Oct 11 2008
Mortgage Finanacing is Alive in Knoxville
Contrary to popular believe, getting a mortgage in Tennessee is still possible. Most of the ads and the articles that I read talk about how the more stringent guidelines keep people from getting a mortgage. This is so far from the truth that it is not even funny. What I would like to go over here is a few of the misconceptions to the mortgage industry that are being spread over the nation. As for now, if you are looking for a home loan, they are definitely available here in the Knoxville, Tennessee area. And just so that everyone is on the same page, it is the same everywhere in Tennessee.
- Down Payment Assistance - This is not dead. a buyer can still get DPA. The only issues is that the DPA can not come from the Seller, Realtor, or Lender. It can be a gift from any one that you know or maybe not know. As long as the money does not have to be paid back, it will be acceptable. There is also no limit on how big or small the gift is. One stipulation is that you will need a copy of the check and a gift letter signed and filled out by the entity that is granting the gift.
- Down Payment % - Rumor going around is that the new DP% is a minimal of 10%. This is not true. FHA is still accepting 3.5%. Ask your lender if they are FHA approved and if they are not, then find one that is.
- Credit Score - I am hearing a lot about credit scores. Rumors are that lenders are requiring a 700 or higher to buy a home. This is truly a myth and if your lender tells you that, you need to find a lender that has access to FHA. FHA can do loans for people that have no credit scores or scores that are 500 and up. Remember though, these low scores will carry a higher interest rate.
- Length of time to get approved through FHA - This might be the biggest misconception that is going on today. The rumor is that FHA takes 30 days to 6 weeks. This is not true. Companies should be able to do FHA within 10 business days. If not, then find an FHA approved lender that will give you the 10 business day guarantee.
