Help For Buying a New Home
It's all about expertise. Advisors Mortgage Group has it.
Advisors Mortgage Group has been helping first time home buyers finance the home of their dreams for 20 years. So why not you?
HELP FOR BUYING A HOME
First time home buyer-- Diverse products have evolved so virtually anyone can own a home. There are, however, certain criteria. And there are times when it's not as easy as you think. Lenders can have strict criteria for home buyers, and first time home buyers need to garner information and learn how to qualify.
How much money will I have to come up with to buy a home?
"Well, that depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money - the deposit you make on the home when you submit your offer, to prove to the seller that you are serious about wanting to buy the house; the down payment, a percentage of the cost of the home that you must pay when you go to settlement; and closing costs, the costs associated with processing the paperwork to buy a house."
FACTORS THAT AFFECT APPROVAL:
• Credit history - no credit history, too short a credit history, poor credit history (judgments, etc.). how you pay your bills, on time, etc.
• Income Factors - high debt to income ratio (too little income for the amount of your financial obligations).
• Keep your credit cards at 30% of their credit limit.
• Other Factors: appraisal issues, title issues, occupancy issues.
Owning a home is an adventure. We're here to help in any way we can.
Speaking with a mortgage professional is the best way to obtain accurate information. If you would like Kathie Adler to contact you to review various loan programs -- CALL NOW: 888-843-9797.
When should you buy a home? Buy a home when you can afford to pay for it. A loan insured by FHA (the Federal Housing Authority) has a minimal down payment.
More information: https://www.hud.gov/topics/buying_a_home
Advisors Mortgage - Full FHA Eagle License
APPLY ONLINE AT OUR SECURE WEBSITE:
http://www.kadler.AdvisorsMortgage.com
In 2005, Advisors Mortgage Group was designated by the Federal Housing Authority as a Full Eagle FHA Underwriter. As a Full Eagle, Advisors has been able to expand its loan volume by approving loans which a majority of the competition could not dream of. We have built a platform for a seamless and stress-free mortgage process for all of our customers, and we have that same mission throughout all of our offices.
We understand that success cannot be attained without teamwork and communication, two of our most important strengths. Let us become your main team member helping you to avoid the pitfalls many find in seeking to own a new home.
Home Possible - Low Down Payments
Getting Into a Home Just Got Easier or No Cash Out Refis
Freddie Mac Home Possible Advantage(SM) Mortgage Makes Home Financing With a 3 Percent Down payment Possible!
New Low-Downpayment Mortgage Aims to Change the Game for Homebuyers, VA--(Marketwired - Dec 8, 2014) - Freddie Mac (OTCQB: FMCC) today launched Home Possible Advantage(SM), an affordable conforming, conventional mortgage with a three percent downpayment requirement designed to make responsible homeownership accessible to more first-time buyers and other qualified borrowers with limited downpayment savings.Freddie Mac Executive Quote:Attribute to Dave Lowman, Executive Vice President, Single-Family Business at Freddie Mac:
"Home Possible Advantage gives qualified borrowers with limited down payment savings a responsible path to home ownership and lenders a new tool for reaching eligible working families ready to own a home of their own. Home Possible Advantage is Freddie Mac's newest effort to foster a strong and stable mortgage market."
Key Facts:
- Home Possible Advantage offers qualified low- and moderate-income borrowers a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent.
- Home Possible Advantage mortgages can be used to buy a single unit property or for a "no cash out" refinance of an existing mortgage.
- First time home buyers must participate in an acceptable borrower education program, like Freddie Mac's CreditSmart®, to qualify for Home Possible Advantage.
- Home Possible Advantage mortgages are available as 15-, 20-, and 30-year fixed rate mortgages.
Freddie Mac was established by Congress in 1970 to provide stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing.
What is a 203k Loan?
203k Loans Explained
As defined by Section 203(k) of Housing and Urban Development’s code, the 203(k) loan allows the home buyer to borrow enough funds to cover both the cost of the home and the price of repairs, including the cost of labor and material for those repairs, in one loan. Certain 203(k) loans may also be expanded to include funding for up to six months of mortgage payments.
The FHA does not directly lend these funds, but rather provides financial protection to lenders that do. The 203(k) loan can either be a 15- or 30-year fixed rate mortgage or adjustable rate mortgage (ARM). The amount the homeowner can borrow depends on qualifications like his/her credit and income, and the lender will also assess a down payment based on the total amount.
With the 203(k) loan, the maximum loan amount that can be borrowed is capped at 110 percent of the home’s projected value as determined by an appraiser. Additionally, lenders require the borrower to pay mortgage insurance.
Interest rates could be slightly higher than those associated with a conventional mortgage. However, they might be significantly lower than interest rates on loans taken out to cover repairs. There are two types of 203(k) loans available:
Limited 203(k): This loan is intended for smaller renovation and upgrade projects that are valued less than $35,000. There is no minimum cost requirement, although you can’t fund structural repairs with a Limited 203(k).
Standard 203(k): The Standard 203(k) loan is intended for more extensive repairs with a total price tag greater than $35,000.
The minimal loan amount for this type is $5,000. Structural changes, like additions or full home renovations, are permitted. The home buyer must obtain architectural exhibits and meet building codes.
The homebuyer must meet specific borrowing criteria from FHA. This includes a debt to income ratio of 31 percent for the monthly housing payment and not more than 43 percent with all debt combined. Buyers must have a credit score of at least 620to qualify. Additionally, the buyer will still need to make a down payment of at least 3.5 percent of the total amount borrowed.
NOTE: This loan is only available to people who will live in the home, although under certain situations, nonprofit organizations can also take out a 203(k) loan.
What kinds of renovations does the 203(k) loan cover?
The 203(k) loans cover just about any expense the homeowner can think of, with the exception of certain luxury items. Those renovations include:
- Remodeling, adding, or expanding rooms, such as bathrooms, bedrooms, kitchens, and garages
- Replacing portions of the home, such as roofs or carpets
- Adding a second story, a basement, a patio or deck, or renovating a swimming pool
- Installing a septic system and upgrading plumbing
- Upgrading electric wiring and heating
- Installing energy-efficient appliances, including air conditioners or special windows and doors
