With all the focus on the negative in today's news, I thought I'd throw in a couple of positive scenarios.
#1 Transaction closed September 2007:
A young couple decided the time was right for them to buy their first home. They were married a year and a half ago, have been very diligent about limiting their debt load, only having a few small student loan balances, and socking every extra dollar away in to savings, planning to buy when values came down a bit from where they were in 2006. They managed to save up 10% for a down payment, but it was looking like buying a home might not happen any time soon, with values holding pretty steady in the Rogue Valley for the price range they were looking in. AND interest rates started heading up. Even with the savings they had accumulated, they were going to need some help to get the payments in line with what they wanted to pay. They may have QUALIFIED for a higher payment, but they are trying to hold their monthly housing expense to a level they could comfortably afford on one income, having tested this for several months a year ago to make sure a single income would get them by.
They called Quality Home Loans, Inc. to see about down payment assistance and first time home buyer programs. It turned out they were the perfect candidates for the Oregon Bond Loan. Then, the rate on the Oregon Bond Loan program went down. With the help of a gift from their parents, they were able to buy a brand new home just completed in Central Point, with a location close to an elementary school which would be just perfect for when they start their family. With the seller contributing toward their closing costs AND the CashAdvantage credit from the Oregon Bond Loan program, all of their accumulated saving and their gift funds were applied to their down payment, and the total monthly payments (principal, interest, taxes and insurance) came in within their budgeted $1,200 range.
The new homeowners have moved in, and are busy decorating for the coming holidays.
#2 Transaction closing Thanksgiving Week:
A young man has found his dream job, and has been settled in to his chosen career for 18 months. He has great income, and great credit, but not quite 3% to put down on a home purchase. After being priced out of the market in 2006, he was spending like crazy accumulating toys. Seeing that the market was changing, he decided he would start setting this income aside and save for a home. Before he could accumulate the down payment he was shooting for, he found that several houses were coming in to range for his budget. He didn't think he could buy yet, but contacted Quality Home Loans, Inc. on the off chance he might be able to act on one of these opportunities.
Like the couple in #1, he needed a gift to assist him with reaching his goal. In addition, he needed to payoff one of his accounts to keep his budget in line, so he sold one of his toys. He was approved with a back-end debt-to-income ratio of 55%, but knew he was going to pay off another account that would make his monthly budget more comfortable.
Again, the CashAdvantage Oregon Bond Loan program was the best alternative for this gentleman. He signed his final loan documents, brought in his closing funds, and will be settled in his house before Christmas.
Both of these transactions were layered with intricacies, but with the help of an experienced mortgage consultant, these young people are on their way to experiencing the many benefits homeownership can bring.
Opportunities abound! See you at the closing table!
Karen Cooper - Oregon/California Mortgage Consultant - http://www.quality4loans.com/
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