What to Teach Kids About Buying a House

November 6, 2012 by Leave a Comment

teach children about buying a homeIf you are considering buying a home – especially if your last purchase did not end well, it’s a great time to talk about home ownership with your children.  In fact, it’s the perfect time to not only hear what your kids think about buying a home, but also what concerns they might have!  As adults we understand the  importance of buying a home, but with today’s news having so many negative stories, when it comes to home ownership, this “family” discussion is an important one.

Why are you going back into the home buying market?  Depending on your previous experience, this might seem pretty scary to them.  Again, as adults, we know that home ownership is an important development step for many children – and while it is an exciting time, especially for children who are  9 to 12 years old, understanding the thought process and the financial decisions will make this an easier transition. [Read more...]

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USDA Home Loan Environmental Requirements

August 23, 2012 by Leave a Comment

usda home loansWe’ve recently run into a series of people purchasing homes in NC with Underground Oil Tanks.  If you are applying for a USDA Home Loan (or any other Government Mortgage Program, frankly) this can be a problem.

The USDA Home Loan Handbook has this to say about Environment Requirements and Petroleum Tanks:

The Agency must consider the management of hazardous substances, including hazardous wastes and petroleum products, from two perspectives: liability under hazardous substance and hazardous waste laws, and the economic risks posed by the presence of hazardous substances. [Read more...]

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Helping Your Kids Buy a House in NC

August 7, 2012 by Leave a Comment

money_for_a_houseAs the Economy improves, and more kids are graduating from college and getting jobs… many of our friends are ready to help their kids buy a house in NC!  ”Get My Kid Out Of My House!” is more than just a fervent wish – parents are ready to HELP their children buy their first home, and there are many options available to them!

Renting is more expensive than a mortgage payment for most folks.  We just did a comparison over the weekend for our son.  He has a nice 3 bedroom home with a full unfinished basement.  He pays $1150 a month for this single family home.  If he BOUGHT a $150,000 house – his TOTAL mortgage payment would be $737.  Money is cheap, home prices are cheap – now is the time to encourage your kids to buy their first home!

Helping Your Kids Buy a House in NC

Here are a few things you and your kids need to know about buying a house: [Read more...]

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PMI Rates 2012

July 15, 2012 by Leave a Comment

understanding fha pmi ratesFor those of you who have not read my bio… I’m second generation mortgage.  My Dad was in this business – and my FIRST JOB?  Was working for a PMI company at the age of 15, helping them MANUALLY prepare a MBS sale.  That could be why I refer to ALL different types of Mortgage Insurance – as PMI.

If you put less than twenty percent down on a mortgage, you are going to pay some sort of Mortgage Insurance.  This is not the kind of insurance that promises to pay your home loan off if you die or become disabled – this is the kind of Mortgage Insurance that pays the BANK if you don’t make your payments.

MOST of us refer to this as PMI.

FHA Mortgage “PMI” Rates for 2012 [Read more...]

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Secured Credit Cards

July 14, 2012 by 1 Comment

secured credit cardsTrulia recently did a a study of first time home buyers and discovered that about 30% of the people they interviewed pretty equally fell into one of these categories:

  • Wanted to Buy a home but they worried about down payment.  (If that’s you – no worries, there are tons of No Money Down Home Loans!)
  • Wanted to Buy a home but they worried that they wouldn’t Qualify.  (If that’s you – no worries, with rates so LOW, it’s usually CHEAPER to own!)
  • Wanted to Buy a home but they worried that their credit scores are not high enough (This post is for YOU!)

If you’ve talked to us recently about your credit scores… and you don’t have any revolving charge accounts open… we probably told you that you need a secured credit card.  This is a credit card tied to a SAVINGS account that you establish.  There are no Credit Inquiries, but there are somethings you need to remember when opening one of these accounts. [Read more...]

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Good Credit Advice

July 11, 2012 by 2 Comments

good credit adviceFirst off… let’s discuss what Secured Credit is.

A Secured Card requires you to make a deposit in order to obtain the credit card.  If you are doing this – you are either a parent with a young child that needs a credit card – or you are re-building.

Because there are other ways to obtain cash for a child- let’s assume you fall into the “other” category.

If you’ve gotten into financial difficulty, and you’ve damaged your credit, a secured credit card can help you build your scores back up because they report your payment history to the credit bureaus… and we all know that payment history makes up the largest portion of your score.

Remember that when you get a Secured Credit Card – you are not having your credit pulled, so it will not pull your credit scores down!

A secured credit card operates just like a regular credit card.  As I said, the major difference is that you, the cardholder, are  making a deposit as security in case you default on the credit card payments. [Read more...]

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USDA Student Loan Updates

July 10, 2012 by Leave a Comment

Deferred Student Loans USDAUSDA has long seen the benefit of a College Degree – and in fact USDA Home Loan Underwriters will use Higher Education as a “compensating factor” when a family is close on the debt ratios!  Unlike FHA and VA home loan underwriting, though, the no money down home loan programs offered through USDA COUNT deferred Student loans IN the total debt ratio.

Student loans come in two classes: deferred and not deferred.  And one thing to keep in mind when looking at the USDA Loan Program is that it does treat student loans differently than the other loan programs available. At first glance you would intuitively think that a deferred student loan would not be considered in qualifying for your new home loan.

Recently, USDA Home Loan Underwriters announced a slight change, because of a new type of Deferred Student Loans.  One type of  deferred Student Loan is the “traditional” set payment each month… the NEW type of Student loan is based upon Income, and is scheduled to change on an annual basis.

This new change is CRITICAL – and important to understand if you have an Income Based Repayment plan on your Student Loans and you want to qualify for a USDA Home Loan! [Read more...]

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Comparing No Money Down Home Loans in NC

July 2, 2012 by 4 Comments
USDA Home Loans are Available in Our Area!

USDA Home Loans have No Downpayment

There are MANY  No Money Down Home Loan Options available to buyers in North Carolina.  This No Money Down Home Loan information is accurate as of today. If you get No Money Down Home Loan Information somewhere else, it may be inaccurate or out-of-date.

What ARE the No Money Down Home Loan Programs?

The No Money Down Home Loans are special mortgage products, reserved for prospective homeowners who qualify based upon some income, job and asset requirements.  Home Buyers who would otherwise qualify for a conventional mortgages via Fannie Mae or Freddie can’t use some of these programs.  No Money Down Home Loans are the cheapest, simplest way for NC Home Buyers to finance their new mortgages.

The No Money Down Home Loans have a common defining characteristic, in that you can not exceed the common “Median Income” for the area you are interested in.  The programs do require home appraisals, and in some cases the property must “fit” within the No Money Down Home Loan Program footprint.

The No Money Down Home Loan Programs we offer are NOT limited to First Time Home Buyers, however, for some of the programs you can not currently own a home, and for other mortgages there are restrictions based upon how recently you owned a home.

No Money Down Home Loan Programs : USDA Requirements, FHA Guidelines and Veteran Home Loan Benefits

Another big plus is for No Money Down Home Loan Programs is that they are fairly easy for which to qualify for! [Read more...]

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USDA Home Loan Changes In NC Coming

May 7, 2012 by 7 Comments

This state has grown Soooo much, that when the 2010 Census maps were drawn up, and analyzed, it showed that 21 Communities in NC was scheduled to lose the opportunity to get mortgage loans approved using the USDA Home Loan Program starting September 30, 2013. 

Congress passed the Senate USDA Appropriations bill, S.2375 which included a grandfathering provision.  The provision is for places that have gained population and would otherwise become ineligible for USDA Home Loans.  This bill would keep them eligible through the end of June 1, 2013 – and while the Senate passed their “part” of the legislation, the House has NOT.

Because there’s been no “complete” decision by Congress, USDA Rural Development Single Family Housing  Announced that it will put the new maps in place on September 30, 2013.  Many areas in NC will loose eligibility for USDA Home Loan financing, when the updated Census Data is put into place.  The current proposed List includes: [Read more...]

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Borrowing Money For Your Home From Your Family

April 16, 2012 by Leave a Comment

help buying a houseWe talk to folks who don’t have quite enough money saved up for a down payment on their dream home, and they want to “Borrow” the money from their Family.  Borrowing from the “Bank of Mom and Dad” sounds like a great idea, but in reality, you can’t do that.

It’s also a “no-no” to borrow the money for the down payment from your credit cards. But wait!  Maybe you “know someone, who knows someone who actually did this.” 

With the case of Family – you can easily get a GIFT for the down payment or closing costs and obtain FHA or Conventional financing.  However, the family member giving the gift must state, in writing, that the gift does not have to be paid back.  If, out of the goodness and kindness of your heart – you DECIDE to pay the money back, that’s besides the fact.  The important thing is that there’s not a “second mortgage” made with your parents holding the note.

Comparision of No Money Down Home Loans in NC

If you want to use “Family Money” to cover the closing costs for a USDA home loan, or a Veteran’s Home Loan- that’s cool too!  Neither one of these programs require a down payment.  Remember though, same rules apply – it must be a GIFT.

[Read more...]

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