7 Eylül 2012 Cuma
Here are the latest down payment requirements for mortgages in the US:
Primary residence (your main house):
- 3% for conventional loans
- 3.5% for FHA loans
- 0% for VA loans
With primary residences, you can get a gift from a relative to cover the down payment!
Second homes (a second home that you do not rent to others):
- 10% for conventional loans
Investment properties (houses that you rent to others):
- 20% for conventional loans
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: down payment
People often ask us if their net worth affects whether they will be approved for a mortgage. The simple answer is NO.
Net worth is defined as a borrower's assets minus their liabilities. In other words, their net worth is the value of the things they own (including money in the bank) minus the amount of money they owe.
As an example, if someone has $5,000 in the bank and owns a car worth $15,000, their assets are $20,000. If they have $15,000 in credit card debt and owe $10,000 on a car loan, they have $25,000 in liabilities. Assets ($20,000) minus liabilities ($25,000) gives them a net worth of -$5,000. So they have a negative net worth of $5,000.
Does a mortgage lender care that they owe more than they have in assets? Nope - not at all.
The only thing a lender cares about is whether a borrower makes enough money to pay the mortgage, and whether they have a history of paying their bills on time. Net worth has nothing to do with income or paying bills, so no one should worry about their net worth when applying for a mortgage. Having a positive net worth does not help, and having a negative net worth does not hurt. Mortgage lenders just don't care.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: net worth
Now that we're well into the second half of the year, it's a good time to remember that the property tax credit that the seller gives to the buyer will affect the amount of money the buyer needs for closing costs.
At the closing, the seller will credit the buyer one day of taxes from January 1 until the closing date. If the taxes on a property are $2,400 a year, the tax credit will be about $1,600 if the closing is at the end of August, and about $200 more every month after that.
If the buyer is asking the seller to pay some of the buyer's closing costs, the tax credit needs to be included in the calculations when deciding how much to ask the seller to pay. If the buyer doesn't consider the tax credit and asks for more than the buyer will actually have to pay at closing, the seller gets to keep the excess money. Good for the seller, but bad for the buyer.
If you're going to be asking a seller to pay some of the closing costs for your buyer, make sure you ask your lender if they have considered the tax credit when they tell you the amount to ask for.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: property tax credit
"I don't sign my name that way!" Is that a common complaint from your buyers at closings? We hear it all the time.
Did you know that the lender and the title company take the buyers' names from the sales contract?
If you want to make your closings just a little bit easier and keep your buyers a little bit happier (always good for referrals), then ask them how they normally sign their names when you are writing a sales contract.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: contract
16 Temmuz 2012 Pazartesi
Fannie Mae just announced some changes to their underwriting guidelines. Here are a few of the most note-worthy:
- The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) ratios for adjustable rate mortgages (ARMs) is being lowered from 97% to 90% for 1-unit, primary residences for purchase and no cash-out refinances. This means you will need 10% down if you're buying a house and financing it with an ARM. The ratios are being lowered even more for other types of transactions.
- They are eliminating exterior-only appraisals and property inspections. This means only full, interior appraisals will be allowed. No more "drive-by" appraisals.
- They are raising the minimum credit score for ARM loans from 620 to 640.
These changes will take effect in October 2012, but lenders are free to implement the changes earlier than that if they want to.
So things just got a little bit stricter. The message? The government, which now runs Fannie Mae, Freddie Mac, FHA, and VA - the four places where just about all mortgages end up - is not fooling around with foreclosures. They want to stop them.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: Fannie Mae
One of the most common questions we are asked is, "How much money do I need in the bank to buy a house?"
If you don't own any other properties other than the house you're going to buy, then all you need is enough money to pay for the down payment and the closing costs. If the seller is going to be paying the closing costs for you, or the lender is going to be paying them for you, then all you need is enough money to cover the down payment.
With FHA loans, the money you need to buy a house can be a gift from a relative, so you don't really need any of your own money.
If you own more than one property, then you will need to have reserves in the bank, an investment account, or a retirement account. The amount of reserves depends on the type of properties you own and the type of loan you are getting for the new purchase.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: assets
22 Haziran 2012 Cuma
FHA has changed their underwriting guidelines regarding collection accounts. They instituted a new requirement earlier this year that made borrowers pay off collection accounts if the total of all collection accounts showing on a credit report was $1,000 or greater.
However, effective immediately, they have rescinded that requirement, meaning that collection accounts no longer have to be paid, regardless of how much they total.
It is important to note that just because FHA has changed their rules, it does not automatically mean that lenders have to follow those rules. Lenders are allowed to have stricter rules than FHA when they sell FHA loans. In other words, individual lenders may still require collection accounts to be paid before they will approve a loan. Always check with your lender before assuming anything.
Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!
Make sure you check out our web site:
Etiketler: collection accounts, FHA
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