first time homebuyer: 10 Ways to Prepare for Homeownership - 11/03/14 09:09 PM
10 Ways to Prepare for Homeownership
 
Getting ready to buy a home? Here are 10 ways to prepare for homeownership:
1. Decide what you can afford. Generally, a home's sale price should not exceed 2.5 times your gross annual income or salary.
2. Develop your home wish list. Decide what you absolutely must have, and what you would like to have but can live without. Then, prioritize those features on your list.
3. Select where you want to live. Compile a list of three or four neighborhoods you’d like to live in by taking into account items such as schools, proximity to family and friends, commute time and public transportation options, recreational … (0 comments)

first time homebuyer: Frequently Asked Question: Which is Better: An FHA Mortgage with 5% Down, or a Conventional Loan with 10% Down? - 02/09/10 01:44 AM
Frequently Asked Question: Which is Better: An FHA Mortgage with 5% Down, or a Conventional Loan with 10% Down?
Q: Which is a better way to buy a home? Getting an FHA mortgage with 5% down payment and with 5% emergency backup? Or a Conventional loan with 10% down and no emergency backup?
A: Let's use an example. Let's say you want to buy a house for $100,000. For a conventional mortgage, you will put $10,000 down. For an FHA mortgage, you will put $5,000 down. So, we will compare a conventional $90,000 mortgage with a $95,000 FHA mortgage.
With FHA, … (4 comments)

first time homebuyer: Frequently Asked Question: Can I qualify for an FHA loan if my fiance and I both just got new jobs this year? - 02/04/10 09:22 PM
Frequently Asked Question: Can I qualify for an FHA loan if my fiance and I both just got new jobs this year?
Q: Can I qualify for an FHA loan if my fiance and I both just got new jobs this year?
A: FHA requires a 2-year employment history. It doesn't matter if you switch jobs - so long as you're in the same general line of work or you had an increase in pay and/or responsibilities.
What does matter is if you switch from a job that is paying wages to a job that is paid by commission (if full … (27 comments)

first time homebuyer: Frequently Asked Question: Is there a maximum amount you can borrow on the FHA 203k Rehab loan? - 01/25/10 09:30 PM
Frequently Asked Question: Is there a maximum amount you can borrow on the FHA 203k Rehab loan?
Q: If the maximum loan for FHA is $271,000, then can I buy a house for $171,000 and 'borrow' the additional $100,000 to rehab the house? (yes, I know you don't want to over-improve a house and price it out of the neighborhood.... lets just assume that the improvements are reasonable value-wise. I am inquiring about the details of the FHA 203k Rehab loan.)
A: In short, the answer is yes, there is a limit. The limit is the maximum FHA loan amount for … (4 comments)

first time homebuyer: Frequently Asked Question: How Much Can I Borrow With A USDA Rural Development Home Loan? - 01/24/10 10:08 PM
Frequently Asked Question: How Much Can I Borrow With A USDA Rural Development Home Loan?
Q: How much can I borrow with a USDA Rural Development Home Loan here on Cape Cod?
A: With a USDA Rural Development Home Loan, you can buy a home with no money down. There is not a set maximum loan size; however, the amount you can borrow for a USDA Rural Development Home Loan depends on your monthly income and debt payments as well as the appraised value of the home you are buying.
To qualify for a USDA Rural Development Home Loan, your total … (0 comments)

first time homebuyer: Frequently Asked Question: Is there a maximum amount you can borrow on the FHA 203k Rehab loan? - 01/21/10 05:08 AM
Frequently Asked Question: Is there a maximum amount you can borrow on the FHA 203k Rehab loan?
Q: If the maximum loan for FHA is $271,000, then can I buy a house for $171,000 and 'borrow' the additional $100,000 to rehab the house? (yes, I know you don't want to over-improve a house and price it out of the neighborhood.... lets just assume that the improvements are reasonable value-wise. I am inquiring about the details of the FHA 203k Rehab loan.)
A: In short, the answer is yes, there is a limit. The only limit is the maximum FHA loan amount … (0 comments)

first time homebuyer: Frequently Asked Question: First Time Home-buyer FHA 203(k) Rehabilitation Loan Questions - 01/21/10 05:04 AM
Frequently Asked Question: First Time Home-buyer FHA 203(k) Rehabilitation Loan Questions
Q: I am currently in the process of purchasing my first home. I have found a foreclosure listed at $39,999. The loan estimate (not GFE) shows closing costs at $4,000 including $20,000 in rehabilitation funds. To me, that seems very high such a small loan. A few of the questions I have:
Is there a 1% cap on origination fee? Is there a 1.5% added fee for the rehab loan? Can UFMIP be financed? Typical length of time these loans take to process This seems like a great loan for … (0 comments)