Jason Ruedy Mortgage Broker

The credit crunch has hit everyone hard. Banks have tightened up their purse strings. The amazing Programs that brokers and lenders once threw out at anyone with a pulse have all but disappeared. But does that mean that there is absolutely no way to get a mortgage without plopping down 20%? What happened to buying a house with no money down? Can it still be done?

The answer is "yes." Zero down mortgages are still available, but there are some very specific qualifications to get them. I have listed the three most common here for your convenience.

1. Rural Development Mortgage. - The Rural Development Mortgage is put out through the United States Department of Agriculture. This loan program is so popular, that the program typically runs out of money by the end of it fiscal year. This program is not limited to first time home buyers. The loan process is initiated through an approved lender, and is subject to income guidelines and the property must be purchased in a designated rural area. The availability of financing for home hunters seeking a home loan with bad credit means they can secure their dream home. There may be considerable relief at this fact, but it is worth noting that the terms and conditions of these mortgages are far from perfect.

For a start, the interest rates are higher than normal, which can mean a considerable extra expense over the lifetime of the mortgage. Remember, an extra $100 each month translates to an $36,000 over 30 years. Of course, the fact the applicant is securing mortgage approval, despite poor scores,can make the extra expense worth it.

Also worth considering is agreeing a longer term for the home loan. This effectively lessens the size of the monthly repayments because the principal mortgage sum is divided into more parts - a 30-year $200,000 mortgage is repaid in 360 monthly parts at around $600 per month; but over 40 years it is in 480 parts at $460.

Getting the Best Deal

It is practically impossible to avoid paying a higher rate of interest when getting a home loan with bad credit, but different mortgage providers have different terms. This means that a good deal can be found if some careful searching is done.

The good news is that online lenders tend to offer the best deals, and the task of searching is simplified through comparison sites. However, it is still hard work sifting through the individual features. The danger is that, if mortgage approval despite poor scores is granted, then the best deal is lost.

A professional eye can recognize the right factors, so it may be worth going to a mortgage broker. These are hugely successful in finding a home loan even for those with extremely poor credit scores. But they typically charge higher rates and so can be expensive.

Prospective homeowners are faced with the decision of whether to employ a mortgage broker or a mortgage lender when deciding on a home mortgage. But what is the better option? Because it is a huge financial investment, buyers need to make wise decisions every step of the way to ensure financial security. A mortgage lender provides the borrower with the funds at the closing table, whereas a mortgage broker does not actually lend money. Jason Ruedy Denver, Should You Make Extra Mortgage Payments?, Mortgage Loans After Bankruptcy: What Options Are Available?