POOR CREDIT
Over 800 score is excellent credit. If you are in this camp, you are part of an elite 20% of the population. A quarter of buyers have scores between 740 and 799. Another 21% have scores from 670 to 739. And 18% of buyers have scores from 580 to 669. Between all these levels 84% of buyers are accounted for. And there are loan programs available.
Federal Housing Administration loans allow the credit score to be 580.
Veterans Administration can go down to 520.
Conventional Fannie Mae is 620 but Freddie Mac does not have a set score per se.
The United States Department of Agriculture can go down to 620.
If you’ve had Bankruptcy or Foreclosure that does not necessarily eliminate you from buying a home. Too many potential home buyers put themselves on the sidelines. Why not ask a mortgage expert?
NO DOWN PAYMENT
Veterans Administration allows for no money down and loans can go into the million dollar range.
The United States Department of Agriculture offers a zero-down loan and recently loanDepot announced a Federal Housing Administration loan that is accompanied by a second mortgage to provide a zero down solution.
Some conventional loans can be as low as 3% down.
There are grant programs as well and the Oregon Bond program has the Rate Advantage program as well as Cash Advantage. There are still buyers out there thinking they need to have 20% down.
INTEREST RATES TOO HIGH
Rates today are lower than the average rate over the last 40 years. Are they higher than the last few years, absolutely, but just know those rates were a fluke. Artificially depressed to try to stimulate the economy during COVID-19. The ramification was that prices went through the roof since more buyers could buy and there was demand for any home listed.
Just because the loan is amortized over 30 years doesn’t mean a buyer needs to stay with that mortgage.
Loans can be refinanced and loanDepot offers a closing cost discount when clients come back to refinance.
