It’s Getting Easier to Purchase A Home
There are new loan programs that are making it easier for homebuyers and homeowners to finance Real Estate. With interest rates stabilizing, but higher than last year, consumers are looking for more creative ways to qualify for safe home loan. These new programs will help close more escrows and save consumers money.
- Self-employed or commission based borrowers can now qualify for a home loan using a P&L and balance sheet that they can prepare, or have their bookkeeper or CPA prepare. No other income documents are required.
- The FICO adjustment for scores <640 increasing the cost of a loan on FHA and VA loans has now been eliminated, making both loans less expensive.
- Six months bank statement loans, an alternative to using income documentation such as tax returns and pay stubs and W2s, can be used to qualify a buyer based upon averaging the deposits. Until recently, the minimum was 12-24 months bank statement.
- W2 and a pay stub only loan program is available on FNMA priced loans, allowing the elimination of supporting income documentation and allowing a processing with less documentation.
- Gift donors on FHA loans are no longer required to supply bank statements as proof of their ability to make the gift. Simply wiring the money into escrow can now be sufficient.
- VOE (verification of employment) only loans are available as the only required income documentation for a loan.
- CALHFA now allows anyone working for the CA Unified School District to get up to $15,000 towards the down payment or closing costs.
- Cash out loans allowing homeowners to borrower against their equity is now available up to 95% of the home value.
These new programs are sure to help consumers get the financing they need to accomplish their Real Estate goals. Please let us know if you have any questions, comments, or would like find out more!
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