TEXAS and California: Let’s Talk. (512) 861-6566
In a recent survey of homeowners and home buyers by real estate website Zillow.com, there is one thing that becomes clear: A plethora of people are confused about residential mortgages; and by being confused, many people are missing out on a historic opportunity to buy a home or refinance into a better position. Here are 3 mortgage myths – and what you should know:
1. You can’t get a mortgage these days without a big down payment. Nearly one-third of home buyers in the survey said they don’t think it’s possible to buy a home for less than 5% down. That’s simply not true. Loan programs offered by the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA) and Department of Veterans Affairs (VA) enable lenders to offer low- and no-down payment loans to qualified borrowers. You can purchase a home utilizing a FHA loan with as little as 3.5% down; while the USDA and VA loans offer zero down options. Ask me how you can qualify for any of these.
2. You must wait years to buy a home if you have gone through a bankruptcy, short sale, or foreclosure. One third of homeowners in the survey expected to have to wait at least seven years to buy a home again after a bankruptcy, short sale, or foreclosure. The truth? Some homeowners who have sold their homes via short sale or had their homes foreclosed can buy in as little as 2 years (in some cases there are those who can qualify in as little as 1 year with extenuating circumstances).
3. You can’t refinance if you have no equity or you are underwater. In this same survey, about one-fifth of homeowners said they didn’t know that they can refinance their home loans if they are underwater, meaning they owe more than their homes are worth. The truth is that there are a number of options available for homeowners in this situation through the federal Making Home Affordable, a.k.a. HARP, program. In order to qualify for this program your loan must be backed by Fannie Mae or Freddie Mac. If you want to know if your loan is backed by Fannie Mae you can click here. For Freddie Mac eligibility click here. Do you have a FHA loan? No worries, we have a refinance program for you with no credit, no income, and no appraisal!
By M. Shehan
Freddie Marmolejo. NMLS# 328534 (512) 861-6566
Chris Marmolejo NMLS #205023