secret # 3

Smart Financing Tips - What You Need to Know
prepared by David Brown and Melissa Large
licensed Oregon real estate brokers
Prudential Real Estate Professionals

The times may have passed when almost anyone could get a loan to buy a house.  However, there are still great loan programs to help get you into a home. 

There are many different types of loans available some of which your local bank or mortgage broker may not be able to offer you.  So it’s a good Idea to talk with your Realtor about your situation so you can be pointed in the right direction. 

Most of these loan programs you will see below generally require a credit score of 620 or better and each loan (even the no money down loans) will have associated closing costs as all loans do.  Some lenders have programs that can help even if your credit score is lower; you may qualify for a loan with a little more money down.

VA- You may be eligible for a VA loan if you are a veteran.  These loans require no money down.
FHA- with an FHA loan you can put as little as 3.5% of the purchase price down.
Conventional- A conventional loan typically has the best interest rates available; you will need to put 10% or more down.

USDA- This is a rural housing loan available in towns of less than 25,000 people.  So you can go just outside Salem’s city limits and qualify for 100% financing.  You can even purchase a brand new manufactured home with this loan program and put it on land.

Portfolio loans- Some local banks can do a portfolio loan which basically means they are loaning their own money out and may have more flexible terms than other lenders.  Some can even offer 100% financing if you have a credit score of over 620. 

Homepath Foreclosures- Homepath only requires 3% down when you purchase one of their foreclosure homes.  They even offer rehab financing where the cost of the renovation is included in the loan.  This is a great opportunity to take advantage of the low prices of a bank owned home and be able to fix it up all in one loan.  This isn’t just for your own primary residence; investors can also take advantage of this program.
For further information please contact us and we’d be happy to put you in touch with a mortgage broker that has more information about the specific loan you are interested in.  A typical lender who does Conventional, FHA or even VA loans may not have any knowledge of a Homepath loan or USDA loan.  This is just one of the many reasons why you should be working with a Realtor so you can make the right decisions from the start of the home search process. 

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