Simple Solutions to Home Buying Challenges

Home ownership is central to the American dream. And the good news is, it's a dream that can easily become reality.

That's because today's lenders offer a variety of products to fit virtually every borrower's needs, points out Michael A. Drury, senior vice president of mortgage lending for M&T Bank Mortgage Division. Finding the right lending partner can make home buying easy and affordable. Interest rates are still relatively low and the market in many areas of the country is turning in favor of buyers.

Drury offers some insight and advice on dealing with some common challenges homebuyers face:

Challenge: "I don't have enough cash for a down payment or closing costs."

Solution: "Several excellent options are available," Drury says. "One is a seller concession, which simply involves structuring the home purchase so the seller actually assists you with your closing costs." The seller's expense is then recovered in the purchase price. Another solution is a 103 percent mortgage, which lets you purchase a home with no money down and then finance closing costs up to 3 percent of the purchase price. There's also the option of an unsecured loan to help you with closing costs.

Challenge: "I have a spotty credit history."

Solution: "It's true that many loan products from 'big box' lenders are crafted for borrowers with superior credit and income histories," Drury says. "However, banks like M&T also offer a selection of alternative lending options to assist you in buying a home, should you have tax liens, judgments or even prior bankruptcies."

Challenge: "I need to keep my monthly mortgage payments as low as possible."

Solutions: You could be a perfect candidate for an interest only mortgage, which typically has a very low monthly payment. An adjustable rate mortgage (ARM) is another option, allowing you to take advantage of low initial rates.

Challenge: "I'm self-employed and can't easily document my income or assets."

Solution: "We have low-documentation (low-doc) financing options that don't require income and asset verification via income tax returns," Drury says. This type of loan enables you to state your information without having to document it - and can easily put you on the path to home ownership.

Challenge: "My old house hasn't sold yet, but I found a new house that I really want. I need to make a non-contingent bid right now."

Solution: With what's called a swing or bridge loan, you can access the equity in your current home for the down payment and closing costs on a new home - before you sell. This enables you to move fast when you find a home you like. You'll pay off the swing loan after you sell your current home.

"Home ownership is important on many levels," explains Drury. "It's good for wealth creation, it's good for the economy, and it's good for the personal satisfaction that comes with achieving the American dream"

To learn more about mortgage products for every financial situation, visit www.mandtmortgage.com.

M&T Bank is an Equal Housing Lender. Member FDIC.

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