With our elected officials proposal to increase the FHA down payment requirement to 5%, and FHA wanting to increase the monthly mortgage insurance premium to 1.5%, every prospective home buyer should be asking themselves is now a good time to buy and how would these increases affect me? Prospective home buyers often ask me [...]
Tag Archives | Down Payment
USDA Rural Home Loans are Now Charging Monthly Mortgage Insurance for CA Home Buyers
In a surprising announcement, the USDA Guaranteed Rural Development Home Loan Program announced starting October 1st, 2011, they will begin collecting (charging) monthly mortgage insurance of .3%, but their up front mortgage insurance will be reduced from 3.5% to 2%. If you are unfamiliar with the no down payment 100% financing USDA Guaranteed home Loan, [...]
How to Qualify: FHA Home Mortgage Loan in Temecula-Murrieta-Menifee
Qualifying for a Temecula/Murrieta/Menifee FHA Mortgage is not as difficult as you might think. It starts by gathering the common pre-approval documentation that will be needed by the Loan Officer to complete your loan application and structure your file properly. The three primary criteria that determine if you qualify for a Temecula/Murrieta/Menifee FHA mortgage, and for how much, are these [...]
Important Factors To Consider When Getting Financing On A Foreclosure, Short Sale or New Construction
Short sales, foreclosures and new construction homes all have caveats that need to be considered when pursuing financing. If the guidelines and potential pitfalls are not properly understood, you could face delays in closing or potentially even a denied loan. Short Sales & Foreclosures – Short sales and foreclosures are everywhere. They often represent great [...]
Why Do I Need To Pay A VA Funding Fee?
The VA Funding Fee is an essential component of the VA home loan program, and is a requirement of any Veteran taking advantage of this zero down payment government loan program. This fee ranges from .5% to 3.3% of the loan amount, depending upon the circumstances. For most veterans, on a $150,000 loan, that’s an [...]
Why Do I Need Mortgage Insurance?
Mortgage Insurance, sometimes referred to as Private Mortgage Insurance, is required by lenders on conventional home loans if the borrower is financing more than 80% Loan-To-Value. According to Wikipedia: Private Mortgage Insurance (PMI) is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage [...]
What's The Difference Between A Single Family, Second Home and Investment Property?
When applying for a mortgage, a borrower’s “Occupancy Type” is a major factor in the amount of down payment required, loan program available and mortgage interest rate. Whether you are purchasing, doing a rate/term refinance or taking equity out of your property through a cash out refinance, occupancy type is always considered by the underwriter. [...]
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