Is it difficult to qualify for a home loan these days?

The fact that the US has 3.9 million homes for sale and most of them come from foreclosures means that newer and more efficient home loans should be offered. The truth is, getting a home loan is easier now than it was before the housing boom – you just need to look in the right place. In the next article I’ll tell you where to look for the lowest interest rates, and also what banks will look for when they rate you.

To resolve some mysticism and shed light on this murky issue, I inform my clients that they should specifically apply for government loans such as FHA or VA (Federal Housing Administration, Veterans Administration). I say this because the government has invested money in these departments and they are eager to generate income by lending them in mortgage loans. For example, the FHA offers first-time homebuyer programs, loans that allow 3 or more borrowers, programs with little or no down payment, and offer the lowest interest rates in the country supported by the federal government. The FHA is a great place to look for financing as they are rewriting the book on stable and sustainable home financing now and for the future. You will stay ahead of the curve by empowering yourself with knowledge of specific programs and the constant changes that take place in government loans. So now that you know where to look, what will determine whether or not you qualify?

The first place to start is to see a quality professional loan officer or real estate agent who specializes in government loans. What they will tell you is that banks are looking for Credit, Repayment Ability, and Guarantees such as 401k or available cash. I suggest using a local loan officer to help you establish your credit scores, obtain paperwork, and calculate payments. Since most loan officers work on commission only, they are free to start and are generally very smart and eager professionals. (For a list of loan officers I work with and recommend, please contact me) These 3 C’s of Financing are the most acceptable terms for finance professionals and speaking the same language as the professionals is the best way to ensure Gather all the right facts.

So now that you know where and what to look for, get out there and see what’s for sale. I bet you will be surprised by the price, and it may even be cheaper than the rent you are currently paying. Be sure to consult a professional, speak the same language, and apply for government-backed loans.