“I’ll never be able to buy a home in California,” is a common statement for many first-time home buyers. Two of the most common concerns stated are the rising cost of housing and worries about being able to save the down payment. Housing prices are indeed quite high in California, but something that even experienced homeowners don’t realize is that there are many more sources for home loans than banks and mortgage companies. There are also many kinds of loans that don’t require the traditional 15-20% down payment and your credit rating may not play much of a negative role either. Marc Coons, the Paso Robles home loan professional is the person to help find the perfect home loan.
Some of the common issues that make people think they can’t qualify for a home loan include:
- Not enough income.
- Not enough down payment.
- Credit problems.
Not enough income
Income that is lower than what would qualify for a traditional loan is not necessarily a barrier to buying a home. There are many government loans and assistance programs that are specifically meant to help people who may not qualify for a traditional bank loan.
Low income doesn’t necessarily mean someone is living in poverty and the definition of low income depends on where one lives. For example, in California’s San Luis Obispo County, the low income for a single person is right around $61,000 and $87,500 for a family of four. Low-income families can qualify for a USDA (United States Department of Agriculture) in a rural area if the adjusted income is at or below the low-income threshold for the area they wish to live.
Marc Coons and his team of Paso Roble home loan consultants have access to hundreds of sources for home loans including those designed specifically for low-income families and veterans.
Not enough down payment
Many government programs ask for a small down payment of approximately 3%. Some may not require a down payment, depending on the circumstances.
Credit problems
The better your credit, the better your lifestyle. It’s important to pay bills on time, but sometimes life gets in the way. Some of the government programs look for a credit rating of 620-640 or higher.
Work with the expert
Marc Coons has been helping families in San Luis Obispo County and Paso Robles get home loans since 2004 and has been a Central Coast native since 1990. He is committed to the success of local families.
Marc and his team have access to a vast number of lenders, are not limited by location and can quickly identify lenders who are willing to meet your terms. The speedier the negotiations the sooner you are in your new home!