AM I IN A POSITION TO BUY A HOME?
I cosigned for someone on a car and it got repossessed – so what
I have a bankruptcy – ok…still in the ballgame
I had to foreclose on my home a while ago – gotta be worse than that to disqualify you
Most people believe that even the slightest scratch or dent on their credit will prohibit them from purchasing a home. That simply isn’t the case. Let’s think of this as a percentage game…maybe even call it mix and match. There are a few factors that help decide what type of loan (if any) that you can qualify for:
1) Credit Profile and Scores
2) Debt to Income Profile (usually expressed as debt to income ratios or DTI)
3) Size of down payment
4) Consistency and type of employment
The better you are in each of these categories then the better loan you can get. If you have excellence in all four, expect an excellent loan. If you can ‘mix and match’ at least two of those, you’re probably in good shape to qualify for a loan.
Let’s run through a couple examples.
- A) Four years ago you were forced to foreclose on your home and declare bankruptcy. Since then you have worked on your credit, kept your debt low and have a good job history. Under this scenario you can qualify for a great loan with a minimal down payment.
- B) Last year you lost a home in a short sale. You have damaged credit but have a sizable down payment and good job history. Again, welcome back to home ownership.
- C) Your credit scores are in the tank. You are self-employed, write off a majority of your income and recently started a new business. But, you have a very sizable down payment. Let’s say 30% of the sales price. Even this scenario has the opportunity to qualify for a loan – although at a higher than market interest rate.
In summary, today’s market has many more loan products than the general public are aware of. Please contact our team and we can put together all your options. Even if you cannot qualify for a loan immediately, we will put together a game plan for you. This will take away all of the uncertainty you may currently have about the road to home ownership.