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First Time Home Buyers!
Posted on May 9, 2008 by Mike Geyer
Attention aspiring homeowners: Don’t be scared off by rumors that you need a huge down payment and the squeakiest of credit histories to get into a house. A 10% down payment is now the norm, says Jim McMillan, a senior loan officer for JP Morgan, but you can find 5% down payment loans. Zero down payment options are nearly impossible, but if you’re working with a conforming loan of $417,000 or less and a credit score of at least 700, you may find one.
Lenders are trying to ensure that borrowers don’t overextend themselves so expect to provide stricter proof of income. The FHA mortgage insurance program gives buyers with questionable credit a better shot at approval. This past December, Congress was still kicking around legislation that would loosen rules on down payments and extend the FHA’s reach to more condo buyers. Also State and local government resources offer down payment assistance and getting help usually doesn’t affect your eligibility for favorable mortgage terms.
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