Home Loan Facts

Mortgage and Lending with The Mortgage Market of Delaware

Home Loan Facts

A survey was recently conducted where people were asked about the current home lending environment. The results showed many are under the impression that it is very difficult to qualify for a loan. While it is true that lenders require more documentation than in previous years, the guide lines regarding credit scores, debt ratios and down payments are not as strict as one might think.

Here are some facts:

1.      Borrowers do not need pristine credit to obtain a home loan. In fact, they do not need to have a credit score at all. Many lenders offer loans to borrowers with 580+ scores. And, if they do not have a score, the home buyer just needs to provide some alternative credit references with the main one being a good rental history for at least 12 months.

2.      Most people do not have a 20% down payment. Loans are readily available with 15, 10, 5, 3.5, 3%, and even zero down. Conventional loans allow as low as 3% down. FHA has 3.5% down. And VA and USDA do not require a down payment at all.

3.      People that have had serious derogatory events can get back into purchasing a home after just a few years. Chapter 7 Bankruptcy:  4 years after discharge for conventional, 2 years after discharge date for FHA and VA, and 3 years for USDA.   Chapter 13 Bankruptcy: 2 years from date of pay out period for conventional, 1 year for FHA, VA and USDA. Foreclosure: 7 years from completion date for conventional, 3 years for FHA and USDA and 2 years for VA. Short sales and loan modifications allow relatively short waiting times as well.

4.      FHA allows for non-occupying co-borrowers. This is a huge help to potential home buyers that may not earn quite enough to qualify for the home they desire. Adding a non-occupying co-borrower fills in that gap.

5.      Sellers help toward home buyers’ closing costs is sometimes overlooked but can help immensely to structure the sale of the home.  This helps the buyers not have to have as much money out of pocket.  The seller can still net as much at closing by increasing the purchase price by the amount of the closing cost help.

6.      Investors looking to get back into flipping or renting can obtain loans with as little as 15% down. Some lenders allow for 5-10 properties to be financed.

There are many ways to structure sales contracts and loan requests to help home buyers reach their goals. Talk with a trusted mortgage professional to find out how you can effectively position yourself to make your real estate dreams come true.

Written by: JoAnn Moore, Licensed Mortgage Professional, Certified Military Housing Specialist.  President and Owner of The Mortgage Market of Delaware, Georgetown and Seaford, Delaware. Office 302.855.1306, Cell 302.236.1229, MMODJoAnn@aol.com, www.TheMortgageMarketofDelaware.com




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Winston Heverly
Winston Realty, Inc. - Atlantis, FL

What a super amount of helpful information, I'm glad I stopped by. Thanks for sharing.

Jul 17, 2015 01:09 PM #1
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

The info you provide here is great, JoAnn Moore ... and the more often potential homebuyers see it, the better.  Basically they need to learn to not fear asking questions ... and to get those answers in advance of their actual time period for a home search.  Your info removes some of that fear and should motivate readers to contact you ... or a local lender ... kudos!


                                               FEATURED  IN  BANANATUDE!


                                             CONGRATULATIONS!  WELL DONE!



Jul 18, 2015 12:15 AM #2
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

JoAnn - I think you are correct, that there is a misconception that getting a home loan these days is very difficult. Thanks for showing that it is not, and getting the real truth out there.

Jul 18, 2015 11:23 AM #3
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you Winston, for your kind words. I am glad you find these tips helpful.

Jul 19, 2015 12:48 AM #4
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you Gene. I didn't realize this post was featured in BananaTude until you wrote. It is good to hear nice feedback from another loan originator.



Jul 19, 2015 12:49 AM #5
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

Thank you Troy. We need to do all we can to let people know the facts about the possibilities to counteract all of the misinformation in the media. 

Jul 19, 2015 12:51 AM #6
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

 conventiaonl loans have moved up 4.1% 30 yr fixed so is ARM.' 

Jul 19, 2015 07:14 AM #7
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning JoAnn. Great job with your post, unfortunately there is so much bad information out there, but your post helps set the record straight.

Make it a great week!

Jul 20, 2015 01:51 AM #8
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Nice post JoAnne, it is so important to present the facts in a way that people can understand so that they can prepare for their future home loan.


Jul 21, 2015 03:15 PM #9
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Important information that clients need to be aware of before they attempt to take out a loan.

Jul 29, 2015 12:02 AM #10
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Hi JoAnne,

These are great facts that anyone renting should look at!  Better to pay themselves than the landlord.

Aug 21, 2015 01:45 AM #11
Alan Kirkpatrick
Austin Texas Homes - Round Rock, TX
Alan in Austin

JoAnn Moore 

Very good post and reminder. We need to get the word out. Have a great week. 

Aug 30, 2015 01:44 PM #12
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is good information for home bueyrs looking for financing. Have a good day.

Oct 28, 2015 09:31 PM #13
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Home Loans in Delaware
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