Applications for FHA / VA/ USDA Mortgages Up!

July 12, 2009 By 3 Comments

According to the Mortgage Banker’s Association in Washington, DC, the applications for “Government” backed loans is MUCH higher than for any other segmant in the market.  Traditionally, if you were interested in purchasing a $300,000 house – you would consider a Conventional Mortgage Loan.  We would often do those loans as 80-15-5 with the borrower putting 5% of thier downpayment into the transaction, and then get two other loans (80% and 15% of the amount needed).  Conventional Mortgage Loans made through the Banks have long DOMINATED the total applications for mortgages in the Country.

That’s why a shift to FHA / VA / USDA mortgages as is BIG NEWS!

“The MBA’s Weekly Mortgage Applications Survey found that the Federal Housing Administration (FHA) and the Veteran Administration (VA) backed 35.9% of all mortgage applications in the month of June, spiking from 25.7% from a month earlier and 27% from June 2008.”

“A primary reason government-insured loans have retained a high share of the purchase market is that these loans typically require lower down payments than conventional loans,” said Orawin Velz, MBA’s associate vice president of economic forecasting, in a corporate statement Thursday.

What does this mean for you, and getting the best mortgage interest rate?

Mortgages can be looked at as a commodity – the more people willing to purchase a government backed mortgage, the better the price will be.  In the past, FHA/VA and USDA mortgages priced 1/2% in interest higher than a Conventional mortgage loan… meaning, if the best Conventional mortgage interest rate was 5% – the best FHA/VA/USDA price (or mortgage interest rate) you could expect would be 5.5%.

We are seeing that margin get smaller – meaning if you have 3.5% to put into a transaction, so that you can get an FHA mortgage, you will probably get a rate of 5.375% or maybe even 5.25% if everything is “lining” up correctly!  Yippee!

For more information on Risk Based Pricing, please click here.

For information on how to get the lowest mortgage interest rates in Cary, NC, and what questions to ask, please click here.

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Filed Under: FHA Mortgage Loans, USDA Home Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , ,

First Time Home Buyer Tips!

February 26, 2009 By 1 Comment

First Home!If you are a First Time Homebuyer, the government recently initiated a program that could help you!

They are G-I-V-I-N-G you a $8000 credit that you can use on your 2009 and 2010 taxes! For details on this credit, click here!

First Time Homebuyers have many loan program options.  If you, or your spouse, are a Veteran then you qualify for a 100% VA Home Loan!

VA Mortgage Loan Basic Guidelines:

  • No restriction about where the property is located
  • No income restriction
  • Maximum loan with no downpayment is $417,000
  • Seller can pay closing costs
  • Total Debt should not exceed 43% of Gross monthly income

Buy Real Estate Now!USDA Rural Development also offers Mortgage Home Loan Programs with no money down!

  • Restricted to more rural areas – but all counties in NC have qualifying properties! Click here to see if your property is eligible!
  • Income Restrictions based upon how many people live in your home, click here to see if you meet those requirements! These income restrictions vary by COUNTY.
  • You can not currently own a property in the Geographic Area you are purchasing (unless it is in adequate), and if you have a previous home rented, you must show evidence that you are reasonably receiving income from that property (it’s a little complicated)
  • The Seller can help with closing costs, and you can receive a gift – but you can not have liquid assets equal to more than 20% of the sales price.
  • No swimming pools. (LOL!)

FHA Mortgage Home Loans are another great alternative for first time home buyers!

  • Maximum Loan Amount restrictions based upon the county the property is located.  To find out the limit for homes in the NC County you are interested in, please click here!
  • No Maximum Income Requirements!
  • Swimming Pools are Okay! 8-P
  • Down Payment of 3.5% can be a gift!
  • Allow non-occupying co-borrower!
  • If you have a bankruptcy or foreclosure in your past you might still qualify! (you MUST have re-established your credit, and have at least 3 current tradelines with AT LEAST 12 months of clean credit)

Our advice is that if you are First Time Home Buyer thinking you would like to purchase this year to take advantage of the $8000 Tax Credit you need to check on your credit scores in the near future.  Meet with a loan officer, find out if you need to work on your credit NOW, because in general, credit score guidelines are getting tighter!

If you are considering a home purchase, please call Steve and Eleanor Thorne, Connect With Us on Facebook, Inc 919.649.5058 for specific details regarding your situation!

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Filed Under: FHA Mortgage Loans, First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , , , , , , , , ,

Stop Renting – Buy Now

December 4, 2008 By Leave a Comment

Tired of Renting? Buy a House!Are you tired of having to clean up after roommates?

Then take the $8000 credit the government is giving first time home buyers – and BUY a house!

You have some great financing options (and YES we are STILL making loans to folks, and first time home buyers have the EASIEST qualifying of any group!):

  • FHA will allow gift funds for downpayment (or you might have it saved up)… you will need about 4% of the sales price to cover downpayment and closing costs!  (Click here for details on FHA loans)
  • FHA 203K loans can cover the cost of “fixing up” some of those foreclosed properties you might be looking at. It allows you to borrow money based upon the “fixed up” value of the home! (Click here for details on 203K loans)
  • Veterans have access to 100% loans! No PMI, can borrow over $400,000, and there’s no restriction about where the property needs to be located! (click here for more information on VA benefits!)
  • USDA also has 100% loans, and although there are some restrictions (click here for details) there’s no PMI, and it’s a 100% loan!

So what are you waiting on?  When you buy a house, you get a RAISE!  (It’s TRUE! Check out the Tax Advantages of Home Ownership!)  Call Stephen L. Thorne, Mortgage Loan Officer in Cary NC for more details at 919-649-5058!

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Filed Under: FHA Mortgage Loans, First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , , , , ,

Qualify for VA Mortgage Loan

October 13, 2008 By 12 Comments

white house with picket fenceThere’s the WHITE HOUSE, and then there’s that white house, with the picket fence and the dog out back, and a couple of shade trees where you can string up a hammock.

If you’ve been in the Armed Services, and you’re looking for that special house – you have a TON of things working to your advantage!

  • You are eligable for a 100% loan with NO monthly PMI! The mortgage insurance companies have taken a beating with all of the foreclosures – and monthly PMI is running ridiculously high right now! (over $200 a month!)
  • Did I mention it’s a 100% loan??? We are in a RARE appreciating market here in the Triangle – and if you are planning on staying in your home for 3 or 4 years, you could be in a GREAT position to build some equity! [Read more...]

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Filed Under: First Time Home Buyer, VA Mortgage Loans Tagged With: , , , , , , , , , , ,

Do You Want $7500???

August 25, 2008 By 6 Comments

This post is outdated, and this credit is no longer available… we leave it here in the event someone has a question about the Tax Credit they received – Eleanor.

The Housing and Economic Recovery Act of 2008 awards a tax credit up to $7500 on 2008 tax returns for qualifying first time homebuyers.

What is it?  How does it work?

  • This is a tax CREDIT, and not a tax DEDUCTION. It is a true dollar for dollar reduction on taxes owed.  It is not issued at the time of purchase – so you still need a downpayment.
  • The credit can result in a true tax REFUND!  If, for example, you were to get back zero on your 2008 taxes and you qualify for the full $7500 credit, you would then recive a tax refund for $7500.
  • The tax credit is essentially an interest-free loan. You will repay the credit to the government $500 per year over 15 years or when the house is sold.
  • If the the profit you receive when selling your home is less than the remaining amount you owe, the discrepancy will be forgiven.  For example, if $5000 was still owed and the sale of the home only generated $4000 profit, then the remaining $1000 shortfall would be forgiven and you would not have to repay the government.
  • If you take the credit in 2008, the first $500 payment would need to be made when you file your 2010 tax return.

Do YOU Qualify?

  • You must not have had ownership in a primary residence in the past three years.
  • You must purchse a home between April 9, 2008 and July 1, 2009.
  • Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $7500 credit.  A lesser tax credit is still available if your income is above these amounts.

For more information or to get pre-qualified to buy a home, please call Steve and Eleanor Thorne, Connect With Us on Facebook

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