On a More Serious Note

As a Realtor, I have wondering why there are so many people who have taken a step back from the pursuit of buying a home!   Obviously, when the Homebuyers Tax Credit expired on June 30, 2010, most buyer thought that the door had closed on their ability to buy a home.   Not True!   I and other realtors are here to help anyone who has a desire to own a home of their own.

There are programs right now that offer -0- down, no PMI, and in some cases subsidize the buyers.  These loans have been around for a long time.  One of the loan programs is the Sec. 502 Direct loans through the USDA.  It was offered after the second world war and gave soldiers  an opportunity to own a home when they came home from overseas after the war ended!  It still is being used for buyers that have limited income.   They may have no credit or decent credit, a stable income, and qualification is based on the number of people in household, a minimum 640 credit score, and higher, low debt ratio's

These home need to be 50 miles from a major city(Detroit being the major city)   All of Livingston County qualifies, portions on the west side of Oakland County and Washtenaw County.  From the lower priced homes up to $196,000 for Livingston County.

As an example, a person earning $24,000 a year gross income, with a minimum credit score of 640, with minimal debt( $200.00 per month)purchasing a home at $155,000 would have a subsized payment at 640.00 per month; that would includes principle, interest,taxes, and insurance.  The subsidized interest cannot go any lower than 1%, and if the income goes up drastically, the payment can go up a bit.  The loans are for 33 and 38 year mortgages.  If a person's income decreases, usually the payment will go lower.

Because of the past few years and the changes in the economy, many of us have had credit issues.  Even though you think you have damaged credit and you won't be able to buy a home in the future.  Even after a bankruptcy, most people can purchase a home within 18 months from the date the bankruptcy is released.   If you have made every payment including utilities on time for the past 12 months and have a credit score of 640, you will be able to purchase a home.  With a foreclosure, it is closer to three years, but with the same provision, that you have made all payments on time for at least 12 months and you have reached 640 or higher on your credit score.

If you think you still need to work on your past credit issues, most realtors are willing to help you resolve those things.   I am eager to offer my services to anyone who needs assistance in moving toward home ownership in the coming years.

For more information about the loans available, I  would be happy to pass on any information on the different loans available. 

                                                      By Nannette Gregory