I wanted to let you know that Rural Development has made modifications to their eligibility maps in some areas. These changes were released as part of the Farm Bill and the Consolidated Appropriations Act 2014, and were released on May 6, 2014. In Texas, eligible rural areas for USDA housing programs have been adjusted in…
When you give someone option money at the onset of a lease option agreement – you are going to have to prove you gave that money when you get a loan to buy that house. How do you prove it? If it’s certified funds you need to keep a copy of the certified check. If…
Did you realize that in the State of Texas you can’t get cash out of your home above 80% of its appraised value? In other words if your home was worth $100,000 – the most cash you could get out on a loan would be $80,000. This 80% rule is a Texas law for…
Before you go house hunting make sure you have enough money available to get your loan approved and your house closed. …I know it sounds simple, but many people don’t realize the amount of funds they will need to get into a house. Here is a simple breakdown of your out of the out of…
I hope you had a great Memorial Day weekend! Please be aware of this loan killer if you are applying for a mortgage… Watch out for Insufficient Funds Charges in your bank statement. …this is a potential deal killer for the underwriter. If you have insufficient funds charges in your bank statement it signals to…
I get asked how to make repairs on a property just after the purchase closes. The easiest way is to do a repair escrow as long as the aggregate cost of the repairs isn’t more than 5k or so. Repair escrows are monies that are set aside (out of seller’s proceeds) to make minor repairs on…
You’ve always been able to use gift funds for the down payment on an FHA loan. However, did you know you can also use gift funds on a Conventional loan? Here are some of the details on this program… – “All gift” down payment allowed from acceptable gift donor (family usually) – Seller contributions allowed…
I have some news for you on USDA loans… The Agricultural Act of 2014 (Farm Bill) changed the standard by which communities are to be considered “rural” for the purposes of USDA Housing Programs. Certain areas deemed ineligible for the USDA Section 502 Guaranteed Rural Housing Program (main USDA loan everyone uses) have become…
I have borrowers ask me every day how much they need to put down to purchase a home. Here are your minimum down payment options on the loan products currently available in the market place. Loan Programs… VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can…
When you buy a house you will have closing costs and prepaid taxes, insurance, and interest. These costs are in addition to your down payment. I want you to know there are other ways to pay closing costs and prepaids. In fact, there are five different ways these costs can be paid. I’ll go through…