Top Myths About Mortgage Loans
1. I need 20% down in today's mortgage environment, I don't have that kind of money.
Down payments are as low as 3%.
If you don't have 3% down and you plan to purchase a home at or under $279,500, the seller can pay for the down payment.
If you have VA eligiblity, you can come in with 0% down.
2. I filed for bankruptcy, I can't qualify for at least 7 years.
Most people can qualify for a mortgage in as little as 2 years from date of discharge.
In some cases, you can qualify for a mortgage 1 year after date of filing and 1 day after date of discharge.
3. I have unpaid collections and I don't have the money to pay them.
If you owe less than $5,000 in collections, you can still qualify for a mortgage. You do not need to pay off collections if you owe $5,000 or less.
4. I just started a commission job, don't I have to be on the job 2 years before I can qualify?
As long as you have 6 months of commission income reported on your most recent filed tax return, you can qualify for a mortgage.
5. I'm self-employed, aren't my options limited?
Self Employed borrowers still have a wide range of programs to choose from. If you are self employed, make sure your credit stays clean and you have assets available to use as reserves.
If you claim enough self employed income, you only need 6 months of income filed on your most recent tax return.
6. I have a part-time job or second job, can I use that income to qualify?
Sure, as long as you have held the part-time or second job for a minimum of 1 year.
7. I receive alimony and/or child support - I've heard I can't use that income to qualify?
As long as you have 3 months of cancelled checks and a copy of the divorce decree stating the terms will continue for at 3 years, you can use this income for qualifying.
8. I'm moving to the area, but my spouse has not found employment yet.
If you are relocating and your spouse was or is employed and plans to gain employment once relocated, you can use up to 100% of their income for qualifying.
9. I just became a contractor or consultant with my company, do I not qualify now?
There is not time on the job requirement for something who transitions within the same company to a contractor or consultant.
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