Fha Home Loans | NC FHA Expert

Credit Scores and First Time Home Buyers!

May 20, 2010 by Eleanor 3 Comments

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!”

If you are using VA Benefits, you need a 620 score, even though VA does not have a MINIMUM credit score! I think that (JMHO) because VA doesn’t have a minimum – those VA rates have gotten higher in the last 2 months! For details on Credit and Veteran’s Administration home loans click here! Again, do not be surprised if the VA rates are not as “cheap” as the FHA and USDA rates! This is a SHIFT! [Read more...]

Credit Score Requirements Going UP!

November 29, 2009 by Eleanor 3 Comments

On December the 12th, Fannie Mae is changing it’s “Computer Program” to reflect a new minimum credit score requirement for mortgages of 620.

This is SIGNIFICANT because VA Mortgage Loans, FHA Mortgage Loans and USDA Rural Development loan guidelines indicate that the Government will insure loans with scores substantially lower than this… however, if a loan is approved lower than 620, it can not be sold through Fannie Mae.

This means that lenders will not be making loans were scores are this low, because they need the ability to sell the loan if times change!

If you have questions about raising your credit score, please click here. If you want to get prequalifed, and find out what your credit scores are – please call Steve Thorne at 919-849-5058.

Filed Under: FHA Mortgage Loans, VA Mortgage Loans Tagged With: credit report, credit scores, fha home loans, fha mortgage loans, first time home buyer, free credit report, usda home loans, va home loans, va mortgage loans

Benefits of FHA Mortgage Loans

November 19, 2009 by Eleanor Leave a Comment

FHA Mortgage Loans are one of the best mortgage loan programs available for folks purchsing a home in the Wake County Area because it serves so many needs!

You can use the program, as a parent, to help your student or child get into their First Home! The downpayment is 3.5%, and it can be a gift from a family member. They also allow the parent, or family member, to go on the loan to help with qualifying!

The program can also be used to help an elderly parent who might have a limited income live an independant life style!

FHA Mortgage Loans also offer flexability when it comes to new credit - meaning if you have not been in the work force for YEARS, you might not have a very high score – not because you’ve missed a payment, simply because you don’t have a really long credit history!

Borrowers who work second jobs, also find FHA is quicker to accept income from that second job – meaning sometimes only 18 or 20 months of second job income history is required!

We’ve closed over a THOUSAND FHA mortgage loans in our history as Loan Officers! It’s a GREAT program, with HUGE benefits! Call Steve and Eleanor Thorne 919-649-5058 to get pre-qualified today!

Filed Under: Featured, FHA Mortgage Loans Tagged With: credit requirements fha loans, fha cary, fha downpayment requirements, fha home loans, FHA LOANS, fha loans cary, fha loans raleigh, fha mortgage loans, FHA Programs, first time home buyer, kiddie condos

Using 401K Funds for Downpayment on FHA

August 30, 2009 by Eleanor 1 Comment

FHA Home Loans require a 3.5% downpayment. There are not requirements that you purchase in a specific spot (like there are for USDA Home Loans) and you do not have to be a Veteran (like VA Homes Loans), but again, FHA requires you make a 3.5% downpayment.

If you want to use your 401K Account to access the money for your downpayment consider this:

401K Funds

With FHA, you can use 401K funds in the form of a loan or a withdrawal for required funds to close. We also use them quite often to simply document reserves with no intent to withdraw the funds. It can sometimes make a difference if your debt-to-income ratio is a little higher than the guidelines. If we use 401K funds for either source of funds to close or for reserves we still need to obtain proof of the terms under which funds may be withdrawn. Like the bank statements, provide all pages of the most recent statement that clearly shows your name, employer, statement period, any outstanding loans you have, vested balance, and the specific type of assets held in the account. I know this may sound like common sense but you would not believe how many people have sent me just a screen print snapshot from accessing their account online that has nothing on it to clearly identify who it belongs to.

When withdrawing funds to close, the proceeds check must evidence sufficient net proceeds (after penalty for early withdrawal and federal taxation) to close the loan when combined with other verified liquid assets.

When borrowing against an employment savings plan, a copy of the loan agreement and proceeds check are required. Also, it is important to note that loans against 401k or similar employment savings plans are not counted as an obligation in calculating debt ratio for an FHA loan

If you have questions about purchasing a home in Cary, NC using the FHA Mortgage Loan Program, please call Steve and Eleanor Thorne, Mortgage Planners, Cary, NC 919-649-5058. We have the Best Rates!