Joe Finnerty,
Agent, Bethlehem, PA
Hi Delgis,
An FHA mortgage is typically the loan of choice for First Time Home Buyers because it only requires a down payment of 3.5% and you can do up to 6% sellers assist to use for the closing costs. You must have the 3.5% down payment although it can be gifted to you by a family member.
A conventional mortgage usually requires a 20% down payment although some mortgage companies may offer conventional mortgages with 5, 10 or 15% down. With a conventional mortgage, you can usually only do up to 3% sellers assist.
The one downfall with an FHA mortgage is that when the house is appraised the appraiser is instructed to look for safety items. If any of these are found by the appraiser, they must be corrected by the seller (or the buyer) before settlement. A typical FHA repair is flaked paint in a house built before 1978. Because that paint may contain lead, it becomes a required repair and must be fixed before you are allowed to close on the house.
A conventional mortgage is more forgiving on the condition of the home.
I hope this helps.
Regards,
Joe Finnerty
484-241-1641
Long & Foster Real Estate, Inc.
Lehigh Valley, PA
610-865-7776
An FHA mortgage is typically the loan of choice for First Time Home Buyers because it only requires a down payment of 3.5% and you can do up to 6% sellers assist to use for the closing costs. You must have the 3.5% down payment although it can be gifted to you by a family member.
A conventional mortgage usually requires a 20% down payment although some mortgage companies may offer conventional mortgages with 5, 10 or 15% down. With a conventional mortgage, you can usually only do up to 3% sellers assist.
The one downfall with an FHA mortgage is that when the house is appraised the appraiser is instructed to look for safety items. If any of these are found by the appraiser, they must be corrected by the seller (or the buyer) before settlement. A typical FHA repair is flaked paint in a house built before 1978. Because that paint may contain lead, it becomes a required repair and must be fixed before you are allowed to close on the house.
A conventional mortgage is more forgiving on the condition of the home.
I hope this helps.
Regards,
Joe Finnerty
484-241-1641
Long & Foster Real Estate, Inc.
Lehigh Valley, PA
610-865-7776
Web Reference: http://www.lehighvalleyhomesonline.com
Amie Gallagher,
Agent, Charlotte, NC
Delgis,
You need to contact a lender for the best answer to this question, as they are the most qualified to answer questions about financing.
I can recommend a few lenders to you if you still assistance!
Buying your first home is such a amazing experience, I wish you the best of luck. If I can provide you with a lender or if you have any questions about the Charlotte real estate market, I'd love to hear from you.
Best,
Amie Gallagher
REALTOR
Keller Williams Realty
704.661.8834
SoldByAmie@kw.com
You need to contact a lender for the best answer to this question, as they are the most qualified to answer questions about financing.
I can recommend a few lenders to you if you still assistance!
Buying your first home is such a amazing experience, I wish you the best of luck. If I can provide you with a lender or if you have any questions about the Charlotte real estate market, I'd love to hear from you.
Best,
Amie Gallagher
REALTOR
Keller Williams Realty
704.661.8834
SoldByAmie@kw.com
Web Reference: http://soldbyamie.com
Jeff Monfils,
Broker, Charlotte, NC
Remember the HUD changes regarding FHA loans on condos? One aspect overlooked by many is the provision that requires condominium projects to be recertified by HUD every two years. Condos approved prior to October 2008 were granted a transition period to be recertified. The expiration of this transition phase is now upon us.
If you are looking at a listing or you are purchasing a condominium, listen up! Condo projects that obtained FHA approval prior to October 1, 2008, must be recertified by December 7, 2010 or it will lose FHA approval status. This means a borrower using FHA financing will not be able to close their loan until the recertification is complete (a process that is averaging 45-60 days).
My advice: Check a condo project’s approval status before listing or submitting an offer if FHA lending is a factor. Approval expiration date shows a date beyond 12/7/10? Then laissez les bon temps rouler! Project’s approval expiration date showing ‘nearing expiration’? Contact the HOA to see if they (a) are aware of the expiration and HUD’s requirement then (b) ask if the recertification process has begun. If the approval is expired and the HOA has not yet submitted for recertification, share HUD’s Recertification Processing Requirements with them. Time is of the essence because projects not recertified within six months after the approval expiration date will need fullproject approval (which requires additional documentation and time).
Accessibility to FHA financing is crucial when marketing a condo because of the high numbers of buyers using this type loan. If you want to know the status of a condo, feel free to send me the address and development name. I work with Rebecca R. Madej, Office: 704.366.7711 FHA GURU NMLS#91445 Mortgage Consultant and she is always there to help! She will let you know where it stands and make any recommendations if needed.
Jeff Monfils
Broker | Director of North Carolina Operations
Bastille Real Estate
If you are looking at a listing or you are purchasing a condominium, listen up! Condo projects that obtained FHA approval prior to October 1, 2008, must be recertified by December 7, 2010 or it will lose FHA approval status. This means a borrower using FHA financing will not be able to close their loan until the recertification is complete (a process that is averaging 45-60 days).
My advice: Check a condo project’s approval status before listing or submitting an offer if FHA lending is a factor. Approval expiration date shows a date beyond 12/7/10? Then laissez les bon temps rouler! Project’s approval expiration date showing ‘nearing expiration’? Contact the HOA to see if they (a) are aware of the expiration and HUD’s requirement then (b) ask if the recertification process has begun. If the approval is expired and the HOA has not yet submitted for recertification, share HUD’s Recertification Processing Requirements with them. Time is of the essence because projects not recertified within six months after the approval expiration date will need fullproject approval (which requires additional documentation and time).
Accessibility to FHA financing is crucial when marketing a condo because of the high numbers of buyers using this type loan. If you want to know the status of a condo, feel free to send me the address and development name. I work with Rebecca R. Madej, Office: 704.366.7711 FHA GURU NMLS#91445 Mortgage Consultant and she is always there to help! She will let you know where it stands and make any recommendations if needed.
Jeff Monfils
Broker | Director of North Carolina Operations
Bastille Real Estate
Web Reference: http://www.bastillerealestate.com
Matthew Tringali,
Broker, Charlotte, NC
Not sure if anyone else has mentioned this to you yet or not... But there is a GREAT loan product in Charlotte. It offers 100% conventional financing at market rate, 30 year fixed and NO PMI!. To qualify you need a 660 credit score and you need to make below a certain income limit (which is quite generous and would suit most first time home buyers). I had one client close with this loan last month on a $130,000 purchase with zero down for only $750/mo fixed for 30 years. Be in touch and I would be happy to connect you with the lender.
Take care,
Matthew Tringali
Owner of Group 15 Real Estate
704.517.3906
Take care,
Matthew Tringali
Owner of Group 15 Real Estate
704.517.3906
Web Reference: http://www.group15realestate.com
Timothy Rohan,
Agent, Charlotte, NC
Good morning Delgis,
As my colleagues have already discussed, typically a 1st time home buyer is more suited for an FHA loan but those are not the only options available to you. Depending on your location there may be other 1st time home buyer programs such as USDA that may be even more beneficial. There are also other incentives such as "house Charlotte" and other programs that offer downpayment assistance as well. Your best bet is to talk to a qualified lender to explore which avenue is best for you. I can put you in touch with a few if you would like.
Enthusiastically,
Tim Rohan RE/MAX Executive Realty (704) 367-4479
As my colleagues have already discussed, typically a 1st time home buyer is more suited for an FHA loan but those are not the only options available to you. Depending on your location there may be other 1st time home buyer programs such as USDA that may be even more beneficial. There are also other incentives such as "house Charlotte" and other programs that offer downpayment assistance as well. Your best bet is to talk to a qualified lender to explore which avenue is best for you. I can put you in touch with a few if you would like.
Enthusiastically,
Tim Rohan RE/MAX Executive Realty (704) 367-4479
Bill Carey,
Broker, Charlotte, NC
Hello Delgis,
There are some great selections in 2 bedroom condo's here in and around Charlotte. The 2 main differences between FHA and Conventional Bank loans are 1. amount of downpayment 3.5% FHA versus 20% (banks are talking about raising to 30%) with conventional. 2. qualifing requirements the Banks have tougher requirements and they can change week to week.
Your best bet is to meet with a mortgage broker who can guide you check out my guy.
Christopher Reshetar
Mortgage Consultant/Branch Manager
New American Mortgage
Cell: 704-277-4463
Fax: 980-322-0749
chris@themortgagegenius.com
>>I suggest that you put as much down as you can 20% more if possible. Why?? We are still in a declining market Charlotte last year home prices on average decreased 3.7%.
***Example: If you purchase a home for $100,000 and put down $3,500 FHA + c losing costs you will have a mortage of $96,500. If homes prices decline as they did last year 3.7% the value at the end of next year will be $96,300. So with a minimum downpayment within the first 12 months you are already underwater.
>>***Here is a better way search for your next home in the "Short Sale /Foreclosure" market you may save 30% -40% -50% on the home purchase price. There are plenty of excellent short sale/foreclosures in Charlotte to find the one for you may take a little time and alot of work for your real estate agent but it will be well worth it for you.
**Example: You buy a Short Sale at 40% discount that same $100,000 house you buy for $60,000 with 3.5% FHA + closing costs down you will have a $57,900 mortgage on a $96,300 value home. You now actually own a home with 40% down what a deal. There are plenty to choose from here in Charlotte your agent will need to work very hard for you to get you the best deal. They are available all over town.
As a buyer "Short Sales" & "Foreclosures" are all about the money, the money you can save versus buying a retail MLS home. If you can't save 40% - 50% - 60% on a home including any repair or cleanup cost you should run away. There are too many excellent choices for a qualified buyer.
I have sold and purchased "Short Sale" & Foreclosure" homes in beautiful condition fully furnished where the sellers just walked they wanted out. Also homes that were junkers but the deal was too good to pass up it's all about the $$$.
My wife and I live in a home we recently purchased as a "Short Sale" it was alot of paperwork and time for me the agent. But in the end the bank reduced the amount they were owed on the loan by $325,000 we got a great deal. The home did not need any repairs as most foreclosures do it was move in beautiful condition. With "Short Sales" be flexible your time frame and with the location to get the best deal.
Thank you,
Bill Carey, Broker/Realtor
Cell 704-905-0740
Fax 866-343-5945
Bill.Carey@HendersonProperties.com l http://www.HendersonProperties.com
There are some great selections in 2 bedroom condo's here in and around Charlotte. The 2 main differences between FHA and Conventional Bank loans are 1. amount of downpayment 3.5% FHA versus 20% (banks are talking about raising to 30%) with conventional. 2. qualifing requirements the Banks have tougher requirements and they can change week to week.
Your best bet is to meet with a mortgage broker who can guide you check out my guy.
Christopher Reshetar
Mortgage Consultant/Branch Manager
New American Mortgage
Cell: 704-277-4463
Fax: 980-322-0749
chris@themortgagegenius.com
>>I suggest that you put as much down as you can 20% more if possible. Why?? We are still in a declining market Charlotte last year home prices on average decreased 3.7%.
***Example: If you purchase a home for $100,000 and put down $3,500 FHA + c losing costs you will have a mortage of $96,500. If homes prices decline as they did last year 3.7% the value at the end of next year will be $96,300. So with a minimum downpayment within the first 12 months you are already underwater.
>>***Here is a better way search for your next home in the "Short Sale /Foreclosure" market you may save 30% -40% -50% on the home purchase price. There are plenty of excellent short sale/foreclosures in Charlotte to find the one for you may take a little time and alot of work for your real estate agent but it will be well worth it for you.
**Example: You buy a Short Sale at 40% discount that same $100,000 house you buy for $60,000 with 3.5% FHA + closing costs down you will have a $57,900 mortgage on a $96,300 value home. You now actually own a home with 40% down what a deal. There are plenty to choose from here in Charlotte your agent will need to work very hard for you to get you the best deal. They are available all over town.
As a buyer "Short Sales" & "Foreclosures" are all about the money, the money you can save versus buying a retail MLS home. If you can't save 40% - 50% - 60% on a home including any repair or cleanup cost you should run away. There are too many excellent choices for a qualified buyer.
I have sold and purchased "Short Sale" & Foreclosure" homes in beautiful condition fully furnished where the sellers just walked they wanted out. Also homes that were junkers but the deal was too good to pass up it's all about the $$$.
My wife and I live in a home we recently purchased as a "Short Sale" it was alot of paperwork and time for me the agent. But in the end the bank reduced the amount they were owed on the loan by $325,000 we got a great deal. The home did not need any repairs as most foreclosures do it was move in beautiful condition. With "Short Sales" be flexible your time frame and with the location to get the best deal.
Thank you,
Bill Carey, Broker/Realtor
Cell 704-905-0740
Fax 866-343-5945
Bill.Carey@HendersonProperties.com l http://www.HendersonProperties.com
Web Reference: http://www.HendersonProperties.com
Erika Marsh Pitman,
Broker, 28211
Delgis,
The best type of loan is the one that fits your situation. Your loan officer and real estate agent can help you with details.
Since a FHA loan requires less down that is the choice of most first time buyers. if that is what you choose to do then you need to pick a condo that qualifies for FHA loans.
Beyond the type of loan...the terms are very important. The interest rate can be different. Do you want a fixed or adjustable rate? How long are you financing for? 15 or 30 years are the most common. Is there a penalty for early payoff? Can the loan be assumed?
Just remember every loan is different so look at the details of what works best for you.
Best Wishes,
Erika Pitman
Keller Williams Realty
ErikasHomes@gmail.com
704-576-1671
The best type of loan is the one that fits your situation. Your loan officer and real estate agent can help you with details.
Since a FHA loan requires less down that is the choice of most first time buyers. if that is what you choose to do then you need to pick a condo that qualifies for FHA loans.
Beyond the type of loan...the terms are very important. The interest rate can be different. Do you want a fixed or adjustable rate? How long are you financing for? 15 or 30 years are the most common. Is there a penalty for early payoff? Can the loan be assumed?
Just remember every loan is different so look at the details of what works best for you.
Best Wishes,
Erika Pitman
Keller Williams Realty
ErikasHomes@gmail.com
704-576-1671
Dave Dicecco,
Broker, Charlotte, NC
Delgis,
There is no better option among FHA opr conventional loans. The main difference between them is the amont of down paymetn you want ro have to put down. An FHA loan requires only a minimum of 3.5% down. Conventional loans will require from 5% to 20% down depending on your credit.
A couple of other things you have to consider are that on a FHA loan and a conventional loan with less than 20% down you are going to be paying mortgage insurance on the home. It is a fee that si added into the loan over a five year period. Do to the low down payment the government on a FHA and the bank on a convnetional wants to have insurance against you defaulting on the loan. Thus depending on the price of the condo that fee is generally 2.25% of the sale price.
Also, you mentioned purchasing a condo. You need to be very careful here. Not all condos qualify for a FHA LOAN. the complex mst be FHA approved. It may sound easy but they want to ensure the complex is financially solvent and that it is not primarlily made up of tenants. I have seen them in the south side of Charlotte not be FHA approved.
So, if you are lookign at the condo decide how much of a percentage fo the sale price you wnt to put down. I would have the mortgage eprson run the numbers both ways if you have the down payment to do 20% and see waht the difference in the monthyl payments are. Also, another factor is to consider how long you are gong to plan on living there. Is this a three to five year investment? Do you plan on keeping it long term as a rental? These all factor into which loan may be best for you right now.
There is no better option among FHA opr conventional loans. The main difference between them is the amont of down paymetn you want ro have to put down. An FHA loan requires only a minimum of 3.5% down. Conventional loans will require from 5% to 20% down depending on your credit.
A couple of other things you have to consider are that on a FHA loan and a conventional loan with less than 20% down you are going to be paying mortgage insurance on the home. It is a fee that si added into the loan over a five year period. Do to the low down payment the government on a FHA and the bank on a convnetional wants to have insurance against you defaulting on the loan. Thus depending on the price of the condo that fee is generally 2.25% of the sale price.
Also, you mentioned purchasing a condo. You need to be very careful here. Not all condos qualify for a FHA LOAN. the complex mst be FHA approved. It may sound easy but they want to ensure the complex is financially solvent and that it is not primarlily made up of tenants. I have seen them in the south side of Charlotte not be FHA approved.
So, if you are lookign at the condo decide how much of a percentage fo the sale price you wnt to put down. I would have the mortgage eprson run the numbers both ways if you have the down payment to do 20% and see waht the difference in the monthyl payments are. Also, another factor is to consider how long you are gong to plan on living there. Is this a three to five year investment? Do you plan on keeping it long term as a rental? These all factor into which loan may be best for you right now.
Web Reference: http://www.davedicecco.com
Debbie Arriero,
Broker, Charlotte, NC
Hi Delgis, if you are a first time buyer, an FHA loan is definitely the best way to go. You only need 3.5% down and some or all of that can be a gift from someone you may know if you do not have your own funds. Your debt ratios can also be higher. Your FICO score does not have to be as high.
Conventional loans require much more down, and it has to be your own money. Lenders will not even consider doing a conventional depending on what your FICO score is. I do have a lender that I can recommend to help you get prequalified if you have not done so.
Since you are wanting to buy a condo, it will be a bit harder to purchase a condo or townhome because they must be FHA-approved. There is a web site I can use to check that if you know which particular community you'd like to live in. I have worked in the Charlotte market for over 20 years. I am very familiar with our market and the homes that are offered. Please give me a call or visit my website, http://www.PropertiesofCharlotte.com. for more information.
Good Luck,
Debbie Arriero
ABR, AHWD, ASP, CRS, e-PRO, GRI, SFR, SRES, REALTOR
Serving the Charlotte area since 1990
Licensed in North & South Carolina
2009 Charlotte Magazine 5 Star Customer Satisfaction Award Winner
Arriero Realty, Inc.
P.O. Box 77283
Charlotte, NC 28271
Office: 704-451-3895
Fax: 704-321-2403
mailto:DebbieArriero@Windstream.net
http://PropertiesofCharlotte.com
http://twitter.com/UNC_NCSU_Mom
http://www.linkedin.com/in/DebbieArriero
Conventional loans require much more down, and it has to be your own money. Lenders will not even consider doing a conventional depending on what your FICO score is. I do have a lender that I can recommend to help you get prequalified if you have not done so.
Since you are wanting to buy a condo, it will be a bit harder to purchase a condo or townhome because they must be FHA-approved. There is a web site I can use to check that if you know which particular community you'd like to live in. I have worked in the Charlotte market for over 20 years. I am very familiar with our market and the homes that are offered. Please give me a call or visit my website, http://www.PropertiesofCharlotte.com. for more information.
Good Luck,
Debbie Arriero
ABR, AHWD, ASP, CRS, e-PRO, GRI, SFR, SRES, REALTOR
Serving the Charlotte area since 1990
Licensed in North & South Carolina
2009 Charlotte Magazine 5 Star Customer Satisfaction Award Winner
Arriero Realty, Inc.
P.O. Box 77283
Charlotte, NC 28271
Office: 704-451-3895
Fax: 704-321-2403
mailto:DebbieArriero@Windstream.net
http://PropertiesofCharlotte.com
http://twitter.com/UNC_NCSU_Mom
http://www.linkedin.com/in/DebbieArriero
Web Reference: http://www.PropertiesofCharlotte.com
