Mortgage Myth #1 - Perfect credit is need to get a mortgage

2012 MORTGAGE MYTH #1

Perfect Credit is needed to get a mortgage because of the new laws and banking regulations - Since the Mortgage Industry meltdown of 2007, there have been many erroneous reports in newspapers, radio news programs and television news reports.  It is true that stated income, no qualifying loans with no money down have gone away.  And it is true that numerous laws have been passed to regulate and control the mortgage industry.  However, FHA loans are still available and they still are very liberal when it comes to credit qualifying.  Clients can still qualify with alternative credit references and history like phone bill records, gym memberships, etc.  By the way, downpayments for FHA loans are still 3.5%, but we expect the down payment requirement for FHA loans with poor credit to increase in the next few months to 10%, so if you are interested in buying home using an FHA loan, now is the time.