A lot of talk is swirling around the difficulty of getting a loan today. Most of that information is actually dis-information. Let me give you an example or two.
Yesterday I spoke with someone who emphatically told me that to buy a foreclosed home, he would need to put at least 20% down payment. I said that the circumstance may present itself where that may be the case – for example if he were buying an investment property and all the stars were aligned against him. Since in his case the propterty was going to be his primary residence, I told him that he would only need 3% down payment. He was sure I was wrong.
I told him that I just closed on one two weeks ago that was a foreclosed home, being purchased as a primary residence in South Forsyth county, and we did a 30 year fixed rate FHA loan at 6.0% interest with just 3% down. In that case, the bank paid the closing costs. He said, “Oh…okay, can we do the same?”
That is not his fault. Just a lot of mis-information is flying around out there.
The rule of thumb is that if you have a steady income, and can document that income, and have a little money saved (or gifted from a family member) for a down payment, then you can buy a home today with excellent financing.
Try me, I’ll prove it.
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