Nothing is further from the truth than the above headline! Although today’s newspapers such as the Wall Street Journal, USA Today and our local Gazette would tell you different.

Home buyers can get mortgages. Fannie Mae and Freddie Mac are still backing home mortgages. Wells Fargo, Countrywide , Wachovia, Citimortgage and Adams Mortgage are all willing to loan to qualified buyers and investors. The trick is to be “truly” qualified. Yes, if you have bad credit, you cannot get a loan, but if you have a credit score of over 550 you can secure many types of loans. Some even with zero down. Let’s explore them!

VA loans are for veterans of military service. VA eligibility in the Colorado Springs market extends to $335,000 with zero down payment. The VA charges a funding fee of 2.25% that insures the loan from foreclosure. Qualifications are based on credit score 550 or better plus income to debt ratios. If you have been in the Army, Coast Guard, Air Force, Marines or Navy, this is the loan for you.

FHA is an excellent program. FHA means Federal Housing Authority. They guarantee banks from foreclosure by charging a 3% mortgage insurance premium up front and onto the loan. They also add another $25-50 per month premium. A consumer does need 3.5% down payment starting in January. Currently its 3%. A credit score of above 600 is necessary to obtain this type of loan. Many other government backed entities like Chaffa and The National Home Grant assist with downpayment on these programs. This is the next best thing for folks with low downpayment concerns.

Then there are Conventional loans. This is the arena that has caused most of our current financial mess. No longer can you use a second mortgage as down payment. A consumer must put at least 5% of their own money into the down payment. The lenders charge primary mortgage insurance if the loan is more than 80% of value. Again these loans require 600+ credit scores and they look at income to debt ratios. This is also the type of loan an investor would use, but investors must have 20% down payment.

So as you can see there is money available at great interest rates. The biggest thing is that you must “Truly Qualify”. No more games! If you have good credit, low bills and a paying job, you can buy a house.

Please give us a call at 719-593-2963.
Thanks,
Brian