How does the government shutdown impact my ability to secure a loan for buying a home?
The real estate market is certainly starting to feel the shockwaves of the current government shutdown. However, not all lenders and loan types are impacted. FHA loans have been hit the hardest. As a result, some buyers have given up their search due to the inability for the government to process their loan. However, for lenders like Bank of England Mortgage, it's business as usual, even in closing FHA loans and VA loans. The one caveat - buyers should be aware that USDA loans are not closing at this time if that type of loan applies to you.Contact BOE Mortgage
to help you to keep your loan on track and ensure you don't miss out on your home purchase due to the shutdown
Do I qualify as a first-time homebuyer if I owned a home in the past, but no longer own one?
Fannie Mae and Freddie Mac have opened up programs such as HomePossible and HomeReady to now include moderate income borrowers who not only have owned a home in the past 3 years, but who still own property. As long as the home you're looking to buy is to be used as your primary residence and you fit the HomeReady or HomePossible 'moderate income' guidelines you have access to the same 3% down payment programs as a traditional 'First Time Homebuyer'.Contact BOE Mortgage
to learn more about HomeReady or HomePossible options for you.
Should I get pre-approved before house shopping?
Do I need a 20% down payment?
With the prices of homes skyrocketing, it's not always possible to put down 20% on a home. That is especially true for first-time home buyers. Depending on your state, various down payment assistance programs are available. In Massachusetts, qualified borrowers may be able to access down payment assistance for up to 3% of the purchase price or $12,000, whichever is less through MassHousing.
Bank of England is a preferred lender for MassHousing. Contact us
to see how we find the right assistance program for you.
Can I still get a loan with a low credit score?
Yes, FHA-backed loans are available to any borrower with a credit score of at least 500. If your score is 550, you can apply for an FHA loan that requires a down payment of 10 percent of your home's purchase price.Click here to contact us about our FHA loan programs.
Can I still get a loan if I'm self-employed?
Yes, it is possible to be approved for a mortgage solely on self-employment income. If you can demonstrate sufficient, stable income and good credit to support the loan, a co-signer with a W-2 is not necessary. You'll typically need to gather details of at least two years' worth of your entire financial history. This will likely include your federal tax returns, a list of your debts, and a list of your assets.
Can I still get a loan if I filed for bankruptcy?
Yes, for Chapter 7 bankruptcy, FHA and VA regulations require a two-year waiting period from the time of discharge (not the time of filing). Conventional loans require a four-year waiting period from the discharge date. If you have consistently made verified payments for one year, you can apply for a FHA loan.
How do interest rates impact my home loan?
Even small increases in interest rates over time equates to more money coming out of your wallet. Interest rates are predicted to rise in 2019 so it is best to take advantage of lower rates while they are still available.
Are there any programs available to me as a veteran or civil service employee?