About Home Financing
There are many different ways to finance your condo or house. Some of the options include: personal savings, banks, mortgage companies or brokers, credit unions, government programs, and a loan from the seller of the house. Your financial situation will help determine the right financing option and lender for you. It is important to obtain your credit report as soon as possible so you can try to resolve any potential issues to raise your score and increase the likelihood of getting approved for the desired loan amount. Depending on your credit history and circumstances, you may benefit from using one source of mortgage loans over another. For example, a borrower with excellent credit, easy access to financial documents, and longtime employee of one company may choose a mortgage bank to obtain a loan. A self-employed borrower who does not want to share data on income or assets with a mortgage provider may benefit from obtaining a loan through a mortgage broker as opposed to a bank. With any lender chosen, it is important for you as the buyer to do your own research and learn about all available options for condo financing. Two options to consider fall under the Federal Housing Association: FHA 234(c) and “spot approval.” The FHA 234(c) is useful for those who fall into a lower income bracket. The program usually issues a 30 year mortgage loan allowing for low monthly mortgage payments. Certain criteria must be met in order to qualify for the FHA(c) financing option. The spot approval option exists for those who do not qualify for FHA 234(c). A full list of requirements and information on both of these options can be found at the FHA Loan website.
