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SiG MT 105 SIGN ATUREMT's REALTOR TIPS By Kelley Walters ink you're not ready to unlock home ownership yet? Are you convinced the financial hurdles are too high? You may be short-changing yourself. Many renters are disillusioned by myths when it comes to buying a house of their own. Here's the real deal. MYTH: I have to put 20% down when buying a home? Saving up 20% for a down payment on a home isn't just a challenge, it can be a roadblock. You might be surprised to hear that 60% of home buyers put down less than 6% when financing a house. So, how can you get in on that action? Here are some options: • FHA Loans: e Federal Housing Association (FHA) is an old friend to first-time buyers and others who are ready to become homeowners with less than a 20% down payment. If you qualify, you may be able to get a loan with as lile as 3.5% down. • DownpaymentResource.com and NeighborWorks: Some local and state agencies sponsor down-payment assistance programs that help prospective home buyers in different ways. Check it out and follow the links to find out if any are available near you. • VA, USDA, and Navy Federal Credit Union loans: ree government- related lenders offer mortgages with as lile as zero down. e VA is for veterans and family members; the USDA is for buyers in qualifying locations (typically rural); and Navy Federal Credit Union is for the military, family members, and some government employees. • Gi Funds: Sixteen percent of buyers ask friends or relatives to help jump-start their home ownership with a gi. Talk to your lender first, though. ere may be limits to the amount of gied funds they 'll accept, and they may require your benefactor to sign some paperwork. MYTH: My Low Credit Score Means I Can't Buy a Home. Perhaps you are thinking your credit could use a tune-up. at doesn't mean you have to forgo your home-buying dreams. Here are some options for those with a less-than-stellar credit score. • FHA loan: With a credit score of 500, you can apply for an FHA loan, but you'll need a 10% down payment to offset the risk. If your score is a tick beer (580), you can participate in their down-payment assistance program, requiring only 3.5%. • A Higher Down Payment: On the off-chance you have enough cash on hand to put down more than 20%, the higher down payment can help those with lower credit scores be less of a risk to lenders. • A Co-Signer. Find someone with beer credit to co-sign the loan - but understand that if you don't make the payments, the co-signer will be financially responsible (and their credit will also suffer). • Check Your Credit Report. Maybe your credit isn't that low aer all. Order a copy of your report from all three reporting agencies (Equifax, TransUnion, and Experian). If you find inaccurate or old information, ask the agencies to correct it. (You can order a free report from each of the bureaus once a year at www.annualcreditreport.com. Reprinted om HouseLogic with permission of the NATIONAL ASSOCIATION OF REALTORS® S MT Mortage Shopping Tips... Even if you think you don't qualify Home-Buying Myths Busted

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