Buying bank owned homes in San Diego has proven to be profitable. But can you qualify?
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Published: Monday, December 15, 2008
There are plenty of would be buyers who think that they can't take advantage of the bargains the real estate market has to offer; primarily bank owned homes in San Diego. This article is written to debunk this myth; you can qualify for a loan!
My Credit is bad
Your credit may very well be bad. But that does not necessarily mean that you can not qualify for a loan. If you are a first time buyer there are actually government programs that will help you secure financing. Let's begin by defining first time buyer. A first time buyer is defined as a person or persons who have not owned a home in the last three years. If you fit this definition you can secure a FHA loan. What is a FHA loan? An FHA loan is one in which the government guarantees payment to the lender for a certain percentage of the loan should you default. Lenders are much more likely to fund this type of loan because they are guaranteed a large portion of the balance. Here are the minimum qualifications for a FHA loan.
Following is the basic FHA loan qualification guidelines.
Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years.
Bankruptcy's must be at least two years old, with good credit since.
Foreclosure's must be at least three years old, with good credit since.
Your new mortgage payment should be approximately 30% of your gross income.
I don't have 20% for down payment.
You do not need to have a large down payment to qualify for a home loan. In fact lenders typically ask for only 5% down for a conventional loan. If you elect to use an FHA loan, you are only required to put 3.5% down.
Just because lenders have become more responsible in their lending practices does not mean they are discriminating. You can still buy a home.
Richard Elias is a seasoned real estate agent. His area of expertise is in helping his clients locate foreclosures in San Diego, and negotiating the best sales price. Richard is committed offering the most comprehensive customer service. If you would like to purchase a home let Richard Elias help, call 800-474-1919 ext 5001
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Buying bank owned homes in San Diego has proven to be profitable. But can you qualify?
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