Good Morning! Traditionally if you wanted to use gift funds for your down payment you had to use an FHA, or USDA loan. This means the gift would represent your entire down payment and you wouldn’t need to come out of pocket with your own sourced funds for the down on FHA and USDA. Now…
Good Morning! I wanted to let you know about some upcoming changes on the USDA loan program. Right now the upfront mortgage insurance fee paid at closing is 3.67% on a USDA loan. …Starting October 1st, 2011 this upfront fee will go down to 2%. However, currently there is no annual mortgage insurance paid on…
Good Morning! I wanted to let you know that I can do USDA loans down to 600 again! …Remember the USDA loan is a 100% loan with no monthly mortgage insurance! For a while there the credit score requirement for this program was 620, but now it’s back to 600. The key for this program…
Good Morning! Do you know what your mortgage scores are? The scores you get from www.freecreditreport.com, and other services like it will only tell you what your consumer credit scores are. …This isn’t enough. 95% of the time your mortgage credit scores will be different, and sometimes significantly different. …I see it every day. You…
Good Morning! Fannie Mae has a little known about program that they designed to compete directly with FHA. It’s called My Community mortgage, and it has some advantages over FHA. 1) One advantage is that the down payment is lower on My Community. …Only 3% vs 3.5% for FHA. 2) My Community allows for loan…
Good Morning! Recently I sent out an email about gift giving on conventional loans. I wanted to touch on when gifts are allowed (and not allowed) on FHA loans as well. Here’s who can’t give you a gift on an FHA loan… The gift donor may not be a person or entity with an interest…
Good Morning! I’ve talked to you about this before, but it’s important enough for me to revisit it again… Using cash for a down payment on a home is not smart. If you have cash saved up for a down payment on a home – and you were planning on using it for a down…
Good Morning! People get turned down for loans every day because their debt to income ratio is too high. Some mortgage companies max out their debt to income ratio at 45%. …Some go to 50%. I keep tellin’ ya that I do loans other people can’t do, and it’s true! If I get an automated…
Good Morning! Things are starting to loosen up from the Mortgage Insurance companies. We can now get Mortgage Insurance on conventional loans down to a 620 mid fico score. …and, this is for loan to value ratios up to 95%! You still need a 680 credit score to get MI up to a 97% loan…
Good Morning! One of my clients is currently buying a house. He ran into a complication, and I wanted to tell you about it here – so you can learn from his experience. Bobby got a home inspection for the home he was purchasing. …This is a smart thing to do anytime you purchase a…