Shared Equity Agreements For First-time Buyers In San Antonio
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Taking equity out of your home can be risky because it involves borrowing against the value of your property. This means you are increasing your debt and potentially putting your home at risk if you are unable to repay the borrowed amount.
Home equity sharing may also be wise if you don't want extra debt reflected on your credit profile. "These agreements allow homeowners to access their home equity without incurring additional debt," says Michael Crute, a real estate agent and operations strategist with Keller Williams in Atlanta.
Insufficient Credit History Most lenders require a minimum credit score of 620 to qualify for a mortgage. Without enough active accounts in good standing, first-time buyers often fall short of this threshold. Maintaining timely payments and keeping credit card balances low is key to building credit.
Essentially, if you haven't owned a home in the past three years, you may be eligible for first-time homebuyer assistance. Even if one spouse owned a home more recently, you're both considered first-time homebuyers.
Home equity sharing may also be wise if you don't want extra debt reflected on your credit profile. "These agreements allow homeowners to access their home equity without incurring additional debt," says Michael Crute, a real estate agent and operations strategist with Keller Williams in Atlanta.
