A recent article in the LA Times (Loan Options Abound) pointed out some interesting facts about available loan options that haven't been widely publicized.  When it comes time to buy your dream home on the Westside, you should really do some serious investigating and you may well be surprised at what you'll find.

Mortgages can in fact be had with a downpayment of less than 20%.  There are loan products with lower downpayments out there.  There are some with as low as 10% or consider going FHA with just 3.5%.  The FHA over recent years has become a mainstream lending option and no longer carries a stigma as it did 10 years ago. 

Looking beyond the downpayment, you may be surprised to find options that feature lower credit scores and equally important, a lower debt-to-income ratio.  They're out there but have received little attention in the media.

The lack of accurate information on these programs has discouraged far too many prospective buyers from even considering an application much less shopping around.  Alex Stenback of the Residential Mortgage Group in Minnesota was quoted as saying "People just aren't aware of what's possible right now and as a result, they're missing (out) on real estate prices and long-term interest rate opportunities they shouldn't."

Even Doug Lebda, the founder and CEO of Lending Tree was quoted with the belief that 'the fear of being rejected' because they don't conform to standards that may not even exist is keeping qualified applicants on the sideline for no reason.

Many tend to believe that lenders are rejecting applicants with FICO scores lower than 750.  Many FHA lenders in fact are underwriting with scores from 620 to 640 and some (such as Quicken Loans) will consider scores as low as 580. 

The point here is that you should really do some shopping around and you may find that there's a solution out there that fits your situation.  To think outright that you may not qualify could be a mistake that could cost you opportunity at a time when market conditions are at their best for buying.

What do you think?  Have you tried only to not find what's right for you or have you been waiting until you think it's safer to try?  I'd like to know and just maybe, I might even be able to help!