A breakdown of mortgage programs that work for buyers with bad credit or small down payments. The speaker walks through loan options designed to open the market to people who thought they couldn't qualify.
With the many loan programs we offer here at McGowan Mortgages, I think it's important to kind of shed some light on really bigger picture, what it all means. And it opens up opportunities for home buyers. So many buyers might take themselves out of the market before they even give themselves a chance because they say, hey, my credit's not 620 or I don't have the perfect down payment saved up, or I'm not sure if my tax returns are going to allow me to qualify for a loan. But it's important because our realtor partners have kind of come to know that, hey, it's okay, go have them take a look, see what they can do. You know, maybe we'll start with the self employed person looking at a normal loan, but if the tax returns end up not being perfect, it's okay. We could pivot to a bank statement loan. Or hey, you don't have to have a 620 credit score like you do at a lot of banks and lenders, even if you're in the 500s. Have them take a look. And a lot of times it just opens up the door, opens up the conversation. Then we see, okay, maybe they're 550 credit. But hey, I noticed right here we can rescore you to 580. And although you could get a loan at 550, you can get a better loan at 580 or 600. But it all started just opening the conversation up. Hey, I don't have a 3 1/2% down payment saved up in my bank account right now. I don't know if I can get a half house. It's okay, have them take a look. We take a look at it, hey, it looks like you're close. Or hey, it looks like you have a 401k. Hey, what about a gift from family? Although we can do, and we do many down payment assistance loans, if the person has a down payment, it's always going to be better financing. And I'd say about half the time they start at one stage and they graduate up as we're preparing them to get a home loan to a better stage. But they might not have never reached that if they didn't start with the wide open option. So I think that's the key. Half the time it sticks where it's at and that's fantastic. That person got a house and they didn't have a lot of other options to get a house possibly, but the other half of the time they start there, they open up, they allow us to do that. Soft credit poll just to kind of get the ideas going, get the conversation started. Then they realize, hey, I actually can get some of these programs. I didn't think I could. So that's really the key ingredient, and that's what makes us happy. Helping many homeowners of all shapes and sizes.
