The Minimum Down Payment On Your Loan Program...

 Good Morning!

I wanted to give you a brief updated summary of various loan products and the minimum down payment for each…

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 upfront and monthly mortgage insurance.

Conventional: 3% down for first time home buyers, and 5% for non first time home buyers.

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.

Have a good day today!

…and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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Make Sure Of This Before You Buy A House...

 Hello!

I touch on this from time to time, but it’s important so I want to revisit it…

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

For instance, the minimum down payment on an FHA loan is 3.5%, and Conventional is 5% (3% for first time home buyers).

You can have this money in your checking account or savings account now. You can borrow it from your retirement account.

…You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now.

..before you apply for a loan.

That’s it for today.

Thanks for reading!

Brett 

 

Get Pre Approved For A Loan Here
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New Conventional Loan Limits...

 Hello!

I wanted to let you know that as of last week we have increased the Conforming loan limit to 715k.

This is good for both buyers and sellers.  It means more people will be able to qualify for loans in this price range, and hopefully more houses will be sold.

Jumbo rates are higher than Conventional rates, and the down payment is higher also.

If you want to see if you or someone you know will qualify for financing just reach out to our office.  We are here to help you!

That's it for today!

Have a great week!

Brett

 

Get Pre Approved For A Loan Here
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How Debt Consolidation Can Help You...

 Hello!

If you have credit card debt it’s a good time to consider a consolidation loan.

If you have $20,000 in credit card debt your monthly payment on that could be between $400 and $800, depending on the minimum payment your credit card company requires.

That same $20,000 as part of a mortgage payment would only cost around $82 a month.

This can free up alot of monthly cash for you and your family, which you can then use to pay off debt or whatever you want.

If you would like to see how your numbers look for a consolidation loan – contact our offices.

That’s it for today!

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
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Two Ways To Avoid Paying Mortgage Insurance...

 Hello!

If you have a conventional loan, and your loan to value ratio is over 80% – you will be paying monthly mortgage insurance to the lender.

No one likes paying monthly mortgage insurance.  It’s extra money added to your payment every month, and it doesn’t help pay down the balance of the loan.

If you want a conventional loan and your LTV is over 80%, but don’t want to pay monthly mortgage insurance there are two ways to avoid this…

1)   One would be Lender Paid Mortgage Insurance.  We pay the MI for you.  The rate generally is .25 to .375 higher, but there is no monthly mortgage insurance.

2)  Get a piggyback loan.  This is where we make two loans for you.  …A first mortgage at 80%, and a second mortgage at 15%.  This way you just put down 5%, and there is no monthly mortgage insurance payment.

Thanks for reading!

Have a good day

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog

Know Where Your Down Payment Is Coming From...

 Hello!

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called “sourcing down payment funds”.

For instance, the down payment on an FHA loan is 3.5%.

You can have this money in your checking account or savings account now. You can borrow it from your retirement account. …You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now. …before you apply for a loan.

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 Our VOE Program Works...

 Good Morning!

Did you know we have a VOE (Verification of Employment) program that is considered full doc?

This program is for borrowers that work for a company (receive a W-2)

You don’t need pay stubs, or w-2’s, or tax returns.

…we just send a one page form to your employer.  They fill it out and that’s all the documentation we need for your job / income.

Pretty cool!

That’s it for today!

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog