Do you realize that there are a lot of myths, half-truths, & much misleading information being floated in the media?  Surely you are shocked, but, yes, it is true!  You would not be surprised, then, to learn that there is much misinformation being disseminated about the current mortgage crisis. 

The average person would think that no money is being lent anywhere.  NOT TRUE!  Those who have acceptable credit scores, a verifiable source of income and assets are eligible to receive financing.  This has always been the case, with the exception of the past few years, and is nothing new.  Imagine the audacity of a lending institution trying to insure that borrowers have the means to repay their loans.  Imagine!

Some other Myths:

Myth:  Home buyers must have at least 20% for a downpament

Truth:  NO!  Even with imperfect credit, there are still some down payment requirements as low as 3-5%.  FHA requires 3% DP and even allows the seller to contribute up to 6% of the sales price toward buyer’s closing costs.

Myth:  There are no 100% financing programs available

Truth:  VA loan eligible veterans can obtain 100% financing and the USDA Rural Housing program will allow 100% financing

Myth:  There is no money being lent to home buyers

Truth:  The money you are hearing about is that available to small businesses.  There is plenty of money to lend to home buyers and at historically low rates

Myth:  The mortgage crisis must mean this is not a good time to buy or sell

Truth:  This is one of the best times to buy in years!  You may lose a little on the selling end of the deal, but you will realize a WIN on the buying side! 

 Source:  Analysis by Don O’Dell, Allen Tate Mortgage

Real estate is one of the most sure, stable investments you can make.  If you have good credit & a verifiable income, you can borrow and you can buy.  Let me know what other questions you might have about the financial & real estate markets.

 “Pain is inevitable, but misery is an option.”  Christopher Reeve