FAQs on buying YOUR first home

-


                             FAQs for FHA, VA, and Conventional loans:

FHA Loans 🏠

Beneficiaries: Ideal for individuals with lower income and credit scores.
FHA's Role: Offers mortgage insurance, boosting lender confidence.
Mortgage Insurance: Protects lenders against borrower defaults, allowing for lower credit scores and down payments.
Refinancing Options: FHA Streamline Refinancing simplifies the process.
Credit Requirements: Lower credit scores accepted than conventional loans, with lower Mortgage Insurance costs for lower scores
Loan Limits: Limits vary based on location, typically updated yearly
Property Types: Must meet health, safety and livability standards.
Closing Costs: Similar to other loans, up front mortgage insurance is financed in the loan
Home Improvements: Possible through FHA 203(k) renovation loans.
Prepayment Penalty: None
Co-borrowers: Allowed, even if not residing in the property.
Bankruptcy/Foreclosure Impact: Loans available once minimum time has been met
Appraisal Requirements: Must meet specific health and safety standards.
Non-U.S. Citizens: Eligible with valid Social Security numbers and residency.

VA Loans

COE (Certificate of Eligibility) for VA Loans: Not initially required for the loan process and can be ordered by lender
Difficulty: Not significantly harder than other loans.
Repeated Use: VA loan benefits are lifelong, can be used multiple times, even simultaneously.
Interest Rates: Generally lower than conventional loans! with lower closing costs
Primary Residences: Required for VA loans.
Appraisal Requirements: Focus on Health and Safety standards
Closing Costs: Can be paid by the seller - along with some buyer debts if necessary
High DTI: Allows for much higher debt ratios - SELLER can also payoff buyers debt to help qualify !!
Funding Fee: A one-time payment, varying with circumstances, rolled into loan
Closing time: Typically not long than other loans.
Required Seller fees: Typically sellers ARE NOT required to pay extra fees, termite inspection fee varies state by state
Termite Inspection: Required

Conventional Loans 🏦

Conventional Loan: A non-government-backed mortgage from private lenders.
Conforming vs. Non-Conforming: Conforming loans meet Fannie Mae/Freddie Mac standards.
Requirements: Include credit score, down payment, PMI, etc.
Pros and Cons: Offers flexibility, but higher credit requirements.
Credit Score Requirement: Minimum 620 score typically required.
Interest Rates: Based on credit score and market conditions.
Down Payment: Varies, with some programs allowing as low as 3%.
PMI: Required for down payments under 20% - lower credit scores have much higher PMI costs
Property Types: Broad range, including investment properties.
Loan Limits: Vary by location and property type, typically changes yearly in November
Refinancing: Available, often used to lower interest rates.
Closing Costs: Comparable to other loan types, can be paid by seller with limits
Investment Properties/Second Homes: Eligible for conventional loans.


These expanded FAQs provide more detailed insights into FHA, VA, and Conventional loans, helping borrowers make more informed decisions based on their specific circumstances. 🌟
Florida Florida, USA

Comments

Post a Comment

Popular posts from this blog

How to save on Your Mortgage Loan

-
Image
Saving money on your Mortgage Saving Money on Your Loan In the quest to secure the dream of homeownership while ensuring financial wellness in Florida , there are several strategies borrowers can employ to minimize interest rates, closing costs, and the overall cost of a home in 2024. Navigating these costs effectively requires a blend of negotiation skills, knowledge of available mortgage products , and an understanding of timing in the mortgage process. Here are some actionable tips and insights to guide you: 🏦 Lowering Closing Costs Closing costs, the fees associated with finalizing a mortgage, can significantly impact your overall home purchase expenses. They typically range from 2% to 6% of the loan amount. Here are strategies to minimize these costs: Compare Loan Estimates : Before settling on a lender, request Loan Estimates from multiple lenders to compare closing costs and lender fees. This document outlines your loan terms, projected monthly payments, and closing costs. Co...
Read more

Broker vs Lender

-
Image
Why use a Mortgage Broker   10 Benefits of Using a Mortgage Broker for Home Loans I am a Florida based mortgage broker . I work for YOU , not the lender . I work with over 100 different wholesale lenders to get you the best deal available . We are talking about money! We all have the same money, its a matter of how much are YOU willing to pay for the use of that money. We are not selling Art work - that would have a different cost depending on the artist😉 Home loans should not cost more, just because you are working with a " preferred lender " or an " in house lender ". This is your HOME and YOU deserve the best deal with the lowest cost - PERIOD - FULL STOP! Here are just a few reasons to use a broker for your next home loan - and if you are in Florida - I am ready to walk you through the process to get you the best deal on your mortgage. 1. Access to Multiple Lenders : Mortgage brokers work with a variety of lenders, which can provide borrowers with ac...
Read more

First Time Home Buyer

-
Image
Avoid these 5 mistakes as a First Time Homebuyer A First-Time Home Buyer's Guide to Navigating the Mortgage Maze 🏡💰 Hello there, future homeowner! 🤗 I understand that buying your first home can be both exciting and overwhelming. But don't worry, I'm here to help you navigate the world of mortgages and guide you through the process step by step. With 30 years of experience as a mortgage loan officer , I've got some valuable insights to share. Let's get started on your journey to homeownership ! 🚧 Building Your Foundation: Understanding Your Finances 🏗 Before you dive into the home-buying process, it's essential to build a strong financial foundation: Know Your Budget: 🧮 Start by determining how much you can comfortably afford for your new home. Use online calculators to estimate your monthly mortgage payments, taking into account property taxes , insurance, and other expenses. Check Your Credit Score: 💳 Your credit score plays a crucial...
Read more