As the nature
of our society changes, many people find
themselves not fitting what appears to be
an ever-narrowing box in order to get a
home loan. The truth of the matter is that
hundreds of loan programs exist for people
who do not fit the conforming box. Below
are a few examples of how some specific
problems might be overcome.
1. My debt-to-income ratio is too
high
SOLUTION: There are many loan programs on
the market today which feature "expanded
criteria" allowing higher debt-to-income
ratios for qualifying purposes. While some
of these programs come with premium pricing,
others do not, and offer the borrower a
viable source for getting a loan. Mortgage
brokerages often have ready access to equity
and or private lenders who allow for expanded
ratios. However, fees are usually charged
for non conforming mortgages and mortgages
arranged where little or no documentation
is available or is inadequate. Most of these
programs come at a higher price than conforming
loans but offer a loan source for individuals
who do not qualify through any other program.
2. I don’t claim all of my
income on my financial statements
SOLUTION: If you are self-employed or derive
some or all of your income from commission
or tips, your financial statements may not
reflect all of this income, or you may counter-balance
this income with expense write-offs. In
this instance, a “stated income”
or “no-income” verification
loan may help you qualify. With sufficient
down payment and adequate credit, the lender
will not verify the income stated on your
application.
3. I have poor credit history
SOLUTION: The “Non-Conforming”
or “B /C” market is one of the
fastest growing in the mortgage industry.
A program exists for nearly every credit
problem including bankruptcy and foreclosure.
Rates for these programs are typically based
on the borrower’s previous 24 months
credit history. Mortgages are available
at competitive rates.
4. I have little or no money for
a down payment
SOLUTION: Insured loan programs and combination
first and second mortgage programs allow
for residential home purchases with as little
as 5% down payment
5. I have little or no established
credit
SOLUTION: Many lenders will accept “alternative
credit references”. In these instances,
the borrower may need to provide references
or proof of payment for things such as rent,
electric, water, or insurance. Assuming
adequate payment history, many first-time
homebuyer programs will accept these references
as sufficient credit history.
|
