loan: How Much Money Do I Need to Buy a Home? - 05/19/13 09:48 AM
How much money do I need to buy a home?  Well, the simple answer is it will depend. 
The first question that needs to be answered is which financing program you are applying for.  Each program has their own minimum down payment requirements.  For example, the FHA mortgage will require a 3.5% down payment whereas, the USDA loan is a 100% financing program that does not require a down payment.  The conventional Homepath program only requires a minimum of 3%.  And of course, I can't forget the $100 down HUD program for the purchase of a HUD foreclosure.
Now that we have … (4 comments)

loan: High Credit Score Doesn't Guarantee Mortgage Approval - 11/05/12 10:40 AM
A high credit score doesn't guarantee mortgage approval, but having a good score will at least get you past the first hurdle.  Lately, that is how I have been viewing the mortgage process, a series of hurdles on the way to finish line (closing table).  
 
Depending on the financing program, a high credit score may be more closely scrutinized if there aren't many trade lines.  A trade line is the number of open and active accounts that are shown on the credit report.  It may be necessary to supplement the credit report by showing other types of accounts being … (10 comments)

loan: Severe Storms and Buying a Home - 08/26/12 12:21 PM
Severe storms and buying a home may seem like an unusual title for a blog, but the number and severity of a storm are going to impact many home purchases in the pipeline.  
Did you know that if threatening storms are predicted insurance companies will suspend issuing any new policies until after the storm has passed?
Home purchase transactions where the appraisal has already been completed, but not yet closed, must be re-inpsected by the appraiser.  This is to confirm that the home is in the same condition as the date of the appraisal prior to the storm. 
This policy … (4 comments)

loan: From a caterpillar to a butterfly - renovation loans - 05/08/12 04:35 AM
From a caterpillar to a butterfly is the best analogy for the purchase of a home in need of repairs when the home buyer uses one of programs designed to cover these repair costs.  There are three programs that may be available depending on the buyer's qualification, they are:
FHA 203 (k)
Homepath Renovation Loan
Homestyle Renovation Loan
This loan product allows for the costs of repairs, improvements, appliances, etc. to be built into the financing of the home. Repairs such as:
Carpeting
Cabinetry
Heating/Air Conditioning units
Painting
Roof repair or replacement
Windows
Appliances
There are some restrictions that should be noted:
… (18 comments)

loan: Did you hear? FHA is making changes in June - 03/08/12 01:45 AM
Yesterday I wrote a blog about FHA changes taking place in April 2012.  
  Did you hear? FHA is making changes in April
Well, just when you thought it was over, there are changes coming in June 2012 too.


Effective June 11, 2012, there will be additional MIP increases on loans >= $625,500. There are a limited number of counties where loans are allowed to be at or above this limit. In GA the only county is Greene County that this would affect. More information will be provided as we get closer to that time frame. If you have … (3 comments)

loan: Did you hear? FHA is making changes in April - 03/07/12 05:42 AM
Yes, they are changing again!  This change goes into effect on FHA case numbers ordered on April 9, 2012.  Buyers should consider this if they are ready, willing and able to purchase now. 
The change is the Upfront MIP is going to 1.75% from 1% of the loan amount.  As an example, a $200,000 loan will now have a UFMIP payment of $3500 vs. $2000 now.
I can tell you from past experience, waiting until the last minute is NOT a good idea.  The system was so bogged down,  it took much longer for the numbers to issue.  You don't … (5 comments)

loan: More FHA Changes Scheduled for April 1, 2012 in Georgia - 03/04/12 09:07 AM
Yes, you read that headline correctly, more FHA changes are scheduled for April 1, 2012.  As a real estate agent, it is important for you to be aware of how this going to impact your buyers using the FHA financing program. 
Please keep in mind, these will apply to all programs, FHA purchases, FHA 203(k) rehab loan, and streamline refinances.
So, here are the changes in a nice little chart for you.   These are based on FHA loans for the state of Georgia based on county loan limits.  In this example, I will assume the minimum down payment of 3.5%
The … (3 comments)

loan: FHA 203(k) Financing – Ineligible Improvements - 02/25/12 06:17 AM

You know the types of properties that are eligible and we have reviewed some of the basic program guidelines in the previous posts.  There are some types of repairs that will not be eligible for this program. 
These are:
·        Major rehabilitation
·        new construction including room additions
·        repair of structural damage
·        repairs requiring detailed drawings are exhibits
·        landscaping or site amenity improvements
·        any improvement that will take longer than six months to complete
·        Any rehabilitation activity that:
o   requires more than two payments per specialized contractor
o   requires architectural plans or exhibits or … (3 comments)

loan: FHA 203(k) financing – Eligible Improvements - 02/25/12 05:55 AM

Okay, we have discussed the general guidelines for the FHA 203(k) financing program and the eligible property types. So, what can you do with the money?
Here is a list of eligible improvements that can be made:
·        repair or replace roof
·        repair or replace gutters and downspouts
·        upgrade plumbing system
·        upgrade electrical systems
·        flooring
·        exterior decks and patios and porches
·        MINOR remodeling (no structural repairs)
·        Interior painting
·        exterior painting
·        installation of new doors
·        installation of new windows
·        purchase and installation of new appliances
·        lead-based paint stabilization
… (2 comments)

loan: Don't cash that check! - 02/06/12 02:40 AM
You're buying a home, congratulations on your decision.  This advice will serve you whether you are applying for a Conventional, FHA, VA, Rural Development (USDA) or Jumbo loan.  One issue that seem to come up from time to time during the mortgage process are  non-direct deposits made into the bank account.  I have some helpful advice for you to get you through this process.

Keep in mind part of the mortgage process will be documenting all financial  transactions associated with this purchase. This would be identifying the funds for your earnest money, the appraisal fee, and the source of your … (0 comments)

loan: Buying a Georgia home in 2012?-Let's talk dates - 01/23/12 02:09 AM
When you make an offer to purchase a property, your real estate agent will prepare the document for you. It is necessary to keep in mind that this is a legally ending agreement. In addition the terms of your offer including the timeframe for specific performance will be outlined.
This is an excellent time for you to review with your loan originator a realistic expectation of the loan process. A conventional loan with a 20% down payment can be closed more quickly than an FHA, VA or USDA loan.
The three dates that need to be monitored will be:
1.  … (2 comments)

loan: Mortgages for the self-employed borrower - 01/22/12 09:34 AM
 
We all understand the basics of mortgage underwriting are based on three  components.  They are:
1.     credit
2.     collateral
3.     capacity
All borrowers must meet the minimum credit standard for any of the financing programs that they may choose regardless if it's conventional, FHA or VA. 
The next piece of the puzzle is regarding the collateral. The collateral can easily be defined as the security for the loan amount requested. This is determined by underwriting the appraisal to determine if the current value is sufficient to support the loan amount.
The last piece of the puzzle is based on … (2 comments)

loan: Buying a Georgia Home in 2012? Let’s Talk About the Do’s and Don’ts - 01/09/12 12:47 AM
Without question, the mortgage industry has changed over the last few years.  Not necessarily for the worse, but it has become more stressful for home buyers, especially first time home buyers that have not been through the process. 
Regardless of the financing program, here is my list of do’s and don’ts to help eliminate hurdles as you go through the process.
1.       DO NOT apply for any new credit
2.       DO NOT change jobs
3.       DO NOT make cash deposits into your checking account
4.       DO NOT transfer funds from one account to another
5.       DO NOT make any large … (11 comments)

loan: Buying a Georgia home in 2012? - 12/27/11 01:56 PM
Buying a home in 2012? If it is your goal to purchase a new home in 2012, now is the time to start your preparations. Some things to consider would be your current living situation, your current tax situation and your ability to meet all qualifying factors for a new mortgage.

Now let's break these down step-by-step and see if you're going to qualify. The first thing you should look at is your family budget. When making a home purchase in the new year, you will want to make sure that you stay on budget and do not make any … (0 comments)

loan: Buying a Foreclosure - Don't Get Burned - 12/11/11 12:03 PM
If you are looking at buying a foreclosure in the new year, I have some words of wisdom for you.   A little pre-planning will prevent you from getting burned in the transaction.
 
First, be sure you have discussed your finances with a mortgage professional.  Honesty counts here.  Remember that the information you supplied is going to be verified, through the credit report, verification of rent, deposits, employment.  We are also going to require a transcript from the IRS on your last 2-3 years tax returns depending on the financing program.  
 
Second, make sure you have enough money … (8 comments)

loan: They'll be singing.... Woulda, Coulda, Shoulda - 10/30/11 03:55 AM
Wouda, Coulda, Shouda is a song that many would be first time home buyers will be singing by delaying their decision to purchase their first home.  Making that decsion for the first time can be daunting.  It is more than the financial commitment, but the realization of maybe signing a legally binding contract for the first time.
 
What would happen if a first time buyer makes the decsion to buy?  They would get a property at a great price.  In the Atlanta metro area on average property values have dropped 30% over the last 3 years.  And even more impressive … (5 comments)

loan: USDA Loan Program Changes October 1, 2011 - 09/01/11 06:46 AM
The USDA loan program changes will be effective on October 1, 2011.  What changes, you ask?  Well, USDA is changing the "mortgage insurance" piece of the financing.  As of now, there is a funding fee that is financed into the loan amount and there is no monthly mortgage premium.
 
As of October 1, this will change to mirror the FHA mortgage insurance premium structure where part of it is financed and the second part is a monthly charge.  There has been talk for a long time about making this change, now that it is here, the following table demonstrates the … (0 comments)

loan: Can you pre-qualify me for a loan? - 08/31/11 02:04 PM
"Can you pre-qualify me for a loan?" is probably one of my favorite questions to be asked when I answer my phone.  For the most part, I know there is a good chance this individual will become one of my "Raving Fans" when they close on their new home.
 
 
We all know that the applications and all supporting documentation are being closely reviewed by the underwriters and conditions at times seem unbelievable on what seems to be a clean deal.  This is just the world we live in with the changes implemented by the Dodd-Frank legislation.  My story today, does … (3 comments)

loan: Murphy's Law and Your Mortgage Application - 07/17/11 05:49 AM
Murphy sometime shows his evil colors in the mortgage application process, and lately, it seems that he has been working overtime!

I recently worked with a couple that were so excited when their dream home was reduced to a price that put it in their price range.  What I didn't know until the closing, is that they had originally seen this home 2 years ago.
So, in this transaction, we had a seller that rejected the original offer because of the financing contingency.  We revised the financing and submitted another offer.  Of course, now they are in a multiple offer … (4 comments)

loan: USDA 100% Financing - 06/30/11 03:28 PM
The USDA Home loan program allows for 100% financing of the appraised value.  No, that isn't a typo.  The buyer can borrow up to 100% of the appraised value.  So, if the home purchase price is $100,000 and the appraised value is $105,000, the buyer can borrower $5000 toward closing costs and prepaid expenses.
I know what you are thinking... wow, that sounds great!  How can I get that deal?  Here are a list of the restrictions for this program:
The property must be in a qualifying area.  These qualifying areas are in less populated areas.  The program is not going … (4 comments)