It may be easier than you think to secure a mortgage
November 2011 - On this week’s episode of The Money Pros, Stephen Tetzner, founding partner of Homestar Mortgage, discussed how lending standards have relaxed since the financial debacle of 2008.
While the national media may continue to tout the gloom and doom of the mortgage industry, there are many financing options available to those who qualify. Rhode Island property values have leveled off from their historic decline. The only real change is that those individuals who should not have qualified in the first place for a mortgage due to insufficient income verification are, today, unable to acquire a mortgage. However, if the borrower can verify that their income can support the mortgage payment and they have decent credit, financing is available to them. Currently, Homestar Mortgage is granting FHA loans with credit scores in the low-600s.
Jumbo loans (typically mortgages greater than $417,000), which used to require a 20% down payment, can now be accessed for as little as 5% down. Financing for a condominium purchase can now be secured for as little as 3% down versus 10%. Additionally, construction loans, historically more difficult to obtain, are now being granted for a low 10% down payment.
Homestar Top R.I. Housing Lender
By Chris Barrett
PBN Staff Writer
PROVIDENCE - Rhode Island Housing last week named Providence-based Homestar Mortgage as its top partner lender for 2009 and the first quarter of 2010.
Homestar Mortgage topped the list of 37 partner lenders and brokers who offer Rhode Island Housing's low-interest FirstHomes100 mortgages. Homestar has offered the loans through Rhode Island Housing since 2006.
"By continuously looking out for our customers' best interests, Homestar Mortgage has helped hundreds of families safely buy a home that fits their needs and budget through Rhode Island Housing's FirstHomes100 product line," said Richard Godfrey, executive director of Rhode Island Housing.
The company often deals with FirstHomes100 Plus loans, which are aimed at homebuyers purchasing homes in need of repair. The loan includes the base amount required to purchase the home plus additional money to undertake renovations.
"FirstHomes100 and 100+ are wonderful tools for first-time homebuyers, and Homestar is happy to be able to offer these loans to our customers," said Stephen Tetzner, principal of Homestar Mortgage. "These low-interest loans are safe and dependable and allow the homebuyer to wrap the purchase price and renovation costs into one monthly payment."