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I had someone ask for a family member how they can buy a home. The person buying supposedly has a great credit score, works and makes enough to buy the home they are seeking. They were denied a home loan from a lender that I had never heard of but with all listed they should have been approved. I asked the person was this the buyer’s first home or an investment property and that is when I was informed that the buyer was married!
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She still owned a home together with her husband even though they plan on never getting back together. I let the person asking know that is the reasoning behind her denial. She owns a home already and until she removes her name from that house, she will not be able to buy a home as her “principal residence”. Why, you ask? The answer is this-she already has an interest in a property and until she gets rid of that interest, she can buy another home but only as a second home or as an investment with higher interest rates. I advised her to check with an attorney but that it will take either a legal separation or divorce, make hubby refinance and pay her share of the equity out to her for this to be right. Then she is also removed from the loan on the property and no longer responsible for the debt.
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That can then give her the keys to her own home.
I want to start off this blog giving a little insight as to what, why, and how I do this and where my inspiration comes from. I am a late twenty something mom who bought her first home almost two years ago in 2011. It was a long and daunting process and I closed on my property a month after having my second son. The process started three years before that. It involved discussions of credit scores, dispute letters, multiple programs to fund my down payment and plenty of angst and worry. Did I mention I did all this toward the end alone? My fiance(who would later become my husband) was away and couldn’t be there except through emotional support. It was tough.
First, I wavered as to whether I wanted to buy in MD (nothing against MD since I had lived there for most of my life) or DC. DC won due to the great down payment programs (more on those real soon). Once I decided where, I had to move there and I happened upon a great savings program called an IDA Savings Account. Basically for every dollar I saved, the sponsor would match the amount up to a certain cap. It helped at closing knowing I had saved towards my home. I also used the Home Purchase Assistance Program (HPAP). This is an excellent program and what actually convinced me to move to DC. It was tedious and I had to open my life to not one but two lenders to buy my home, but it was worth it the day of closing.
Around the time of moving to DC I changed careers. I work in a successful title and escrow company and it came in handy for closing. It’s also how I gained knowledge that a lot of people become overwhelmed and don’t understand what is happening, even after all papers are signed. It’s especially true dealing with lower income households. That’s why I am here! I can highlight and go into depth about the excellent programs, credits, and anything extra to help you OWN your slice of the pie. This doesn’t just apply to DC but MD and VA have great programs as well and I will touch on those as well. So I hope you stay for the wonderful ride!