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Joyce Albert's Blog

By Joyce Albert | Agent in 70458
  • No-Money-Down Financing

    Posted Under: General Area in Slidell, Home Buying in Slidell, Financing in Slidell  |  April 29, 2011 6:57 AM  |  1,458 views  |  1 comment

    Yes!  . . . and it is not a gimmick nor is it VA.

    It is a little known federal program called USDA Rural Development.

    Unlike most loans, a USDA-RD loan is unique in that the property itself is the primary qualifier, not the home buyer. Oh, you must still have a decent credit score and debt to income ratio (things better discussed with a lender), but it is the location and condition of the property that makes it eligible for a Rural Development loan.

    As most homebuyers already know, an FHA loan requires a 3-1/2% down payment, and conventional loans 10%-20%. But for a homebuyer with a decent credit score, an RD loan offers a terrific opportunity to buy his very own home with little more than a couple thousand dollars in many cases.

    Another advantage to an RD lo ithat, unlike FHA, there is no PMI (Private Mortgage Insurance) added to the monthly payments. PMI is an add-on charge to insure the lender until the borrower has paid off at least 20% of his loan. Eliminating this cost holds down the monthly payment.

    For additional information on whether or not a particular property qualifies under this program, contact your local real estate professional.

    Joyce Albert, Keller Williams Realty Professionals

  • 'No Money Down' Financing?

    Posted Under: Financing in Slidell  |  March 14, 2011 8:02 PM  |  1,658 views  |  No comments

    Yes! And it is not a gimmick, nor is it VA.

    It is a little known federal program called USDA Rural Development. And it's available for most homes in Lacombe, Pearl River, and certain parts of Slidell.

     

    Unlike most loans, a USDA-RD loan is unique in that the property itself is the primary qualifier, not the home buyer. Oh, you must still have a decent credit score and conform with certain qualifiers (things better discussed with a lender), but it is the location and condition of the property that makes it eligible for a Rural Development loan.


    As most homebuyers already know, an FHA loan requires a 3-1/2% down payment, and conventional loans 10%-20% down. But for the homebuyer with a decent credit score, an RD loan offers a terrific opportunity to buy their very own home with only enough money to cover prepaid expenses and closing costs.


    Another advantage to an RD loan is that, unlike an FHA loan, there is no PMI (Private Mortgage Insurance), added to the monthly payments. Eliminating this cost holds down the buyer's monthly payment.

    For additional information on whether or not a particular property qualifies under this program, contact your local real estate professional.

    Joyce Albert, Realtor® –  (504) 451-8343

    Keller Williams Realty Professionals, 2053 Gause Blvd East., Slidell, LA  (USA), Office:  (985) 649-6333


  • 'Do-It-Yourself' Credit Repair

    Posted Under: Home Buying, Financing, Credit Score  |  March 14, 2011 7:59 PM  |  1,366 views  |  1 comment

    Have you had a bankruptcy in the past? Had debts that went to 'Collection" and were written off? Do you think because bill collectors don't call anymore, it's all forgotten?

    Wrong!!
     

    Not only is it not 'forgotten', you have to face it and work through it if you ever want to buy a home. Read more for ideas that have worked for others.

     

    Although every buyer who is turned down because of credit has different issues, some things remain the same. And in general, the following plan applies to just about everyone.

     

    First, every grown-up should have a checking or savings account and NEVER let it get overdrawn. Keep a manual check register up to date and every week, go on-line to your bank to make sure you are haven’t missed recording a check or debit card purchase. In fact, keep the debit card in your check book so you can record purchases as they are made. Trust your own bank balance, not the bank’s balance – their numbers will not include checks that may still be in ‘float’.

     

    Second, get existing bills paid up to current and keep them current. This takes living within your means - and that takes discipline. This is critical.  A mortgage lender doesn’t want to hear an applicant’s excuses for why payments were behind. They must be kept current!

     

    Third, if you do not have a credit card, get one. If need be, you can get a ‘Secured' Credit Card through a number of banks - Capital One, and Orchard Bank to name two. They issue cards to folks with less than perfect credit, and they usually have higher rates. 

     

    A ‘secured’ card also means that you will have to put up your own money against which you will make purchases. So why would you want to do that?  Because every month you will now have a report going to the credit bureaus showing your 'new-improved' payment history – and that is what helps build up your credit score.

     

    PLASTIC CARDS ARE NOT FREE MONEY!!  Use your credit cards minimally (maybe just for gas purchases) and pay them out IN FULL every month so you avoid those outrageous high interest charges (as high as 30%)….  And pay on-line by bank transfer, or mail early if using checks. See to it your payment arrives at least a day or two before the due date… you don’t want to chance incurring a late fee.

     

    Just a note:  A $39 late fee is tantamount to pulling two $20 bills out of your wallet and lighting a match to them. And for what? For being a day or two late with your payment? But those are the credit card rules. Be careful!!

     

    In short, repairing your credit is possible and can be done in a relatively short time… but it takes total dedication and tunnel vision when it comes to your finances and buying habits.

     

    It may even help to know that you are not alone. For example, some people work strictly on commission. They know ahead of time that during certain months, sales slow down and money gets tight. In times like that, these folks need to cut back on non-essentials. It's not the time to go out and run up the credit cards!

     

    And finally, months prior to buying a home, do not take on any new debts or make a major purchase (like a car)…  every credit inquiry shows up on your credit report and can push your score down.  And a major purchase affects your debt to income ratio. (That's another topic.) Remember – you’re on a quest to repair your credit so you can buy a home.

     

    So make a plan for yourself. Stick to it. And by all means, stay in touch. My newsletters will keep you up to date with what is happening in the home buying market. And hopefully by this time next year you and your family will be celebrating holidays in your very own home!!
     

    Joyce Albert, Realtor® –  (504) 451-8343

    Keller Williams Realty Professionals, 2053 Gause Blvd East., Slidell, LA  (USA), Office:  (985) 649-6333


 
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