Archive for the ‘How To Buy A Home’ Category

  • Have Mattress Money? Cash-On-Hand Is Now An Eligible Source Of Funds

    Are you stashing money under the mattress, in a home safe, or even in a security deposit box?  And are you a person who customarily uses cash for expenses? If so, there is great news for you when it comes to buying a home.  Through the Fannie Mae HomeReady program cash-on-hand is an acceptable source of funds for a borrower’s down payment, funds for closing costs, and prepaid items like insurance and property taxes.   This means you can use that rainy day fund to buy a home without the illuminati knocking on your door.  Of course, you won’t have any money left over for the apocalypse but if that happens we’ll be back to trading furs and bullets anyway. This could especially be good for those first-time home buyers with minimal funds available for down payment.  Some other great features of this loan program include: Up to 95% financing with non-occupant co-borrower Up to 105% financing w/o non-occupant co-borrower Not required to be a first-time home buyer Gift funds, grants, and down payment assistance programs are all eligible sources of funds. There are even more enhancements to this program that could benefit you so to find out more click here to contact me and reference “Cash-on-hand” in the subject line.   By David Hughson Mortgage Planner david@greenmeansgrow.com 858-863-

  • Have Student Loans? Qualify For A Home Loan And Exclude The Student Loan Payment

    If a monthly student loan payment ( >$0) is provided on the credit report, you may use that amount for qualifying purposes. If the credit report does not provide a monthly payment for the student loan, or if the credit report shows $0 as the monthly payment, the lender must determine the qualifying monthly payment using one of the options below. If the borrower is on an income-driven payment plan, the lender may obtain student loan documentation to verify the actual monthly payment is $0. The lender may then qualify the borrower with a $0 payment. File must contain documentation that the payment is an Income driven payment plan (also known as IBR or Income Based Repayment) For deferred loans or loans in forbearance, the lender may calculate (a) a payment equal to 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), or (b) fully amortizing payment using the documented loan repayment terms. This applies to both purchase and refinance loans so call me to discuss more options on qualifying for a home loan when you have student loans!  For more great content on how your purchase power is affected by student loans click here. By David Hughson Broker | Mortgage Planner 858-863-

  • Mortgages Paid By Others

    Article originally posted on www.mpamag.com Fannie Mae has recently announced the changes related to Mortgages Paid by Others. When a person is obligated on a mortgage debt – but is not the party who is actually repaying the debt – the full monthly housing expense may be excluded from that person’s recurring monthly obligations when they go to buy their next home if: The party making the payments is obligated on the mortgage debt, There are no delinquencies in the most recent 12 months, and The borrower is not using rental income from the applicable property to qualify. In order to exclude the mortgage debt from the borrower’s debt-to-income ratio, the most recent 12 months’ cancelled checks (or bank statements) from the other party making the payments that document a 12 month payment history with no delinquent payments must be obtained. David Hughson Mortgage Broker 858-863-

  • The Best Time to Buy or Sell a Home is

    The Best Time to Buy or Sell a Home depends on where you live.  But, here in San Diego, we don’t suffer pronounced slow down in the market like many other areas in the country.  And I have found that November is a great month to buy a home and get some good deals.  And if you are selling a home, you will be dealing with a lot of SERIOUS buyers. There are many homes on the market that didn’t sell during the summer months, either because they were priced to high, or they may need more renovation work than buyers wanted to take on.  With effective and skilled negotiations, these properties can be picked up for a great price. Please call me for more information, I would love to help you get a deal or sell your home. Craig Sutliff Real Estate Consultant & Mortgage Planner Email: Craig@GreenMeansGrow.com Cell: 619-857-

  • Assets Can Be Used For Qualifying Income

    Much of the housing news reported focuses on inventory and credit guidelines.  In case you haven’t noticed housing inventory is low and credit guidelines are tight.  These two headlines show up all the time and for good reason.  In many markets they are both true. With interest rates still low and home prices rising in a majority of markets many homeowners appear to be hanging on to their homes.  This could be to try and time the sale of their home to coincide with a market peak or they realize that if they do sell their home for top dollar they will be turning around to buy in a market with scarce homes available and paying top dollar as well. The gap between income and home affordability can be a hard one to bridge and for many potential home buyers it is out of reach due to increasing prices and a tight credit market. One story I don’t see reported much is that lending volume is down considerably in 2017 and lenders are looking for ways to increase loan applications while not taking on too much risk.  That line is not an easy one to draw so instead of re-writing guidelines or coming up with something altogether new lenders will typically enhance an existing guideline to cast a wider net in an effort to capture more potential borrowers. Whenever

  • 40-Year Fixed & Interest Only

    Yes, you read that right.  We have loan terms fixed for 40 years and the first 10 years can be interest only.  And here is best part:  The range of loan amount is $100k to $2.5 million. While our residential lending world looks to find it’s footing in this new market place lending volume is down and banks are looking to expand lending guidelines to appeal to a wider variety of consumer.  For those of you who recall what the lending world looked like ten years ago this may feel nostalgic and for those of you new to the home buyer market this may be your big opportunity. As with every loan program the devil is in the details and I think this is where this program shines because the barrier to entry is very reasonable.  For example, do you have a bankruptcy on your record?  It it’s been 2 years since the discharge date you are eligible for this loan.  Do you have a 600+ Fico score?  You are eligible.  Even the reserve requirement and debt-to-income ratio are better than most lending programs out there and they even allow non-occupant co-borrowers.     Basically, the only thing keeping you from qualifying for this loan is not taking action.  Want to spend a few minutes of your time finding out what your purchase power looks like using this incredible opportunity

  • Expect Mortgage Rates To Keep Rising This Year, Says Freddie

    Mar 24, 17 • Huggy • How To Buy A Home, Mortgage RatesNo CommentsRead More »

    by Ryan Smith | 17 Mar 2017 Mortgage Professional America | www.mpamag.com Mortgage rates were up for the second consecutive week this week – and originators should expect that upward trajectory to continue as the Fed keeps raising the benchmark rate, according to Freddie Mac. The Federal Reserve fulfilled market expectations by raising the federal funds rate by a quarter of a percent this week – only the third time in a decade the rate has been raised. However, Fed officials had signaled their intentions leading up to the agency’s meeting this week – so clearly, in fact, that market expectations of a March rate hike shot from only around 30% to 80% in advance of the meeting. Those expectations drove mortgage rates up even before the Fed made its benchmark rate hike official, according to Sean Becketti, chief economist for Freddie Mac. “As expected, the FOMC announced its first rate hike of 2017 and hinted at additional increases throughout the remainder of the year,” Becketti said. “Although our survey was conducted prior to the Fed’s decision, the release of the February jobs report all but guaranteed a rate hike and boosted the 30-year mortgage rate nine basis points to 4.30% this week.” The 15-year fixed-rate mortgage also rose this week, with its average rate spiking to 3.50% from last week’s 3.42%. And the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose from 3.23%

  • Beware of Poor Home Flips! Lurking in the Kitchen

    Beware of Poor Home Flips!  Lurking in the Kitchen

  • House Flipping…The Good vs. The Bad!

    House Flipping…The Good vs. The Bad!  

  • What Happens To Home Buying Power As Rates Rise?

    By Eric J Martin of The Mortgage Reports Originally posted on November 21, 2016   Mortgage Rates’ Profound Effect On Affordability The mortgage interest rate you find plays a large part in how much money your lender will let you borrow. That affects how much home you can buy. That begs the question: how does your purchasing power change if rates creep up a half a point or even one full percentage point? Much more than you might think, which is why it pays to shop for a home now, and lock in a favorable fixed rate at historical lows. Many home buyers realize that rising home prices can limit their ability to buy. However, rising interest rates can alter home-buying plans even more. The current rate environment is likely a narrow window of opportunity in which to claim a low rate and a still-reasonable home price. Housing agency Freddie Mac recently predicted that mortgage rates will rise to 4.0% in 2017. That’s more than 50 basis points (0.50%) higher than the current mortgage rate average. Today’s rates maximize your ability to buy a better home with affordable payments. Click to see today’s rates (Feb 13th, 2017) The Cost Of Rising Rates Today’s lenders qualify home buyers based on several factors, not the least of which is something called a debt-to-income ratio (DTI). A low DTI demonstrates that you have a healthy balance between income and debt. Lenders generally cap the allowable DTI at

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