The Truth about Home Financing via Seattle Times

The Seattle Times hosted an online real estate Q&A today with mortgage loan experts Dave Erickson and Erin Rearden. Readers submitted questions and Erickson and Rearden provided answers in real time. The questions were surprisingly honest and candid and the answers provided insight to the truthfulness of today’s home loan industry.

For example, a Renton woman asked:
My husband and I don’t have the best credit, but we own our home. We have never been more than 30 days late on our house payments, and have a decent amount of equity built up over the last 4 years. Our rate is due to fluctuate in June of ‘09, and we would like to sell and get something bigger. Is this even possible with less-than-perfect credit? Will having a bigger down payment for a new place (from our equity) make it easier? I am worried that there are no programs out there anymore.

Erickson responded:
If you can keep your payments on time for a year and have a bigger down payment, you will find a loan.

If you are married to a person with “bad” credit, Erickson suggests a FHA 30-year fixed loan or buying the home without the significant other and adding them to the title later.

For more Q&A, check out the full banter.