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The real estate finance market has changed drastically in the last decade. It used to be that a FICO of 565 could afford a buyer a home loan that had a subprime interest rate of about 7.5%. Today that is nowhere to be found. The main reason is that the real estate bubble popped, and the reorganizing of home lending has made it so that tier one credit is the only type to gain funding. Home prices are still down, but really, it is the lack of buyers being able to buy that has kept things so low.
How to Make It Work
Buying a home might require more on the credit end but because prices are so low, the financial is easy to tackle. People still only need 3% down for a FHA loan, and this means that the a family could purchase a large home for the same amount as a small home only five years ago.
If you are able to purchase a home, and need a down payment and find that you are short just a little bit, a payday loan is a great solution. This will help you get into a nice home during a prime buyers market.
There are many advantages to purchasing a home right now, and one is that when the market recovers there is will be a lot of equity present in the property. While it may be a slow climb right now, it will pay off in the next few years as the economy continues to improve.