Lehigh Valley Home Buyer and Mortgages

In view of the recent financial problems throughout the country, a common question I am getting asked is whether or not a Lehigh Valley Home Buyer can still get a mortgage.

The answer is Yes! If you are interested in purchasing a home, then financing is still available. Of course, you need to qualify for the mortgage and the qualification process has definitely gotten harder.

A few years ago, if you had low credit and no money it didn't matter. You could do 100% financing and include the closing costs in the mortgage. Looking back, it was easier to get a mortgage to purchase a house then it was to get a landlord to agree to rent out a property to some of these potential buyers. Fannie Mae and Freddie Mac had relaxed the guidelines to the point that almost anyone could get a mortgage. They couldn't rent an apartment but they could purchase a house. Something was wrong with the system and it all came to a head a few weeks ago.

Hence, the current housing problem. Many buyers had no stake of their own in the picture. They did 100% financing and buried the closing costs in the mortgage. Not one cent of their own money was at stake if they moved out of the house. Even so, many destroy the houses before they leave because they are mad at the bank.

Anyways, FHA financing is still available. To qualify for an FHA mortgage, a potential home buyer should have at least 3% of their own money. In 2009, the guidelines are supposed to increase the needed money to 3.5%.

If more money is available to a potential home buyer, then other financing options are still available. If interested in purchasing a Lehigh Valley Home, contact me for the names of some mortgage companies that are still willing to lend money to a qualified home buyer.