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Real Estate Mortgage – Seven Important Questions

When looking for a real estate mortgage, many questions arise. Advice from friends and family is often confusing and misleading. There are a lot of rumors and old wives’ tales about real estate financing, so I asked a mortgage broker to get the real answers.

1. Are there programs that can help a single parent get a loan?

Yes there are. One program in our state is THDA or Tennessee Housing Development Agency. Other states will have similar programs. THDA provides grant money to help make a down payment on a home loan. Another program that helps single parents is the USDA. USDA provides 100% financing in some situations. Your mortgage broker can give you more information about 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 restrictions may apply. You will need to discuss 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 that there is no down payment and it is backed by the US government, making it easier to qualify for a lower interest rate.

4. What items do lenders look at when someone applies for a loan?

All lenders will consider the same qualifying factors: credit history, income, and assets. When applying for a loan, you’ll need to give the lender access to your credit reports and provide proof of income and assets.

5. How long after bankruptcy does someone have to wait to get a home loan?

Usually 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 their credit so they can qualify for a home loan?

One suggestion is to add a secured credit card and leave it with a zero balance. Check your credit report and discuss any negative items. But, the most important step is to be patient and let the negative elements fade over time.

7. What is the recommended down payment for a home mortgage?

Three and a half percent is generally the minimum. That would be $3,500 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 resources online that can help you determine if you are gathering the information you need to prepare to apply for a loan.

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