For many, homeownership is the pinnacle of the American Dream. An individual graduate’s high school goes to college or seeks vocational training, and eventually, they begin their career. Regardless of if the career is in a blue- or white-collar position, a person feels like they have truly made it when they finally purchase their own home. This means they have a well-established history of ongoing income and employment, along with an above-average credit score.
While these standard home buyers don’t have as many obstacles in their path to homeownership, there are options for those who are considered to be nonstandard buyers, too. It is possible to find details from Dustin Dimisa about nonstandard buyers or continue reading the information.
What Is a Nonstandard Buyer?
A nonstandard buyer is a buyer who may be dealing with negative equity in their home. They may have no or low credit or are unable to afford the down payment required. If someone finds themselves in one of these situations, there is no need to worry. There are still a few options to consider as they strive for homeownership.
Negative Equity
If someone has ever said they are upside-down with their home loan, it means they are dealing with negative equity. Put simply, it means the person owes more on their loan than the existing market value of the house. On the other hand, someone who has positive equity would be able to sell their home for more than what they own on their loan.
Any home buyer who cannot make a substantial down payment is at more risk of being in this situation. However, those who can make a bigger down payment will purchase the home and benefit from virtually immediate equity. Keep in mind, though, that while the information above is true, no one is in complete control of their home’s value. Home values may take an unfortunate and unplanned dive during economic turmoil or a downturn.
However, just because someone has found themselves with negative equity in their home does not mean they cannot sell the home and buy another. If they have cash savings, that resource can be used to increase the total equity available.
Little or No Down Payment
People buying and selling homes is an important part of the economy. This is why government agencies and various lenders have worked to grow the opportunity of homeownership to more and more people through the years. In the past, one of the main roadblocks for people who were interested in buying a home was the requirements for a significant down payment. Many loans require a down payment of 20% or more. If homes were being sold for a few hundred thousand dollars, this requirement was quite an obstacle for many.
However, today, there are loan options for those with low or no down payments. This means that homeownership is still possible even though a down-payment was a roadblock in the past. Being informed and knowing what options are available will help someone get the home loan and home they want.
