Qualifying for a low down payment loan is much like applying for a regular loan.
To be considered for a low down payment loan, you generally need to have:
* sufficient income to support the monthly mortgage payment
* enough cash to cover the down payment
* sufficient cash to cover normal closing costs and related expenses (explained below)
* a good credit background that indicates your payment history or "willingness to pay"
* sufficient appraisal value, which shows the house is at least equal to the purchase price
* in some instances, a cash reserve equivalent to two monthly mortgage payments
So How Much of a Mortgage Can You Afford?
There are two basic formulas commonly used by lenders to determine how much of a mortgage you can reasonably afford. These formulas are called qualifying ratios because they estimate the amount of money you should spend on mortgage payments in relation to your income and other expenses.
What Kind Of Property Can You Buy With A Low Down Payment Loan?
There are few restrictions regarding the type of home you may buy with a low down payment loan. In addition, low down payment loans may be used with the wide variety of mortgages.
No comments:
Post a Comment