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"Mortgage Terminology"
FHA 203k loans are most definitely a big deal – from New York City to the Minnesota neighborhood you want to live in and everywhere in between that interested, qualified buyers may dwell. The media so often features the most negative and sensational stories and I was happy to see this FHA 203K program given time on the national stage. Now that you know not all the housing and mortgage news is negative, let me and my team help you find out what options are out there for you!
It won’t seem strange to most to know that we will be assessing your income situation when you apply for a home loan. The average person believes that it makes sense that we know you have the capacity to repay a long-term monthly obligation like a mortgage with reasonable amount of verifiable monthly income. There are however, a number of different things that most home buyers don’t understand about income qualifying for a mortgage. There are things we count and things we don’t count when considering your income and a few of them may surprise you!
You’ve read it on the web, seen it on TV and heard on the radio. Quite possibly, you’ve felt the results of it in your own life. Credit. A lack of credit, negative credit and positive credit. Credit, credit, credit and more credit. It’s everywhere. Know your credit score, know how to improve your credit or keep your credit in good standing. In spite of all of the advertizing, I believe there still isn’t enough accurate credit education available to consumers today. I know there’s a lot of confusion about what to do and what not to do.
Many home buyers, particularly first time home buyers, don’t have enough money saved to cover their down payment and all of their closing costs and pre-paid items. What are these amounts, what do they cover, and will the seller pay?
HUD Homes are homes that are owned by The US Department of Housing and Urban Development as a result of a foreclosure on an FHA insured mortgage. HUD’s process is a little bit different than that of other lenders of bank owned property and you will absolutely need an expert real estate agentand mortgage professional representing you to submit a bid on a HUD property.
Bank Owned sales can be relatively easy, however there are some banks that are easier than others and there are some things you need to understand about bank owned sales that differ from one company to the next. These could save you time, money and aggravation throughout the process.
There are varying coverages and today on a conventional loan, and there isn’t a one-size fits all mortgage insurance rate. Your mortgage insurance rate will vary based on the amount of your down payment, your credit score, your total debt-to-income ratio, the type of property you are purchasing, how much money you will have left in the bank following the home purchase and even where you are purchasing your property.
If you’re in the home buying market, or you own a home and you’re planning to remodel and you have limited down payment or equity and haven’t heard of an FHA 203K – you need to talk to learn more about the program. It could save you a great deal of time and money as well as open up possibilities that may not currently exist.
In terms of mortgage loans, it’s important to understand that while there are a large variety of mortgage loan programs, and most of them fall into a few underlying loan program types. These program types all have various qualifying standards and down payment requirements as well. While the media would have you believe that you need mega down payment to qualify for a home today, that’s simply not true. There are still zero down and minimum down payment programs available for you to purchase a home.
You’re thinking that you’re ready to start the process of looking to buy a home and you need to get pre-approved. First, let me explain why this needs to be done up front. It may seem obvious to you, but for a lot of people, it’s simply not. You start looking around online and you find some homes that interest you. You contact a real estate agent and if you’re speaking to an experienced agent, one of the questions they will undoubtedly ask you in your first conversation will be whether you’ve been pre-approved for a mortgage.
Watch this video for information on the upcoming First Time Home Buyer Class
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