I hope you and your family had a great Holiday weekend!
Did you know even if you have “challenged” credit you can still get a low down payment loan to buy a house with FHA?
We can do down payments as low as 3.5% down to a 580 credit score!
And, we have several down payment assistance programs to help you too.
So, if you or someone you know is wanting to buy a house, but they aren’t sure about their credit – let us take a look. We can possibly help them right now.
Thanks for reading!
Brett
Did you know we can do ITIN loans up to 90% loan to value ratio?
An ITIN number is issued by the IRS to non-resident aliens who are not eligible to receive a social security number.
If you or someone you know are interested in how to qualify for a 10% down loan as an ITIN borrower – just give our offices a call or shoot us an email.
That’s it for today!
Thanks for reading!
Brett
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
Believe it or not we are seeing rates as low as in the mid 5's on a face rate for FHA now.
So, if you have been waiting for lower rates to jump in and buy a house, they are lower now.
It's also a good time to buy before the market is flooded with alot more buyers...
Reach out and we'll get you ready to buy now.
If you pay your property taxes apart from your mortgage payment, and you didn’t get them paid by then end of January they are now considered late with the county.
There are two issues I see every year with regard to property taxes. …Issues that put people in tough spots.
1) Some people just don’t have the money saved up to pay their property taxes. …They might have had the money, but had to use it on an emergency. …or any number of other things.
2) Some people have an escrow account on their mortgage – but their mortgage company didn’t collect properly. This often results in an arrearage… Which means your payments go way up until the escrow is caught up.
If you are in either one of these situations – there’s usually an easy fix for it. …Refinancing.
We can often refinance someone in either one of these situations, and we pay the property taxes through the new refinance loan.. …Not only that, but usually at a lower rate and payment than they have now.
Please let us know if you have more questions about how this refinance works.
I hope you have a great day! Thanks for reading!
Brett
If you purchased a home using your own cash, and now would like to pull your cash back out – we can do that.
This type of loan is called ‘delayed financing’. …and, you can get your cash back out of the house.
In fact, we do these types of cash out loans up to three million dollars. Many companies won’t lend cash out over 500k, but we do!
…so, if you are in need of a loan like this – shoot us an email or give us a call. We can help!
That’s it for today!
Thanks for reading!
Brett
If you receive money from the State or a County sponsored organization for providing foster care for children you can use this money as income to get a mortgage.
Foster care income is considered acceptable stable income as long as the borrower has a 2 year history of providing foster care services.
To prove this income we would need…
• Letters from the organizations providing the income.
• Copies of the borrower’s signed federal income tax returns that were filed with the IRS, or
• Copies of the borrower’s deposit slips or bank statements that confirm the regular deposit of the payments.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Are you planning to use a gift for the down payment or closing costs when using a Conventional Loan?
Not just anyone can give you a gift. Here is the list of acceptable donors that can give you a gift…
Relative, defined as the borrower’s spouse, child or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship. FiancĂ©e, or domestic partner – an unrelated individual who shares a committed relationship with the primary wage earner, currently resides in the same household as the primary wage earner, and intends to occupy the security property with the primary wage earner.
The donor may not be or have any affiliation with the builder, the developer, the real estate agent, or any other interested party to the transaction.
That’s it for today!
Thanks for reading!
Brett
FHA loan limits are going up for case numbers after 1/1/24.
For Texas Metro Areas, the limits are higher:
DFW - $563,500
Austin - $571,550
San Antonio - $557,750
In other good news - rates are continuing to trickle down!
Have a great day today!
Thanks for reading!
Brett
Part of the fun of being in the mortgage business is that we get to help people.
Buying or refinancing houses, we help people, and we create relationships with our clients along the way that we cherish.
Many of them use us again and again.
Here is what just some of our clients have to say about us…
C. Martin
Brett Was Able To Get This Title Officer To Travel All The Way To Waco From Plano So That I Could Close. I Would Highly Recommend Working With Brett Sampson And Would Do It Again!
M. Hancock
Thanks For All Your Help! I Really Appreciated You And Leslie’s Patience And Help Thru The Process.
G. Montoya
I Appreciate It Also Brett, Thank You Very Much !!! Thanks Again.
G. Sanchez
Thank You For Everything That You And Rosi Did For This To Happen. Thanks.
H. King
Thank You For All The Help And Be Sure That I Will Use You In The Future And Recommend You Up Anyone That Can Use You.
H. Soto
It Was Great Working With You. I Appreciate Everything You Did To Help Make This A Success.
J. Burnside
Joey And I Will Both Highly Recommend You To Anyone We Know Who Is Looking To Buy A Home! I Also Know That Nancy Was Very Pleased With Your Service So I Wouldn’t Be Surprised If You Get Some Referrals From Her As Well
M. Lampe
Special Thanks To Your Staff Who Really Put In The Extra Hours To Get This Done In A Short Time Frame.
I Have Already Recommended You To Several Friends Who Were Helping During The Move.
B. Pitts
Thank You For You’re Help Getting This Done And Doing A Good Job For Us.
M. Southern
I Want To Thank You For All Your Help With The Refinance. You Really Work Hard With Me To Make Sure This Refinance Got Done. Thank You So Much Again! I Will Send Referrals Your Way!
B. Scherry
Thank You! Everything Went Smooth At Closing. I Will Recommend You To Others. Have A Great Weekend.
T. Trung
Thank You For Your Time And Effort. We Are Very Pleased. Have A Happy Holiday.
J. Grass
Brett, Thank You For Making Our Dreams Come True!
K. Savay
Thank You So Much For Your Help In Getting Our Loan Approved. You Really Went The Extra Mile And Tom And I Appreciate It So Much.
L. Glen
We Truly Appreciate The Professionalism With Which You Managed Our Loan Process. Your Calm Demeanor In Crunch Times Was Unusual And Refreshing.
Thank You Again. If We Ever Have The Opportunity To Suggest Your Service To Someone, We Most Certainly Will.
That’s it for today!
If you or someone you know needs to buy or refinance a home, please send them our way. We would love to help you out.
Thanks for reading!
Brett
I hope you had a great Thanksgiving holiday!
I wanted to let you know how the major mortgage programs treat Chapter 7 bankruptcy…
FHA: 2 years from discharge date, but not less than 12 months w/extenuating circumstances.
VA: 2 years from completion date.
USDA: 3 years from discharge date.
Fannie Mae: 4 years from discharge date, or dismissal date.
Freddie Mac: 4 years from discharge date or dismissal date.
With Fannie and Freddie – if you get an automated approval in the underwriting engine with less than 4 years out on a BK, then we can do the loan.
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
Most Down Payment Assistance is tied to your income. If you make too much money you don’t qualify for the Down Payment Assistance.
Not this one.
It doesn’t matter how much you make.
So, if you have at least a 580 credit score, and you have been working for the last two years, you may well be able to qualify for this no money down loan.
Here are some bullet points on this program…
So, if you or someone you know wants to buy a house, reach out to our office and let’s see if we can get you qualified for this program.
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
Your property tax bill usually comes out in late November, or early December.
There are two issues I see every year with regard to property taxes. …Issues that put people in tough spots.
1) Some people who have non escrowed loans just don’t have the money saved up to pay their property taxes. …They might have had the money, but had to use it in an emergency. …Or any number of other things.
2) Some people have an escrow account on their mortgage – but their mortgage company didn’t collect properly. This often results in an arrearage… Which means your payments go way up until the escrow is caught up.
If you are in either one of these situations – there’s usually an easy fix for it. …Refinancing.
We can often refinance someone in either one of these situations, and we pay the property taxes through the new refinance loan.. …Not only that, but usually at a lower rate and payment than they have now.
Please let us know if you have more questions about how this refinance works.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
If you haven’t owned a home in the last three years and you want to purchase a home you should consider the MCC tax credit.
How MCC works in a nutshell…
You take 20% of the mortgage interest you pay each year – and you are allowed to claim that 20% as a dollar for dollar tax credit against whatever income taxes you pay that year.
The cool part is you can do this every year you are in the house.
The net savings to you would be thousands of dollars over that time frame.
Very few people use this, but it’s available to all first time home buyers that qualify.
If you or someone you know might benefit from the MCC tax credit – contact our offices and see if you qualify for it.
That’s it for today!
Thanks for reading!
Brett
Sometimes a borrower needs a simplified way to prove their income.
Did you know we have a VOE (Verification of Employment) only program that is considered full doc?
This program is for borrowers that work for a company and get a W-2.
You don’t need pay stubs, or w-2’s, or tax returns. The VOE is the only thing we need to establish income.
…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.
I wanted to let you know. If you or someone you know is wanting to purchase a home please contact our office or me and we'll help you get what you want!
That’s it for today!
Brett
I wanted to address the two most common questions that I get regarding reverse mortgages…
Question: What happens if I die? Will the lender be taking my house?
Answer: No. After You Pass Away, Your Heirs May Pay The Loan Balance In Full With Cash Or By Refinancing The Debt And They Can Keep Your Home.
Question: What happens if the loan balance becomes greater than the value of my home?
Answer: No Matter How Large The Loan Balance Becomes, You Have The Right To Continue To Live In The House. The Lender Cannot Take Over Your Home As Long As It Is Your Principle Residence. Besides, You Will Never Owe The Lender More Than The Value Of Your Home. HUD Will Pay The Shortage For You If There Is Any.
If you or someone you know has questions about reverse mortgages please have them reach out to our office. We’ll be happy to help them!
That’s it for today!
I hope you have a great day! Thanks for reading!
Brett
I wanted to highlight an underused program in the mortgage market. …It’s Freddie Mac’s Home Possible.
Here are some highlights of this great program…
– 97% financing!
– Only .25% mortgage insurance rate! …compare to .55% for FHA and over 1% for 95% Conventional.
– No reserves required.
– Allows 3% seller contribution.
– There are income limits unless you purchase a property in an “underserved area”.
If you want a low down and very low mortgage insurance program this is a great one! Give us a call or shoot us an email to see if you qualify.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
If you are looking for a home in the outer suburbs or in a rural area make sure your realtor knows about this great USDA 100% financing program.
-Up to 100% of the Appraised Value – Total LTV of 102% –
-No Down Payment Required
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
-Collections over 1 year may not need to be paid (cannot be a pattern and depends upon credit score).
-Non-traditional credit may substitute for lack of credit history
-Repair Escrow financed in loan up to $10,000 or 10% of loan
That’s it for today!
Have a good day! …and thanks for reading.
Brett
We are helping alot of people with this no money down program...
Most Down Payment Assistance is tied to your income. If you make too much money you don’t qualify for the Down Payment Assistance.
Not this one.
It doesn’t matter how much you make.
So, if you have at least a 600 credit score, and you have been working for the last two years, you may well be able to qualify for this no money down loan.
Here are some bullet points on this program…
Minimum 600 FICO
Standard 30-year fixed rate FHA first lien
No First-Time Home Buyer requirement
No Income Limits
Easy Underwrite!
So, if you or someone you know wants to buy a house, reach out to our office and let’s see if we can get you qualified for this program.
That’s it for today!
Thanks for reading!
Brett
Would you like to buy a nice home in the country or an outlying suburb with no money down?
Here’s a program that might work for you…
It’s called USDA, and here are some details on this program…
-Up to 100% of the Appraised Value – Total LTV of 102% –
-Difference of sales price and appraised value can be used for closing cost
-No Down Payment Required
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
-Non-traditional credit may substitute for lack of credit history
-Repair Escrow financed in loan up to $10,000 or 10% of loan
That’s it!
If you or someone you know needs this program, have them give our offices a call.
Have a good day today! …and thanks for reading.
Brett
Most Down Payment Assistance is tied to your income. If you make too much money you don’t qualify for the Down Payment Assistance.
Not this one.
It doesn’t matter how much you make.
So, if you have at least a 600 credit score, and you have been working for the last two years, you may well be able to qualify for this no money down loan.
Here are some bullet points on this program…
So, if you or someone you know wants to buy a house, reach out to our office and let’s see if we can get you qualified for this program.
In Texas we have some unusual rules when it comes to getting cash out of our homes.
For owner occupied residences, we are limited to 80% max loan to value ratio.
When it comes to a divorce, if one spouse is keeping the house they will often have to pay the departing spouse their share of the equity in the home. A cash out mortgage is often necessary to get this done.
However, the traditional Texas Home Equity loan could make that difficult due to the cap at 80% of the available equity.
Enter the Owelty loan. This is specifically for a divorce where cash is needed to pay the departing spouse. You can get cash out to pay off the departing spouse, even if the loan amount exceeds 80% LTV.
You would simply have the attorney handling the divorce work up an Owelty Agreement as part of the decree.
Not many loan officers know this loan exists, so if you find yourself in this situation – give our office a call. We can help you!
That’s it for today!
Thanks for reading!
Brett
The 2024 conforming loan limits are going up to $750k.
This is good news. Conforming loans carry a lower interest rate and lower down payment than Jumbo loans.
If you have a loan you would like to see current market pricing on please let us know and we'll get you some numbers.
That's it for today!
Thanks for reading!
Brett
Do you have investment property, and would like to pull cash out of your property?
However, for some reason you can't provide income documentation to your lender to get a cash out loan.
We have solutions!
We have loan programs that will allow you to pull cash out of rental property with no income documentation at all.
If this applies to you or someone you know, reach out to us and let's see how we can help you.
That's it for today!
Thanks for reading!
Brett
Mortgage tip: If you are about to get into the loan process to buy or refinance a house – don’t go out and buy things on credit.
It sounds simple, and you would think most people would know this without being told.
I have a loan right now where a borrower got himself into trouble from doing just this very thing.
There are two possible complications: 1) You have to explain the inquiries on your credit., and 2) It will raise your debt to income ratio if you take on additional credit.
So, while you are in the loan process – don’t apply for anything that would involve credit (appliances, lawn equipment, etc.).
That’s it for today.
Thanks for reading!
Brett
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
If you or someone you know falls into one of these categories we have free grant money available for your down payment.
- Professional educators, which includes the following full-time positions in a public school district: school teachers, teacher aides, school librarians, school counselors, and school nurses
- Police officers and public security officers
- Firefighters and EMS personnel
- Veterans or active military
- Correction officers and juvenile corrections officers
- Nursing faculty and allied health faculty
If you would like to see if you are eligible for this grant money - just reach out to me or our office and let's see if you qualify.
That's it for today!
Thanks for reading!
Brett
Did you know we can do ITIN loans up to 90% loan to value ratio?
An ITIN number is issued by the IRS to non-resident aliens who are not eligible to receive a social security number.
If you or someone you know are interested in how to qualify for a 10% down loan as an ITIN borrower – just give our offices a call or shoot us an email.
That’s it for today!
Thanks for reading!
Brett
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.
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! …and thanks for reading.
Brett
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.
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! …and thanks for reading.
Brett
If you are carrying credit card debt the payments can be overwhelming.
On average, for every $10,000 of credit card debt your payment would be around $300 a month.
Something to consider...
Get cash out of your house to pay off all your credit card debt.
The payment on adding $10,000 to a thirty year mortgage at a 6.5% face rate would be $63, saving you $237 a month for every $10,000 of credit card debt you have.
This would alleviate stress in your life. Less stress = happier life.
If a debt consolidation loan makes sense for you, or someone you know - please reach out to our office and see what we can do for you.
That's it for today!
Thanks for reading!
Brett
I wanted to clear up a common misconception about Reverse Mortgages.
Please watch this very short video I just made explaining how Reverse Mortgages are more flexible than you might think… http://somup.com/c3f1lJO67W
If you or someone you know wants to know if a Reverse Mortgage makes sense for you - please contact our office and let's see if we can answer your questions.
That’s it for today!
Have a great day!
Brett
These loans are designed for self employed people that have trouble proving their income through traditional means.
Very simply we take the aggregate deposits of your bank statements (can be personal or business) and use this for your income.
Variables of Bank Statement loans…
24 Months of bank statements.
12 Months of bank statements.
2 Months of bank statements.
1 Month bank statement.
The reason we offer multiple options for months is that sometimes a 12 month average won’t work as good for the borrower as one month.
We offer down payments as low as 10% on owner occupied bank statement programs.
We also offer multiple ways of calculating deposits, which is very helpful if there are issues with one calculation method.
Rates on these programs are usually only modestly higher than normal conforming rates.
If you or someone you know may benefit from this loan to purchase or refinance a house, please reach out to our offices.
Thanks for reading!
Have a great day!
Brett
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
Did you realize that when buying a house from an immediate family member – the buyer doesn’t necessarily 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 buyer’s closing costs, and prepaid expenses (taxes and insurance).
Reach out to us if you have any questions on how this works.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Did you know there is a 3% down Conventional loan for first time home buyers?
Here are some of the important features of this product…
1) Owner-occupied primary residence only.
2) Minimum 620 FICO score.
3) 3% down payment can be a gift.
4) 1-unit attached and detached single family residence, attached and detached PUDs.
5) Purchase and rate/term transactions.
6) No up front MI (like you would have on FHA).
9) Loan amounts up to conforming limits ($726,200 in Texas).
This is a great product.
If you meet the credit criteria listed above, and you only want to put 3% down on a house – then call us and we can help you with this.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
Would you like to buy a nice home in the country or an outlying suburb with no money down?
Here’s a program that might work for you…
It’s called USDA, and here are some details on this program…
-Zero down payment.
-No Cash Reserve Requirement. No cash contribution requirement
-Unlimited seller concessions
-Unrestricted gifts, not necessary to document source, no seasoning
-First time home buyers allowed, but not limited to first time home buyers
If you want to purchase a house, but you don't think you have the money for the down payment this program may be an option for you. Contact our office to see if you qualify.
Thanks for reading!
Have a great day!
Brett
I wanted to address the two most common questions that I get regarding reverse mortgages…
Question: What happens if I die? Will the lender be taking my house?
Answer: No. After you pass away, your heirs may pay the loan balance in full with cash or by refinancing the debt and they can keep your home.
Question: What happens if the loan balance becomes greater than the value of my home?
Answer: No matter how large the loan balance becomes, you have the right to continue to live in the house. The lender cannot take over your home as long as it is your principal residence. Besides, you will NEVER owe the Lender more than the value of your home. HUD will pay the shortage for you, if there is any.
That’s it for today!
I hope you have a great day!
I wanted to let you know that we are seeing one day underwriting approvals on Conventional, VA, and FHA loans.
So, if you currently are in need of a purchase loan, or just want to get fully pre approved before you go house shopping (smart idea), then contact our office, and let us take a look at it for you.
The housing market is tight. There is a shortage of existing homes, and as soon as they hit the market they go under contract. …so, it’s smart to get fully approved before you go house shopping.
On another note: If you have any interest in reading my novel, Density – here is the Amazon link for it.
That’s it for today!
Thanks for reading!
Brett
Reminding you that if you are in these professions we have special down payment assistance options for you.
So, if you have been putting off buying a home thinking you didn't have enough down payment, please give our office a call. You might be pleasantly surprised.
That's it for today!
Thanks for reading!
Brett
I wanted to let you know we have a 2% to 5% downpayment and closing cost assistance program called “Homes for Texas Heroes”.
If you are in one of the following professions you may qualify for this purchase program:
Professional Educators, Which Includes The Following Full-Time Positions In A Public School District: School Teachers, Teacher Aides, School Librarians, School Counselors, And School Nurses
Police Officers And Public Security Officers
Firefighters And EMS Personnel
Veterans Or Active Military
Correction Officers And Juvenile Corrections Officers
Nursing Faculty And Allied Health Faculty
If you or someone you know may need this program, just reach out to our office and we’ll see if we can help.
That’s it for today!
Thanks for reading!
Brett
I wanted to give you a snapshot of where real mortgage rates are right now.
I'm quoting these numbers based on the assumption the borrower has good credit.
I'm also quoting a par rate - meaning the lowest rate you can get before you start paying discount points.
Conventional Rates: Assuming loan to value ratio of 95% (5% down), the rate would be around 6.75%.
Government Rates (FHA): Assume 3.5% down, the rate would be around 6.125%.
Alternate Doc - Bank Statements for income: Assume 20% down, the rate would be around 7.375%.
It's interesting the Alt Doc Bank Statement rate is not that much higher than a conventional loan. However, there is more down payment needed.
You can see how much lower the government loan program rates are right now.
Yes, these rates are higher than they were a couple of years ago, but this is where the market is right now. So, if you want to buy a house, dive in and buy a house. You will pay a little bit higher rate for now, and you can always refinance whe the rates drop back down.
That's it for today!
Thanks for reading!
Brett
FHA gift questions come up often. This is where the buyer would get a gift to help in purchasing a home.
I wanted to give you the rules on FHA gift giving.
Acceptable gift donors for FHA loans…
1) Borrower’s Relatives.
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.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
In the mortgage world there are rules we have to follow.
Such as, rules about how long a person has to work to get a mortgage.
Guidelines to get a conventional mortgage say you need at least two years of work history.
However, sometimes it's possible to get a conventional loan with less than two years of work history.
If we run an application with less than two years work history through the automated underwriting engine, and it takes it - then you are good to go.
I had this happen last week. Got an automated approval on a woman with about 1.5 years of work history. Approval. Now she's out looking for a house.
So, you never know until you run it. If you or someone you know is in the situation, let our office take a look at it.
That's it for today.
Thanks for reading!
Brett
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.
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
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 its 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
In Texas we have some unusual rules when it comes to getting cash out of our homes.
For owner occupied residences, we are limited to 80% max loan to value ratio.
When it comes to a divorce, if one spouse is keeping the house they will often have to pay the departing spouse their share of the equity in the home. A cash out mortgage is often necessary to get this done.
However, the traditional Texas Home Equity loan could make that difficult due to the cap at 80% of the available equity.
Enter the Owelty loan. This is specifically for a divorce where cash is needed to pay the departing spouse. You can get cash out to pay off the departing spouse, even if the loan amount exceeds 80% LTV.
You would simply have the attorney handling the divorce work up an Owelty Agreement as part of the decree.
Not many loan officers know this loan exists, so if you find yourself in this situation – give our office a call. We can help you!
That’s it for today!
Thanks for reading!
Brett
