Credit Card Balance = Lower Score?

December 13, 2012 by 1 Comment

rent-vs-buy

If you have 3 Credit Cards – and one of them is “Max’d Out” and One has a zero balance, and one you pay off monthly… you could be pulling your score down! Look at the following example:

Credit Card Balance versus Available  Credit

Visa with $10,000 balance and no Available Credit

Discover with $300 Balance you pay off monthly

MasterCard with $0 Balance

That Visa Card with no Available Credit = Lower Credit Score
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The smarter move is to spread the balance between Cards ($5,000 each).  This makes it look like to the COMPUTER SYSTEM that checks all of this – that you are NOT max’d out!  This will = Higher Credit Score! [Read more...]

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$8000 Grant With FHA / Qualifying Requirements

November 6, 2012 by 4 Comments

$8000 Government Grant to buy a houseLooking for a FHA Mortgage?  FHA Mortgage Loans require a downpayment – but FHA offers TONS of options!  For instance, you might qualify for a First Time Homebuyer $8,000 Grant with FHA that money can be used to buy your house! Credit score requirements are much lower than on a Conventional Loan – and it’s PERFECT for First Time Homebuyers because it allows you to buy the home with a Non-Occupying Co-borrower (like your parents!)!  It also allows for alimony and child support to count towards income, making it perfect for Single Parents.

$8000 Grant with FHA | First Time Home Buyer Qualifying Requirements| FHA Mortgage Loan: [Read more...]

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Using Grants and Gift Funds To Buy A House In NC

April 15, 2012 by Leave a Comment

Dreaming of a new home??Are you a First Time Homebuyer, dreaming of the day when you can sit among your boxes, in your new home?

HUNDREDS of first time home buyers in Cary, Apex, Holly Springs are doing just that, and taking advantage of the now “famous” $8000 Downpayment Assistance program available through NC Housing Financing!

These same people are purchasing wonderful $300,000 plus priced homes using FHA Financing!

The North Carolina Housing Finance Agency, is advancing up to $8000 as a credit to buyers forUse Cash From Your Wedding for a Down Payment their 3.5% downpayment. (of course there are some income qualifications, etc)

Here are some other ways you CAN obtain the 3.5% downpayment for FHA loans

  • Save it! if you have enough money in your IRA account, you might be able to borrow against the account (check with your employer) for your home purchase!
  • Tax Return Refund:  If you are getting a refund from your taxes – use it to buy a house!
  • Gift: You can get a gift of the entire amount from family and friends, you can even use a BRIDAL REGISTRY to show who gave you the individual amounts!
  • Grant from your Employer: there are some pretty specific guidelines about this – but many businesses, and municipalities offer these programs!
  • Sale of an Asset: would you rather have a Bass Boat or a house?  For some guys, it comes down to this!! (If you are thinking of this, please call us for details of how to document it!)

As you might know, you do NOT have to be a First Time Homebuyer to use FHA financing… but if you want to take advantage of the $8000 Down Payment Assistance from NCHFA, you need to be either a First Time Home Buyer, or you must not have owned a home in the last 3 years.

FHA does NOT have a maximum income requirement (like USDA), they do NOT have a geographical footprint (meaning you can only purchase some addresses, they only cap the maximum loan in each county)… Unlike VA loans, FHA does not require that the borrowers are married!!

Need more ideas??  You can also buy a HUD Foreclosed home for just $100 downpayment!  There are TONS of options available.  Don’t let the image of a very small piggy bank hold you back from owing a home!

If you have questions about purchasing a home in Cary, Apex or Holly Springs using a FHA mortgage, please call Steve and Eleanor Thorne, River Community Bank, 919-649-5058

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5 Things NC First Time Home Buyers Should Know!

February 17, 2012 by 2 Comments

Remember To Use A Realtor!In February of 2012 – the newest part of the Government’s program to help people buy a house is in place!  This is great news for folks interested in NC First Time Home Buyer Programs!

If you are ready to move out on your own, and Kiss Your Landlord Good-bye…  CONGRATULATIONS! 

We offer first time homebuyer programs from NC Housing Finance Agency.  The NCHFA program allows you to purchase a home with little or no money out of pocket, can offer you a Tax Credit (in the form of MCC) and might allow you to purchase a home with a credit score of less than 640! (they accept a 600 credit score!)! 

So, if you are a 1st time home owner (or you haven’t OWNED a home in 3 years) ask us about the NC First Time Home Buyer Programs we have available to you!

The NC Housing Financing Agency Program works with FHA, VA, USDA AND Conventional loans.  You might qualify for $8000 in a government GRANT that will help you buy a home!

Here are FIVE THINGS we think every First Time Home Buyer should consider before making that move: [Read more...]

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What if Mortgage Rates Went to Zero? Would You Buy Then?

September 28, 2010 by Leave a Comment

I am a self proclaimed economics junkie, nerd, enthusiast. I got really excited looking at some recent information about the Economy and Interest rates!

A survey done by CNBC of  leading market participants indicates that THEY believe the Federal Reserve will boost it’s balance sheet by about a half a TRILLION dollars in the next six months.

If you are like one of my friends, you are scratching your head going, “and I care about this because….?” Well you care about this because if the Fed does this – a likely benefactor would be LOWER Mortgage Rates.

The Fed stopped buying mortgages in March, and rates didn’t skyrocket… but they just are not going below certain thresholds. The idea is that the Federal Reserve will have to come back into the market in some fashion, and when they do, mortgage rates will likely go lower.

But HOW low will they go?  And would a rate at, or near zero, have first time home buyers running to buy like the next $8000 Tax Credit?

“The difference between a 4.5% and a 3.5% mortgage isn’t that great. If we were at 10% and rates fell to 5%,” that drop would attract much more borrower interest. “When you’re talking about incremental declines in interest rates, it does add some [demand] but not as much as you’d think.”

Mr. Bernanke is scheduled to speak this Thursday and there will be even more people listening to his “tone” to see if there’s any hint about deflation and the Federal Reserve”s Balance Sheet. If the CNBC poll is correct, we could get below the current stale mate.  Either way, though, mortgage rates are at the historical low point and that’s only ONE of the reasons people are buying in the Raleigh / Cary real estate market!

To find out what you can qualify to purchase in NC, call Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058.  We have the best rates and the lowest fees for mortgage loans in NC Do you think we need a new tax credit?  Read this

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Credit Scores and First Time Home Buyers!

May 20, 2010 by 1 Comment

How Credit Scores are calculated is changing, and the minimum scores required for mortgage loans are going HIGHER!  For information about “WHY” Credit Scores requirements are changing in NC, click here.

It’s important to know that Transunion began making changes to the way they calculate credit scores, and if you don’t change your credit strategy – you might not be able to purchase!

I think it’s important for First Time Homebuyers (especially) to know what credit scores they need so that they can take advantage of the $8000 Tax Credit, Low Rates and “Cheap Houses!” [Read more...]

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Want the $8000 Tax Credit But No $ For Downpayment?

April 26, 2010 by Leave a Comment

The $8000 First Time Home Buyer Tax Credit in 2010 expires at the end of this week, and people are really working hard to try and get in under the wire!

Tons of the people we are talking to do not have the money for a downpayment – and they are having trouble getting a Seller to accept a contract for USDA Home Loan… because the USDA Single Family Rural Development Home Loan Program is running out of money.

So what can you do if you don’t have a pile of money laying around for a down payment?

You can get a gift! You can file for the Tax Refund this year, even if you have already filed your taxes!  Get a gift from a Family Member!  Rob your 401K and pay it back!  Don’t let this opportunity pass!

Be careful not all purchases will qualify for the 2010 $8000 TAX Credit!

Here are some items to remember when you are trying to qualify for the credit:

  1. The home may not be acquired from a mother, father, spouse, or child
  2. The home may not be acquired from an entity in which you’re a majority owner
  3. The home may not be acquired by gift or inheritance
  4. The home’s primary buyer must be at least 18 years of age
  5. The home’s purchase price may not exceed $800,000
  6. The home must be meant for use as a primary residence

Remember – you must live in the property as your primary residence for at least THREE YEARS or you will owe Uncle Sam the refund. If you have other detailed questions about the CREDIT – look at the IRS Website.

We are still taking applications for folks who are writing contracts for USDA Home Loans. There’s still some money available – but it is going fast. If the seller will not accept a contract with USDA financing – consider FHA!  It’s a 3.5 down payment – and it CAN be a GIFT!

For answers to your questions about qualifying for a mortgage loan, contact Steve and Eleanor Thorne 919-649-5058. We have the best rates available and we lend all across North Carolina, Virginia, South Carolina, Georgia, Florida and Maryland.

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USDA Home Loans Could Be Getting More Expensive

April 20, 2010 by 5 Comments

4/20/10 – As we’ve mentioned (a couple of times) USDA Single Family Rural Development Home Loan Program is running out of money… WHEN that magic date is – we don’t know… But we know it’s coming in the next few weeks.

The Hombuilder’s Association of America is in Washington this week to discuss (read they are begging Congress) ways to get more money to the program FAST!  No wonder – it’s a zero down payment loan, and it’s the hottest mortgage product we have! (Guidelines are pretty strict read here if you’ve had a foreclosure or bankruptcy)

Last week two members of the House proposed legislation that would continue the funding… but both bills add requirements that would force lenders to raise the rates for these loans! 8o((

Rep. Shelley Moore Capito (R, WV) the ranking Republican member of the House Financial Services Subcommittee on Housing and Community Opportunity, late Tuesday introduced legislation that would increase the current 2% guarantee fee to between 3% and 4%.

Separate legislation was recently introduced by Rep. Paul E. Kanjorski (D, Pa.), chairman of the House Financial Services Subcommittee on Capital Markets. That version has the lender paying a 3.5% upfront fee when the loan is issued, while authorizing an annual assessment of .5% of the outstanding balance.

Neither program places additional cost on the taxpayers.

The next step is discussion at committee level before a final bill is moved to the House floor. That’s expected to happen quickly, given the money is quickly dwindling during the key Spring selling season.

Okay so WHY does Congress feel that it is necessary to either add a downpayment requirement and/or increase the Guarantee Fee?

These are ZERO Downpayment loans (for current guidelines click here) that have to be located in a more rural area.  There are income requirements… these are not $750,000 loans in Los Angeles (where FHA has way high loan limits). For the most part, these are $200,000 to $300,000 loans made to people living in outlying areas who are blue collar workers.  They have 2 or 3 jobs, and they are conservative, and the USDA Home Loan program has a LOW default rate!

I’m hopeful that Congress gives the program more money – and I hope upon hope that they don’t make it more expensive!

If you have questions about taking advantage of the USDA Home Loan program in NC – call us.  We can tell you exactly what’s happening now! Steve and Eleanor Thorne, USDA Mortgage Specialist, 919-649-5058

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2010 Tax Credit

March 17, 2010 by Leave a Comment

Click the image to enlarge
Home buying tax credits
Source: Fixr

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What Does It Mean When USDA Runs Out Of Money?

March 12, 2010 by 1 Comment

Every year Congress puts funds into the USDA Rural Development “Account” for them to lend out to home buyers. It’s a great program that requires no money down (for program details click here)…

On March 11, 2010 Rural Housing folks announced that they will probably run out of money before the end of April.  What does that mean?

Unlike FHA, VA and Conventional loans – USDA Home Loans must be underwritten by a USDA underwriter.  The Underwriter issues a Conditional Commitment.  If the “account” that USDA has within the Federal Government to fund loans from runs dry… they can issue TWO different kinds of Commitments

According to Chase, the world’s LARGEST insurer of USDA Home Loans, “if the USDA issues “subject to funding commitments” we can still fund USDA loans, even if they are out of money. The USDA’s 3-11-2010 notification said that they will not issue the commitments subject to the availability of funds therefore we can’t fund the loans.”

This is significant because the Tax Credit for Home Purchases ends in April… and MUST fund by the end of June.  If you are looking ofr a home, and are considering using USDA Home Loan Financing – we suggest you call us IMMEDIATELY!  If you are SELLING a home – please make certain the funds are available for your transaction!  Call Steve Thorne, Connect With Us on Facebook, 919-649-5058

HERE’s AN UPDATE AS OF April 6, 2010

 

 

 

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