If you’re a renter pining to become a homeowner or a foreclosure or short-sale victim, you may think that a home loan is out of reach.
However, home loan products and homebuyer assistance programs are available from lenders, local governments and nonprofit groups eager to help renters move into homeownership.
“There are two roadblocks that most would-be buyers think they face,” says Malcolm Hollensteiner, director of retail lending for TD Bank in McLean. “The first obstacle is down payment accumulation. The second is purely psychological: the fear that they cannot qualify for a loan. . . . There are fantastic opportunities that people are not aware of to reduce your need for cash and to obtain a loan approval.”
Lenders have special programs for new buyers with little cash and for those with low-to-moderate income or credit challenges.
“Prospective first-time buyers often think the loan process is too hard and that the closing costs are too substantial,” says Ray Brousseau, executive vice president of Carrington Mortgage Services in Santa Ana, Calif. “They don’t realize that there are programs for them that allow for a limited down payment and eliminate other out-of-pocket expenses, including closing costs.”
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