The days of plentiful zero-down 30-year mortgage offers at every turn have indeed passed. In an effort to contradict the somewhat lenient mortgage standards of the earliest part of the 21st century, many lenders have returned to requiring substantial (3.5 - 10%) down-payments and credit scores beyond reproach prior to providing mortgage approval.
All of which can be a bit daunting to first-time homebuyers, or those in a variety of situations affecting credit score optimization and savings. But what we don’t often hear on the nightly news is that 100-percent mortgages still exist - and many in our local area (the New River Valley) could qualify.
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For example, the US Department of Agriculture;s Guarunteed Rural Housing Loan Program features the possibility of 100% loans with 30-year fixed rates for those who live in designated rural areas. With the exception of the Town of Blacksburg, all of Montgomery, Giles, Floyd and Pulaski counties fall into the category of “designated rural areas”.
And if you or your spouse has served in the military, more opportunities for 100% financing exist. For example, SunTrust Bank offers Veterans Administration loans featuring 100% financing and no mortgage insurance. More information about eligibility requirements can be found here: http://www.benefits.va.gov/homeloans/eligibility.asp, and again, our in-house lender Linda Witt can assist with these loans as well.
Furthermore, those who live and work in the New River Valley may qualify for the New River Valley Association of REALTORS’ Down Payment Assistance Plan. Available for eligible low-to-moderate income individuals, the program provides down payment assistance of up to $5,000. More information can be found through Terry Vaughn, the Homeownership Specialist with Community Housing Partners, at 540.382.2002 ext. 3307 or tvaughn@chpc2.org.
In short, don’t let the media’s sensationalist stories about the plummeting housing market, the disappearance of 100% mortgages, or bank crises stop YOU or YOUR FAMILY from reaching your dream of home ownership.
The Hudson Team can assist you every step of the way.
Phone: 540.961.9317 (office) or 540.320.5498 (cell)
