Debunking Current Mortgage Myths

It's not surprising if the news about the housing crisis leads you to believe it's very tough to get a mortgage.  However, the truth is HomeStreet Bank is making home loans for purchases and refinances to qualified borrowers every day! 

To help separate fact from fiction, we've put together a list of "Common Mortgage Misconceptions."

Common Mortgage Misconceptions

Home Loans are hard to get.

There is plenty of funding available for home mortgages through several very reliable loan programs.  Although the market has imposed tighter lending guidelines, low interest rates and programs with flexible credit requirements are still available through HomeStreet.

I need to have perfect credit.

While requirements are more stringent than in recent years, even if you have less than perfect credit there are still safe, secure mortgage financing options available.  HomeStreet employs knowledgeable loan officers who can evaluate your financial situation and help you get the financing you need to fit your budget.

You need to put 20% down because zero and low down payment programs are gone.

Not true.  Although not as prevalent as in the past, there are still several loan programs offering low down payment mortgages, such as FHA — which requires as little as 3.5% down.  If you're a veteran, VA loans are available with zero down for many borrowers.  Special regional programs may also be available in your area.  Our loan officers would be happy to help you with any questions.

Adjustable Rate Mortgages (ARMs) are bad.

Adjustable Rate Mortgages (ARMs) can be a great way to get into a home, as long as you understand how your payments will change over the course of the loan.  ARMs may come with a lower initial fixed interest rate for a set period of time (the most popular initial terms are 3 or 5 years).  After that initial period, payments generally adjust to the prevailing market rate plus a small margin.  If you anticipate selling the home during the initial term of the loan, an ARM may be a good option.

FHA Loans are only for first-time home buyers.

Federal Housing Administration (FHA) loans have undergone a number of changes, making them a great option for many borrowers, not just first-time buyers.  Qualification requirements are more flexible with FHA loans, and loan limits have been expanded in many areas to make them a good option in more situations.  In fact, the FHA 203(k) Streamline Renovation loan may be an excellent choice if you want extra cash for renovations, and can be used for both purchasing or refinancing a home.

At HomeStreet Bank, we have been providing home loans for nearly 90 years, and we have more than 100 experienced loan officers to help you finance your dream.  Please contact a HomeStreet Loan Officer today to help you with your home loan needs.