By Andrea Eldert
A little white cottage with a white picket fence. A comfortable two-story with room for all your kids (and their stuff). A traditional farmhouse with a few acres to spread out on. Everyone’s dream home is different. But the dream to own your own home is a common one, and one that grows strong in many of us. For some, though, this dream seems elusive. In fact, many people simply believe that their situation excludes them from this possibility. While this may be true for some, often the obstacles to home ownership can be addressed by finding just the right mortgage product. Keep reading for answers to some common problems.
“I Haven’t Been Able to Save Enough for a Down Payment.” Traditional mortgages typically require a down payment of up to 20%. However, Federated Bank offers mortgages with lower down payment requirements. For example, FHA mortgages require as little as 3.5% down, and VA or USDA mortgages allow qualified borrowers to finance with NO down payment.
“I Don’t Have Money for Closing Costs.” The closing costs associated with obtaining a mortgage are an easily overlooked cost of buying a home. Typically closing costs will be around 2% to 5% of the home’s purchase price and are often required to be paid at the closing. These closing costs can easily total $5,000 or more, and many new home buyers just don’t have that kind of money available. Several mortgage products offered by Federated Bank counter this difficulty by allowing buyers to incorporate closing costs into the borrowed amount. This does not eliminate the closing costs, but it does enable purchasers to pay for those costs over time instead of requiring immediate payment upfront.
“The Monthly Payment is Too High.” The cost of living seems to be increasing all the time, and there is only so much we can do about that. However, Federated Bank does have different financing options that could make your monthly payment more feasible. We offer both fixed-rate and adjustable-rate mortgages over varying lengths of terms. Also, some of our mortgage products do not require PMI insurance, which can keep your monthly payment lower.
“My Credit is Just Not Very Good.” A final reason that people assume they will not be able to qualify for a mortgage is their credit history. While it is true that a low credit score may prevent would-be home buyers from obtaining a conventional mortgage, other mortgage products offer a more flexible reviewing process. Buyers who meet the criteria for an FHA or USDA mortgage may be able to benefit from their more relaxed credit standards.
The bottom line is that all mortgages are not the same, just as all consumers are not the same. With a variety of mortgage options at our disposal, we can often find just the right one to address your particular situation. So don’t assume that owning a home is impossible for you. If that is your dream, come in and talk with me (Andrea Eldert) or a branch manager at your local branch. We will listen to your concerns and then find the best mortgage option for you!
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