Use Conventional Means To Buy A Conventional House

 

If your credit history is tarnished or your income is low, you may qualify for a FHA or VA mortgage. Conventional loans require that mortgage payments, property taxes and home owner's insurance combined not be more than 28% of gross income and those payments, plus any other debt, not be more than 36% of your gross income--known as the 28/36 ratio. The less conventional FHA ratio is 29/41; the VA is more lenient: 41/41.

 

If you don't have enough money for a down payment on a house, Freddie Mac, a government-sponsored company, has special programs for low-and middle-income buyers with very little cash. Check with your local bank or mortgage broker. Fannie Mae has similar loans: 800-732-6643 or visit: www.homepath.com.