Have you been dreaming about buying your first home but thought that it was just that, only a dream? Worried that your credit score might be too low or your savings might not be enough to get the ball rolling? The reality is that it may be easier than you thought!
Think your credit score is holding you back? That it has to be 700+ to get you in the door? Guess again. The minimum credit score these days is 620 for a conventional home loan, down significantly from even just a few years ago. This doesn’t mean you get a free pass on on mistakes in your credit history, but it’s much easier to rebuild your score up to a 620 than the 680+ it was in the past. And if even if your score is lower we’ll help you draw up a game plan to raise it and get you back into contention.
Maybe it’s the down payment that’s holding you back? Maybe you’ve heard you need 5%, 10%, or even a 20% down? The great news is that if you’re a first time home buyer, or your partner is, your down payment can be as low as 3% of the purchase price. For example, if you were buying a home for $50,000 you would only have to make a down payment of $1,500, in addition to closing costs and escrows for taxes and insurance. Plus the seller can contribute up to 3% of the purchase price towards your closing costs to help complete the sale.
And tax season is the perfect time to start home shopping because your refund is your secret weapon. If you need to work on your credit score it can help you pay off old debts or pay down your credit cards. If your credit is fine it can go to your down payment and closing costs. Either way, your tax refund is the perfect way to jumpstart your dreams of home ownership!
Ready to become a homeowner? Email or call Amy Clark, your home loan expert at PCCU today at 765-960-8618. She’ll discuss your credit and finances with you and help you find the home loan option that best fits you!
PCCU is a proud Equal Opportunity Lender. Even with today’s more relaxed requirements not everyone will qualify for a conventional home loan. We have other home loan products that can meet an array of needs, including FHA, USDA, and VA loans.