Can anyone get a loan to buy a home? Yes

In the wake of recent market turmoil, I’ve been asked the question more than once.

“Can anyone get a loan to buy a home?”

The answer to these questions is yes.

People with good credit can get loans. If they are getting a conventional loan, their down payment requirement is likely to be higher than it might have been two years ago. A buyer with good credit and 10-20 percent down should not have any problems.

Based on the appraisal and the buyer’s credit score, it may be possible to put a little as 5 percent down on a conforming conventional loan.

FHA loans have seen a big resurgence, largely because it is possible to put as little as 3-3.5 percent down, provided the buyer has the income and credit to qualify for the loan.


In the first half of 2008, FHA loan made up 12 percent of the area sale. Interestingly enough over the same time frame for those three years buyers paying cash consistently was 13-15 percent of our market.

Even with all the market gyrations interest rates are still excellent, hovering around 6 percent for a 30-year fixed rate loan.

This translates into the following principal and interest payment:
Loan amount Payment
$100,000 $ 599.55
$150,000 $899.33
$200,000 $1,199.10
$250,000 $1,498.88
$300,000 $1,798.65
$350,000 $2,098.43
$400,000 $2,398.10

You would need to add 1/12 of the annual insurance premium, property tax and any required mortgage insurance premium to these numbers to get a complete PITIM payment.

Here we are on the cusp of the fourth quarter. What can we expect in terms of sales and availability from now to the first of the year?

Currently there are approximately 5,566 single-family detached homes active in the Myrtle Beach marketplace.

This does not includes another 469 manufactures, and modular homes also available.

Currently there are approximately 6608 active condos and townhomes for sale in the same Myrtle Beach market area.

The message is clear. For-sale availability is excellent and financing is available for those with good credit and some cash down payment to work with.
Interest rates are very affordable.

Home prices continue to be stable. Buyers are still out buying homes. Certainly there are some trouble spots with foreclosures or homes that need a tremendous amount of work. Those with the money, patience and expertise to remodel are likely to be well rewarded.