It’s no secret that rates are low and money is cheap. Lots of people out there want to get in and buy a home right now while they can still take advantage of a great interest rate. But what happens if you have the money for a down payment, and the ability to pay your mortgage, but you can’t qualify for one because your credit score is too low? There are a lot of people that fall into this category. FHA loans are pretty solid government-backed loans for first time buyers who don’t have a lot of money for a down payment, but they typically require at least a 620 – 640 credit score. Discover Home Loans says they can get you an FHA loan for your new home even if your credit score is a 580!
That’s right, if the only thing holding you back from qualifying for a mortgage is your credit score, you might not have to wait any longer to buy your next Louisville home! Apply for a mortgage with Discover Home Loans to see if you could possibly qualify for this. There are very few other requirements in order to qualify, and they are pretty standard requirements as far as your debt-to-income ratio and loan-to-value ratio are concerned. Other than the fact that FHA will accept your less-than-perfect credit, there are other great benefits to this loan. While it’s kind of a bummer that you have to pay mortgage insurance and there are other fees associated with the transaction, the biggest benefit to home buyers is that FHA only requires a 3.5% down payment, which makes buying a home easier for someone who doesn’t have a lot of cash lying around.
Some nay-sayers will tell you that if you can’t afford 10%-20% down on a home then you can’t afford a home. Maybe in the 80s when interest rates were around 19% this was true, but at a 4% mortgage rate, your payments on a $100,000 home would be around $650 per month including taxes and insurance. That’s cheaper than most rent payments these days. Just because you don’t have $20,000 in the bank does not mean you can’t afford to buy a home. The housing market changes daily. Interest rates change daily. Everything is constantly moving so what used to be true about home ownership may not be true today. Why on earth would you not take advantage of a program that allows you to purchase a home, an investment, rather than handing someone else money every month. I haven’t even mentioned the tax benefit of owning a home. Writing off the interest payments you make each month is a huge relief at the end of the year.
If you’ve thought about buying a home in Louisville, but you recognize that your credit needs help, it’s time to revisit the idea. If you have any questions about this or any other home buying questions, I would be honored to speak with you. 502-509-9278 – firstname.lastname@example.org
You can also view ALL Louisville area homes for sale at www.louisvillehomeplace.com