Quick Tips On The Mortgage World

Wednesday, May 21, 2014

How To Make Repairs On A Property After Closing…

I get asked how to make repairs on a property just after the purchase closes.

The easiest way is to do a repair escrow as long as the aggregate cost of the repairs isn’t more than 5k or so.

Repair escrows are monies that are set aside (out of seller’s proceeds) to make minor repairs on the home purchased after the closing has occurred.

I wanted to let you know some of the items that are eligible for repair escrows, and some that are not allowed.

These items are eligible for repair escrows:

1) Repair roofs, gutters and downspouts
2) Repair/Replacement/upgrade of existing HVAC systems
3) Repair/Replacement/upgrade of plumbing and electrical systems
4) Repair/Replacement of flooring
5) Painting, both exterior and interior
6) Weatherization, including storm windows and doors, insulation, weather stripping, etc.
7) Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
8) Minor repair to exterior decks, patios, porches
9) Minor basement waterproofing
10) Minor mold remediation
11) Window and door replacements and exterior wall re-siding
12) Other minor repair(s) as indicated by the appraiser as being cosmetic in nature and conform to HUD’s repair escrow requirements

These items are NOT eligible for repair escrows:

1) Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall
2) New construction (including room additions)
3) Any repair that, according to the appraiser’s report, not cosmetic in nature
4) Repair of structural damage
5) Repair(s) requiring detailed drawings or architectural exhibits
6) Landscaping or similar site amenity improvements
7) Any repair or improvement requiring a work schedule longer than 60 days
8) Repair/Rehabilitation activities that require more than one (1) final disbursement
If you are buying a home and you think you may need a repair escrow. Give me a call or shoot me an email and we can discuss whether your scenario would qualify!

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Monday, May 19, 2014

Gift On Conventional Loans…

You’ve always been able to use gift funds for the down payment on an FHA loan.

However, did you know you can also use gift funds on a Conventional loan?

Here are some of the details on this program…

- “All gift” down payment allowed from acceptable gift donor (family usually)
– Seller contributions allowed
– Credit scores as low as 620
– Loan amounts as high as $625,000
– DU Approve/Eligible required

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Wednesday, May 14, 2014

News On USDA, And A Life Tip For You…

I have some news for you on USDA loans…

The Agricultural Act of 2014 (Farm Bill) changed the standard by which communities are to be considered “rural” for the purposes of USDA Housing Programs.

Certain areas deemed ineligible for the USDA Section 502 Guaranteed Rural Housing Program (main USDA loan everyone uses) have become eligible as of May 6, 2014.

Here is the wording that specifically affects update maps…

“If the population of a community did not exceed 35,000 based on 2010 Census and is rural in character, it may be newly eligible.”

You can check the USDA map in your area by clicking here. Then click on Single Family Homes.

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Off topic tip for you…

One of the best feelings life has to offer is an uncluttered mind. This state isn’t easy to achieve.

They say that we can only remember 7 things at any one time. Once number 8 comes in – then you will forget something else.

This creates stress when you are trying to remember all these things. We’ve all experienced panic when we suddenly remember something we were supposed to do, but completely forgot about it.

The way to solve this is to learn to use task lists.

When a thought pops into your head that involves you having to do some task – write it down.

Once your mind trusts that you have a system in place for capturing these thoughts then it will allow you to forget about them once you write them down.

When you have time you work on your task list.

The result is an uncluttered mind.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Monday, May 12, 2014

Your Down Payment Options…

I have borrowers ask me every day how much they need to put down to purchase a home.

Here are your minimum down payment options on the loan products currently available in the market place.

Loan Programs…

VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.

USDA: No down payment necessary. Low monthly MI. Mainly for rural areas or outlying suburbs. Has geographic and income restrictions.

FHA: The minimum down payment is 3.5%. Great rates, has up front and monthly mortgage insurance.

Conventional: You will need 5% down for Conventional loans.

The bottom line:

1) If you have less than 5% to put down VA and USDA are best if you qualify for them. Otherwise FHA is a wonderful loan program – very friendly to the borrower.

2) If you have 5% or more to put down you can get a Conventional loan, and you will have multiple loan choices.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

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Wednesday, May 7, 2014

5 Ways To Pay Your Closing Costs…

When you buy a house you will have closing costs and prepaid taxes, insurance, and interest.

These costs are in addition to your down payment.

I want you to know there are other ways to pay closing costs and prepaids.

In fact, there are five different ways these costs can be paid. I’ll go through each one here…

1) You. …You are the borrower and you can pay these expenses yourself. Although I wouldn’t recommend it.

2) The seller. In my opinion this is your best bet. You simply ask the seller to pay these costs at the time you make your offer. If you are using a normal Texas Real Estate contract – you would write in the seller help amount under section 12. The reason it’s your best bet is that it’s the best combination of lowest rate, and least money out of your pocket at closing.

3) Gift. You can get a gift from a family member to pay your closing costs. The guidelines are different with each program for gift giving – so check with me before you attempt to go this route to make sure it’s appropriate for your loan program.

4) Grant. If you have access to a state or government grant program you can use this to pay these costs. There are some programs in Texas that you can use, and I have access to. Check with me to see if you qualify for these programs.

5) Loan officer and/or realtor. You can get help with paying your closing costs and prepaid expenses from the loan officer, and the realtor can help to.

Good luck house hunting, and give me a call or shoot me an email if you have more questions!

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.
Get A Rate Quote Here.
Need A Mortgage Calculator?

Monday, May 5, 2014

Here’s A Loan To Build Your Dream Home…

Did you know we do build out loans? …We do!

We can finance the acquizition of land, and the building of a home for you.

The max loan to value ratio is 80%, so you will either need 20% down, or you would need to own the land that would represent 20% of the overall appraised value of the home.

Here is what we would need on the construction side to get started…

1) Copy of contract on property to be purchased or HUD from property purchase.

2) Copy of plans and specifications.

3) Copy of construction contract and budget.

4) Survey.

If you or someone you know wants to build a home I’ll be happy to help you with this. Just give me a call or shoot me an email.

That’s it for today!

Have a good day! …and thanks for reading.

Brett