You followed the rules to buy a house. You saved money, cut unnecessary spending, and paid your bills on time. You made your credit file tell people you are very sturdy and reliable. So why has the bank turned you down for a home loan? The Rules have changed.
The rules have changed for purchasing a home. The banks are lending money on properties where in some cases the properties are required to have 40% equity for a loan to be approved. 40% equity includes your down payment. So if you can find a property that is 20% undervalued and you have a down payment of 20% then you might be able to get funding for your home loan.
Many properties are not conforming to this formula of being undervalued by 20%. Many sellers would like to sell their property for the premium price of a few short years ago. But those prices will not be coming back around for at least two years due to the current housing glut.
Many would be sellers have a high amount of competition from banks with REO's. Many of the banks with an abundance of REO's are dumping them into the market at well below market value, creating even more problems for people trying to sell their occupied home.
Yes, today's market would be called a buyer's market, but with the stalling of credit by banks this is neither a buyer's nor seller's market. This market is what everyone will make of it, creative financing will be the key to home ownership.
Andrea A. Allen would like to offer you a free report on how to buy a home with little to no money down even with less than perfect credit. Go to our website for more information [http://www.ImmaculateEnterprisesAffordableHousing.info/freereport.php]
323-988-7205
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