As inflation continues to strain wallets and the cost of rent increases, CrossCountry Mortgage (CCM) is offering unique financing solutions to make owning a home possible for everyone. Several programs provide benefits to renters and allow homeownership to set a foundation for a brighter future.
“In many cases, people can afford to buy a home with what they’re paying in rent every month. A $1,000 payment over several years can quickly add up,” said Jenn Stracensky, CCM Chief Operating Officer. “CCM has financing solutions available that offer down payment support, reduce interest rates, and consider factors beyond credit. Buying a home is a smart investment into a fiscally responsible future.”
Financing options include:
- Temporary Buydowns give borrowers a lower rate and lower monthly payments at the start of the loan. The seller provides the savings. There’s no cost for the buyer.
- Permanent Rate Buydowns give borrowers the opportunity to pay points up front to reduce the interest rate over the life of the loan, making monthly payments smaller.
- Adjustable-Rate Mortgage (ARM) gives borrowers an initial rate that’s fixed for a specific time (may be lower than a fixed-rate mortgage); after that, the interest rate adjusts with the market.
- FHA Loans provide flexible financing and a down payment as low as 3.5%.
- VA Loans are guaranteed by the U.S. Department of Veterans Affairs and offer qualified Veterans competitive interest rates often without requiring a down payment.
- USDA Loans allow rural homeowners to get up to 100% financing — and several other benefits on a new home.
- Down Payment Assistance (DPAs) from national and state programs. These can be outright grants or low or zero-interest loans, forgivable over time or due when a house is sold. Depending on the program, borrowers can use the funds for a down payment and closing costs.
Factors that determine affordability:
- Credit Score: A high score can get better rates, but CCM loans offer flexible credit requirements – some as low as 500.
- Monthly Core Needs: Calculate core monthly costs, including fixed expenses like food, transportation, healthcare, and utilities.
- Down Payment Cash: Some loan programs allow purchases with as little as 3% down – and in some cases ZERO money down.
- Consistent Income History: Lenders prefer 2 years of employment history. Self-employed borrowers can qualify with bank statements.
Debt-to-Income Ratio: DTI shows whether total debt exceeds a certain percentage of gross monthly income — should be less than 43% but can be higher for some loan programs.
With more than 600 branches and a presence in all 50 states, CCM supports borrowers with education around the many available options. To calculate how much you can afford, learn how to improve your credit score, keep costs down, and boost your buying power, contact a CCM loan officer.