah took the better part of 100 years to build the Ark.  We do not know how he did it but taking lessons from life we can achieve some picture of the time and effort he had to put forth in doing it.  No one lives to 600 plus years of age any more, let alone start a massive building project at 500 years old.  But what Noah shows us is that over time if we plan, if we are determined, practice patience and sound financial guidance we can build ships and homes, it just takes time to get there.  

Home ownership is a wonderful gift for a family; responsible homeownership allows you to enjoy the trip.