Category Archives for Uncategorized

Is the USDA Loan Something That Can Help You Buy Your 1st Home?

  • June 28, 2017 /

If you don’t mind living a little drive from the city, the “USDA Loan”
program I’m going to describe could be perfect for you

Here are the highlights:

  • True zero down…you don’t need any down payment money
  • 30 year fixed rate loans…no risky loans here
  • Normal interest rates
  • No requirement that you are a ‘first time homebuyer’…you can do this even if you just sold your home
  • No reserves required. Normally banks want 2-3 months worth of house
    payments in the bank; not with this program.
  • Seller is allowed to pay all your closing costs. This means that you can buy
    a home and literally have no money at all. This is unheard of.
  • No mortgage insurance. This is completely unheard of and I expect this
    will disappear before long. Mortgage insurance normally adds $100-200 per
    month to your payment…but this program does not require it. Wow.

The fine print stuff:

  1. You can only buy homes more “out in the country”. If you would
    like to know exactly which areas, subscribe to the email course on
    this page and one of the first lessons is on eligible areas. There is no
    flexibility on this; the home MUST be in the right area to qualify.
    That said, there are a lot of places that DO qualify.
  2. Your credit does not have to be perfect, but they do want to see the
    last 12 months be ok. There are no minimum credit scores, but scores
    above 620 gets you extra bonus points with them. You normally need
    3 years to pass after a bankruptcy or foreclosure, although if you have
    a credit score in the 620 range they may consider an exception. There
    are other zero down programs that permit lower credit scores.

5 Things Every Home Buyer Must Know About FHA Loans

  • June 28, 2017 /

“Five things every home buyer must know about FHA home loans”

1. No Location Limits. The FHA loan places no geographic
limit on where you live. Condos need to be FHA certified,
and not all are.

2. No income limits. The FHA loan has no limit on your
income to qualify. Many programs will not qualify you if you
make too MUCH money…FHA loans are open to billionaires
if they wanted to use the program (Bill Gates, want an FHA
loan?)

3. Less than perfect credit ok. The FHA loan is a very
flexible program that will work with less than perfect credit,
down to 600 score or even lower. If you have had a
bankruptcy, you will normally need to have 2 years past
since your discharge date (if Chapter 7) or 1 year past your
confirmation date (if you are Chapter 13). 3 years need to
have past since any foreclosure. Collections may not need
to be paid off.

4. Cash required. FHA does require 3.5% down payment
(however that down payment can be gifted to you by your
family or work). Right now seller can pay 6% of your closing
costs; that soon may be reduced to 3%. If that law is
changed, you may need to have more cash in order to use
this program.

5. Mortgage insurance. You will pay mortgage insurance
with this program, You pay a premium at closing: currently
this is 1% of the loan amount. However they will let you add
this to your loan balance and that’s what just about 100% of
the people using this program do. You also pay a monthly
premium in your mortgage payment, and that premium is
due to rise here in the next few months. Right now its .90%.