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Part Four

the loan, the more the mortgage company will be willing to give you good terms and rates. Interest rates are around the lowest they have been in over 20 years. The political and economic climate in this country has conspired to produce 30-year fixed rates that have hovered in the 7.0% to 8.5% range since 1998. It’s at the point where nearly anyone with good credit and a job can buy a home. You can’t always get exactly what you want the first time, but owning, saving, and taking advantage of a growing market may give you the ability to take your increased equity every couple of years and trade into a better home. Many buyers have done just that.

Creative Financing If you are finding it difficult to get financing through the normal programs, you may have to get creative. Some ideas our borrowers like are the NIV loan or no-doc loan. With enough money down, usually 20% but sometimes only 10%, you can get one of these loans. NIV stands for “no income verification.” It is a loan where the lender feels there is a large enough down payment, and hence they would feel relatively secure if you were to default, so they do not concern themselves with verifying the income you state on your loan application. They may simply verify you are employed where you say you are and you actually have the resources necessary to cover the down payment and closing costs. A no-doc loan is a loan where the lender does not require documentation of either income or assets (assets in this case means the money to cover down payment and closing costs). Both of these loans will have a higher interest rate, as much as 1.0% to 2.0% higher than conforming loans. But, when you can’t do normal financing, these are still good loans to go after. 90

Profile for Linda DeVlieg Real Estate

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

How to Make Your REALTOR Get You the Best Deal - Albuquerque, New Mexico edition  

A guide through the real estate purchasing process - co-authored by Linda DeVlieg and Ken Deshaies

Profile for lindadev