Downpayment | NC FHA Expert

FHA Guidelines to Qualify “Rent to Own” in NC

May 5, 2011 by Eleanor 1 Comment

Rent-to-own agreements and or sales that take place between a tenant and landlord have special FHA Guidelines. Often times, when someone moves to our area with a short sale, or previous forced foreclosure in their past – they will rent a home here until their “waiting period” is over.

If you are in this situation, and plan on buying a home under a rent to own scenario, there are different rules for different types of loans. All Government loans are popular, because of their low downpayment requirements. VA has no “formal” guidelines for this scenario, and neither does USDA- however, most Underwriters follow the FHA Guidelines for all Government loans in a lease to own scenario.

The appraiser will determine the fair market rent for the property. Any money paid ABOVE the fair market rent will be used as a credit towards a future downpayment. So, if the appraiser says the fair value rent for the home is $1000, and you pay $1500 a month – $500 for each month you paid that could be paid by the Seller as Downpayment for you at closing!

The rent to own agreement must be approved by the lender. There also is a loan to value restriction (85% LTV) if the parties are related and they haven’t rented for a long enough period of time-usually at least 6 months. For NON related sales agreements, you can currently go up to 96.5% and not have to have a minimum rental period. Rules and underwriting are OF COURSE always subject to change at any time and any additional lender overlay.

If you are purchasing a home in NC, and want more information about FHA Guidelines and Rent to Own contracts – please call Steve and Eleanor Thorne, 919-649-5058 we are the NC FHA Experts! We also have the LOWEST mortgage interest rates!

Filed Under: FHA Mortgage Loans Tagged With: downpayment, fha cary, fha home loans cary, FHA LOANS, fha loans cary, fha loans raleigh, FHA mortgage loan, fha mortgage loans, FHA Programs, foreclosed property, rent to own, Short Sales, usda home loan, va home loans, VA Mortgage Loan

Profile of 2009 – 2010 First Time Home Buyer

November 9, 2010 by Eleanor Leave a Comment

The National Association of Realtors released information about First Time Home Buyers last week that showed some interesting trends!

93 percent of those surveyed in 2009 – 2010 reported that they purchased using one of the first-time buyer tax credits. (Who’s surprised??? Nope, we’re not surprised either!)
Ninety-five percent chose a fixed-rate mortgage.
The median age of first-time buyers was 30 and the median income was $59,900. (This part was a little surprising!) The typical first-time buyer purchased a 1,540 square foot home costing $152,000 (bet they were keeping their total payments under the $1000 mark)
First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 38 percent received a gift (or a loan) from a friend or relative, (READ: their parents) Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds.
Women accounted for 1 in 5 purchases, and single Males made the largest leap in the survey ever – which was attributed to the tax [Read more...]

Filed Under: First Time Home Buyer Tagged With: Best mortgage rates, downpayment, fha loans cary, fha loans raleigh, FHA mortgage loan, fha mortgage loans, first time home buyer, first time homebuyers, mortgage rates cary, usda home loan, usda home loans, USDA Mortgage Loans, va home loans, VA Mortgage Loan

FHA Downpayment Going to 5% ??

October 5, 2009 by Eleanor Leave a Comment

The US Congress is busy trying to figure out how to regulate the Mortgage Banking Industry so that another Subprime Meltdown never happens, and that is a good thing.

But, they are the Government, so how do you see this working out? Yeah, me neither.

US Congressman Scott Garrett (R-NJ) recently introduced the “FHA Taxpayer Protection Act of 2009.” In his bill, borrowers would be required to make a 5% downpayment on FHA loans, as opposed to the 3.5% downpayment in the current guidelines.

In a Press Release Garrett states:

“Homeownership is a noble goal. However the benefits of Homeownership using government subsidies must be balanced against the potential risk of insuring less creditworthy borrowers and exposing the American taxpayer to that risk. As we have learned repeatedly throughout the mortgage crisis, the amount of equity a homeowner has in their home directly correlates to the credit risk associated to their mortgage.

I know there are those in this area who believe that Congressman Garrett is on the right track with his Bill… I strongly disagree with you. In the Triangle (RDU area) we are sitting in the middle of 21 Universities and Colleges. We are a mecca for Research and Technology jobs. We are attracting young, hard working, EDUCATED first time homebuyers. And this particular segment of the market is helping us keep our home values in place – because they are buying.

ANYTHING we do to disrupt this current, qualified buyer is a mistake – for ALL of us. We have too much inventory, banks are taking homes back everyday (contributing to that Housing Inventory), we should be ENCOURAGING them to purchase homes – especially now!

If you are interested in purchasing a home in Wake County, Durham County, Orange County or Johnston County, and want more information on qualifying for FHA loans - please call Steve and Eleanor Thorne, 919-649-5058. We are Professional Mortgage Planners with more than 20 years experience and the lowest mortgage interest rates!

Filed Under: FHA Mortgage Loans, First Time Home Buyer, Housing News Tagged With: county, downpayment, durham, fha cary, fha loans raleigh, FHA mortgage loan, first time home buyer, first time homebuyers, guidelines, mortgage, mortgages, nc, orange county, wake, wake forest

FHA Qualifying Requirements

July 31, 2009 by Eleanor 2 Comments

Many of the folks we are talking with right now want to purchase a home using the FHA Mortgage Loan program – and then taking the $8000 Tax Credit (you can get that back NOW, like in 12 weeks, by amending THIS YEAR’s TAX RETURN!) to “pay yourself back” for the downpayment!

Here are qualifying requirements for an FHA Mortgage Loan:

You can have a Co-Signor on a FHA loan.
You need to wait at least 2 consecutive years following a bankruptcy.
Any history of foreclosure must be at least 3 years old
You must have had a stable income for at least 12 months and proof that you have paid all your bills.
You must be able to make a 3.5% down payment, which is considerably lower than conventional loans.
The Downpayment can be a GIFT!
There are also eligibility requirements for the home. Properties that are eligible for a FHA loan include: single-family homes, 2-4 unit properties, condominiums, double-wide manufactured homes and modular homes. Ineligible homes include (but are not limited to) co-ops, boarding houses, commercial properties, hotels, and private clubs. A home is also ineligible if the seller acquired the house within the past 90 days. For any property over 10 acres, the loan will be based on the price of the house and the first 10 acres only. Additionally, the property must be used as a primary place of residence.
You can count Part Time Income for a FHA Loan
You need a credit score of at least 620 to get our best priced FHA Loans… lower scores might qualify- call us for details!

If you are considering a PURCHASE of a home in Cary, NC – or refinancing a FHA Mortgage in Raleigh, NC Steve and Eleanor Thorne – Corporate Investors Mortgage Group, Inc. Cary NC, 919-649-5058 for the BEST (read cheapest!) FHA Mortgage Rates!

Filed Under: FHA Mortgage Loans, First Time Home Buyer Tagged With: $8000 tax credit, co signors, downpayment, fha home loans cary, fha loans cary, fha mortgage, FHA mortgage loan, fha mortgage loans, first time home buyer, gift fund requirements, mortgage rates cary, nc, requirements

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

First Time Home Buyer Tips!

February 26, 2009 by Eleanor 1 Comment

First Home! If you are a First Time Homebuyer, the government recently initiated a program that could help you!

They are G-I-V-I-N-G you a $8000 credit that you can use on your 2009 and 2010 taxes! For details on this credit, click here!

First Time Homebuyers have many loan program options. If you, or your spouse, are a Veteran then you qualify for a 100% VA Home Loan!

VA Mortgage Loan Basic Guidelines:

No restriction about where the property is located
No income restriction
Maximum loan with no downpayment is $417,000
Seller can pay closing costs
Total Debt should not exceed 43% of Gross monthly income

USDA Rural Development also offers Mortgage Home Loan Programs with no money down!

Restricted to more rural areas – but all counties in NC have qualifying properties! Click here to see if your property is eligible!
Income Restrictions based upon how many people live in your home, click here to see if you meet those requirements! These income restrictions vary by COUNTY.
You can not currently own a property in the Geographic Area you are purchasing (unless it is in adequate), and if you have a previous home rented, you must show evidence that you are reasonably receiving income from that property (it’s a little complicated)
The Seller can help with closing costs, and you can receive a gift – but you can not have liquid assets equal to more than 20% of the sales price.
No swimming pools. (LOL!)

FHA Mortgage Home Loans are another great alternative for first time home buyers!

Maximum Loan Amount restrictions based upon the county the property is located. To find out the limit for homes in the NC County you are interested in, please click here!
No Maximum Income Requirements!
Swimming Pools are Okay! 8-P
Down Payment of 3.5% can be a gift!
Allow non-occupying co-borrower!
If you have a bankruptcy or foreclosure in your past you might still qualify! (you MUST have re-established your credit, and have at least 3 current tradelines with AT LEAST 12 months of clean credit)

Our advice is that if you are First Time Home Buyer thinking you would like to purchase this year to take advantage of the $8000 Tax Credit you need to check on your credit scores in the near future. Meet with a loan officer, find out if you need to work on your credit NOW, because in general, credit score guidelines are getting tighter!

If you are considering a home purchase, please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, Inc 919.649.5058 for specific details regarding your situation!

Filed Under: FHA Mortgage Loans, First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: $8000 tax credit, downpayment, fha home loans cary, FHA LOANS, fha loans cary, fha loans raleigh, fha mortgage loans, first time home buyer, first time home buyers, mortgage, mortgage rates cary, tax credit, usda home loan, usda home loans, VA home loan, va home loans, VA Mortgage Loan, veterans, wake forest

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

100% Mortgage Loans in Chapel Hill?

January 26, 2009 by Eleanor Leave a Comment

I was very surprised by just how much of Orange County, NC qualifies for USDA Mortage Loans! Pleasantly Surprised!

Granted, downtown Carrboro and Chapel Hill do not qualify – but MOST of the county does! To find out if your specific property qualifies, click here!

USDA Home Loans in OC, North Carolina

The parts in the “shaded” areas do not qualify for USDA loans, however, all of the rest does! The maximum income amounts for Orange County are lower than Wake County!

1- 4 people in household maximum income is $82,000
5 or more people in the household maximum income is $88,550

If you have questions about qualifying for a USDA Home Loan in Orange County, NC - please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058!

Filed Under: USDA Home Loans Tagged With: chapel hill, downpayment, first time home buyers, mortgages, nc, no down payment, usda, usda home loan, usda home loans, USDA Mortgage Loans

USDA No Money Down Mortgage

December 16, 2008 by Eleanor 4 Comments

Not For Farms We’ve helped many customers buy homes with an old program offered through the USDA… not farms… HOMES.

The Rurual Economic Development Fund is what it use to be called, now it’s just a part of the USDA, and the goal is to provide mortgages, and incentives for folks to purchase homes in less “densly” populated areas!

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest (click the links for maps). All of Fuquay and Garner qualify for a NO MONEY DOWN, USDA mortgage… parts of Durham qualify (look at the areas around Briar Creek!) and all of Johnston County qualifies.

Again, it’s a NO MONEY DOWN loan, with NO PMI! One of our customers was just quoted in the WSJ about this program! He said, “I couldn’t believe it until I got to closing!” He only paid $1200 out of pocket to get into a very nice $228,000 home!

If you want more information about qualifying for a USDA home loan, please click here! Remember! If you are a first time homebuyer, or you have not owned a home in the last three years, you might qualify for a $7500 Tax Credit!

PS! The program is running out of money. Please click here for details!

Filed Under: USDA Home Loans Tagged With: apex, downpayment, first time home buyer, fuquay varina, Holly Springs, home loan, mortgage, no, payment, usda, wake, wake forest

Stop Renting – Buy Now

December 4, 2008 by Eleanor Leave a Comment

Tired of Renting? Buy a House! Are you tired of having to clean up after roommates?

Then take the $8000 credit the government is giving first time home buyers – and BUY a house!

You have some great financing options (and YES we are STILL making loans to folks, and first time home buyers have the EASIEST qualifying of any group!):

FHA will allow gift funds for downpayment (or you might have it saved up)… you will need about 4% of the sales price to cover downpayment and closing costs! (Click here for details on FHA loans)
FHA 203K loans can cover the cost of “fixing up” some of those foreclosed properties you might be looking at. It allows you to borrow money based upon the “fixed up” value of the home! (Click here for details on 203K loans)
Veterans have access to 100% loans! No PMI, can borrow over $400,000, and there’s no restriction about where the property needs to be located! (click here for more information on VA benefits!)
USDA also has 100% loans, and although there are some restrictions (click here for details) there’s no PMI, and it’s a 100% loan!

So what are you waiting on? When you buy a house, you get a RAISE! (It’s TRUE! Check out the Tax Advantages of Home Ownership!) Call Stephen L. Thorne, Mortgage Loan Officer in Cary NC for more details at 919-649-5058!