Next week, we will be rolling out a new 4% Down Payment Assistance bond product which will have lower interest rates than the regular non-bond DPA.
This is great news considering how tight a lot of consumer's debt to income ratios are out there.
BTW… did you know there’s NO PAYMENT for the TSAHC/TDHCA 2nd liens?
Please contact our offices if you or someone you know needs 100% financing for your purchase.
That's it for today!
Thanks for reading!
Brett
Goldman Sachs just upgraded their forecast for the 2024 housing market... “US home prices are projected to increase 5% this year, up from the previous forecast of 1.9%."
So, this is a good time to purchase before the prices start to go up again.
If you or someone you know would like to be pre approved for financing please contact our office.
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
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
If you want to acquire rental properties, but you are having issues proving your income – here’s one tool you can use…
It’s called a Debt Service Coverage loan.
We take the estimated amount the property would rent for, and as long as that number covers the mortgage payment – you are ok income wise. (No more income docs needed)
Down payments average around 20% on these types of loans – credit score depending.
If you think this might be a useful tool for you to acquire rental property – please let us know! We are happy to help!
Thanks for reading!
Have a great day!
Brett
If you are getting a divorce, and you have to pay your spouse their share of the equity, don’t use a traditional Texas Home Equity loan to do it.
Use an Owelty loan to get the cash out of your home instead.
The advantage of using an Owelty Loan over a Texas Home Equity loan is that we treat them as a regular rate and term refinance (not cash out rates – which are higher).
You can also get above 80% of the value of your home with an Owelty Loan, and you can’t go above 80% with a Texas Home Equity loan.
So, if you are in this situation, or you know someone who is – and your loan officer has told you that you don’t have enough equity to cash out the ex-spouse, just tell them that you need an Owelty loan.
…or, better yet – just give us a call and we can help you!
That’s it for today!
Have a good day today! …and thanks for reading.
Brett.
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%.
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
Did you know 10 of the last 11 non-farm payroll reports have been revised lower?
Why is this important?...because it points to greater weakness in the economy…which leads to reduced inflation…which leads to Fed rate cuts…which leads to traditionally higher MBS/bond purchases…which leads to lower rates.
This is why mortgage rates are forecast to lower in the next two years.
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
