How Easy Is It To Get A Mortgage These Days?

From reading the news headlines you might think it is almost impossible to get a mortgage these days even if you have good credit. It is true that many lenders have closed their doors and that many banks have tightened their lending guidelines, but there is still financing available, and if you know where to look it isn’t as difficult as some make it sound.

While subprime loans may have died off for now, FHA loans are still available for most and offer relatively easy financing for many home buyers. It is true as with other loan programs FHA guidelines now require slightly higher credit scores than before, however they still offer even those with average credit great mortgage rates and flexible documentation requirements. FHA loans still permit alternative credit to be used, allows exceptions for some past credit issues and allows gifts for down payments as well as sellers to pay for closing costs. So for those of you looking for a mortgage loan an FHA loan should be among your first options.

If you find that conventional banks and mortgage companies are turning you down, don’t despair and give up hope of buying a home, there are other options. One of these options is looking for hard money lenders. Hard money or equity lenders have been used by real estate investors for years as easy sources of financing that require very little paperwork and often no credit check. These lenders also often offer financing based upon the after-repair-value of properties which can mean little or no down payment. Some will even fund money for repairs.

In addition to hard money lender companies today there are also many individual private lenders who are providing financing at reasonable rates and can be found through private lending websites. You will also discover that many homeowners and investors are also offering various forms of owner financing. This can be a long term solution though is often only for a 2 year period that gives you time to work on improving your credit and obtain a conventional loan later. This can be a very attractive option and often provides very competitive interest rates and payments. However if you are considering renting to own or a lease option you must be careful about who you are doing business with and do your due diligence to make sure that the property is not currently in foreclosure which could put you at risk of losing what you invest.