Steps Renters Can Take To Buy A Home - Things To Know
First I will start this by saying call me. I'll give you 5-10 minutes of my time and tell you what it takes for you specifically to get a home for yourself. You can skip reading this. If you clicked this then you must have some interest in the idea. Talk to you soon, 508-863-1125 - David Oliveira Realtor
It is important to know, generally, the types of mortgages you can utilize to buy a home. As there are so many types out here the most common that I see again and again I will list below. I will also list some of the basic details about each mortgage. Is this all of the details? Of course not! I don't know every detail and it would probably require a book. I do have a basic understanding. The information I am adding will answer many questions or get you thinking, one of the two.
USDA - No money down loan - must make less than a certain amount per household - is only available in certain towns/cities - can utilize with single family homes
FHA - 3.5% down ($200,000 home = $7k down) - minimum of credit score of 580 - can utilize with 1-4 units
Conventional - Now this one is usually 20% down, but there are financial products available to get a conventional loan now with as little as 3% down
VA - Many people have access to VA loans, not just Veterans - no money down - no PMI - minimum credit score of 580 - some of the best interest rates available - can buy 1-4 units
Many people I talk to say, "My credit is bad." But what is bad? Credit scores can be spiked very quickly if you attempt to work on it. 50+ point spikes are not un-common. A credit score goal should be 580. There are loans you can get for a house with a score as low as 580. I know of a lot of great ways to help you boost your score as well; tricks and tips. There are good companies out here that can help you fix it too for a small fee as well. Be sure to check reviews before paying a company.
As you can see there are no money down options. If you do need a down payment though there are a couple of ways you may not have known you could use.
The first one is you can utilize is retirement options such as a 401k. When I bought my first house I personally utilized my 401k with a "hardship withdrawal". A hardship withdrawal allows you to take up to 60% of your 401k as a first time home buyer. There are many other retirement vehicles that you can use to leverage a home purchase. Talk with your mortgage broker about this if you have one and would like to use it. I am not sure what your goals are for retirement.
Gifting is another option you can use. If you can ask a family member to borrow the money then it is allowed to have the money gifted to you. Banks do not mind at all.
Another thought is to use a little bit of savings and then when they get their taxes they take it and buy a home.
There are other options as well. I have seen so many things done it is crazy.
Save save save for the unknown.
Closing costs are all of the costs that are accumulated while putting the home in your name. The buyer is always responsible for the closing costs. You have the ability to use it to negotiate your purchase lower and/or wrap it into the loan. There are ways to get credits towards your closing costs from your lender as well. Be sure to ask if there is anything you can take advantage of.
Who should you call? Who can help you get a mortgage? Call David Pereira with Troy City Mortgage - 508-207-5864 . With his experience and knowledge you will be on your way to owning your own home significantly sooner rather than later. Whether you know someone or feel comfortable with your bank it always makes sense to get a second opinion.
Keep me updated in your process! I like to hear people's stories.
Also feel free to go to the search link on this site and check out homes that are currently on the market! Here are some fun links:
Click around and enjoy, the site is pretty fun to play around with. If you need anything let me know.