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

 

Get Pre Approved For A Loan Here
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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

Get Pre Approved For A Loan Here
My Previous Blog

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
My Previous Blog