FHA a division of the U.S. Department of Housing and Urban Development or HUD has increased their mortgage insurance premiums for FHA insured mortgage loans. Effective April 9th, 2012 an FHA loan with a term of 30 years and a down payment of 3.5% requires a 1.75% Upfront Mortgage Insurance Premium and a monthly mortgage premium of 1.25%. For a $100,000 mortgage the FHA fee would be $1750 dollars…
Thou shall not change jobs or become self-employed.
Thou shall not buy a car, truck or van unless you plan to live in it.
Thou shall not use your credit cards or let your payments fall behind.
Thou shall not spend the money you have saved for your downpayment.
Thou shall not buy furniture before you buy your house.
Thou shall not originate any new inquiries on your credit…
What do lenders look at when they are analyzing the income of a self employed borrower? The first rule of thumb is that you need to have at least 2 years of self employment history and income in order to use that income for mortgage qualifying purposes. You can get away with having less than two years if you have a larger down payment such as 20%.
Lenders will first review your Schedule – C…
Mortgage insurance is an insurance policy that protects a mortgage lender in the event that the borrower defaults on their mortgage payments. It is sometimes referred to as (PMI) or (MI). Mortgage insurance is usually paid if you are putting down less than 20% on a new home purchase or if you have less than 20% of equity in your mortgage. It’s usually a pay as you go payment that can b…
Which would you rather have? Lately I’ve been having people come to me who want to qualify to buy a new home but are hit with a huge surprise that they don’t qualify because they just bought a brand new truck. This is a common mistake many people make before they try to buy a new house. It isn’t always a truck or car but just a big ticket purchase that comes with a high monthly payment and…
Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.
The HomePath property buyer must meet the following qualifications to be eligible:
Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
The initial offer must be submitted on or after Apr…
Beginning on April 18th 2011, HUD has announced that they will be increasing their FHA monthly mortgage insurance premiums by .25%. What does this mean for consumers who are on the fence about getting an FHA loan to buy a home? This means a higher monthly payment and possibly more difficulty in getting qualified if you already have a high debt to income ratio. The current guidelines currently…