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Great Recession 2008
Right now because of the Great Recession of 2008, the majority of Americans per Fannie Mae’s survey think that it is hard to qualify for any mortgage. Americans also don’t know much about the minimum debt levels lenders require.
Fannie Mae which is a conventional loan has come out with a loan called HomeReady that allows your credit score to be as low as 620. Also, you might only need 3% for a down payment. The down payment, closing costs, or financial reserves can be a gift from Nonprofit organizations or public agencies.
According to Magnify Money, you can get an FHA loan with as low as a 500 credit score with 10% down. If your credit score is a little better 580 or higher, your down payment is 3.5%.
The U.S. Department of Agriculture as well as the U.S. Department of Veterans Affairs offer zero down payment options.
As for debt levels, consumers can qualify for a mortgage with as much as 50% of their gross income going toward total debt payments that are owed.
I don’t know about you but this wows me!
Currently Reading:
This is what I am reading if you want to follow along with me! I enjoy the company—the Prayer of Protection and The Guernsey Literary and Potato Peel Pie Society.
Stay tuned for my up coming book called Big Banks Small Thinking!
