Purchase money loans are used solely for buying property. Most home buyers take advantage of them versus paying cash for a house. While there are many types of purchase loans available, they’re different from home equity loans, refinance loans, and reverse mortgages, however, because funds from those sources can be spent on any number of expenses.
Purchase money lenders have strict guidelines for the use of their products, and conflicts can cause deals to fail during closing. These rules differ depending on the program you’re using, so work with mortgage specialists like Midland Mortgage Corporation to find the best loans for your situation.
Work with a mortgage expert to qualify as quickly as possible for the lowest rate financing available. We regularly work with buyers who are afraid they won’t be able to get a mortgage. Many times, we’re able to work with them on problem areas until they meet the guidelines of a lending program. However, in other cases, the home buyers who were worried they wouldn’t be able to buy a home had no problem obtaining a highly-favorable mortgage.
While the majority of lenders prefer a down payment of 20% or more, it’s not an absolute requirement. Midland Mortgage Corporation can locate special low- or no-down payment financing options based on the property you want to buy. We’re capable of helping you with your credit, too. Our consultants can advise you on the fastest way of improving your credit score, and we have access to programs for buyers with credit scores of 640 and lower. Finally, if you’re self-employed or have a spotty working history, you’ll appreciate the options a mortgage pro can offer. We have access to several programs you’ll be hard-pressed to qualify for on your own.