One size fits None...

Written by Amy Wienands Real Estate

Let's talk real estate financing…that actually fits you!

Let's be honest, we're not living in 1995 and I’m so glad we are not!!

Those were the days that I would be at an open house literally helping clients determine payments and qualifications (other than credit scores) there were only a few options for financing.

I Would NEVER think of that today!

Most Banks and Credit Unions had:

-30 year conventional

-15 year conventional mortgages,

-FHA/ VA loans

-A few construction financing options…and that was about it for standard options.

You had to have certain credit scores, your debt-to-income ratio had to be 28/36…

Meaning that 28% of your gross income could go towards your house payment and your overall debt ratio was not to exceed 36%.

(You might be thinking, well, what is it now? Keep reading and I’ll tell you…)

I remember walking around with a calculator always close by (ready to calculate a mortgage) - at that time, so many people would reach out to a Realtor as a first stop to talk payments and options.

I got so used to asking the most personal questions:

How much do you make?

What debts do you have?

Any child support?

Any alimony?

Any late payments or no pays on anything…

People would tell me all of that on any given appointment.

And with that information, I would get a general assessment of their finances, I would direct them to a mortgage lender.

Today, that is not necessary - nor even practical.

…and the reason is - there is a plethora of options available in today’s environment.

Financing is almost being customized, personalized, and curated for your needs today!

There are:

-100% financing options (no down payment)

-2/1 Buydown options (having the option to pay to lower your interest rate)

-Kiddie Condo programs (not just for buying a house for your kid - can be any family member)

-First time home buyer programs

-Some institutions have the ability to lend to a SELF-EMPLOYED OR business owner WITHOUT having to provide tax returns.

Other lending institutions will go up to 60% in debt ratio (vs. the 36% of the past) while you're holding your existing home and purchasing another.

Now, more than ever, credit scores and down payments determine interest rates as they are not just a standard rate for all.

It also may interest you to know that someone that has a credit score of 820 above and a 20% down payment will potentially be paying a HIGHER interest rate than a first time buyer with a little credit and 5% down.

These things challenge my way of thinking...But it's two-fold…

One, we want to encourage homeownership…

And secondly, when you're putting 20% down, private mortgage insurance is not needed and not necessary. Private mortgage insurance is what protects the bank against loan failure…

The bank feels a bit vulnerable, therefore, the rate is a bit higher.

Whether you’re a first-time buyer, trying to stretch every dollar, a seasoned investor playing the long game, or someone who’s finally ready to upgrade that tiny condo you “totally loved during the pandemic” (no judgment)—I’ve got strategies tailored to you. Not your neighbor. Not your coworker. You.

Because your life doesn’t fit into a box, and your mortgage shouldn’t either.

Please let me know if you have any Real Estate or mortgage questions - I would love to chat about your situation.

Obsessively Working for YOU!

Amy