The Minimum Credit Score You Need For Various Mortgages…

A common question I get is what minimum credit scores are needed for various loan programs.

I going to give you a quick guide for minimum credit scores on each program.

The mortgage industry is a very dynamic industry. …the rules change almost daily.

…so please check in with me when you get serious about buying or refinancing a house. The numbers I give here may change tomorrow!

Also, keep in mind there’s more to consider than just the credit score when qualifying for a mortgage.

…but, for the purposes of this post – here are the current minimum credit scores.

FHA – I can do credit scores down to 500. (10% down for scores between 500 and 579)

VA – No minimum credit score.

USDA – 620 minimum score.

Conventional – 620 minimum credit score.

Hope this helps! Call me or email me if you have questions about your house buying needs.

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

You Can Refinance Out Of A Contract For Deed! Here’s How…

I get this question a few times a month. I've addressed it before in my blog, but I thought I should touch on it again.

Question: If I bought a house on a contract for deed or land contract can I refinance out of this type of agreement?

Yes you can!

...The Contract For Deed doesn't even need to be recorded. ...but it's best if you record it at the court house.

We just need 12 months cancelled mortgage checks to show you have made the payments on time for 1 year in order to refinance a Contract For Deed, or a Land Contract.

You would of course have to qualify for the loan otherwise - credit score, debt to income ratio, provable income, etc.

The biggest benefit of doing this loan as a refinance instead of a purchase is that we can use the appraised value, and not the purchase price for value.

...So, you can roll in closing costs instead of writing a check for them!

Max loan to value ratio on this program is 90%.   That's it for today!

Have a good day today!  ...and thanks for reading.

Brett  

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

  

Where You Can And Can’t Get An FHA Gift…

I get asked gift fund questions on FHA loans more than you would think.

Questions like...
  ..."Who can give a gift on an FHA loan?"
  ..."Who can't give a gift on an FHA loan?"

Here are the guidelines on FHA gift giving directly from the FHA underwriting manual.

  Acceptable gift donors for FHA loans...

  1) Borrower's relative.

  2) Borrower's employer or labor union.

  3) A close friend with a clearly defined and documented interest in the borrower.

  4) A charitable organization.

  5) A governmental agency or public entity that has a program providing home ownership assistance.

  Unacceptable gift donors for FHA loans...

  1) The seller.

  2) The real estate agent or broker.

  3) The builder or an associated entity.

  Gifts from these sources are considered inducements to purchase, and must be subtracted from the sales price.

  An interested note on the source of funds of the donor...

  As a general rule, FHA is not concerned with how a donor obtains gift funds.

This is provided that the funds are not derived in any manner from a party to the sales transaction.

  Donors may borrow gift funds from any other acceptable source, provided the mortgage borrowers are not obligors to any note to secure money borrowed to give the gift.

  How about that!

That's it for today!

Have a good day today!  ...and thanks for reading.

Brett

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.
  

How To Get The Seller To Pay Your Mortgage Insurance…

Many borrowers are unaware of this but there are several ways to purchaseMortgage Insurance on conventional loans.(Even many loan officers are unaware of this!..)

The different types of MI are…

1) Standard borrower paid monthly.

2) Lender paid MI. 

3) Split MI.

4) Financed MI.

For the purposes of this blog I’m going to discuss the Financed option. 

…and, I’m going to show you how to get the seller to pay it! 

Here are some little known facts about financed MI on conventional loans…

1) The premium is a single premium paid at closing.

2) The Financed MI premium may be financed into the loan or paid at closing.

3) Financed MI premium may be paid with seller contributions!

4) There are refundable options.

Did ‘ya see number 3? …That’s right you can negotiate for the seller to pay your MI in a single premium at closing.

Here’s an example of how this can help you…

Program	Loan Amount	Interest Rate	P&I Payment	Monthly MI	P&I + MI
Monthly paid MI	$200,000.00	4.88%	$1,059.00	$93.33	$1,152.00
Financed MI paid by seller	$200,000.00	4.88%	$1,059.00	$0.00	$1,059.00
Financed MI rolled into loan	$202,900.00	4.875	$1,074.00	$0.00	$1,074.00

That’s a savings of $4,680 over 5 years, and if the seller pays the MI premium that is almost $5,600 over 5 years!

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Thinking About A Home In The Country? Check This Out...

Here's another loan that I can make that most other lenders just can't do...
  Have you ever thought about buying a house out the in country? ...away from it all?
  ...on a lot of land?

Then, this program may work very well for you. Here are some highlights...

1) Only 3% down payment.

2) Up to 417k loan amount.

3) No limit on the amount of acreage.

4) Property must be located in a rural area with a population of 2,500 or less.

5) Property should be owner occupied, detached single family home.

6) Minimum credit for this program is 680.

7) The value of the home must be at least 35% of the loan amount.

8) No limitations on the distance of the comps for the appraisal!

9) No limitations on the date of sale on the comps for the appraisal!

10) Property cannot be a major farm.

This isn't the only rural program that I have. 

There are also USDA and FHA, but both have limitations that this program doesn't.

If you want to purchase a home in the country - give me a call or shoot me an email. We'll try to find a way to gitter' done for you!

That's it for today!

 

Have a good day today!  ...and thanks for reading.

Brett  

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

Does It Hurt Your Credit Score To Have A Mortgage Credit Report Pulled?…

Today's Quick Tip...

I get this question alot: "If you pull my credit will it hurt my credit score?"

The answer is not really.

When you get an inquiry on your credit it's usually due to you applying for one of these 4 types of credit...

1) A credit check for a mortgage loan.

2) A credit check for an auto loan.

3) A credit check for a credit card application.

4) A credit check for a store credit card, or consumer loan.

Of all of these a mortgage inquiry would have the least effect on your credit.

Also, the credit bureaus recognize when you have a mortgage inquiry that you are likely shopping for a mortgage.

They give you a 14 day period of time starting with the first pull to have as many mortgage credit pulls as you want, and they will only count the first inquiry against you.

My advice is that if you are shopping for a mortgage let your loan officer pull your credit. It won't have a terrible effect on your credit scores.

...and your loan officer can't give you accurate numbers without it.

That's it for today!

 

Have a good day today!  ...and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.

The Key To Getting Mortgage Insurance With A High Debt To Income Ratio…

One of the most conservative areas of the mortgage market the last few years has been Mortgage Insurance on conventional loans.

When I say conservative I mean the MI companies for a long time wouldn’t give Mortgage Insurance coverage to an borrower with higher than a 45% debt to income ratio. (…and many still don’t!)

…Remember, if you are getting a conventional loan and your loan to value ratio is over 80% you will need Mortgage Insurance.

I wanted to let you know that I now have the ability to get Mortgage Insurance for your conventional loan if your debt to income ratio exceeds 45%!

…The key to exceeding this threshold is that I have to be able to get an automated approval on your loan at a higher debt to income ratio than 45%.

So, if you are in this situation let me run your file through the automated system and let’s see if we get an approval!

That’s it for today!

Have a good day today!  …and thanks for reading.

Brett

To see if you qualify for a mortgage right now – CLICK HERE and fill out this simple application.

To sign up for my weekly mortgage quick tips – CLICK HERE.