Sometimes Cash Is Not Good...

Good Morning! 

  

I had this issue come up again earlier this week and I wanted to revisit it with you...

This may sound crazy, but having cash for a down payment in the mortgage industry is a bad thing.

If you have cash saved up for a down payment on a home - and you were planning on using it for a down payment - it will present a problem when it comes time to getting a mortgage.

The mortgage world is all about documentation.

...The guidelines on cash are designed to prevent the seller from just giving you the down payment.

So, if you have a down payment - you will have to show where it came from... ...checking = good, ...savings = good, ...gift from relative = good, ...retirement account = good, ...cash = NO GOOD.

The best solution for this?... Put the cash in the bank. ...Leave it there for 60 days. ...After 60 days sitting in the account - it doesn't matter where it came from.

That's it for today! 

  

Have a good day today!  ...and thanks for reading.

  

Brett

 

  

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

  

An Alternative To FHA With Much Lower MI Rates...

Good Morning! 

  

FHA is a beautiful loan program, but if you asked me what I don't like most about it I would have to say the monthly MI rates have creeped up.

The monthly mortgage insurance factor for FHA is now 1.25%.

A viable alternative to FHA with much lower monthly mortgage insurance is a little used conventional program called My Community.

My Community only has a 3% down payment (compared to 3.5% with FHA).

The monthly mortgage insurance factor for a 97% mortgage is only .18% (compared to 1.25% with FHA).

The monthly mortgage insurance factor also goes down on My Community as the loan to value ratio is lower. ...Where FHA charges 1.25% no matter what the initial LTV on a 30 year mortgage.

My Community will also go down to a 620 credit score!

...Something to think about if you are looking for a low down payment, and low monthly MI program!
 

That's it for today! 

  

Have a good day today!  ...and thanks for reading.

  

Brett

 

  

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.

  

  

 

Lower Down Payment Requirements On These Homes...

Good Morning! 

I wanted to make you aware of some guideline changes on purchasing and refinancing second homes.

Our maximum loan to value ratio on second homes used to be 80%. 

...In other words you had to put down 20% on a second home purchase.

Now we can go up to 90% on second home purchases, or rate and term refinances.

...just wanted to let ya know!  

That's it for today! 

  

Have a good day today!  ...and thanks for reading.

  

Brett

 

  

To see if you qualify for a mortgage right now - CLICK HERE  and fill out this simple application.

To sign up for my weekly mortgage quick tips - CLICK HERE.