Posts Tagged ‘buying a home’

  • One Thing You NEED To Know Before Pursuing Down Payment Assistance

    Jun 13, 17 • Fat Ashton • Down Payment AssistanceNo CommentsRead More »
    One Thing You NEED To Know Before Pursuing Down Payment Assistance

    One Thing You NEED To Know Before Pursuing Down Payment Assistance Down Payment Assistance programs (or DPA’s) are similar to a lot of great ideas, they sound great in theory but as you start to dive into the details they may start to become less and less attractive or feasible… that is, if you have a Mortgage Planner who is looking out for you. Many times when we have people reach out to us in search of Down Payment Assistance Programs, we are able to determine what is most important to clients, and often, even in low down payment scenarios, we have found that there are other programs that better suit clients needs. For example we did a side by side comparison for FHA to The GSFA 5% grant program with 3% Down (Follow the link here for GSFA Income Limits), and found that the benefits of the slightly lower overall contribution, is negated by the savings of the FHA program in only two years! Now, if you have goals with your home that are longer than two years, this becomes a very compelling conversation. However, not all lenders are created equal, and to be honest if you qualify for a DPA program, it’s easier to just give someone what they ask for than doing a full analysis of what is actually truly best for them. If you feel like

  • Have Student Loans? The Rules Have Changed

    I may have just missed the student loan debt explosion when I graduated with my undergrad degree in 1998.  While college was expensive to attend twenty years ago, we were all borrowing money to get an education, it was nothing compared to the amounts borrowed during the college financing boom of the last fifteen years. Nowadays young people are in record amounts of debt the moment they are handed a diploma which means starting off their earliest earning years with essentially a thirty year mortgage to pay back.  College ain’t what it used to be and many times all this borrowed money is for a degree that yields earning power guaranteed to tie up their income for the better part of their career. The student loan income-based repayment plans have been a help to many people.  These plans allow monthly payments to be calculated based upon a person’s income which give people a fighting chance to start paying back their loans and be able to eat as well.   This is a big deal for those just starting out but there are at least two challenges tied to this calculation.   First, the debt will take that much longer to pay off and second when you go to apply for a mortgage the bank approving your application will hit the person for up to 1% of the balance of the

  • 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

  • What Are The 3 Biggest Homebuyer Mistakes?

    Posted on December 5 on DownPaymentResource.com Are you making these classic homebuyer mistakes?  It’s true you often learn from your mistakes, but what if you could avoid as many as possible? Buying a home will likely be your biggest financial purchase in your lifetime so it’s important to get it right. Even though you may start your home search online, more than 90 percent of you will end up using a real estate agent to help you navigate your purchase. Inman News polled its agent readers about homebuyer mistakes they see buyers make. 1. Not talking to a lender first As they say, success is 90 percent preparation. It’s no different when it comes to home buying. Unless you are paying cash for a home, you will need a home loan and a lender. Instead of finding your dream home online and scrambling to make an offer, start talking to lenders early. Shop your loan. Plan to interview at least three lenders to find the right one. Check out our 5 essential mortgage lender questions to brush up on what you should ask. Get pre-qualified to better understand your home search price range and loans that may fit your situation. If you haven’t looked for a loan in a few years things have changed–there are now more low down payment options available. Ask your lender about homeownership programs that could

  • The Election and Down Payments

    By Rob Chrane – CEO of Down Payment Resource The election has left Republicans in control of the House, Senate and White House for the first time in over a decade. The new alignment provides a viable path to far-reaching changes in federal housing policies affecting housing finance and housing markets. Increasing homeownership is at the top of the agenda for the new Congress and Administration. Changes may be in store for the Dodd-Frank Act, including restructuring or terminating the Consumer Financial Protection Bureau and raising the threshold for tougher bank regulation above its current $50 billion asset level. President-elect Trump has promised to reduce regulations, across the board, and financial institutions are likely to embrace his deregulatory stance. In housing finance, policy-makers may focus on reducing risk. Programs like FHA may see major changes and the role of GSEs will continue to evolve. The role of government in housing markets and housing finance could change dramatically. If so, it will take at least a couple of years, but it’s too early to tell because this wasn’t addressed in detail during the campaign. Only by increasing the numbers of first-time buyers can we reverse the multi-year decline in homeownership. Saving for a down payment continues to be the greatest single barrier keeping first-time buyers from becoming homeowners. Low down payment programs and down payment assistance are effective and critical strategies

  • 10 Week Loan Series – Introduction

    Oct 31, 16 • Fat Ashton • UncategorizedNo CommentsRead More »

    10 Week Loan Series – Introduction Join me over the next 10 weeks, where I’ll be discussing the difference between different home loan options such as conventional, FHA and VA. We’ll be looking at this through the lens of a buyer, and discuss things like different down payment options & loan qualifications. if you are a potential, buyer, and were wondering what loan makes the most sens for you, this 10 part series is just what you have been looking for. Of course, if you have any additional questions these videos didn’t answer, or would like to discuss in greater detail. Email me at Scott@GreenMenasGrow.com

  • $100 = $20,000

    A recent study by the personal finance website SmartAsset shows that having a roommate in San Diego will save a renter $6,768 a year or $564 a month.  While that certainly makes financial sense for renters what many prospective home buyers may not realize is that $564 in monthly rent could be paid to them as a future home owner.  This will dramatically boost their purchase power because with rates so low right now $100 = $20,000 in purchase price. Let me explain. Let’s say your budget shows you homes for sale in the $350,000-$400,000 range.  Knowing that you could rent out a room for $564/mo means you could look at buying a home in the $450,000 – $500,000 range.  I’m guessing that increase would really open up a lot of properties that weren’t previously available to you.  And this is a very conservative estimate for roommate rent given that the average rent for two people is $1,743 here in San Diego.  I know from personal experience that you could rent out a room for much more per month.   To find out exactly how much your purchase power would increase given a rental income boost click this link:  I Want To Know What My Purchase Power Is.   By David Hughson Mortgage Planner – Rental Income Expert 858-863-0264  

  • Which Season Is Prime Time For Homeselling?

    Sep 18, 16 • Huggy • Home Buyers, How To Buy A HomeNo CommentsRead More »

    By RACHAEL EVERLY Rachael Everly is a student in Miami, Florida. Follow her on Twitter or Facebook.  Email Rachael Everly. Buying and selling real estate requires juggling different dynamics and market conditions, planning, calculating and the ability to forecast problems to ensure a lucrative deal.There has always been some doubt surrounding the best time of the year for selling a home, which mainly depends on the season that will give a property an awe-inspiring look, adding to its perceived value. Other factors might come into play such as space, location and accessibility, but the right season can provide a better look for homesellers and highly increase their chances of closing a deal. When is the right time to sell? The art of choosing a particular season to sell doesn’t require a meteorology degree. Before clients decide the time is right, they need to delve in and do thorough homework about market conditions with a real estate agent. During recessions, the number of homebuyers is relatively low, and the market trends with a low demand pattern, which causes prices to fall. But when the economy experiences steady growth and interest rates are low, demand for buying increases, and this eventually causes prices to rise as well. Choosing the right season Some claim that the spring is the best season, and others swear by autumn. Either way, buyers’ decision will ultimately be affected by personal factors and economic conditions. The best way to go about selling in a particular

  • Home Prices + Safe Loans = More Renters

    Sep 12, 16 • Huggy • Uncategorized1 CommentRead More »

    According to an August study released by Zillow 86% of renters don’t have the income or credit to buy a home in their local markets.  With home price increases and lenders more concerned with originating safe loans to avoid falling out of compliance and under the scrutiny of the Consumer Financial Protection Bureau many people are excluded from the home ownership conversation. While this may seem like one more post about how hard it is to get a loan what bothers me the most are hearing stories about people who never tried because they assumed it wasn’t possible for them.  Home ownership may not be possible for you today but with the right mortgage plan you’ll know exactly when that day will be.  To find out just how soon that day is in your future click here. By David Hughson Mortgage Planner 858-863-

  • Is This Your Best Chance Yet To Buy A Home?

    For most first time home buyers the biggest challenge they face is coming up with the funds needed for down payment. This leaves few financing options that can mean many wait on the sidelines until the money needed is saved.  Here in San Diego county that can mean the difference between home ownership and being a life long renter.  With increasing enhancements to home loan guidelines being rolled out there usually won’t make a big difference but when several of these improvements are combined it can be a big boost to a person’s purchase power and dream of home ownership. Recently, Freddie Mac made some reductions to their Home Possible MI factors at 97% loan-to-value.  The table to the left outlines the advantages of the Home Possible program over the Home Ready program.  Combined with their updated income limits higher cost areas like San Diego County are now more accessible to those in need of a low down payment and lower monthly payment option.  This could be a great alternative to FHA financing because it could offer a better long term loan option.  Is this your best chance yet to buy a home?  To find out click that link in the previous sentence and let’s find out.  With the right mortgage plan you’ll know when your dream of home ownership will be a reality.   By David Hughson Mortgage Planner

The GreenHouse Group, Inc. | Real Estate Consulting & Mortgage Planning. "Moving People With Purpose."

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