USDA Loans Near Greensboro NC

May 24, 2013 by Leave a Comment

usda maps greensboro ncUSDA Home Loans in Greensboro, NC 27408 do not have a maximum loan amount – however, the property must be located within the USDA “Eligibility” area.

Here are maps of the Guilford County area, remember that the “faint pink” parts on the map do NOT qualify for USDA Loans.  All of the OTHER areas, however, DO qualify for the USDA RD Loan program.

USDA Loan Highlights:

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One Borrower Has Income One Borrower Has Credit Score

May 23, 2013 by Leave a Comment

When one borrower has most of the income… the other borrower has good credit scores… there ARE options for purchasing a home. Look at the question we had yesterday:

“We want to purchase a home, and I want to know if we can get it.  My husband currently has a mid credit score of 538,  and mine is 678.   He makes about 52,000 and I make 25,000.  I’m still in graduate school full time.  We saved  $4,000 for closing cost so far.  We want the house by the end of October 2010 Can we get a loan?”

There are multiple ways to make this work – here’s Option 1:

Purchase a home using FHA, and have a non-owner occupied co-borrower on the loan with the borrower who has good credit scores. If you know that you can make the payments on your own, then having a parent, or other family member, on the loan will not be a burden to them.  After you’ve made 12 months of payments (and by all account mortgage interest rates will still be low a year from now) you can refinance the loan and take the family member(s) off. [Read more...]

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Minimum Credit Scores for Mortgages Spring 2013 Update

May 10, 2013 by Leave a Comment

First Time Homebuyer Minimum Credit ScoresFor the past couple of years, when we talked to a borrower with a credit score of 580 to 600 – we told them they had a 3 to 4 month waiting period before they could buy a house.  In MOST cases, that was all the time we needed to help someone who was motivated, and who could really afford a home, to get their scores in order.

Minimum credit scores for the NC Housing First Time Homebuyer program was 600, and we could help people get into houses if they qualified for the program and had the scores.

On May 1, 2013 that changed.  It changed from a couple of perspectives… first the NC Housing program changed SIGNIFICANTLY. The changes include higher credit scores, more flexibility for homeownership status, and a better downpayment / closing costs assistance program.

Additionally, changes were made in April to the Automated Underwriting Systems for Fannie and Freddie – with those updates, Credit Score requirements for Governement loans went up to 640.  Can Underwriters override the “Automated” Approval systems?  Yes.  But Will They???  That takes a VERY well documented case. [Read more...]

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2013 USDA Home Loan Map Changes in NC

March 29, 2013 by Leave a Comment

usda home loansWe just received the “Official” word from USDA Home Loan Rural Development office that the proposed changes to the USDA Home Loan Maps are delayed until September 30, 2013.

The way we read the document, this is our “30 day notice” that as of the end of Business on September 30, 2013 – the map changes will go into effect.  You must be fully approved as eligible under “today’s” guidelines by then.

On October 1, 2013 it could be a brand new deal for USDA Home Loans in NC!

It’s a great program for those seeking mortgage loan financing in a non-metro area of NC.  The 3 basic requirements are that you have pretty good credit (640 is ideal), that the home is in an “Eligible Area” and your household income must be below the maximum level set for that County / Area. [Read more...]

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Sales Concessions: Seller Paid Closing Costs

March 6, 2013 by Leave a Comment

Seller paid closing costsIf you are buying your first home, you might be looking for ways to be able to pay for your dream!  You have several options… you can use a mortgage program that does not require a downpayment, you can get the Seller to help with closing costs, you can rob your 401K account,  and you can get a gift.  We are going to tackle having the NC Seller pay Closing Costs, or a Sales Concession to cover closing costs, with this post.

We work with many first time homebuyers,  and the vast majority of the buyers purchasing a home under $400,000 in North Carolina ask the seller to pay for some or all of their closing costs.  

For more expensive homes, you don’t normally see as many Seller paid Closing Costs unless it’s a “New Construction” neighborhood, and the builder is paying for “upgrades” and / or some combination of Closing Costs.

Sellers are generally fine with paying some of your costs, but they will consider how much it costs them to do so.  Let’s look at an example of how this works:
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Requirements for A Home Loan in NC: Payment Shock

March 5, 2013 by Leave a Comment

requirements for a home loan Let’s say you’ve been living at home, saving money to purchase your first home, and you are one of those lucky folks who have never paid rent before.  Did you know that you could be scrutinized by the mortgage underwriter a little harder than other folks, even if you have good credit scores?  One of the requirements for a Home Loan in NC  is a great Rental “Housing” payment record.  If you’ve never paid for rent, then the Underwriter is forced to consider Payment Shock.

The term “payment shock” signifies the increase in housing expense experienced by a borrower.

Let’s look at another example.  What if you’ve been sharing an apartment with friends, and your portion of the rent was only $300 a month?  A mortgage payment is likely to be at least $600.  Even if you can easily afford the $600, and you have good credit scores, one of the requirements for a Home Loan that a NC underwriter considers will be to explain (basically) in the file why they “believe” you can handle the higher monthly housing expense.
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New First Time Home Buyer Programs in NC

January 4, 2013 by 8 Comments

first steps in home buying processNC has one of the BEST First Time Home Buyer Programs Around! Yesterday, the Agency in charge of the program announced that it will be adding to and enhancing the program starting sometime in February of 2013.

Currently, to qualify a borrower (and their household / family) must meet fairly strict Income Requirements (set differently for each County), purchase a home that is below the maximum Sales Price (set differently for each County) and have a RENTAL History for at least the last 3 years.

That’s All Going To Change!

So what are the big changes? Here are some highlights:

- No first-time home buyer restriction (move up buyers are eligible too)!
- No forms! Yes, I’m not kidding. No NCHFA forms required (no seller affidavit, no affidavits period)
- 3% Down Payment Assistance Program (“DPA”) – that is forgivable over 15 years!
- $85,000 statewide income limit based on 1003 income (no longer use household income)
- No cash flow analysis or $1,000 investment required to get the 3% Downpayment Assitance Program
- Lower credit score of 640 (vs. 650) for the Downpayment Assistance Program
- Government loans types only (FHA, VA, and USDA)
- 60 day locks (no free extensions, sorry)
- No NCHFA sales price limitation (follow FHA, VA, or USDA sales price limits)
- MCC and Home Advantage product can be combined!

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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
•

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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FHA Says Okay to Buy a Flip

December 4, 2012 by Leave a Comment

get married buy a houseOur son recently purchased his first home – and it was a home someone purchased, fixed and decided to Flip.  Being in his 20′s, he had no time or knowledge to fix the issues with the house by himself, and the “fixed up Flip was PERFECT for him!  Traditionally, FHA made a home buyer wait at least 9o days after a property changed hands before it was eligible for a new FHA loan.

Last week, FHA realized that this type of property is still one of the important choices available to home buyers - and extended a rule that made it much easier to purchase a “flipped” property and take advantage of the FHA program.  Makes sense… think of it this way – a home goes into Foreclosure, the bank takes the home… and with the “traditional” FHA Flip Rule, no one could buy the home for ANOTHER 90 days! [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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