4 Mortgage Myths

 Author: | Published: Dec 28th, 2011 | Category: Uncategorized

Country Home

After the credit crunch that took place in 2009, many are confused as to the qualification procedures involved with qualifying for a mortgage. Many myths have been floating around and causing trouble in the home buying community. Today, we are going to tackle some of these myths and help make your next home purchase a smooth one!

Myth 1: It’s impossible to get a mortgage without a down payment.

Wrong! There are currently two programs that offer a zero-down option, the USDA home loan program and the VA loan program. The USDA loan program is available to those living in what the USDA considers a rural area, which includes over 50 million Americans in rural as well as suburban areas.

The other program, the VA loan program, is a great program for the veterans and service members who have fought to protect our freedoms. Those that qualify for this program must fall into one of the following categories:

  • Served on active duty for 90 consecutive days during wartime or 181 consecutive days during peacetime
  • Served in the National Guard or Reserves for a minimum of six years
  • Be the surviving spouse of a fallen service member

Myth 2: You can’t get a loan without perfect credit.

Once again, wrong. Those with good credit do usually get a better interest rate; however, those with imperfect credit can obtain a loan as well.

Myth 3: You can’t get a loan with a bankruptcy or foreclosure on your report.

Those with bankruptcy or foreclosures on their record can still qualify for a home loan. Speaking to one of our specialists is the best way to determine if you can qualify; however, it is important to know this doesn’t exclude you from obtaining the home of your dreams.

Myth 4: All lenders are the same.

Completely false, our lending professionals here at USDALoans.com offer the best service around. It is important to be connected to a lender who is reliable, explains the entire process, discloses any fees up-front, and offers the most competitive rates.

Buyers need to know all the facts when making good decisions. A crucial step in purchasing a home is finding a reputable lender. Lenders that know the ins and outs of the USDA process will save you much time and money. For more information on the USDA loan program or if you have questions on determining your eligibility, contact us today!

 

Photo thanks to TMView under a creative commons license from Flickr.