Low Down Payment Loans Are Back

One of the biggest hurdle I see – is saving up for the 20% down payment for a home loan.  And with the cost of housing in the Bay Area – that 20% is a very pretty penny.  In fact, it seems almost impossible for some to even fathom how to save that much.  So the prospect of a low down payment could help get buyers into the market. Enjoy this article… 

Low Down Payment Loans Are Back

A feature of the housing crisis is back.

Just because you haven’t saved up enough for a 20% down payment—or even 10%—doesn’t mean you’re locked out of the housing market.

In 2015, 26% of loans for home purchases were made with down payments of less than 10% of the home’s value, according to data released Thursday from RealtyTrac. That’s a 10% increase from 2014. In fact, the number of home owners who purchased homes with low down payments has been steadily increasing for the past five years.

The uptick is due in large part to a reduction in the cost of mortgages offered by the Federal Housing Administration, which underwrites loans to borrowers with subpar credit. While critics worry that a surge in low-money-down lending could set the stage for a reprise of the housing bubble, market watchers say the most important result of the change is to make homeownership a more realistic goal for many people, especially first-time buyers. In recent years, there has also not been a significant difference in the number of people who default on low-down-payment loans as opposed to those with higher down payments, according to data from the Urban Institute.

“Low-down-payment lending isn’t synonymous with risky lending,” says Nikitra Bailey, executive vice president of external affairs at the Center for Responsible Lending.

Read Next: What Mortgage Is Right for Me?

Indeed, the FHA has always offered loans with down payments as low as 3.5% to qualified buyers.

Still, there are considerations if you’re thinking about going that route. For one, it means you’ll have less equity in the home. You’ll also need to pay for private mortgage insurance, required for loans with down payments of less than 20% to guard against the risk of default.

If you’re looking to become a homeowner but can only afford to put a small amount down, here are a few more things to keep in mind:

  • Talk to a certified credit counselor, Bailey says. An adviser can walk you through your finances and help you decide if you’re in a position to buy a home despite not having a lot of savings built up. The U.S. Department of Housing and Urban Development also sponsors housing counseling agencies nationwide; you can find a list state-by-state directory here.
  • Keep in mind the cost of private mortgage insurance, which is required for anyone buying a home with a down payment of less than 20% of the value of the home. Add that on top of monthly mortgage premiums (and the higher interest rates you’ll likely pay when you put down less money), and in the long run taking out an FHA loan with a low down payment could be more expensive than paying 20% upfront. Additionally, the agency now also requires that certain borrowers pay insurance for the entire term of the mortgage, unless they refinance.

Make sure you’re able to set aside at least 1% of the house’s value in cash, in case you need to tap into it for maintenance or emergency repairs, says Mark Calabria, director of financial regulation studies at the Cato Institute. And of course, be prepared for unforeseen financial challenges in your own life: For instance, if you were to lose your job, you’d ideally want to have enough savings to cover six months of mortgage payments.

I read this article at: http://time.com/money/4218298/buy-home-low-down-payment/

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

 

Crowdfunding for Real Estate – read on….

I am all about innovation and positive change.  When I heard that crowdfunding has made its way into the Real Estate market – I thought I’d have a look.  Read this article I found about a local company – RealtyShares…

RealtyShares Gets $10M From Menlo To Grow Its Platform For Crowdfunding Real Estate Projects

Sort of like a “LendingClub for real estate,” RealtyShares has taken the idea of crowdfunding and applied it to the real estate market. After about a year of operations in which it was able to show product-market fit, the company has raised $10 million in funding from Menlo Ventures to quickly grow the number of projects made available to investors.

Unlike some other crowdfunding platforms, RealtyShares isn’t aimed at the consumer market. Like AngelList, it is focused fully on helping accredited investors easily find opportunities for investment. Its main goal is to reduce the friction between project sponsors and real estate developers looking for capital and investors who are looking to diversify their portfolios.

RealtyShares accomplishes this by doing the actual work of underwriting opportunities for outside investors, and allowing them to invest as little as $5,000 into any individual project. As a result, it can give them access to projects that were either too small or too difficult to underwrite themselves.

For real estate developers, meanwhile, RealtyShare’s model helps them get access to capital much faster than if they were to turn to a bank or other lender to fund a project. Projects on average are fully funded within four days of being put on the RealtyShares platform.

Since being founded, it’s funded hundreds of residential and commercial properties worth more than $300 million. More importantly for investors, it’s already returned some of their capital, enabling them to re-invest in its platform. RealtyShares founder and CEO Nav Athwal tells me that investments on the platform have paid back $2 million in capital so far, though it’s early days.

Returns vary by project, based on the type of deal (commercial versus residential), as well as risk profile and whether they are debt or equity deals. But they can range from 8 percent to 20 percent, which generally outperforms most other investment opportunities available.

RealtyShares has been growing quickly, as it increases the number of projects that investors can put money into. Just over the last few months, it’s seen both the number of deals available and dollar value of investments made on its platform double month-over-month. Part of that growth has just come from having a bigger pipeline of deals come its way.

Athwal says the company is receiving about 1,000 applications a month from borrowers, which is up from about 300 at the end of 2014. It then does the work of narrowing down which projects it makes available to potential investors. According to Athwal, in March investors on its platform funded about 15 deals to the tune of $7 million.

But there’s a lot more deals it could make available, if it had the ability to underwrite its projects more efficiently. That’s where the most recent funding comes in. With it, RealtyShares will invest in hiring more people and streamlining its internal processes in an effort to more quickly vet applications that come its way.

Today it’s announcing a $10 million Series A round of financing led by Menlo Ventures, which also includes participation from previous investor General Catalyst. Along with the funding, Menlo Ventures general partner John Jarve will join the board.

According to Athwal, part of the reason RealtyShares decided to go with Menlo was the firm’s investment in and Jarve’s participation on the board of Betterment. He believes that experience will be useful in helping to grow his platform for real estate investment.

With the newfound cash, Athwal says RealtyShares will be looking to bring on more underwriters to handle the increasing volume of applications coming its way.

The company will also be investing in automating its internal processes for reviewing applications. Athwal believes that such automation will enable RealtyShares to more efficiently screen out projects which aren’t the best fit for the platform, thereby giving its underwriters the ability to focus on more qualified applications and project leads. Either way, the goal is to keep the quality of projects listed high, so that investors can keep investing with confidence.

DISCLAIMER – The Caton Team does not endorse this company or product – all blog content is for your enjoyment.  Please contact your CPA for financial guidance.  

I read this article at: http://techcrunch.com/2015/04/07/realtyshares-gets-10m-from-menlo-to-grow-its-platform-for-crowdfunding-real-estate-projects/

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Email Sabrina & Susan at: Info@TheCatonTeam.com

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

Wire Fraud on the Rise in Real Estate

The newest tactic for online scams is wire transfer fraud.  These scammers are hacking into Realtor emails and lying in wait till it’s time to close escrow.  At that moment, they send a FAKE email that looks legit instructing clients to transfer their closing funds to another account.  The Realtors are unaware the email has been sent unless the client asks.  If the client just believes the email and changes their wire instructions – they have sent their hard earned money to the scammers and will never see those funds again.

It is incredibly frightening for myself, a professional Realtor to think that my email could be hacked and faked and money stolen.

If at any point an email seems fishy, pick up the phone and call your Realtor or call your Escrow Officer to double check the wire instructions.

Wire Instructions come directly from the Escrow Officer – not the Realtor.  Most Escrow Officers will call the client to get the information OR the wire instructions are completed at the time the loan documents are signed, in person with the client and Escrow Officer face to face.

This day in age, technology is King but nothing beats face to face interaction – especially for the largest purchase of your life.  No Realtor provides Wire Transfer Information.  Wire Instructions are part of the Escrow Process and will come directly from the Escrow Officers.

I try my best to keep my clients safe.  I hope no one experiences this!  For more information click on the link below from the National Association of Realtors.

I read this article at: http://www.realtormag.realtor.org/news-and-commentary/briefs/article/voice-for-real-estate?om_rid=AACmlZ&om_mid=_BXDP9rB9MJqMbl&om_ntype=BTNMonthly

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

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Please enjoy my personal journey through homeownership at:

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Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

 

Do’s and Don’ts for Buying Furniture on a Budget

With the real estate market as expensive as it is here in the Bay Area – once you buy the house – how do you decorate it?  Thought I would share this article – enjoy!  

Do’s and Don’ts for Buying Furniture on a Budget

Furniture can be crazy expensive, and investing in designer or heirloom pieces isn’t always feasible. So how can you furnish your home with pieces that look and feel like they’ll last longer than a season? At Décor Aid, we always try to score the best deals for our clients. Here are some of our designers’ best tips for maximizing your budget.

Do be willing to buy floor models

You can save a lot of money by purchasing pieces at the end of the season when stores are changing their display to new collections. If you find an inexpensive wooden piece but the shade is too light, you can restain it darker. If it’s slightly damaged, it might be easy to repair.

Don’t forget to inspect floor models thoroughly

Sit on a chair to ensure it’s sturdy. Push on a table to make sure it doesn’t wobble. Open and close dresser drawers to check that they slide smoothly. Look at the quality of the finish–there should be no bubbles, peeling, or chips, and the color should seem evenly applied. The upholstery seams should be straight and there shouldn’t be any holes in the fabric.

Obtain as much information about the piece’s history as you can: How long it has been on the floor? Was it a customer return? If it was a customer been a return, beware–it’s full history is unknown. Find all the skeletons in the closet before deciding whether or not to purchase.

Do consider buying a replica

This is a great way to get a high-end looking piece without a major investment. Although these pieces are not heirloom quality, depending on use they will last a long time. If you later decide the piece no longer fits your style or works in your space, you won’t feel bad selling it or swapping it out.

Don’t buy something that feels flimsy

As a general rule, if a piece is lightweight, then it’s probably not sturdy or well-made. Even engineered wood products, such as furniture made from MDF (medium density fiberboard) are heavy if they are a good quality. Solid wood items are preferable.

Do pay attention to the fabric

Natural fibers and fabrics are preferable, but most have synthetics mixed in–even the most high-end textiles have a small percentage woven through for durability and stain resistance. Buying fabrics mixed with synthetics can help you keep costs down, but consider the quality:  A fabric with about half or less synthetic is fine, as long as it still has a natural look and feel.

The most durable fabrics for upholstery are velvet and tweed. For windows, linen provides privacy and lets light in. Wool sateen is the ultimate choice for a more substantial fabric: its ultra-luxurious, and drapes well with a subtle sheen.

Don’t forget to consider your lifestyle

If you have kids or pets, or you’re choosing a piece for a high-traffic area, we often recommend indoor/outdoor fabrics. They are super durable and beautiful, so you don’t have to worry that your living room is full of patio furniture.

If you or a family member has allergies, synthetic fabrics are the way to go. Ultra suede and micro suede fabrics feel lush and soft. It has a thin pile, so it doesn’t collect dust like thicker weaves do. They are also durable, versatile, and available in every color imaginable.

I read this article at: https://www.decoraid.com/dos-and-donts-for-buying-furniture-on-a-budget/

https://www.decoraid.com/dos-and-donts-for-buying-furniture-on-a-budget/#sthash.dQ3DVmBZ.dpuf

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

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Visit our Website at:   http://thecatonteam.com/

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Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

 

Want to Learn About Investing? Ask Questions Like a 5-Year-Old

I don’t know about you folks – but with the price of real estate around here – my mind is all about investing – to raise some capital in order to invest in more real estate. I am blessed with a wonderful team of financial advisors, but I too enjoy combing the net to find new insights. I came across this article, written by the founder of GoldBean. Enjoy…

 

Want to Learn About Investing? Ask Questions Like a 5-Year-Old

For most people, the topic of money brings out many emotions — including confusion. Because of this, it can be difficult to learn about investing, and finding out how to grow your money can seem overwhelming.

At an event last week, I co-presented on this same topic, and want to share some thoughts around “talking about money” here.

Although reading up on a financial topic is a great place to start, there is nothing like getting out there in the real world and asking a lot of questions. This, I believe, is where the real learning happens. Asking questions, and asking them confidently, is the first step toward  financial empowerment.

These questions don’t have to be too involved and studied either. In fact, I suggest you channel your inner 5-year-old and come up with some of the simplest questions. Believe it or not, these often are the hardest.

As you get responses, you should be following up with phrases like Why? What? How much? and How? until you really understand what is being discussed.

For example, let’s say you’re at a picnic, and you find yourself talking to someone who seems like they know about investing.

First, you should find out who they are by asking, “Are you an investor?” If the person responds, “Yes,” you should follow up by asking, “Do you invest for yourself or do you work in finance and invest other people’s money?”

Once you have this info, you can ask for their point of view, such as, “I’m interested in learning about investing and getting started — what would you do if you were starting out on your investment journey today?”

My guess is that the person, regardless if they are a professional investor, self-directed investor, or work with an advisor, will give probably a very safe answer, like, “Look for low-fee ETFs that track the overall market.”

Now comes the critical part of your conversation. Don’t end it there by saying “OK, thanks,” and then go and quietly Google “What’s an ETF?”

Just like a 5-year-old, you should keep the questions coming no matter how basic they may be. In this same example, ask them, “Why an ETF?” And if that doesn’t answer the question, ask, “What exactly is an ETF? How much are they? How do I buy one?” And ask, “Can I lose money if the market goes down with this approach?” (Which, by the way, the answer is yes.)

Asking questions can also be great for unlocking opportunities. Imagine if you’d asked simple questions in the early days of companies like Apple,  Amazon, Netflix, or Google? If you are in your thirties or older, you probably remember using each one of these for the first time and having your mind blown by their innovations. Imagine if you’d asked, “Is this a public company?” “Can I buy shares in it?”

Simple questions aren’t just for learning. If you already have an investment advisor, or someone who manages your money for you, your most critical job is to be empowered to ask the tough questions. After all, it’s your money! So go ahead and ask without a hint of hesitation or embarrassment. For example:

Question #1: How well has my portfolio done vs. the market? (Also ask which benchmark they are using to determine “the market”.)

Question #2: Does my return include or exclude your fees? How much did I make after you took your fee?

Question #3: How much in total am I paying you?

Getting clear answers to these questions every year will show you the true value over time of having an advisor. If you get fuzzy answers, that’s a red flag! Channel your inner 5-year-old and keep on asking.

Also consider that the market is experiencing the longest bull run in history as well. So, if there is a downturn (or the more opaque term, “market correction”), remember that great opportunities exist during downturns if you can buy when everyone else is panicking. If you’re concerned, ask this question of the experts you come across: “If prices went down significantly, what would you do?” Prepare ahead of time and get familiar with how investing works so you can be ready for when the New York Stock Exchange becomes an outlet mall.

Sure, there are many more questions that need to be asked about investments — specifically around your risk, fees, expected returns, and timeframes — but those will come with time.

Like many things in life, keeping it simple and sticking to the basics is the best way to begin learning. So take a deep breath, and just ask.

Jane Barratt is a member of the DailyWorth Connect program.

I read this article at: https://www.dailyworth.com/posts/3602-to-learn-about-investing-ask-questions-like-a-5-year-old-barratt

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

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Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

The Numbers Are In: Yup, 2016 Is Off to a Good Start in Home Sales

My two cents – As the 1st quarter comes to an end – we sit on bated breath on what the future will bring in our Bay Area Real Estate Market.  I have to say – the drop in the stock market has had a huge impact on buyer confidence and cash flow.  I’ve even noticed a few price reductions on a select properties that haven’t sold in the first two weeks as expected.  Could it be the market is shifting?  Are sellers going to have to be a bit more realistic when pricing their homes?  Are buyers going to anti-up there offers as they did last year?  My biggest surprise has come from the rental market.  I’ve been tracking several properties and many have rented for UNDER their original asking price.  Which I have to say – is nice to see since our rental prices have skyrocketed and the word “affordability” is the forefront on concern.  

What will this mean for our market?  We’ll have to see.

I’d love to know your thoughts too!  Enjoy this article by Realtor.com

 

The Numbers Are In: Yup, 2016 Is Off to a Good Start in Home Sales

 

We may be on the verge of spring, but housing and economic reports work on a bit of a lag time. We’ve only just gotten the major data reports for January, and it’s giving us a clear-eyed view of how the real estate market is measuring up this year.

And yeah, things are looking good.

Job creation—arguably the most important factor in housing demand—is moving apace. January saw 151,000 jobs created. That level of employment growth is below 2015’s monthly average, but unemployment is now near 10-year lows and is in line with the current macro forecast from the National Association of Realtors® (NAR). This level of employment growth should translate into the 3% growth in housing sales we are expecting for the year.

Speaking of sales, January’s existing home sales report did not disappoint. Even though sales are taking longer to close, due to the implementation of new disclosure and closing forms and procedures, the pace grew 0.4% in January from December. Granted, that’s not a lot, but analysts had been expecting a decline. And from January 2015 to January 2016, existing hom The increase in sales is resulting in continued tighter-than-tight supply—measured by NAR to be four months in January.  For you non-economists out there, that metric measures the number of months it would take to sell the current inventory of available homes, at the current pace. Got it? Six to seven months’ worth of homes on the market is considered normal; four months is cray-cray.

This is driving prices higher and encouraging consumers who hope to buy this year to get started as soon as possible.

January’s new home sales and new home construction remained consistent with the pace of activity of the last several months. Still, the level of new construction still represents solid year-over-year growth, especially in single-family homes. The most encouraging sign: The median price of new homes is finally declining, as a result of the fact that builders are offering more affordable homes.

Finally, the most timely readings we can pass on come from our own observations at realtor.com that confirm that demand is growing rapidly at the start of the year, resulting in an acceleration in inventory movement that we typically do not see until March or April.

OK, not everything is rainbows and unicorns. The biggest negative trend impacting potential demand relates to the January and February declines in stock values, which have taken a toll on consumer confidence. But, even that negative trend has a silver lining: Mortgage rates are now substantially lower. The average 30-year conforming rate has stabilized at under 3.7%, giving buyers almost 5% more buying power than they had at the end of 2015, and strengthening their ability to meet the debt-to-income ratio requirement for a loan.

Net-net, pent-up demand appears stronger than any weakness caused by the financial markets. And the lower rates are encouraging would-be buyers to act sooner rather than later. With this strong start, 2016 should indeed see growth, but the biggest constraint will be the tight supply.

 

I read this article at: http://www.realtor.com/news/trends/2016-off-to-good-start-home-sales/

Remember to follow our Blog at: https://therealestatebeat.wordpress.com/

Got Questions? – The Caton Team is here to help.  

Email Sabrina & Susan at: Info@TheCatonTeam.com

Call us at: 650-568-5522

Want Real Estate Info on the Go? Download our FREE Real Estate App:  http://thecatonteam.com/mobileapp

Visit our Website at:   http://thecatonteam.com/

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Connect with us professionally at LinkedIn: http://www.linkedin.com/profile/view?id=6588013&trk=tab_pro

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Thanks for reading – Sabrina

The Caton Team – Susan & Sabrina – A Family of Realtors

Berkshire Hathaway HomeServices – Drysdale Properties

Sabrina BRE# 01413526 / Susan BRE #01238225 / Team BRE# 70000218/ Office BRE #01499008

 

Top 6 Reasons to Not Buy a Home—Debunked

Top 6 Reasons to Not Buy a Home—Debunked

 

You? Buy a home? If that prospect sounds as unlikely as your becoming the next U.S. president—well, this campaign season has shown us that anything can happen.

Sure, amassing the funds and slogging through the necessary paperwork for your own piece of the real estate pie can be daunting, especially if you’re a less-than-stellar loan candidate. Still, if you just assume there’s no way you could buy a home, without doing any research, you could be missing out.

Here are some oft-cited reasons people don’t buy a home, and the reality checks showing why they shouldn’t give up hope.

Reason No. 1: ‘I don’t have enough money for a down payment’

This is probably the most common justification for not making the leap into homeownership. After all, few people have a huge chunk of cash lying around—and you need 20% down to buy a home, right? Wrong.

“Needing a 20% down payment has lingered as a myth for years and causes many potential home buyers, including those in the millennial generation, to miss out on getting into a home,” says Christina Bartning with National MI, a private mortgage insurer in Emeryville, CA.

AJ Smith, a personal finance expert at SmartAsset, points out that with a loan backed by the Federal Housing Administration or Department of Veterans Affairs, you can usually get by with a down payment of 3% to 5%.

In addition, “grants are an excellent way for young buyers with good credit and stable employment to subsidize their down payment,” says Realtor® Mike Murray of the Murray Home Team at Coldwell Banker in Annapolis, MD. “These can typically be obtained by taking homeownership courses or purchasing in designated community development areas.”

However, if you do put down less, keep in mind you’ll need private mortgage insurance until you pay down the loan to the 20% threshold.

Reason No. 2: ‘I can’t afford a mortgage payment’

“Some people don’t realize the amount they pay in rent is more than if they had a mortgage,” says Realtor Kenneth Cagan of the Cagan Team in Coral Springs, FL. “Landlords are trying to recoup their taxes, insurance, maintenance fees and still make a profit. When you buy, you’re investing in yourself.”

To find out if renting or buying makes more sense in your neighborhood, try realtor.com‘s Rent vs. Buy Calculator.

For first-time buyers with low to moderate incomes, organizations such as Neighborhood Housing Services of Richmond have plenty of experience in helping.

“Laniesha, a young mother of two, gave us every excuse in the book as to why she couldn’t purchase a home, from ‘I don’t make enough money’ to ‘I am not married,’” says Samuel Robinson, NHSR’s marketing and public relations officer. “After explaining that none of these issues could stop her, we worked with Laniesha to pay off her debts and raise her credit score. She’ll be purchasing her new home in 2016.”

Reason No. 3: ‘I don’t have good enough credit history to get a mortgage’

So you’ve made some late payments, or have other skeletons in your past that have dinged your credit score. That doesn’t put a mortgage out of reach.

“If you’ve paid down your credit cards and kept a steady job, your application may be approved,” says SmartAsset’s Smith. “Potential home buyers with bad credit can also explore options like lease-to-buy programs, financing through the seller, and loans from private lenders.”

Get this: Some private mortgage insurance programs allow for credit scores as low as 620, Smith says.

Meanwhile, you can slowly improve your credit score by paying your bills on time and keeping your balances and inquiries low, says Murray. A licensed loan officer should be able to set up a one-year outline to get your credit on track.

But there’s one substantial caveat: Typically, mortgages for people with a lower credit score do come with a higher mortgage rate. And a very low score may require a higher down payment.

Reason No. 4: ‘I don’t have any credit history at all’

Even without a credit card, there are ways to build credit history, says Anne Postic of Mortgages.com.

“If you’re a renter, ask your landlord about reporting your payments to establish a history. Experian makes it easy for your landlord to report your payments, or for you to do it yourself.”

Reason No. 5: ‘I haven’t been at my job long enough’

“Work history is important,” says Jeremy David Schachter with Pinnacle Capital Mortgage in Phoenix AZ. “But even if you recently changed jobs and have only been there for a month, you can get qualified depending on your income and field.” A letter from your boss or place of employment will go a long way, so be sure to ask if you fear your relatively brief employment history might be an issue.

Reason No. 6: ‘I can’t find a home I like in my price range’

“People often think they have to buy their last home first,” says Fort Myers, FL, Realtor Angeline Sackett. But making a dream home a reality takes time. After all, they call first homes “starters” for a reason, right?

Now that we covered this – why don’t you call The Caton Team and we can help you every step of the way!

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