A Solution to Mortgage Approval Changes

Recent changes were made to the mortgage algorithms that approve homebuyers, but there's a solution to these changes.

Many of the ways we lenders look at risk in terms of approving mortgages are through algorithms, and important changes to these algorithms were made on July 20 this year. Specifically, these changes affect the way these algorithms approve homebuyers.

The good news is, there's a solution to these changes: the FHA loan. 

Some people out there may be trying to buy their first home with a lower down payment and haven't had the opportunity to save an abundance of money left over after the purchase. Others may be just beginning to build their credit report as they start families and careers. In any case,  all of us start homeownership from somewhere different, and I can't help but smile at the fact that FHA financing is one of those tools you and I can fall in love with that allows us to buy a home. 

One of the benefits I like about FHA financing is that it loves to say "yes." You see, it's a federally insured loan provided through most banks, but unlike conventional loans that are highly focused on credit scores, you can be approved for an FHA loan with a credit score as little as 580. Additionally, you're required to make a down payment of only 3.5%. On top of that, friends and family are allowed to help you with your down payment. 

Additionally, you most likely won't be required to have an abundance of money leftover after the home is yours. Like I said, FHA's insurance is designed to invite "yes." Its goal is to get you into a home, and there are so many things you can do with it that your probably didn't even know were possible. Isn't that exciting?

Homeownership is more available than you think, so if you're interested in buying a home, there's no time like the present to give me a call so we can talk more. I look forward to speaking with you.