Good Time To Get Rid Of FHA MI...

 Good Morning!

If you have an FHA loan that means your mortgage insurance is permanent.  It will always be part of your payment.

The way property has appreciated in the past year - it's probably a good idea to see if you have 20% equity in your house.

If you feel you have a 20% equity position or better in your property it's not a bad idea to look into refinancing to a Conventional mortgage to get rid of the FHA MI.

As low as rates are right now I think there's also a good chance you could lower your overall rate.

If you would like us to check on this for you just shoot us an email or give us a call.

We’ll be happy to help you out!

That’s it for today!

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

Brett

 

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Brand New 100% Financing Program...

 Good Morning!

You may or may not know this, but the mortgage industry is a dynamic industry.  Things change on a daily basis.  Loan programs come and go. Guidelines change, etc.

I saw a new product come out recently on the Non QM side of the market. (non qualified mortgages)

It's an 80/20 purchase.  So, 100% financing.  We haven't really had a product like this come out since before 2008.

Here are some basic guidelines for this program...

1)  You need to have at least a 700 credit score.

2)  Purchase price is a minimum of $200,000.

3)  No non medical collections, judgements, or charge offs in the last five years.

4)  Seller can contribute up to 3% towards buyers' closing costs.

5)  No rural homes.  Must be in a metropolitan area.

So, if you need 100% financing drop us a note, and we'll see if you qualify for it.

That's it for today!

Thanks for reading!

Brett

 

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Advantages Of Buying A House From A Family Member...

 Good Morning!

I had this situation come up again last week, and I wanted to address it again with you…

Did you realize that when buying a house from an immediate family member – the buyer doesn’t have to come out of pocket for a down payment? (As long as it’s an owner occupied residence for seller and buyer.)

…this is because the guidelines allow the seller to “gift” equity to the buyer.

So, the down payment can be a gift from the seller. …in addition to this, the seller can also pay the buyers closing costs, and prepaid expenses (taxes and insurance).

That’s it for today!

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

Brett

 

Get Pre Approved For A Loan Here
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Here Are Two Quick Credit Tips For You...

 Here are two quick credit tips for you…

1) 30% of your score is made up of the ratio between your available credit vs your actual balances on revolving credit accounts (like credit cards).

You don’t want to charge these accounts over 50% of the available balance, and it's even better if you can keep it under 30% of the available balance.

2) 15% of your credit score comes from the length of time each account has been open, and the length of time since the account’s most recent action.

So, it’s impossible for someone who is new to credit to have a perfect credit score.

A longer credit history provides more information and offers a better picture of long-term financial behavior.

So, to improve your credit score, individuals without a history should begin using credit, and those with credit should maintain long standing accounts.

That’s it for today!

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

Brett

 

Get Pre Approved For A Loan Here
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One Way To Overcome A High Debt To Income Ratio...

 Good Morning!

It's very hard to get a Conventional loan approved with a debt to income ratio higher than 45%.

I wanted to give you one little trick you can use to help out with your debt to income ratio.

…Use lender paid mortgage insurance – have your mortgage lender pay your mortgage insurance in a lump sum up front. It’s called Lender Paid Mortgage Insurance.

This way there is no monthly mortgage insurance.

No monthly mortgage insurance means a lower debt to income ratio!

…You will want to make sure getting rid of the monthly MI will be enough to push you under the 45% limit.

If so, then this simple change could be your key to loan approval!

That’s it for today!

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

Brett

 

Get Pre Approved For A Loan Here
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How A No Cost Refinance Works...

 Good Morning!

I get asked about how a no cost refinance works sometimes.

So, I made a video for you to show you exactly how it works.

Here ya go...   https://youtu.be/17odpcsyGGA

That's it for today!

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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How A Deed In Lieu Can Affect Your Credit...

 Good Morning!

I get asked about “Deed In Lieu” sometimes.

A Deed In Lieu is where you beat the mortgage company to the punch… …and give the mortgage company back the house before they have a chance to foreclose.

People ask me how a Deed In Lieu would affect their credit.

I tell them that it would be treated the same way a full foreclosure would – from a mortgage perspective anyway.

…in fact, if you have a “Deed In Lieu” show up in the mortgage history on your credit report – it might as well say “Foreclosure”.

You will have to wait a period of time before you would be eligible for a new mortgage.

…here’s what you’re looking at for seasoning on a foreclosure:

Fannie Mae/Freddie Mac: 7 years.  (Sometimes you can get automated approval after 4 years)

VA: 4 years.

FHA: 3 years.

That’s it for today!

I hope you have a great day! Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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USDA Mortgage Tip...

Good Morning!

Here’s a USDA tip for you…

One of the things to keep in mind is that USDA has family income caps.

In other words if you make too much money you won’t qualify for a USDA loan.

Here is the link to check the income for your area…

Important: USDA goes by total household income!

In other words if you are getting a USDA loan with you as the only borrower, but you have a partner that also lives in the house.

…and, that partner has a job and makes money – then their money would also be included in the total household income calculation for USDA.

So, please be aware of this before you apply for a USDA loan.

I hope you have a great day! Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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Know This Before You Go House Hunting...

 Good Morning!

Before you go out house hunting make sure you have enough money available to get your house closed.

…I know it sounds simple, but many people don’t realize the amount of funds they will need available to get into a house.

Here is a simple breakdown of your out of the out of pocket costs you could expect by loan program.

1) VA: 100% loan. No down payment.

2) USDA: 100% loan. No down payment

3) FHA: Minimum 3.5% down payment.

4) Conventional: 5% minimum down payment. (There is also a 97% conventional).

…but you can expect more out of pocket than just the down payment. There are two other costs you can expect to pay when you purchase a home…

1) One, is prepaids. This is pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 2.5% of a sales price.

2) Then there’s your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1% to 2% to a sales price.

Be prepared for these additional costs. However, there are a couple of ways to help you lower the closing costs and prepaid expenses that we can help you with.

That’s it for today!

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

Brett

 

Get Pre Approved For A Loan Here
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