I've found that Home Buyers looking to be Pre-Qualified for a home loan purchase are sometimes quite surprised by their ability to successfully get a Loan Approval without having PERFECT credit.
To add to that (pleasant) surprise, they also find that they can obtain a Mortgage with just 3.5% down payment for a FHA loan, or even no (0%) down payment as a Veteran (VA Loan). In certain rural areas, USDA-Rural Development Loans are also available with no down (0%) payment requirements.
Note: It has been reported that Fannie Mae will soon begin authorizing Mortgages for Borrowers with as little as 3% down payment, according to a recent statement made by the company's President and CEO, Timothy Mayopoulos. (Oct. 26, 2014)
Mayopoulos reported that Fannie Mae will offer a 97% Loan-to-Value Mortgage that may be originated by Lenders doing business with Fannie Mae. He stated that, "Increased underwriting quality and improving representations and warranties will allow Fannie to buy these loans".
As of the writing of this post, (November 6, 2014) no exact starting date has been provided for the availability of this 3% down payment program.
What is frustrating for me as a Lender, is that myths continue to exist regarding down payments, credit scores, and "gift monies". Myths that keep too many that want to buy from actively pursuing home ownership. (It's my opinion that the media contributes greatly to these myths.)
So I want to address only FACTS here:
Fact: I've closed a great number of Mortgages that fly-in-the-face of these myths. I've closed loans for Buyers with less-than-perfect credit. With Credit Scores at the time of their Closing ... in the range of 580 to 640.
Fact: I help those with Credit Scores below the range of immediately allowable lending, improve their Scores. My help is provided at no charge to the client. Other lenders do much the same, but you rarely see or hear that reported by the media.
Fact: Gift Monies have been involved in a large number of my closings. I've written many articles on this topic.
Fact: Gift Monies ARE acceptable funds for down payments and closing costs, but there is a right way ... and a wrong way to utilize them and present them to an Underwriter.
Fact: The more quickly you educate yourself regarding the use of Gift Monies (and the entire Mortgage Process), the better.
Fact: The selection of your Mortgage Lender is vitally important. Take the time. Make the effort to find the best professional possible.
Fact: An experienced Mortgage Lender like myself, can interview a prospective Home Buyer, pull their credit, analyze their income and debt, and assess the likelihood of an Underwriting Approval, in most cases, in a reasonably quick time-frame.
Fact: It's true when it's reported that Borrowers must be more educated and actively participate in their Mortgage Process more than they used to in the past.
Fact: The quality of the guidance being received via your Mortgage Lender (and real estate professionals) and the quality and level of communication you share with them ... can make or break your home buying/financing experience.
But remember, it's also a FACT that the responsibility to communicate and produce results rests on both sides of the transaction ... professional AND clients.
Fact: Quality information, guidance, and assistance exists if you truly hope to buy, whether your purchase is immediate or at some point in the future. Again, the sooner you seek and find help, the more quickly and smoothly you'll be able to successfully purchase and finance your home.
Whether you're a hopeful Buyer with less-than-perfect Credit Scores, a poor Credit History, low/no down payment, hoping to use gift monies, or have little or no understanding of the process ... it can all be overcome. You just need some time and the right professional at your side assisting you.
Contact me today ...
* Hoping to Buy, Build, or Construct a home in the Chicagoland area? Contact Me! I'll put my 37 years of Mortgage experience and expertise hard to work on your behalf.
I can be easily found at: