Understanding Housing LoansWhile some buyers are able to pay cash for a home, most need some form of housing loan. There are four basic types of housing loans (also referred to as “mortgage loans”):
- Conventional loans
- FHA loans
- VA loans
- USDA loans
Some buyers, particularly first-time homebuyers, believe that it is important to save until they are able to make a down payment equal to 20% of the sales price of the home they wish to buy. While there may be some scenarios where this could be beneficial, IT IS NOT NECESSARY to do this. There are many types of housing loans that require a much lower down payment, and generally if you are able to pay rent in the Dallas/Fort Worth area, you will able to afford a monthly mortgage payment. You will generally be better off financially if you buy a home rather than continue renting, particularly if interest rates and housing prices increase.
If you need credit repair in order to buy a home, YOU ARE NOT ALONE. Please contact me and allow me to refer you to one of my trusted lenders, who can provide invaluable guidance regarding how to get to the point where you can achieve your dream of homeownership. This may not be as difficult as you think!