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    The Dangers of “Tight Mortgage Credit” Headlines

    The availability of mortgage credit is not at the same level that it was during the boom in housing (2005), and that’s good news. However, the constant headlines which talk about “tight credit” are causing some potential home buyers to doubt their ability to purchase. We want to rectify the misconception of what is required for a down payment in order to purchase a home in today’s market.

    Freddie Mac recently discussed the confusion many first-time homebuyers have about the down payment they need in order to buy:

    “Did you know that the average down payment among first–time homebuyers is 6% and it’s 13–14% for repeat buyers…It’s possible to put down even less.

    Many potential homebuyers think that only the FHA helps make mortgage loans with low down payments. Not true.

    Freddie Mac’s Home Possible mortgage products let qualified homebuyers put down as little as 3%.”

    Brenda Garcia Lemus of John Burns Real Estate Consulting reports that this is also the case with newly constructed homes: 

    “Our home-builder clients sell hundreds of homes every weekend to buyers with 5% down payments and below average credit scores. Yet, many middle-income households with average credit and access to a 5% down payment assume they cannot become homeowners because of the ‘tight credit’ headlines.”

    Bottom Line

    Before you ‘disqualify’ yourself, let’s get together to find out if you qualify to buy today.

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    Danny Cheung

    I spent over twenty five (25) years with the Department of Defense in the hardware/software design and development as well as program management prior to joining the Group in a full time capacity. I am thrilled to put my years of experience as an Electronics Engineer to assist and lead our Real Estate Group to the next level. I am committed to establishing the tools and resources necessary for our team members to work more seamlessly and effectively thus ensuring our clients full satisfaction. My wife and I have two daughters and a dog (he's more like our son). I enjoy travelling and watching sports especially football…Go Skins!

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