Credit | NC FHA Expert

Veterans get a Tax Credit Extension, what about the rest of us??

October 22, 2009 by Eleanor 2 Comments

First Time Homebuyers could use $8000

On October 11, 2009 the Congress agreed to extend the $8000 Tax Credit for First Time Homebuyers for any Veteran who served at least 3 months of “Qualified Overseas Duty” in 2009 for another 12 months!

The Service Members Home Owners Tax Act also has a provision that waives the “payback” fee to the IRS of the credit if the Veteran is required to deploy to a different station (I guess that makes sense – you shouldn’t have to pay your boss when THEY are requiring you to move!)

Qualifying for a VA Home Loan/Mortgage is easy! For details on the 100% mortgage program available to Veterans, click here.

This is GREAT for Veterans who are serving overseas, and WELL DESERVED, but many people want to know if it going to be extended for the REST of the Population! For more details, click here.

If you have questions about qualifying for a Mortgage Loan guaranteed by the Veteran’s Administration call Steve and Eleanor Thorne! 919-649-5058 We have the lowest rates, and offer the best service on the PLANET!

Filed Under: VA Mortgage Loans Tagged With: credit, first time home buyer, first time homebuyers, guidelines, home loan rates raleigh, mortgage, mortgage rates cary, mortgages, mortgages apex, nc, qualifying, raleigh, tax credit, va home loans, va mortgage loans, wake

FHA To Allow Tax Credit To Work As Downpayment

May 12, 2009 by Eleanor 1 Comment

FHA announced during a summit in Washington that they will shortly be allowing the Tax Credit for First Time Homebuyers to be used as downpayment!

THIS IS HUGE!

There are few details available about how they will execute this, but here’s a link to the information I was able to find:

http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument

Filed Under: FHA Mortgage Loans, First Time Home Buyer, Housing News Tagged With: credit, downpayment, FHA Mortgage Loans, tax

Basics to Qualifying for a FHA Mortgage Loan

February 5, 2009 by Eleanor 1 Comment

FHA mortgage loans offers some of the most flexible financing available for today’s home buyers! With FHA, you can purchase a property that’s located almost anywhere, (unlike USDA that has a “footprint” of where you can purchase) and you don’t have to be a Veteran (a requirement for VA home loans ). AND you can use a GIFT for your downpayment!

Here are the Basic Guidelines:

You can Own property somewhere else…. meaning if you move to NC from Ohio (for instance) and you own a property there, you can still qualify for a FHA mortgage loan in NC! (but there are some details you need to remember about using rental income so click here to learn more!)
You can get a Gift for the Downpayment!
We can use income from a Second Job if you’ve had that job for at least 18 months, and/or you have a history of working 2 jobs!
Minimum Credit Scores are more difficult to pin down. In GENERAL – you need at least 12 months of “clean credit,” and no collections or judgements in the last 12 months. I you are new to the credit “game” it’s going to be tough to get a loan, but we do have some investors that will help with “non-tradtional credit.”
Debt To Income Ratios are “loosly” 33/43. This means that based upon your GROSS income, you can have 33% of your monthly income going to your housing expense (which includes Principal and Interest, Taxes, Insurances and HomeOwner Dues, if you have them!). Then you take your Gross Monthly Income and only 43% of your income can be gong to TOTAL debt – which includes the Housing expense above, but it also includes the items which report to the credit report (car payments, credit cards, etc.)
Downpayment is 3.5%!
You do not have to count child care payments! (WHEW!)
You can use a non-occupying co-borrower. This means that if your parents want to help you by being on the mortgage loan, you can use their income and assets to qualify. BIG, BIG, B-U-T here… you can not have sorry credit, and overcome that with a co-borrower.
The maximum loan amount for Wake County and Johnston County in NC is $271,050. The maximum loan amount in Orange and Durham Counties is over $330,000!
You can STREAMLINE refinance to a lower rate FHA Mortgage with minimal costs!

If you are considering a purchase or refinance and have questions about FHA mortgage financing – please call us!

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: county, credit, down payment, downpayment, durham, FHA Mortgage Loans, fico, gift, income, johnston, loans, maximum loan amount, mortgage, orange, pre qualifying, qualifying, ratios, rental, scores, wake

Qualify for VA Mortgage Loan

October 13, 2008 by Eleanor 12 Comments

There’s the WHITE HOUSE, and then there’s that white house, with the picket fence and the dog out back, and a couple of shade trees where you can string up a hammock.

If you’ve been in the Armed Services, and you’re looking for that special house – you have a TON of things working to your advantage!

You are eligable for a 100% loan with NO monthly PMI! The mortgage insurance companies have taken a beating with all of the foreclosures – and monthly PMI is running ridiculously high right now! (over $200 a month!)
Did I mention it’s a 100% loan??? We are in a RARE appreciating market here in the Triangle – and if you are planning on staying in your home for 3 or 4 years, you could be in a GREAT position to build some equity!
Interest Rates are STILL at their LOWEST point! Which makes homeownership more affordable than ever!
There are a TON of homes for sale- meaning you will probably get a very good “deal” on a home!!

Okay – to qualify for this mortgage loan here’s what you need!

You need decent credit. VA minimum credit score is unpublished. This means that you are either “accepted” through the computerized underwriting system – or you’re not. Most of the approvals we are getting make us believe that you need a score of AT LEAST 580 on each of the three bureaus. At the very lesat, the VA wants you to have 12 months of “clean credit.” If you don’t have that, or you have questions about how to increase your credit scores yourself – click here. (you do not need to pay someone!)

You need a job (or a source of income lasting at least 4 more years). Not just a job – but one we can verify the income on. If you are a fireman, and a painter – and you make decent income working as a painter, but don’t report all of that income to Uncle Sam – I can’t use all of that income to qualify you. It’s as simple as that.

If you are going to purchase a home with another person who is NOT a Veteran, you must be MARRIED. For more information on Co-Signors for VA mortgage loans, click here.

Your total debt is calculated a little differently for a VA mortgage loan. To calculate the MOST you can qualify for… add up the Principal, Interest Taxes and Insurance. ADD to that the “average” monthly Utility cost, any revolving debt you have with more than 3 months left to pay, any installment debt with more than 3 or 4 months left, and any child care expenses. That TOTAL NUMBER should not be more than 41% of you GROSS (before taxes) income on a monthly basis.

Example: PITI is $1020. Heating Bill will average $120. Credit Cards are paid in full each month, so zero. Car payment is $375, no children. Total monthly bills $1515.00. Your monthly BEFORE TAX income is $4000. You take $1515, divide that by $4000 and it’s 37.9. This number is well below the target number of 41, so you’re GOLDEN!

If you are a Veteran considering a home purchase in North Carolina – please call us! Steve and Eleanor Thorne, 919-649-5058

Filed Under: First Time Home Buyer, VA Mortgage Loans Tagged With: apex, co-signor, credit, first time home buyer, fuquay varina, harnett county, interest rates holly springs, mortgages, qualifying for va mortgage, VA home loan, va home loans, VA Mortgage Loan, veterans, wake county

Nontraditional Credit

August 25, 2008 by Eleanor 2 Comments

Do you really want to get out of that apartment? Did you know that NOW is that time you can make a KILLING buying real estate and DUMP your roommates??

If you’re ready to take the next move – and you don’t have three good lines of credit established – GREAT NEWS!

The new Housing Bill requires that Fannie and Freddie begin accepting NTMCR’s next year! Hugh? Non Traditional Mortgage Credit Report… The report is to be “designed to assess the credit history of hte borrower without the benefit of institutional trade references and should format as traditional references – including creditor’s name, date of opening, high credit, current status of the account… payment history. It should not include subjective statements like ‘satisfactory or acceptable.”

That’s cool – but it’s not in effect yet! This means that if you have limited credit experience, or you don’t have at least 3 trade lines, you need to get an FHA loan. In Wake County, the FHA limit is $295,000, and as of October 1, 2008, the minimum downpayment for this program is 3.5%.

So don’t continue to put up with stinky roommates! Break out! Buy a house while prices are low – and you get a $8000 tax credit!

If you are purchasing a home in Garner, or buying a home in Raleigh/Cary, please call Steve and Eleanor Thorne, Meridian Residential 919-649-5058