Nc | NC FHA Expert

Buy a House, Get a Raise!

February 8, 2012 by Eleanor 8 Comments

Buy a House, Get a Raise! I’ve told people this for years, and they don’t always understand. You see, when you purchase a house, it gives you a tax incentive, and so if you are paying $1200 a month for a mortgage payment you are likely writing off at least $400 a month in interest and taxes!

So a house / mortgage payment of $1200 does not compare with a rental payment of the same thing! Nuying a house can be an emotional experience, but there are benefits to homeownership too!

There are some GENUINE Deals out there when it comes to purchasing foreclosed property- HUD has a program that only requires $100 downpayment! There are special First Time Home Buyer Programs too!

In addition to that – Did you know that rental history is not adding anything to your credit score??? Home-ownership does?

In general, your landlord does not report to the credit bureau unless you’ve screwed something up! A mortgage company, reports an on time, monthly installment debt. This can be a HUGE lift to your credit score! 8o))Just one more reason to call us about purchasing a home in NC! Steve and Eleanor Thorne, Mortgage Banker at 919-649-5058.

Filed Under: First Time Home Buyer Tagged With: benefits of homeownership, buying forelcosed homes, credit scores, first time home buyer programs, how to buy foreclosed homes, mortgage, nc, steve thorne

I Have A Repo on My Credit Report Can I Buy a House?

February 6, 2012 by Eleanor 5 Comments

I’ve had several of these questions lately, and I figured I’d let you know what I’m seeing.

Just because you have a repossession on your credit report does not mean that you have to delay in purchasing a home… but that doen’t mean it’s not a problem.

Okay, so let’s say you have a repossession from 2005. Next year, 2013, the issue is going to “age” off of your account. That means, no matter what the creditors are telling you, it’s going to go away – COMPLETELY away. So, in most cases I don’t recommend that folks shell out $4000 to settle the deficiency balance this year (when it’s going to age off next year) because then it’s going to stay on your account for another 7 years! (To find out how long items stay on your credit report, click here!)

But, it might still be difficult getting a loan with that balance on there! The critical things to consider are this:

How old is the repo? If it’s less than 5 years old – you might need to make arrangements for payments.
What is your credit score? Need 2 scores over 600 in most cases now!
Do you have other good credit? You should have 3 good accounts!
Are there other collections? If so, they likely need to be paid off before you apply for a mortgage loan.

Every credit report is like a snowflake… it’s different. There’s no clear way that I can answer this question on a blog post – I’m just trying to let you know that it does not HAVE to keep you out of the mortgage market.

Bottom line – call us and let’s see if we can help you get on a path to purchasing a home! Steve and Eleanor Thorne, Mortgage Banker in Cary NC, 919-649-5058

Filed Under: credit, FHA Mortgage Loans Tagged With: car reposession, credit scores, fha credit guidelines, mortgage, nc, river community bank

Buying a Home after Foreclosure

June 20, 2010 by Eleanor 3 Comments

Been there - Done That If you are one of the millions of families that lost their home in the last couple of years to Foreclosure… you might think…

Been There – Done That

You might not want to own a home again!

But if you’re one of those folks who truly does want to purchase again, here’s some potentially good news.

USDA says that they will allow you to purchase a new home to owner occupy, after foreclosure if you’ve done the following things:

Wait 3 years from the date of the Foreclosure.
Re-establish Credit
Have Credit Scores that meet the guidelines (as of the date I am writing this, that means you need a 620 score.)

Here’s the other part… you need to DOCUMENT what happened, and why you ended up in a Foreclosure.

“FHA insured mortgages are generally not available to borrowers whose property was foreclosed on or given a deed-in-lieu of foreclosure within the previous three years. However, if the foreclosure of the borrower’s main residence was the result of extenuating circumstances, an exception may be granted if they have since established good credit…

This does not include the inability to sell a home when transferring from one area to another.” So you MIGHT be able to buy after two years.

My “real life” answer to this question is… in today’s credit environment, it’s going to be HARD to get a Bank to loan you money for a home if you had your home foreclosed upon less than 3 years ago. I know what the guidelines say, but Bank’s do not have to follow guidelines set by FHA.

FHA does not say you have to have a 620 credit score, but there are VERY few lenders who will allow you to purchase a home without at least a 620 score! There are some Banks that will not allow you to purchase with FHA if you have ANY lates on ANY accounts in the last 12 months! That’s not an FHA guideline, that’s a BANK rule, so again – I’d say - you might still be forced to wait 3 years, and have all of your documentation in order!

These guidelines are different from the Fannie Mae / Freddie Mac Conventional Guidelines… And these foreclosure guidelines are changing OFTEN… so I would not rely on information you get from an online site. Call a loan officer.

If you are considering a mortgage loan in NC, call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058

Filed Under: USDA Home Loans Tagged With: credit scores, FHA Credit Score guidelines, fha home loans cary, FHA LOANS, fha loans cary, fha loans raleigh, FHA mortgage loan, fha mortgage loans, first time home buyer, first time homebuyers, foreclosure, mortgage, nc, purchase, usda home loan, usda home loans, usda mortgage

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...]

Filed Under: credit, First Time Home Buyer Tagged With: $8000 tax credit, credit score guidelines, credit score requirements, credit scores, fha home loans, fha mortgage loans, first time home buyer, first time home buyers, home, mortgage, mortgages, nc, tax credit, usda home loans, va home loans, va mortgage loans

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

Could FHA Force Green Homeownership?

October 22, 2009 by Eleanor Leave a Comment

Are we going to Force Green Living?

President Obama, and most of the rest of us are thinking Green is Good, and in an Executive Order issued earlier this month, he required that all Federal Agencies must do everything possible to:

“increase energy efficiency; measure, report and reduce their greenhouse gas emissions from direct and indirect activities;… eliminate waste, recycle and prevent pollution…”

No Federal Agency, no Fannie or Freddie have put requirements on homeownership at this point – however it does cause one to pause. How far do we go?

HUD is required to report back to the White House it’s Greenhouse Gas Emmission reduction suggestions by January. Since there is pressure to show large increases in energy efficiency and corresponding decreases in pollution and greenhouse gas emissions… could this move HUD toward imposing “green” standards on federally-assisted programs like FHA?

How else is the Department going to show significant reduction efforts?

I think I’d keep this on the Radar. This could have a HUGE impact on HUD programs, especially FHA single-family and multifamily insurance programs! Think the Minimum Property Standards could be changing??

Lead Paint – move over! We could be requiring additional insulation, solar hot water heaters, upgraded windows!

If you are considering a purchase in Cary or Raleigh, NC and want to talk about being pre-qualified, please call Steve and Eleanor Thorne, 919-649-5058

Filed Under: FHA Mortgage Loans Tagged With: Energy Efficient, fha home loans cary, FHA mortgage loan, fha mortgage loans cary, fha mortgage loans raleigh, First Time Home Buyer, first time home buyers, guidelines, HUD, mortgage, mortgages, nc, tax credit

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

USDA Rural Development Loans and Liquid Assets

September 8, 2009 by Eleanor 1 Comment

Some People are Better Savers Than Others

Some borrower’s we talk to have ALWAYS been good savers, and they are drawn to the USDA Rural Development Home Loan program because it allows them to keep their savings (it’s a 100%, NO downpayment required loan!)!

There use to be a rule that said you could not have more than $5000 left in liquid assets after closing to qualify for a USDA Home Loan, thankfully that is no longer the case!

You can even make a downpayment with a USDA Home Loan (and we encourage people who qualify to use the USDA Home Loan program as opposed to FHA because it’s CHEAPER!)!

There’s just one little catch – you can not have more than 20% of the home’s purchase price left over after closing in liquid assets. This means that if you purchased a $100,000 house, you can not have more than $20,000 left over after closing.

If you have questions about purchasing a home in NC using the USDA Rural Development Home Loan, call us for pre-qualification! Steve and Eleanor Thorne, 919-649-5058 – we are USDA Mortgage Loan Experts, and we have the lowest rates!!

Filed Under: USDA Home Loans Tagged With: fha mortgage loans, liquid assets, mortgage loan, nc, no money down, purchasing, qualifying, usda, usda home loans

VA Loans – Cheaper if you make a Downpayment

August 25, 2009 by Eleanor 1 Comment

There are GREAT VA benefits, but most Veterans we talk to never mention them to their loan officer! That’s a shame, because there are many times when it might make sense to do a VA home loan as opposed to a Conventional or FHA loan for your mortgage program!

If a Veteran can put a down payment on the home, the funding fee is reduced. For regular military, the funding fee on a 95% loan is only 1.5% and 1.25% on a 90% loan. Reserve members pay 1.75% & 1.5%, respectively.

There’s no MONTHLY fee – which is why it is cheaper than FHA or often times, Conventional PMI.

If you are considering purchasing a home in NC and you want to get pre-qualified, please call Steve and Eleanor Thorne 919-649-5058! We have the LOWEST RATES!

Filed Under: VA Mortgage Loans Tagged With: Best mortgage rates, fha mortgage loans, first time home buyer, first time home buyers, lowest rates, mortgage, nc, va home loans, va loans cary, va mortgage, VA Mortgage Loan, veteran

USDA Home Loans have PMI?

August 24, 2009 by Eleanor 1 Comment

USDA loans are the coolest loans on the planet right now, and most people don’t understand that it has a form of mortgage insurance…

Mortgage Insurance does not pay your mortgage off when you die (well, maybe there’s a kind that does, but that’s not what I’m talking about). The PMI-type mortgage insurance is default insurance. It covers a small portion to the bank if you default on the loan.

With Conventional loans, it’s referred to as Private Mortgage Insurance, or PMI. This insurance generally cost @ .58%of the loan amount on a monthly basis (assuming you have 10% to put down and really good credit scores).

FHA has Mortgage Insurance Premium, or MIP, which is 2.25% of the loan amount PLUS a monthly amount of .90% of the loan amount (think it’s kinda’ expensive?).

VA has a Guarantee Fee. So if you are Veteran using your VA benefits the fee could be as much as 3%! (For details click here).

USDA Home Loans also have a form of default insurance (PMI), and it’s a Guarantee Fee. The actual dollar amount is a rather complicated formula, and it ends up being about 3.5% – but most people use 3.5% as a rule of thumb for prequalifying purposes. (updated 5.27.2010 from 2% which is what they charged earlier) USDA Home Loans are AFFORDABLE!

Note that starting October 1, 2011 USDA Home Loan will change it’s PMI calculations. Starting in October – there will be a 1% upfront fee and a MONTHLY CHARGE!

If you want more information about USDA Home Loans in NC - please call Steve and Eleanor Thorne, 919-649-5058. We are Mortgage Lenders in the Triangle that specialize in these types of mortgage loans. Ask us about your Tax Credit! We have the lowest rates!