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Surprising Ways You May Qualify for a Mortgage

AZ Area Real Estate

It’s a frustrating experience when someone who is fed up with renting homes can’t qualify for a mortgage. Whether it be because they have bad credit, low income, or because you’re a first time home buyer, it feels unfair that a few financial circumstances will affect where and how you can live. Fortunately, there may be an alternative route you can take that will help you qualify for a mortgage and start your credit repair. This way you can live where you please without burying yourself in more debt. With dozens of programs that can get you back on track, you’ll be qualifying for a mortgage in no time!

State Mortgage Refinancing Programs to Help You Qualify

If you can’t change your immediate credit or income situation, there are countless options offered by your state governments. There’s a huge chance that your state will offer you assistance programs, refinancing programs, loan modification services, and programs to stop foreclosures. Property tax help is also available for lowering your property taxes by contesting your property assessment. This is great help for those needing credit repair as your other bills may decrease so that you can focus on getting rid of other debt.

Bank and Lender Mortgage Assistance

Your state may not offer you the kind of financial assistance you need, and in that case you may turn to your bank or lender for help. Mortgage forbearance programs by banks such as Bank of America, JP Morgan, Citibank, and Wells Fargo. This program gives you a temporary suspension of your monthly mortgage payments, so that you will have extra time to get the money together to pay. This option is perfect for first time home buyers that are experiencing job transitions.

Home Loan Modification Program

For those who are in bad credit situations and are trying to protect your current credit score, a home loan modification program is a great way to reduce the payment by your lender. The payment is reduced to 31 percent of the your income to loan ratio, great for those exceeding that 31 percent limit. Qualification for this program requires documentation that demonstrates that you are facing a financial hardship that creates an inability to maintain your original agreement with your lender.

Down Payment Assistance Program

When you’re a new homebuyer or just finishing paying off some form of debt, there’s a good chance that you don’t have enough money in savings to afford the down payment for a mortgage. Though many people believe the minimum is 20 percent, you can have as little as  percent down payment on conventional loans and 3.5 percent on FHA loans. The down payment assistance program can financially assist you from $5,000 to $20,000, depending on the city, county, or state that you live in. This is an interest-free method of a second mortgage that only needs to be repaid when the home is sold or paid off.

More Programs or Non-Program Options

As you can see, there are many ways to qualify for a mortgage despite having bad credit, low income, or low savings. No one wants to rent forever and there are many financial situations that are out of your control that your lender may not understand. An easy way to find out more about these programs is to talk with a realtor that has experience in helping their clients qualify for mortgages. Realtors at CENTURY 21 Northwest Realty can guide you in the right direction for credit repair and assistance programs and offer countless locations for your home buying area.

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