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Renting vs Buying -- Knowing your loan options -- Part 3 of 3

By
Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

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So, you have been told that you qualify for a home. You are so excited, just thinking about this daily. You finally will own your own home with a piece of property. To be a proud homeowner.

You have been told by many to just ask for a 30 year fixed rate. Maybe you don't have much money to work with. Maybe you have 30% to put down on the property. You actually know that this is a starter home and that you will probably only be in the house for 4 to 5 years, because you would also like to have another child. GOALS.....  I have mentioned these before. A very good loan officer will ask you what your goals are prior to buying your first home. So much to think about, right?  Nothing to worry about if in the hands of a good mortgage professional

 

Okay, so now what, since there are many programs out there for me to choose from. As long as you can answer these few questions for the loan officer, he or she will be able to help you make your decision. Just giving their professional opinion, but backed with knowledge.  Questions : (and your goals)

  • How much money do you have to work with?
  • How much money would you have available after closing? We call this reserves.
  • What kind of payment would you be comfortable with?
  • How long do you plan to be in the house?  An estimate possibly?
  • Do you have children?  How many? Do you plan to have more?
  • What kind of financial obligations do you have outside the norm, that don't show up on your credit report.

There are a few more to ask, but a lot of it has to do with where the conversation leads to.

 

 

LOAN PROGRAMS : 

  • Full Doc / No Ratio / Stated Income / No Income No Asset
  • 100% financing  -- This can be used for individuals with little to no money down. But don't let that part fool you, because depending on your goals, it still might work in your favor. Meaning, if you had 10% to put down, you need to out weight your options. A great program under this is the USDA loan or VA loans. It could still be done with a FHA loan, but you need someone that is creative and knows all types. Yes, as it stands, the seller funded down payment assistance programs aren't available, but there are other ways. I will be writing about the USDA loans and how to get creative with FHA loans.
  • FHA financing  --  There are more than a few reasons why a FHA loan might be good for you. One that sticks out is that it allows consumers with less than perfect credit. Another is that it allows for 100% gift from a family member. And there are a few other ways to obtain financing with no money down.
  • VA financing  --  For those that served or that are serving in the military. Check with your VA professional loan adviser to find out more. And just a FYI, you can buy a VA financed home without being a veteran.
  • Subprime loans  --  There are so many reasons that one might be placed into this type of loan. Most think it is because of bad credit. Yes, this can sometimes be the case. Other reasons might be because of the type of property, that your income can only be proved by bank statements, and many other reasons.
  • ALT - A financing -- I can still do some stated income loans or what we call, NINA loans. That would be no income and no asset verifications. But in today's market, these require more of an investment now.

 

 

house in handYou basically hold your future in your hands. Once deciding what loan program that you will go with, it's up to you to keep your financial obligations in check. Meaning, save money for those small emergencies.

Lastly. if for some reason, you ever find yourself in any trouble, please, NEVER hesitate to contact your current loan holder/servicer. Even if your loan was sold, go back to your loan officer to see if they can help or point the way. Banks & Lenders don't want to buy your house back. But once you get behind several months, it does become harder to work with you. Please just keep this in mind. NEVER BE AFRAID TO ASK FOR HELP. (And don't wait to do this!!!)

 

 

 

 

The First Time Homebuyer Series :

 

  • Renting vs Buying -- Knowing your loan options -- Part 3 of 3


Buying Tips :

 

 

 

- FHA Loans  - Conventional Loans - VA Loans -

Experience & Knowledge at its BEST !!!

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!


Copyright © 2008 by Jeff Belonger

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______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

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For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comments (9)

Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Jeff, more great advice for newbie buyers!

Oct 28, 2008 03:06 PM
Jenn Neumann Deer
RE/MAX Southern Shores - Surfside Beach, SC
Surfside Beach Real Estate

This is a great post!  Very informative, I have been trying to sort through the different financing options and this is a nice, simplified way for me to gain a better understanding of the different routes buyers have to choose from. 

Oct 28, 2008 03:14 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate

We have a stated income loan. And we bought our house 10 years ago... before the housing boom... so we too, had to supply "some" information. It got us a better rate. But we had planned to put a significant amount of money down, regardless.

Oct 28, 2008 04:29 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

PAT......  thanks... we need to get this information out to buyers. The media is doing a terrible job and misleading the general public so much.

JENN...... well, there aren't as many loan options as once before... but there is still enough that could handle a larger portion out there that so many think otherwise. Thanks for the polite compliment.

LISA......  well, putting a significant amount down is truly based on your goals and what you can afford monthly. I don't always advise it for several reasons..... thanks for the feedback.

 

Oct 28, 2008 05:10 PM
Susie Blackmon
Ocala, FL
Ocala, Horses, Western Wear, Horse Farms, Marketing

You educate me every time I visit you!  I want to buy a Tiny House!  Sincere thanks...

 

Oct 28, 2008 09:20 PM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC

Hi Jeff,
You provide so much information for all of us.  I agree with Susie.  Asking for help is so hard for many people but doing so early rather than later sure makes a lot of sense.

Oct 29, 2008 12:59 AM
Gerry Suarez Jr.
New American Funding NMLS 6606 - Orlando, FL
FL Mortgage Guru

Great series Jeff.

Such important information that begs to be presented in a simple format- and you've done that so well! Keep up the great work!

Gerry Suarez, Jr.

Your FHA Loan Pro!

Oct 29, 2008 03:54 AM
Virginia Hepp - Mesquite NV REALTOR
Desert Gold Realty - Mesquite NV Homes For Sale - Mesquite, NV
Mesquite NV Homes and Neighborhoods - Search MLS

Jeff - excellent article for anyone thinking of a loan - not just for first time buyers.  Reblog!  Thank you.

Nov 08, 2008 05:57 AM
Tom Davis
Harrington ERA,DE Homes For Sale, $$ Save $$ Buy Today ! - Dover, DE
FREE Delaware Homes Search!, $$ Save $$ - Find Homes! Delaware Realtor

Yes I agree with Everyone who said you provide us all so much information!

An abundance of information!

Thanks so much!  KEEP IT UP!

Thanks JEFF!!  You Rock with that information!

Tom Davis

Jan 21, 2010 03:44 PM