So many apartment complexes are filled up with people who would rather own but don’t think they qualify. Most people are surprised to find out that a “short sale” or “deed in lieu” of foreclosure before December 2012 is no longer be held against you. In fact, day by day, people who lost a home to foreclosure in 2013 are getting their families settled in a new home with some very attractive interest rates and some excellent home prices that are currently below 2005 levels.
If you are a victim of the Mortgage Melt down, “you lost your job”, had a “change in marital status”, or suffered a “personal loss”, housing could be the bright spot for you in 2016.
The FHA loan limits are at $274,850. Carol and I just closed a new single family home in Windermere, FL within the FHA lending limits. That’s correct...Windermere...New!...Under 300k... and walking distance to a brand new elementary school. I know some of you find this hard to believe.
Some people are stuck on the fictitious 7 year penalty for bad credit but that rule is long gone. In fact, if you had a bankruptcy discharge in 2014 you may qualify today, all you need is to have established 2 good lines of credit since the discharge and you could be spending next New Year’s Eve in a brand new home.
What does this require?
- You need to prove you can afford to pay the mortgage which should be 28% of your income.
- You need to explain to the bank how you got in trouble before,
- (I personally believe) You really should have at least 3 months of savings in the bank after your 3.5% down payment
Do you have more questions? Do you want to own a home in 2016? Then you should be calling me right now!