Having a good, qualified lender guide you through the lending options is key. When they bring local expertise, that is even better given some of the unique aspects of Florida real estate. This article has been contributed by Christi and Peter Moran, a power house mortgage broker couple to explore some alternatives for the “unconventional” home buyer.
Many potential homebuyers wrongfully assume they don’t qualify for a home mortgage for a variety of reasons. Here are some of the most common reasons:
- I need 20% down
- My credit score is too low
- My tax returns don’t show enough income
- I’m on fixed income and won’t have enough income to qualify
The good news is there are mortgage solutions that will help these homebuyers achieve the dream of home ownership.
LESS THAN 20% DOWN
For homebuyers with less than 20% down there are many mortgage solutions that allow as little as 0% to 3% down. Often the down can be a gift from a family member or can come from a grant or down payment assistance program. The gift, grant or down payment can also be combined with a seller credit for closing cost, under this situation the homebuyer can purchase a home with less than $1,000 out of pocket.
POOR CREDIT
For homebuyers with poor credit there are mortgage options down to a 500-credit score with 10% down. 3.5% down only requires a 580-credit score. For veterans, zero down is attainable with as low as a 500-credit score. In situations where the credit score is not where it needs to be, a credit rescore plan can be provided with simple steps to help increase the score quickly.
NOT ENOUGH INCOME OR INCOME HISTORY
For self-employed homebuyers with not enough income showing on their tax returns, there are mortgage options that use the last 12-months of business bank statements to qualify in lieu of tax returns. Additionally, if buying an investment property, loan qualification can be based on the cash flow (rent) of the property in lieu of tax returns or paystubs.
For retired borrowers on fixed income there are mortgage options that utilize assets as income known as asset dissipation loans. There are other options as well, even with no income, such as an FHA reverse mortgage.
It is important that homebuyers facing these challenges seek the guidance of an experienced and knowledgeable mortgage professional. To learn more about these mortgage financing options or more traditional mortgage options, the Moran Mortgage Team can work with you to explore options.
The Moran Mortgage Team has been helping homebuyers achieve the dream of homeownership for over 26 years. Pete has his MBA from The Weatherhead School of Management and specializes in mortgage loan analysis and structure. Christi is a top producer and is in the top 1% of mortgage loan originator production. Combined they deliver exceptional lending experience to every client.
Reach out to see if you qualify or scan the QR code below to be directly linked to our secure online application
Pete Moran 239-877-7130 pete@fpmortgage.com Christi Moran 239-293-0774 christi@fpmortgage.com
Frequently Asked Questions
Are there mortgage options for non-traditional buyers?
Yes. Bank statement loans, asset-based loans and other non-QM programs can help self-employed and unconventional buyers.
Who benefits from alternative mortgage programs?
Self-employed buyers, retirees with significant assets and investors.
How do I find the right mortgage option?
Work with a knowledgeable lender who can match your situation to the right program.
Related reading: Your Trusted Naples Real Estate Advisor: Navigating Luxury Living with Confidence and Choosing Your Expert Naples Realtor: Navigating the Luxury Market with Confidence
