My life revolves around Real Estate, so it is extremely common for the main topic of conversation between friends, family, clients, etc.. to be on Real Estate. Time and time again I hear “We want to buy a home, but we are saving a down payment”, or “We only have a 650 FICO score, so we are working on bringing that up”. You CAN buy a home with NO MONEY DOWN, and you CAN get approved with a low FICO score!
Urban institute recently release a report entitled “Barriers to Accessing Homeownership”, which entailed that “eighty percent of consumers are unaware of how much lenders require for a down payment or believe all lenders require a down payment above five percent”. The loan process has changed tremendously over the years, and there are several options that put you in a low or no money down situation. The “USDA” loan requires no money down, FHA requires less than 5%, and if you are military or have a military background, VA offers a no money down scenario as well.
Similar to the down payment Myth, many consumers believe you need a 700 credit score or higher to even get approved. This just isn’t the case! Ellie Mae’s latest “Origination Insight Report” which is compiled upon recently approved loans, shows that over 50% of the consumers had a score lower than 750, and 20% had were between 650 and 700.
With several options available, knowing and understanding your options is extremely important and makes the home buying much easier. It also puts YOU in control! The home you have been dreaming of and working towards may be already be within your reach!
If you have further questions on this, call me at 334-425-0022 or email me at email@example.com!
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