The Two Most Common Questions We Get On Reverse Mortgages...

 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!

 

Thanks for reading!

Brett

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24 Hour Approvals On Your Loan...

 

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

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Down Payment Assistance For These Professions...

 Reminding you that if you are in these professions we have special down payment assistance options for you.

• 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 healthy faculty

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

Get Pre Approved For A Loan Here
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Free Down Payment 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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Current Day Mortgage Rate Comparison...

 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

Get Pre Approved For A Loan Here
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Gift Giving Rules On FHA Loans...

 

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

 

Get Pre Approved For A Loan Here
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How To Get A Conventional Loan With Less Than Two Years Of Work History...

 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

 

Get Pre Approved For A Loan Here
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Know This About Your Down Payment...

 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

 

Get Pre Approved For A Loan Here
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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 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

 

Get Pre Approved For A Loan Here
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If You Are Getting Divorced This Loan Can Be Useful...

 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

Get Pre Approved For A Loan Here
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