The home-ownership dream is something most renters continue to pursue. A few believe that either they do not qualify or will not see benefits. Happily, they are mistaken.
Qualifying
While lenders make loans based on a grading system (you know it as your credit score), there are loans for every grade. Naturally, the higher your grade, the better the terms of the loan. Thus, if you have very high credit scores, you can expect the best loans. Loans that do not require you to pay for mortgage insurance. They offer slightly higher interest rates and may even exceed the typical loan limit.
For people in the good credit score range, there are options to eliminate mortgage insurance and borrow more money.
In the fairly good credit score range there are assistance programs to eliminate the down-payment and reduce the fees involved.
In the fair credit score range, you can still qualify with as little as 3.5% down payment all the way down to 550 credit score!
Between 500 and 549 credit score, you can qualify for a loan with as little as 10% down payment.
If your credit score is less than 500, there are loans that ignore your credit score and focus on your ability to repay the loan. So if you have a well paying job but lack the credit (for example, because of a bankruptcy), these may be the solution for you.
Benefits
The other argument is that the recent tax changes have removed the immediate benefit of home-ownership, namely the tax breaks. The reality is that this is only true for loans over $750,000.
Consider that the typical starter house (not condo/townhome) in San Diego County is currently selling for around $450,000 and you can see you have lots of options. That is, if you have the income to repay a higher loan you can easily buy a fancier house and still get the tax break.
If you are still not convinced, take a look at rents these days. For what you pay to rent a house, you can buy it and save a few dollars on the monthly payment. Then when your tax refund comes in the mail, you’ll see thousands of additional dollars. By comparison, the renter’s maximum tax benefit is $100/year. Did I mention that your home loan is at a fixed rate for 30 years? How long will it before your rent goes up again? And after 30 years, what happens? The home is yours with no mortgage payment!
Why wait?
Contact me today (760 622 5087 or [email protected]) and get started on your path to home-ownership. I will explain everything and be there for you every step of the way, from getting the loan to getting the home.
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