conventional mortgage: “There are Some Very Savvy First Time Home Buyers”
- 09/17/14 10:44 PM
“There are Some Very Savvy First Time Home Buyers”
I was referred to Emily by her mom and dad. She immediately told me that she has been doing a lot of research regarding mortgages for first time home buyers. In the conversation I mentioned FHA and she immediately stopped me, telling me that loan was not for her, even though the down payment was attractive and she wanted to do her loan without any help from her parents.
She told me that the mortgage insurance premium was a rip off and mortgage insurance for the life of the … (23 comments)
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conventional mortgage: “FHA Needs to Lower Fees and MI”
- 04/21/14 10:28 PM
“FHA Needs to Lower Fees and MI”
Three times last week, someone didn’t qualify for an FHA loan because the fees, primarily the monthly mortgage insurance.
For these three different transactions the monthly mortgage insurance were as follows: $409, $361 and $212 and that amount stays in place for the life of the loan.
One of these transactions I was able to get done as a conventional loan and instead $361 being the monthly fee, it was just about half and will only be attached to the loan until there is enough equity to eliminate … (15 comments)
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conventional mortgage: “CFPB Estimates that 92% of Mortgages will Meet QM Guidelines”
- 01/07/14 09:45 PM
“CFPB Estimates that 92% of Mortgages will Meet QM Guidelines”
Unfortunately any predictions made by anyone in Government have never been close and the predictions being made by the CFPB are no better. Just like all the numbers and promises that have been made regarding the Affordable Care Act. Are their predictions or number anywhere close?
I closed a conventional mortgage today that would be a problem after January 10th. The purchase price was $280,000 and the mortgage was $165,000. That all sounds wonderful, the debt ratio was 50.9%, after the 10th the maximum debt ratio can’t … (12 comments)
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conventional mortgage: “Some Purchase Agreements, Create Problems, Part 1”
- 01/02/14 10:26 PM
“Some Purchase Agreements, Create Problems, Part 1” INSURED WITH THE FOLLOWING ESCROW REPAIR ITEMS: Replace Doorbell (Wire currently exposed) 100.00 Replace Hot Water Baseboard Covers 200.00 Replace Outlet Covers 50.00 This clause was included in a purchase agreement that I received this morning. A clause like this may be OK between buyer and seller, but not with the lender. The loan will be a conventional mortgage with 5% down. There will be a home inspection, that I’m sure will bring up each item and an appraisal will do the same. Between, the clause in the purchase agreement, the … (23 comments)
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conventional mortgage: A Degree in Social Work, Now Working as a Cook
- 09/12/13 09:09 PM
A Degree in Social Work, Now Working as a Cook
There is nothing wrong with being a cook, especially if you are a good one. The income might not be as good as what was expected, but decent. One major problem is $56,000 in student loan debt. Because she is paying her student loans she can’t come close to qualifying for the mortgage she will need to purchase the home she would like.
She is currently paying $1450 per month for rent and her mortgage payment will be$1250. She does not want to … (20 comments)
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conventional mortgage: “HUD is Getting It’s Wish”
- 08/24/13 10:52 PM
“HUD is Getting It’s Wish”
HUD/FHA has been saying for a long time, they SHOULD do less business, so to help that process along they drastically increased the monthly mortgage insurance and then eliminated the ability to remove the monthly mortgage insurance for the life of the loan.
Guess what? They have their wish. They are saying that their volume dropped 50% in June from the previous month. Be careful for what you wish for.
So far this week, there were three transactions that should have been an FHA loan in the past, … (16 comments)
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conventional mortgage: Dodd-Frank Regulations will Cause Higher Rates and Tougher Guidelines for Consumers”
- 08/21/13 04:03 AM
“Dodd-Frank Regulations will Cause Higher Rates and Tougher Guidelines for Consumers”
The proposed QM (qualified mortgage) means that the highest debt ratio that would be allowed on all mortgages is 43%. The 43% would be the total percentage of all mortgage, installment and credit card debts. I am giving you a very simplistic overview.
Presently we are getting Conventional mortgages approved up to 47.9%, FHA loans up to 56.9%, VA and USDA loans up to 49%. These are very rough numbers, as there are many factors that go into these percentages, but … (9 comments)
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conventional mortgage: “Condo vs. Single Family Home Sales”
- 03/27/13 10:24 PM
“Condo vs. Single Family Home Sales”
More than half of my preapprovals last week were for the purchase of a condominium. Normally, between 70-75% of my preapprovals are for single family homes. This has been the case since the beginning of the year, the percentages are changing.
Guidelines for condominiums have been evolving over the last few years. We are now able to get conventional mortgages with as little as 5% down on a regular basis. Since many condominium complexes are not approved to allow FHA and VA financing, being able to do … (8 comments)
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conventional mortgage: FM Doesn’t Have a Good Handle on the First Time Home Buyer Market, Yet
- 12/26/12 02:49 AM
“Freddie Mac Doesn’t Have a Good Handle on the First Time Home Buyer Market, Just Yet”
They issued a report that indicated that there has been growth in the first time home market, the first time in two years. So, the question that should be asked, what percentage of their business is first time home buyers? Actually, not that much.
In the last two years the majority of first time home buyers have used other mortgage financing options, mainly FHA. In the last two years, the majority of home buyers, has been the largest segment … (8 comments)
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conventional mortgage: Switching FHA to Conventional and Conventional to FHA When it is Appropriate
- 11/08/12 11:12 PM
“Switching FHA to Conventional and Conventional to FHA When it is Appropriate”
Two days before we were closing Erika’s mortgage, the lender ran a new credit report and her scores dropped 100 points, from 760 to 660, because of the drop in scores, instead of getting a 3.125%, 15 year conventional loan, her rate would have to be increased to 3.5%.
I recommended that we convert the loan to an FHA loan. Even though there was a 1.75% mortgage insurance premium added to the principal balance, we had to do an FHA appraisal and it would take more time before … (7 comments)
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conventional mortgage: NOTHING MORE DANGEROUS THAN A LITTLE KNOWLEDGE
- 09/12/12 10:42 PM
“Nothing More Dangerous, than a Little Knowledge”
The article below appeared on The Mortgage Standard, which is published by the National Association of Mortgage Processors. I would not want this person coaching or giving advice to any of my clients.
Anyone who thinks that either loan is the right answer in every situation, just doesn’t have a clue. There is no such thing as one price fits all.
Credit scores, rent & Mortgage history, mortgage insurance cost, condition of the property, properties that need renovations, mortgage insurance premiums, monthly mortgage insurance and the list is endless. You just … (5 comments)
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conventional mortgage: I HAVEN'T SEEN ANY INCREASED DOWN PAYMENT REQUIREMENTS
- 04/29/12 10:35 PM
“I Haven't Seen Any Increased Down Payment Requirements”
I keep reading articles that lenders are requiring larger down payments. I don’t see that at all. I will give you some general guidelines for down payments. I am going to use 640 as the credit score.
VA Loans require no down payment
USDA loans require no money down.
FHA requires 3.5% down. 580 scores requires 10% down.
Conventional mortgages under $417,000 requires 3% down.
Jumbo loans require 10% down.
There are a number of variables, but to say lenders are requiring larger down payments, I am not seeing that at all.
… (4 comments)
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“There are Some Very Savvy First Time Home Buyers”
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