With the housing market on the rebound, many people find that now is the time to buy a new house. In fact, housing experts note that it is very much a buyer’s market right now. There are more houses up for sale than there are people to buy them.
However, you may think that you cannot qualify for a first-time mortgage. for a mortgage today is not as challenging as it was in the last decade. When it comes to utilizing mortgage services in Palm Coast, FL, buyers could be approved with relative ease now.
Credit Criteria
Until recently, people who wanted to buy a house had to have a credit score of at least 630 to 650. People with scores lower than that were often excluded from mortgage approvals until they paid off their debts and raised their credit scores. To make use of mortgage services in Palm Coast, FL, banks required a fair to high rating.
Nowadays, however, federal agencies like FHA and the USDA underwrite mortgages for people with scores as low as 580. Mortgage brokers look more at the debt-to-income ratio of applicants and less at the actual score. Even if you have a low credit score, you could still be approved for a new home loan.
Down Payment
People today also need to put less money down for a house. In the past, banks and mortgage lenders wanted buyers to put at least 20 percent of the asking price down on a house. Today, however, programs like FHA often only need 10 percent or less for a down payment. Some FHA programs require no down payment at all.
With this information in mind, you may decide to apply for a mortgage based on your income and credit score. It’s very possible for you to get the funds you need to buy a new house.
