Do you know what it feels like to finally become a home owner for the first time, at age 47?
The words triumphant, victorious, and successful come to mind.
Wherever you are on your financial journey, don’t give up. Below are 10 Facts about qualifying for a home loan that might surprise and encourage you.
Earlier this week, one of my book readers wrote to say that he is soon closing on his first home.:
“I am grateful for your books and presence. I am buying my first house at 47 after building my credit and securing a mortgage following your advice. Thank you for your excellence and kindness.”
Ten home buying facts:
1) There are zero down loan programs available for U.S. Military Veterans, people buying in a non-metropolitan area (USDA loan), people of minority groups who live in specified areas (see last week’s post).
2) The Federal Housing Admin offers 3.5% down payment for credit scores down to 600. Bankruptcy Chapter 7 okay if discharged for 24 months.
3) Medical collections are ignored.
4) Tax debt is okay as long as you have a payment plan and have made at least three consecutive payment
5) Mortgage lenders go by the middle credit score of three, with the lowest score being thrown out.
6) Two years’ employment required and does not have to be at the same job. College counts toward that timeline (you would then need one year of employment for income qualification).
7) Two years’ self-employment required. (You cannot combine one year W2 and one year self-employment.)
8) For part-time work, two years required to count it.
9) Disability income, social security income, child support income, spousal maintenance income all count as long as they will continue for another three years or more.
10) A mortgage broker can shop the wholesale lenders for you with only one credit pull.
Thank you for reading. If you need some inspiration, see here.