“I’ll Never Be Able to Buy a Place”

Certainly not uncommon to hear statements like this in markets that have run wild for the last several years.  San Francisco and much of the bay area, of course, have seen home prices escalate steadily - and sharply in some sub-markets -  to levels that can leave a would-be buyer feeling like it’s out of reach.  Many conversations I have with friends and prospects revel that so many people feel that getting a mortgage would be hard for them.  That coming up with a down payment would be impossible, or that their credit may not be good enough to do it, or that it is just too unrealistic to increase their housing expense for something they would then “own” instead of lower rent-controlled property.  I tell all of them the same thing - people with far greater obstacles to approval or less resources have done it and continue to do it all the time.  If you want to own, there is always a way.  

This is not to say that it’s for everyone - full disclaimer!  I get so much negative/hate messaging on my social media platforms from people satiating that I irresponsibly encourage EVERY PERSON to buy a home, everyone should own.  That is not the case and never will be, at least as a stance from me.  Buying always is a very personal and timed decision.  It is not for everyone and requires diligence and advisement to arrive at the decision, and I remain proud to advise clients on whether this is or isn’t a decision that is in their best interests.  

First time buyers are always surprised to learn that there are so many products out there just for them, set up to make buying easier and more accessible.  

·      Low credit score – Don’t have a great credit score? You’ve got options. In fact, FHA loans allow for scores as low as 500, as long as you can make a 10 percent down payment. You can also add a co-signer to your loan to help your chances of qualifying

·      No down payment savings – Despite the rumors, you don’t need a 20 percent down payment to buy a house. On conventional loans, you can pay as little as 3 percent, and if you’re willing to buy in a rural area or you’re a military member/veteran, you can actually skip the down payment altogether.  

·      No cash for closing costs – There are a number of closing cost scenarios that can be overcome through “gift funds” to help cover closing costs.  These can come from family, etc.  As well, in a shifting market, sellers can be negotiated with to help credit a buyer for some or most all of their closing costs. 

·      Non-traditional job or inconsistent income – If you’re a gig worker, freelancer or self-employed pro, you may be worried about proving your income without W-2s, paystubs and other must-haves. Fortunately, we have access to many programs that  cater to workers just like you. They’re often called “bank statement loans,” as they allow you to qualify based on your bank statements and cash flow alone. 

It is possible to qualify for a mortgage with almost any financials background or situation. You just need to know who to speak to ;). Wink, wink. Email me anytime to discuss a strategy that might prove helpful for you.