WHY CAN'T I GET FINANCED TO BUY A HOME?

Do you want to buy a home however you are having problems getting financed?  Well, here are the top reasons you may not be able to be approved for home financing:


Poor Credit: Even if you have a large down payment and great income, if your credit is not up to par with the banks current lending standards  you will have a problem getting financed.  Even FHA loans, which cater to borrowers with a lower credit score, has increased its FICO score standards bringing the average credit score of todays home buyer to 693


Insufficient Liquidity: If you don't have a heavy down payment (20% to 30%) and a strong excess in liquidity the banks don't want to take the risk of funding your loan.  Even minimum down payments of 3.5% (FHA) loans still require you to have six months of reserves in liquid assets to offset the risk.


Lack of Inome: If you can't afford it with room for all of your other bills then you can't buy it.  In todays market, you will need consistent income for the past two years. 


Debt: If you have too much debt then you cannot qualify for more debt from the banks to finance your home purchase.  Your debt to credit ratios have to pass the banks qualifying guidelines


Self Employment: Thse of you who are self employed, pay attention because your gross adjusted income will determine what you can afford and can't afford.  This means that the more deductions you take the less money you show that you net, the less you have to spend on your home.

With the strict current lending guidelines  these days private lending seems to be the future for securing real estate funding.