No Downpayment | NC FHA Expert

One Borrower Has Income One Borrower Has Credit Score

August 18, 2010 By Eleanor 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?”

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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Saving for a Home

September 29, 2008 By Eleanor 1 Comment

If you do not qualify for a USDA Home Loan in NC, there are other options! Are you a Veteran? Those loans are 100% loans too!

NO? Well, don’t worry! FHA allows you to purchase and get a GIFT from your family and friends! That’s right! You could get a gift for the downpayment, and have the lender and the seller pay the other costs.

If you are getting married, they will accept a registry that shows the person’s name, and the amount of the gift! So Uncle Barry could give you $25, Aunt Mary could give you $100, and so on – as long as you have the Bridal Registry! If you need a registry for your guests, call us at 919-649-5058.

Don’t have a wedding coming up? Well, you can still get a gift, or a series of gifts. You could also do what a friends did (I’m not recommending this)… they borrowed the money on their credit card, put it in the bank… and left it there for 90 days prior to writing a contract! That’s right, the money needs to be in your bank for 90 days before we verify your funds.

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Filed Under: First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: FHA LOANS, home loans cary, no downpayment, usda, VA Mortgage Loans

Calculating Downpayment on FHA

September 24, 2008 By Eleanor Leave a Comment

For many years we calculated FHA downpayment by way of Acquisiton Cost. Now… that’s “out the window.” With the new “revisions” we calculated a “straight” 3.5% as reflected in the Mortgagee Letter below:

· Closing costs: Closing costs may not be used to help meet the minimum 3.5% downpayment requirement. Closing costs are not considered in the mortgage amount/downpayment calculation for purchase money mortgages.

This is a huge difference – and if you are working with a loan officer who is not familiar with FHA – you could end up at the closing table needing more money. Be careful!