Mortgage Is Possible For Economic Crisis Survivors

Qualifying For Home Loan Is Still An Option For

The current state of the economy has given most average hard working Americans enough anxiety to last a life time. It is quite easy to get caught up in all the doom and gloom to become apathetic regarding the future. But getting a mortgage home loan at 2015 is still possible.

Whether we want to admit it or not life does go on and people will continue to have basic needs that must be addressed. We must have food, water, love and a shelter to call our ‘Home’. To truly be a free person one needs to get off the rent treadmill and start building equity in a home to call their “own”. Read here all about mortgage options as they are reflected at current mortgage markets.

The Upsides Of the 2009 Crisis

If a person was not a homeowner prior to the economic downturn they are actually in a favorable position. The perceived value of homes have dropped by such a dramatic amount that homes that one time could never be bought are at a bargain. The excess volume of properties on the market leaves a potential buyer spoiled for choice.

Before a person goes out to make an offer on a property they need to take a look at their own situation and needs.

  • Do you plan on living in the area next year or for more than five years ?
  • What are your current housing requirements now?
  • What do you anticipate in the future?
  • What type of home do you want to have, is it a condo, town house or semi detached ?

Buying a house that is too small for future needs will create greater challenges down the road. Each of these questions has many benefits and limitations so it is something to factor into your decision making process.

The Mortgage Lenders Are Still Under Siege

The amount of lenders providing mortgages has dried up since the 2009 financial crisis so the potential lenders available has dwindled and the mortgage underwriting requirements are very strict now. Gone are the days when a person could get a mortgage without income verification. Lenders now and in the near future will check and double check everything to make certain the deal conforms to established lending criteria.

If a person has less than stellar credit or income that cannot be documented it will be nearly insurmountable to get a mortgage.

Fortunately the Government has mortgage programs to assist people with getting their first home without going broke in the process. The Federal Housing Administration (FHA) has programs to help any American who is willing to own a home to acquire one.

FHA Mortgage Programs Will Still Be Relevant At 2015

The first thing to be aware of is that your personal finances will need to be in order so checking your credit report is very important. The FHA minimum credit score is 520 to qualify for FHA mortgage insurance.

What this FHA mortgage insurance does is it allows commercial banks to provide funding for a mortgage that typically would require a 20% down payment. The reasons banks will lend this money is the FHA promises to make the lender whole should the borrower default on the mortgage. This surety provided by a governmental agency affords banks the certainty to make this high risk loans. Unless some unsuspected event these government home loans will carry on at 2015.

Fix Your Credit Before 2015/6

If there are errors in your credit report it could bring down your FICO credit score and this will have a material impact on how much interest you pay and whether or not you will actually get a loan. It is very important to reach out to all three major agencies Experian , Equifax, TransUnion to correct these errors.

So What Should You Do Next?

If you will do nothing.. don’t expect anything to happen.

Every week you are wasting money.. sending dozens of dollars to the rich credit companies, who relay on you to keep doing NOTHING.

If your score is below 700, you might want to do something about it – get this ‘Credit Repair University’ which will save you money and time.

Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..

5 More FHA Mortgage Requirements

1.  A FHA mortgage requires a minimum 3.5% down payment what that means is on a $100,000 it would require $3,500 down payment plus closing costs. Closing costs vary from state to state so it is good to do your due diligence.

2.  While FHA is very lenient in their guidelines you cannot spend more than 35% of your pretax income on servicing the housing loan and no more than 50% of your income to service all debts. The reasons these debt to income ratios are in place is to ensure the home owner can afford the home. The way the total debt is calculated is taking the monthly payments for all credit card, car loans and other debts and adding them with your mortgage costs.

3.   This all sounds great but what is the catch you may be asking yourself. The FHA charges an insurance premium for these benefits fortunately these fee can either be paid in one lump sum or factored into the loan payments over time.

4.  A person has to be an American citizen or a permanent resident paying taxes in the U.S. and needs to have a Social Security Number. This is to prevent foreign nationals and corporations from leveraging this very beneficial program.

5.  There are a few other requirements in order to participate in the program, the property being purchased cannot have more than four (4) unit. This allows would be home owners to acquire property that could allow a larger blended family to be together or utilize the additional units for rental income.

Rent Vs. Home Ownership Dreams

When it comes down to the final analysis there is a solution for people who want to attain the dream of home ownership at 2015,  it is a matter of desire. If a person is unsure of whether or not the decision is a prudent one should look at how their monthly payments build equity in their home.

With rent you do not build equity on the contrary you are building equity for the landlord and at the end of your lease you have nothing to show for your payments. While renting a property has it merits the sooner a person can acquire a home they can then begin building their ownership. Couple that with the fact that property prices are the lowest in a generation means there is a greater chance that the property will increase in value.

This property value appreciation means not only are you building equity on top of that the value of your investment is increasing which translates into a double benefit.

The sooner individuals start buying homes the faster the market will stabilize allowing everyone to enjoy life to the fullest. Together we all can place the economic crisis behind us and look forward to 2015 new mortgage possibilities.

 So What is The Next Step?

If you will do nothing.. don’t expect anything to happen.

Every week you are wasting money.. sending dozens of dollars to the rich credit companies, who relay on you to keep doing NOTHING.

If your score is below 700, you might want to do something about it – get this ‘Credit Repair University’ which will save you money and time.

Yes, you might need to invest a small sum to get a grip of things.. But if you think education is expensive.. try ignorance..

So do your math… and take action NOW.