When people are interested in buying a home, it's usually necessary for them to obtain a mortgage. To obtain a mortgage, the individual may need down payment assistance, which is an important offering in today's market.
Down payment assistance programs help people get a down payment for a home, so they need little or no money upfront. In the past, you would need to have a percentage of income available to make an initial payment on a new home. Today, that's not always the case, and buyers can sometimes qualify for assistance in buying their homes.
Low- to middle-income people may also benefit from borrowing with a HomeReady Loan. This loan is produced through Fannie Mae and helps finance homes in low-income communities. This loan is special because it isn't just for first-time homeowners. It can also finance up to 97 percent of the principal residency that the individual wants to buy. Similarly, HomePossible mortgages from Freddie Mac help with down payment assistance in underserved areas.
Qualifying for any loans, whether they assist you with a down payment or cover only a portion of the purchase price of your home, can be a complicated situation for some buyers. Depending on your credit history, savings and other factors, you may find it difficult to get a mortgage you feel comfortable with. Fortunately, your attorney knows about different loan options and can help point you in the right direction if you're looking to sign a mortgage. It's a good idea to go over the terms with a professional before you agree to any contract.
Source: Forbes, "What Realtors Need To Know About Mortgages Today," Bubba Mills, Nov. 14, 2017