Before interest rates increased exponentially, it was already difficult to qualify for a home loan, especially if you have not-so-stellar credit or are self-employed. When interest rates are higher, it’s even more difficult to qualify as you have less money to use. Because interest takes up a good portion of your payment, you won’t be able to afford a more expensive home. Add to that the lowered value of the dollar. Now, if you want to attain the dream of owning a home, you have to look for alternative methods to purchase a home.
You don’t have to go for a conventional loan. There are many options you can use to get a mortgage. While many of them require good to excellent credit, there are still some options that allow less-than-stellar credit. Additional paths include first-time buyers’ loans, bank statement loans, VA loans, and private lenders.
A good mortgage broker will help you find a loan that fits your situation, whether a jumbo loan, FHA loan, or other types. The mortgage section of The Simple Riches blog will explore many of the options, in addition to posting tips and tricks to help qualify for a mortgage loan. Follow our blog so you are notified of new posts regarding mortgages, including tips and tricks and information on all types of mortgages.
With home loan interest rates increasing, you must be even more careful about choosing the right mortgage or loan. Gone are the days of finding mortgage interest rates at 3 percent – for now, anyway.
