conventional: RENTERS: Down Payments are lower than you think
- 04/24/23 08:11 AM
Educate yourself, you probably need less money than you think Are you renting a home? Would you like to own your own home? What is holding you back? According to a recent survey done by the National Association of Realtors: Only 11% of current renters know they can purchase a home with 5 % or Less as a down payment. A WHOPPING 89% got the answer wrong thinking you need more than a 5% down payment. Scarier yet: Almost 45% of renters believe you need to put at least 20% down to buy a home. Is this misconception keeping you from purchasing a home? You probably can get … (2 comments)
conventional: FNMA announced DU adjustments. Higher risk buyers may be affected.
- 06/05/19 12:40 PM
Back in March FHA announced they would be adjusting underwriting making it more difficult in certain situations to get an approval. (you can read about that here: https://activerain.com/droplet/5j25 ) Just today we we received a "Lender Letter" from Fannie Mae (LL2019-06) with similar changes after review of loan performance. We anticipate we will see more negative Desktop Underwriting (DU) findings when this goes into effect July 20th. While we cant be 100% sure, we anticipate "ineligible" DU findings when there are multiple high risk factors. For example: Higher DTI’s combined with higher payment shock. Higher payment shock combined with a lack of savings. Lower FICO combined with … (0 comments)
conventional: Can I buy furniture before I close on my home?
- 01/16/19 07:40 AM
Over the years I have had this question asked in so many ways.... Furniture is a common one, and a client just asked me that one yesterday. While guidelines continue to evolve it is important to understand what is happening in the mortgage world and what we do as lenders, often behind the scenes. As I mentioned in a previous blog with FHA changes this will be a concern for conventional loans, not just FHA In answer to the above title- That answer is almost always a hard "NO!" Wait till after you close for numerous reasons. For one- at closing you will sign … (2 comments)
There is some good news here for most home buyers. If you are buying a home and financing with any agency loan (effectively Fannie, Freddie, Ginny- FHA, VA, Conventional, USDA) You will be OK. The vast majority of Mortgages typically fall into the agency products listed above. With Agency products, you remain eligible even if not receiving pay. As a lender, we will still need to complete pre-closing verification of employment and we cannot know of any specific reason why you would not … (2 comments)
Educate yourself, you probably need less money than you think
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