Mortgage News That You Can Use.
Here are some homebuyer flexibilities you may not be aware of for conventional mortgages:
- Residence buyers can make just a 3% down payment with no/or reduced monthly mortgage insurance to $417,000 loan amount
- Residence buyers can make just a 5% down payment to $625,500 loan amount
- Residence buyers can make just a 10% down payment to $1,000,000 loan amount
- Investment buyers can make just a 15% down payment to $625,500 loan amount.
- Second home buyers can make just a 10% down payment to $625,500 loan amount.
- Residence buyers may receive gift for total down payment.
- Residence buyers may have a non-occupying co-borrower for qualification to 3% down payment.
- Residence buyers may rent out their former residence and count rent for qualification without rental experience or equity.
In addition to above, buyers who are 1rst time buyers, or haven't owned a home for the previous 3 years, have access to financing where no down payment cash is needed. With VHDA's FHA-insured mortgage, you'll also receive a second mortgage to help fund your down payment and closing costs. Must meet income and sales price limits. Loans are serviced in Virginia by VHDA. All loans are 30 year fixed rate. Minimun credit score is 620
That brings me to credit. Some basics things to remember are: the last 12 months of your credit history are very important to lenders. If you think your score is below 620, you'll need to improve your score. It's best to start on that at least 6 months before you think you want to buy. Consult your loan officer.
Some of the basics things a buyer can do to maintain and improve their credit score are: (1) Pay all bills on time. ( Don't get in the habit of thinking that if you pay your bill before a 10 -15 day grace period is up, that your payment is still on time). (2) Keep your credit card balances below 50% of your total debt. (3) Pay down your balances. (4) Don't apply for new credit. If the cashier at your favorite store offers you a 15% discount on your purchase if you open a store credit card, just say "No thank you". (5) Never co-sign for anyone.
It's ok to have a mix of secured and unsecured credit cards as long as you manage them properly. Unsecured credit is where you are basically borrowing your own money. You open a savings account with lender x. Most have a minimum deposit of $200- $500.00. So you have $200.00 secured for example. That is also your credit limit. If you charge something using that card, pay it off each month (on time). Some also have an annual fee.
Credit scores run from 300 - 850. Your goal is to keep it above 620. The higher the better.
Thanks to the FACT Act, you can get a free copy of your credit report from www.annualcreditreport.com You might want to get one copy every 4 months from each of the three agencies. Equifax covers the East coast. Experian covers the West coast, and TransUnion covers the Midwest.
FACT stands for Fair and Accurate Credit Transaction. Remember, you don't get your score, just the reports. You can purchase the scores though.
You also need to review any judgements, child suppost payments, student loans, etc.
I facilitate. The information to help you buy or sell is out there, I'll help you find it!
Jeff Pearl | Lic in VA
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