Dwight’s Real Estate Update

Easy financing to buy a home is not so easy anymore.  Up until just a few months ago, lenders were willing to finance up to 100% of the purchase price.  In many cases you could finance up to 103% of the purchase price.   That means you could fiance all of the purchase price plus another 3% toward closing costs.  The good old days of getting in a home with no money down has gone for a while.  There may still be a few lenders that will do a 80/20 plan.  That’s where you get a loan for 80% of the price and also get another loan for 20% of the price which ends up as 100% financing.

 We are getting back to the basics where you need at a minimun or 3% of the price for the down payment and a good credit score.  However the good news is …. we still have government loans being FHA and VA insured loans.  Presently FHA will provide financing in the Houston area up to $271,000 and your credit score does not have to be as good as for a conventional loan.  Qualified veterans can still get zero down loans through the VA.

 As soon as the excess number of homes are cleared off the market, we will be back in good shape and making more sound loans.

Filed under: Mortgage and Lending by Dwight's Real Estate Update