The Price Is Right:
Finding Home Financing to Suit Every Budget

It’s only natural that the home buying process comes with many anxieties. For many people, one of the biggest is wondering how to afford a home at all. But this is often due to misconceptions which keep the customer from methods that could make it possible but may be less well-known. With the right information, you can set aside much of your concern about affording a down payment and financing a new home. The knowledgeable customer and the right Realtor ® can shift the focus from saving money to saving much worry.

The 2002 Fannie Mae National Housing Survey revealed widespread assumptions holding back potential homeowners needlessly. One of the biggest is that buyers need 20 percent of the purchase price ready as a down payment to purchase a home. But today several specialized mortgage programs require little or no down payment.

A Veteran’s Administration (VA) Loan lets eligible military personnel finance up to 100 percent of a home, even if their credit is imperfect. An FHA Loan requires less than three percent as a down payment. There are also Community Lending Programs that let home buyers who meet local HUD median-income guidelines pay $500 or one percent of the purchase price, whichever is less.

In addition, mortgage products are available specifically for the self-employed and for those with bad credit scores (including, in the latter case, CreditWorks, a mortgage program that comes with debt-management counseling). Another advantage to keep in mind is not just the discounts you can gain going into a home purchase, but the ones you can obtain from making the purchase itself – over a third of those who answered the Fannie Mae survey didn’t know that mortgage interest is tax-deductible, but it’s a benefit that can substantially relieve your financial concerns.

The survey also found many people believing that housing lenders are legally required to give the best possible loan rates; actually, many factors influence a range of rates offered by various lenders, so there’s no substitute for shopping around and doing your homework.

Of course, there is more than one way to make sure it gets done. Qualified professionals can lead you through the maze of options to the most efficient and economical solution for you. The professionals at ERA Mortgage can help you determine your financial abilities and meet your financing needs. ERA Mortgage offers over 100 products, including loans designed especially for first-time home buyers or even clients who have recently had a bankruptcy. This range covers the array of programs mentioned above, and some other helpful options that are unique to ERA Mortgage.

Whichever way you proceed toward your home ownership dreams, it’s good to know they can become reality sooner than you think, and important to get the best guidance you can on how. If you believed you couldn’t afford to buy, information like the facts above are something you can’t afford not to have.