“People are under the impression that they need perfect credit coupled with a 20% down payment to qualify for a mortgage these days,” said Armand D’Alfonso, President and CEO of Nothnagle Realtors. “People need to know that they can take advantage of today’s opportunities in the housing market and should not hesitate because they are concerned about the mortgage market. We have access to competitive products that require as little as 3 – 5% down,” added D’Alfonso.
Conventional financing is available with as little as a 5% down payment. Sellers are permitted to pay up to 3% of the sale price towards the buyer’s closing costs. While the credit guidelines on conventional financing have tightened, loans are readily available to borrowers with average credit – that is credit scores of 620 or higher.
Many of our clients have qualified for FHA loans with up to 97.75% financing available. FHA loans allow lenders to be more flexible with damaged credit, require a minimal down payment and allow for a 6% seller’s concessions applied toward the buyer’s closing costs. The maximum loan amount for the Rochester region is $271,050 for a single family property. It is important to highlight the basics of FHA financing as it provides a great example of flexible mortgage programs available for our clients who do not have perfect credit or 20% for a down payment. (Minimum credit score required for FHA is currently 580 or better.)
Nothnagle Realtors believes in the local economy and the stability of the real estate market in the Rochester region.