Two Ways To Avoid Paying Mortgage Insurance...

 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.

If you or someone you know needs help with a purchase loan give our office a call.

Thanks for reading!

Have a good day

Brett

 

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Who Can Give A Gift On An FHA Loan...

 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 a list of acceptable gift donors for FHA gift giving...

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

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Grant Money Available For These Professions...

 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

Get Pre Approved For A Loan Here
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How Long You Have To Wait After Bankruptcy To Get A Mortgage...

 I wanted to let you know how the Conforming and Government 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.

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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4% Down Payment Assistance Grant Available In Texas...

 The TSAHC Bond 4% DPA with a 5.75% interest rate is back, but only for homes in targeted areas.

This is a 4% grant with a rate at 5.75%.  You can find the targeted areas here! https://www.arcgis.com/home/webmap/viewer.html?webmap=3aa51f6d6c42469ea76be480fc39ffb0&extent=-106.2112,28.2436,-89.9844,36.2151

Example of how this can work:  I had a Broker in Dallas that had a borrower that needed DPA but was over the regular DPA income limit. So, we structured the loan with “Targeted Area Income Limits” (higher) and told the realtor to find them a house in a targeted area.  It worked great and the borrower was happy.

 

If you want to see if you or someone you know qualifies - contact our offices and we'll see if you qualify.

 

Thank you for reading!

 

Brett

Get Pre Approved For A Loan Here
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Know Where Your Down Payment Is Coming From Before You Go House Shopping...

 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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What To Know Before Buying A House...

 I’ve covered this before, but I think it’s worth repeating…

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. (I also have a 3% down for first time home buyers)

…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.

Contact our office and we can discuss some options for you.

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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