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By Felix Bradford Real Estate Broker Star Of Texas Real Estate Company

With all the bad financial news, there is still some good news. The good news is that there are still mortgage funds available for home loans. My associate and I recently handled a transaction for some folks (buyer and seller) right in the middle of this terrible financial crisis. As I walked back into my office from the closing, a news report was on the TV saying that there was simply no money available for home loans! This is wrong information folks! It was a little scary at first going into this transaction with all the negative news reports out there and not knowing what was going to happen in the financial markets, especially with home loans. Frankly, the news media is beating the real estate market to death by putting fear into buyers and sellers, as well as, real estate agents.

If you are thinking of buying or selling a home, here is some good news that you may want to know. People are still buying homes! Yes, there are still qualified buyers! Yes, there is mortgage money available out there!

There is still FHA and VA money (government insured/backed loans) available with fixed rate 30-year loans. These are good loans, and I think the best loans, for homes in incorporated towns with city water and sewer. People have gotten away from these types of loans and have selected more “creative financing” allowing folks to buy more than what they could really afford and mortgage companies making loans of more than what they normally should. As a result lenders quit recommending government insured loans because they required much more paperwork with much more documentation and much higher property standards have to be met. Hence the problem at hand in the financial market dealing with bad real estate loans.

If you are a buyer who has reasonably good credit, with maybe a minor blemish with zero balances (and not overloaded with debt, meaning your debt ratios are in line) and who has a minimum of a 3% of the total price investment, with at least two years of employment in the same type of work, you can still purchase a home. If you can’t meet these standards this gives future buyers a goal to work toward. Here are some of the criteria: go to a reputable mortgage lender and first be pre-qualified, buy within your means, make sure what you are buying is a property that will qualify for a FHA or VA loan. Here is simply what the loan underwriter is looking for. First, they want to be assured that you can afford the payment and can pay for the home. Second, that the home is in sound condition. Last but certainly not least is that the appraisal has indicated true market value. The maximum loan amounts on these loans, for our area (Texas), are $271,050.00 for FHA and 417,000.00 for VA loans. VA can and will make some rural loans.

While the government loans are not the answer to every real estate need and especially not in rural properties there is still some conventional money there also for these properties, but with tougher loan guidelines.

Don’t let the negative press stop you from your American dream of buying and owning a home. Your dream can still come true! Interest rates are at an all time low right now, which frankly, makes buyer qualification easier. Call your real estate professional and let them guide you in the right direction. We are fortunate to have some very good local real estate professionals in our community.

There is no better time than now to give your family their home for Christmas.