ARE YOU LOOKING TO PURCHASE YOUR FIRST HOME? PERHAPS YOU'RE LOOKING TO REFINANCE?
Interest rates are very good for first-time homebuyers!
Why get pre-qualified on a mortgage? If you're looking to buy a home, you need to get pre-qualified. A pre-qual letter shows the seller you are serious enough to have your credit checked. It indicates that a lender has determined a loan amount you can comfortably borrow based on your income. Your loan officer will need certain income documents to pre-qualify you to buy a home. If you are a current homeowner and want to refinance to a lower interest rate or a shorter term, now is the time! Let an experienced loan officer help you find the right program for your needs! We can also help you get started with your renovation loan! Our FIX IT mortgage is our proprietary name, and our company has an entire renovation department dedicated to helping you move or refinance your home and repair it at the same time.
Whatever your age, you can save time and energy by having a mortgage specialist shop for the best rate through various lenders. The advantage? Rather than applying to different banks on your own and having your credit run and re-run again, your credit will be run once. If you are a first-time homebuyer, a pre-qualification letter for your realtor to present to the seller will offer you an advantage over buyers who are not pre-qualifed.
Remember: You can speak with the biggest and best lenders, but it's important to find someone who has a desire to help you achieve your goals. An experienced loan officer has the expertise to review several mortgage programs and get you the best rate possible. Your prime objective should be finding a professional that can get the job done and is easy to work with. If your credit has been tainted, don't despair. We might have the perfect program for you. Right now, FHA loans are working well for those borrowers whose credit is less than perfect.
What is a conventional mortgage? Who is Fannie Mae?
A conventional loan is a mortgage that is not guaranteed or insured by any government agency such as the Federal Housing Administration (FHA) or the Farmers Home Administration (FHA) or the Department of Veterans Affairs (VA). Fannie Mae is a government-sponsored agency that provides lenders with cash in order for them to fund loans. buys mortgages from lenders in order for them to reinvest their assets. Its mission is to stimulate the secondary mortgage market in the U.S. and increase availability of low cost housing. Typically, conventional mortgages require a 620 credit score or higher and maximum debt-to-income ratios of up to 45% and even up to 50% if you can show you have reserves set aside. (Reserves are assets or money in your checking or savings to cover a downturn in your life where you can make mortgage payments from your reserves). Some lenders require 6 months liquid reserves set aside so if income is lost, you can continue to pay your mortgage.
What are considered assets? Assets are items that you own that have a monetary value. There are three categories of assets: cash, cash equivalents and property. Assets can include cash on hand, the money in your checking or savings accounts, money market funds, certificates of deposit (CDs) and also can include 401k's, stocks, bonds, and also physical assets. If you have properties, cars, jewelry, RV's, artwork, you'd have to sell them first if you want to use them to qualify for a mortgage.
What is an FHA mortgage?
With an FHA loan, the Federal Housing Administration insures the mortgage. The FHA is an agency within the U.S. Department of Housing and Urban Development (HUD). The FHA’s backing offers lenders a layer of protection, meaning that your lender won’t experience a loss if you default on your mortgage. They will be made whole by FHA mortgage insurance. FHA loans typically come with competitive interest rates, smaller down payments, and lower closing costs than conventional loans. If you have a credit score of 580 or higher, you could be eligible for an FHA loan with a down payment as low as 3.5 percent of the purchase price. If your credit score is lower than 580, you still might qualify for an FHA mortgage, but the down payment would be at least 10 percent of the purchase amount. Click here for FHA lending limits: https://entp.hud.gov/idapp/html/hicostlook.cfm
Where should I start?
It is hard to know where to begin! There are so many options that it can be very confusing to find the right type of loan to suit your individual needs.
The answer to these questions will help you know which loan will be best for you.
Advisors Mortgage Group has been helping first-time homebuyers finance the home of their dreams for over 20 years. So why not you?
HELP FOR BUYING A HOME
First-time homebuyer-- Diverse products have evolved so virtually anyone can own a home these days. There are, however, certain criteria. And there are times when it's not as easy as you think. Lenders can have strict criteria for homebuyers, and first-time homebuyers need to garner information and learn how to qualify.
How much money will I have to come up with to buy a home?
"Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house."
FACTORS THAT AFFECT APPROVAL:
Mortgage lenders base approval on varying factors:
• your credit history and rating - no credit history, too short a credit history, poor credit history (judgments, etc.). how you pay your bills, late or on time, etc.
• Who has inquired about your credit, and how many times?
• What are your credit card balances? Are they 35-40% of your credit limit? If your credit cards are close to or at the maximum, your credit score will be affected.
• Income Factors - high debt to income ratio (too little income for the amount of your financial obligations you carry).
• Other Factors: appraisal issues, title issues, occupancy issues.
Owning a home is an adventure. We're here to help in any way we can.
Speaking with a mortgage professional is the best way to obtain accurate information.
CALL ADVISORS MORTGAGE NOW: 888-843-9797 or Direct: 631-804-9044
Buy a home when you can afford to pay for it. A loan insured by FHA (the Federal Housing Authority) has a minimal down payment which is attractive to many first-time homebuyers. More information: https://www.hud.gov/topics/buying_a_home
Freddie Mac Home Possible Advantage(SM) Mortgage Makes Home Financing With a 3 Percent Down payment Possible!
Who is Freddie Mac?
Freddie Mac was established by Congress in 1970 to provide stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home ownership possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing.
Freddie Mac makes home ownership and rental housing more accessible and affordable. Operating in the secondary mortgage market, we keep mortgage capital flowing by purchasing mortgage loans from lenders so they in turn can provide more loans to qualified borrowers. Our mission to provide liquidity, stability, and affordability to the U.S. housing market in all economic conditions extends to all communities from coast to coast.
Freddie Mac launched Home Possible Advantage(SM), an affordable conforming, conventional mortgage with a three percent down payment requirement designed to make responsible home ownership accessible to more first-time buyers and other qualified borrowers with limited down payment savings.
"Home Possible Advantage gives qualified borrowers with limited down payment savings a responsible path to home ownership and lenders a new tool for reaching eligible working families ready to own a home of their own. Home Possible Advantage is Freddie Mac's newest effort to foster a strong and stable mortgage market." Freddie Dave Lowman, Executive Vice President, Single-Family Business at Freddie Mac.
Advisors Mortgage - Full FHA Eagle License
In 2005, Advisors Mortgage Group was designated by the Federal Housing Authority as a Full Eagle FHA Underwriter. As a Full Eagle, Advisors has been able to expand its loan volume by approving loans which a majority of the competition could not dream of. We have built a platform for a seamless and stress-free mortgage process for all of our customers, and we have that same mission throughout all of our offices.
We understand that success cannot be attained without teamwork and communication, two of our most important strengths. Let us become your main team member helping you to avoid the pitfalls many find in seeking to own a new home.
There's a lot that goes into purchasing your very first home. That's why it's good to work with a banker like Advisors Mortgage.
Questions? Call Advisors Mortgage! Advisors Mortgage: 888-843-9797 or 631-804-9044
As defined by Section 203(k) of Housing and Urban Development’s code, the 203(k) loan allows the homebuyer to borrow enough funds to cover both the cost of the home and the price of repairs, including the cost of labor and material for those repairs, in one loan. Certain 203(k) loans may also be expanded to include funding for up to six months of mortgage payments. The FHA does not directly lend these funds, but rather provides financial protection to lenders that do. The 203(k) loan can either be a 15- or 30-year fixed rate mortgage or adjustable rate mortgage (ARM). The amount the homeowner can borrow depends on qualifications like his/her credit and income, and the lender will also assess a down payment based on the total amount.
With the 203(k) loan, the maximum loan amount that can be borrowed is capped at 110 percent of the home’s projected value as determined by an appraiser. Additionally, lenders require the borrower to pay mortgage insurance. Interest rates could be slightly higher than those associated with a conventional mortgage. However, they might be significantly lower than interest rates on loans taken out to cover repairs. There are two types of 203(k) loans available:
Limited 203(k): This loan is intended for smaller renovation and upgrade projects that are valued less than $35,000. There is no minimum cost requirement, although you can’t fund structural repairs with a Limited 203(k).
Standard 203(k): The Standard 203(k) loan is intended for more extensive repairs with a total price tag greater than $35,000.
The minimal loan amount for this type is $5,000. Structural changes, like additions or full home renovations, are permitted. The homebuyer must obtain architectural exhibits and meet building codes. The homebuyer must meet specific borrowing criteria from FHA. This includes a debt to income ratio of 31 percent for the monthly housing payment and not more than 43 percent with all debt combined. Buyers must have a credit score of at least 620 to qualify. Additionally, the buyer will still need to make a down payment of at least 3.5 percent of the total amount borrowed.
NOTE: This loan is only available to people who will live in the home, although under certain situations, nonprofit organizations can also take out a 203(k) loan.
What kinds of renovations does the 203(k) loan cover?
The 203(k) loans cover just about any expense the homeowner can think of, with the exception of certain luxury items. Those renovations include:
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We can help answer ALL your mortgage questions!