One Borrower Has Income One Borrower Has Credit Score

August 18, 2010 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?”

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

Credit Scores and First Time Home Buyers!

May 20, 2010 By 1 Comment

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...]

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Filed Under: credit, First Time Home Buyer Tagged With: , , , , , , , , , , , , , , ,

Options for Refinancing Veteran Loans

May 18, 2010 By 1 Comment

 

 

VA Mortgage Loans have No Downpayment

Bad news in the Economy is GOOD news for mortgage rates – and if you have a VA mortgage loan, it might be time to consider a refinance!  Seriously, if you are over 5.5% – you should call or txt today (919-649-5058).

One of the best options for a Veteran is an Interest Rate Reduction Loan (gotta’ love the military acronyms IRRL)… also referred to as a Streamline. This refinance program is a government backed mortgage loan for active duty and prior service veterans who already have an existing VA loan.

Credit qualifying is not required. This means that even if you have bad credit, as long as you have not had more than 1 thirty day late mortgage payment in the last 12 months, you may still be eligible for a VA streamline refinance.

VA streamline refinancing lets you refinance your existing VA home loan with no out of pocket expenses. All closing cost and pre-paids can be rolled into the loan amount.

No appraisal is required! You can skip up to 2 payments, and get existing escrow account refunded back to you!

The Streamline program is just for Interest Rate Reduction- meaning this is NOT for the Veteran who is wanting to take cash out of the property.  The Cash Out Refinance Program for Veteran mortgage loans have these fetures:

  • The cash-out proceeds can be used for any purpose.
  • A VA home loan refinance under the cash-out program differs from the VA streamline refinance in that an appraisal is required and you must qualify for the loan.
  • Also, unless you are exempt, VA  charges a 3% funding fee for this program, however, the fee can be rolled into the loan amount.

If you are considering a VA refinance, please call Steve and Eleanor Thorne, Mortgage Banker in Cary 919-649-5058.  We know how to make this program work for you!

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Filed Under: VA Mortgage Loans Tagged With: , , , , , , , , , ,

Veterans Not Allowed to Pay all Closing Costs

February 16, 2010 By Leave a Comment

A new Good Faith Estimate went into effect on January 1, 2010 and because of all the requirements that go with any new Government Regulated Form… FHA came out in January with a list of fees they felt like were reasonable for Homeowners to Pay and Lenders to Collect.

Which prompted the VA to come out with a clarification on what Closing Costs  they feel are reasonable for a Veteran to pay in connection with a Mortgage Loan!  Here’s the latest from the Veteran’s Administration regarding Closing Cost Fees:

 

One Percent Origination Fee. The lender may charge the veteran a flat fee up to one percent

of the loan amount. The flat fee is intended to cover the lender’s costs and services, which are

not reimbursable as “itemized fees.” For Interest Rate Reduction Refinancing Loans (IRRRLs),

please note that this fee may not exceed one percent of the existing VA loan balance of the loan

being refinanced plus the cost of any energy efficient items less any cash payments from the

veteran – see line 4 on

b. Reasonable and Customary Itemized Fees. Veterans may pay reasonable and customary

amounts for the following services. Whenever these itemized fees relate to services performed

by a third party, the veteran may only pay the

(1) Appraisal and compliance inspections

(2) Recording fees

(3) Credit report

(4) Prepaid items (taxes, assessments, and similar items)

(5) Hazard insurance

(6) Flood determination

(7) Survey

(8) Title examination

(9) Title insurance

(10) Special mailing fees for refinancing loans

(11) Mortgage Electronic Registration System (MERS) fee

(12) Other fees authorized by VA

 

We love doing loans for Veterans, and encourage you to talk to us about the VA Mortgage Loan Programs available to you!  Did you know that it might be to your advantage to make a Down Payment on a VA loan?  Call us about VA Mortgage Loans!  Steve Thorne, 919-649-5058

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Filed Under: VA Mortgage Loans Tagged With: , , , , , , ,

Credit Score Requirements Going UP!

November 29, 2009 By 3 Comments

There are Great Options for Veterans!On December the 12th, Fannie Mae is changing it’s “Computer Program” to reflect a new minimum credit score requirement for mortgages of 620.

This is SIGNIFICANT because VA Mortgage Loans, FHA Mortgage Loans and USDA Rural Development loan guidelines indicate that the Government will insure loans with scores substantially lower than this… however, if a loan is approved lower than 620, it can not be sold through Fannie Mae.

This means that lenders will not be making loans were scores are this low, because they need the ability to sell the loan if times change!

If you have questions about raising your credit score, please click here. If you want to get prequalifed, and find out what your credit scores are – please call Steve Thorne at 919-849-5058.

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

Veterans get a Tax Credit Extension, what about the rest of us??

October 22, 2009 By 2 Comments
First Time Homebuyers could use $8000

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!

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Filed Under: VA Mortgage Loans Tagged With: , , , , , , , , , , , ,

PMI For VA Loans??

July 15, 2009 By Leave a Comment

Veteran’s have a great benefit with VA Financing.  It’s a 100% loan, and in most cases, the seller can pay for closing costs.  It’s a conservatively underwritten loan, so there Uncle Sam Wants YOU to buy a house!is little chance that 5 or 6 years from now a Vet is going to be in trouble with a mortgage that they can’t afford!

All mortgage products that have less than a 20% downpayment have some sort of “Mortgage Insurance.”  I call it “Default Insurance,” because it really benefits the bank – in the event of foreclosure, the bank gets a small amount of money to cover some of their costs (It’s not a policy that pays the mortgage off in the event of death).

PMI is what most of us have heard this “Default” Insurance referred to.  For FHA Mortgage Loans, it’s called MIP (click here for details), and USDA Home Loans have a Guarantee Fee, which serves the same default insurance purpose. 

Veteran’s Administration Mortgage Loans also have a Guarantee Fee.  Here are some basic guidelines regarding how much your fee might be:

  • A basic funding fee of 2.0 percent must be paid to VA by all but certain exempt veterans. A down payment of 5 percent or more will reduce the fee to 1.5 percent and a 10 percent down payment will reduce it to 1.25 percent.
  • A funding fee of 2.75 percent must be paid by all eligible Reserve/National Guard individuals. A down payment of 5 percent or more will reduce the fee to 2.25 percent and a 10 percent down payment will reduce it to 2.0 percent.
  • The funding fee for loans to refinance an existing VA home loan with a new VA home loan to lower the existing interest rate is 0.5 percent.
  • Veterans who are using entitlement for a second or subsequent time who do not make a down payment of at least 5 percent are charged a funding fee of 3 percent.
  • Veterans who are classified by the VA as disabled will have a percent (down to zero) of their fee waived.

 Why would a Veteran make a Downpayment???  Because, with the cost of the “traditional PMI” the reduced Funding Fee is much C-H-E-A-P-E-R!$8000 Tax Credit Update~

We love making loans to Veterans!  If you have questions about purchasing a home in Cary, NC using VA financing, or refinancing your VA mortgage please call Steve and Eleanor Thorne, 919-649-5058.

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

Looking for a Home – When Do I Apply?

October 13, 2008 By 2 Comments

This is a question that was posted recently on Trulia Voices…

“Looking for a Home in the Triangle.  I think I’ll be ready to purchase in March of 2009.  When should I apply for a mortgage???”

People who are considering a move to the Triangle need to plan for their home purchase.  If you will be in the market to purchase in 2009 – you should speak with a NC lender as soon as possible.  Why?

We have our own set of unique qualifying guidelines in NC – mandated by the State Legislature.  While we are a “brick and morter” state (meaning if you are a mortgage company doing business in NC you should have an office here and not just be “virtual”), there are always those with fancy footwork trying to figure out a way around the system.  Better to be safe than sorry – and find a “local” to work with.

In some cases, our State Legislature defines how much a lender can contribute toward closing costs, they also dictate WHICH KIND of loan programs are available to consumers.  So again, think local.

But the MAIN REASON you should speak with a lender even six or eight months before you purchase is this:

With the “mortgage MESS” of the last year, credit scores have become one of the MOST IMPORTANT parts to a loan approval… ESPECIALLY in North Carolina.  Because our programs are limited, we rely even more heavily on high credit scores to qualify buyers, and get the best interest rate.  If you have a “good” score of 640 – we could get your FICO score up to 720 if we had 6 to 8 months! This change in your score could mean the difference of over $75 a month in your payment!

Let’s see… $75 a month savings, live in a house for 4 years, that’s a MINIMUM SAVINGS of $3600!  Just for speaking with a loan officer EARLIER in the process!  So if you are considering a purchase, call now!

Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058

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Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , , , ,

Fannie Freddie Change and FHA/VA Loans

September 9, 2008 By 1 Comment

The Paulson announced takeover of Government Sponsored Mortgage Giants Fannie Mae (FNMA) and Freddie Mac (FHLMC) created a welcome stability and confidence in both the mortgage market and the money markets as a whole.   The key need was for foreign governments and hedge funds to begin purchasing mortgages again – something that had all but stopped in recent weeks.

These entities are too large, effect too many individuals, and would create too much havoc if allowed to bankrupt for the US government to let them fail. I am not a personal fan of bigger government, but in this case, I’ll shout a big ole’ hoorah.  It is necessary for the stability of many levels of our economy.

Does the Fannie & Freddie bailout plan help or hurt FHA borrowers?  Aren’t FHA loans insured by HUD?   FHA Home Loans are insured by HUD, and are not directly associated with Fannie & Freddie. Ditto with VA.

However, many of these loans are sold through Fannie and Freddie into the marketplace… so knowing that this system will not be interrupted is important.

Also the market’s reaction to the bailout has reduced Interest Rates by nearly a half a percent across the board.  Again, this could be because of more interest in buying and holding mortgage loans.

Lower rates mean lower payments… so if you are a homebuyer you will be able to afford a little bigger home!  Yippee!!

If you have questions about purchasing a home in The Raleigh, Cary area please call Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058

FHA Loans are still more competitive and have lower overall costs than Conventional or conforming loans when purchasing a home with very little down payment (10% or less)

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

Meet Us at Open House!

June 17, 2008 By Leave a Comment

We are priviledged to work with some of the areas TOP Builders.  One of our favorites, Stanton Homes is holding an Open House this Sunday, June 22 from 1-4 pm.

This is an especially great offer for Veteran’s as we’ve created a multi tier discount package for military families that includes:  Discount Home Price, Lower Origination Fees, Discounted Attorney and Appraiser Fees! “We love working with Veterans, and although the VA has a few extra hoops to jump through to obtain a loan – we find it to be a stream-lined process!,” says Steve Thorne of Connect With Us on Facebook Inc.

Stanton Homes is one of only a very few builders to offer in-house new home plan adjustments to suit special needs or considerations. Changes to floor plans can include anything from adding more closet space or bonus areas to providing full wheelchair accessibility or other special concessions to meet ADA or Specially Adapted Housing requirements.

Directions to the Veteran and Military Home Buyers Event

Click here for directions to Cattail Creek, or call 919-278-8070.  Turn right at the second entrance to Cattail Creek, marked Construction Entrance.  The Veteran and Military Home Buyers Event will be held in the Stanton Homes Model Home, the first home on left.

For questions on VA home loans, call Steve Thorne of Connect With Us on Facebook in Raleigh at 919-649-5058

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Filed Under: VA Mortgage Loans Tagged With: , , , , , ,
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