When shopping for a real estate mortgage, many questions arise. Often the advice from friends and family is confusing and misleading. There are many rumors and old wives tales concerning real estate financing, so I asked a mortgage broker to get the real answers.
1. Are there any programs that can help a single parent get a loan?
Yes, there are. One program in our state is the THDA or Tennessee Housing Development Agency. Other states will have similar programs. The THDA provides grant money to assist with making a down payment on a home loan. Another program which helps single parents is the USDA. The USDA provides 100% financing in some situations. Your mortgage broker can give you more information on these programs in your situation.
2. If a single parent has had an FHA loan before, can they qualify for another FHA loan?
Yes, but restriction may apply. You will need to discuss the qualification requirements with your mortgage broker. A good broker will help you through the qualification process.
3. What is an FHA loan?
An FHA loan is a standardized mortgage loan that is easy to obtain. The advantages of the FHJA loan are no prepayment and it is backed by the US government making it easier to qualify at a lower interest rate.
4. What items do lenders look at when someone is applying for a loan?
Al lenders will look at the same qualifying factors: Credit history, Income and Assets. When applying for a loan, you will need to give the lender access to your credit reports and provide proof of income and your assets.
5. How long after a bankruptcy does someone have to wait to get a home loan?
Typically the wait is two years. However there are many variables and the rules have been changing lately. Contact your mortgage broker for the latest information.
6. How can someone rebuild credit to be able to qualify for a home loan?
One suggestion is to add a secured credit card and leave it at a zero balance. Check your credit report and dispute any negative items. But, the most important step is to just be patient and let the negative items fade away with time.
7. What is the recommend down payment for a home mortgage?
Three and a half percent is generally the minimum. That would be $3500 on a $100,000 loan.
Knowing the answers to these common questions can help you be more prepared when you contact a loan officer about a home loan or other real estate mortgage. There are many online resources that can help you determine you collect the information needed to prepare to apply for a loan.