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Financing in 93003 : Real Estate Advice

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  • Local Info3
  • Home Buying9
  • Home Selling0
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Activity 9
Thu Feb 21, 2013
Tim Moore answered:
Your community does not use a certain lender? There must be more to the story.

All pre-approvals do not "have" to have a credit check run. Some pre-approvals can be done on the phone in 5 minutes. Use your current pre-approval and if you need another then worry about it when asked for. Since you are building you are not in a bidding war with other buyers as if you were buying bank owned homes.

Why does a community tell you what lender to use? Or is it the builder doing it? Do you have a Realtor helping you? It's free you know.
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Wed May 2, 2012
Gregorio Denny answered:
You would need to define "bad." Also, all "bad" credit is not created equally. Some people have low credit scores due to things like medical collections but are still creditworthy. There is no one place that is better or worse, it's your entire credit profile that's important and the circumstances surrounding it. ... more
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Fri Apr 26, 2013
Barry Shapiro answered:
Can this be true? Yes, but only with Fannie Mae HomePath homes that qualify for Fannie Mae’s HomePath financing. Fannie Mae is the largest purchaser of mortgages in the U.S. and in February of 2009 announced special financing to make it more affordable to buy their foreclosures.
When it comes to getting a new conventional loan vs a FHA loan, if you recently had a foreclosure you may have to wait 7 years to get a new standard loan, but still only 3 years to get FHA loan.

Recently Fannie Mae (who controls most of the lending recommendations for standard loans) arrived out with a new guideline where borrowers will have to wait 7 years following the date of a foreclosure sale in purchase to get a new standard loan. This time period can be cut to 5 years if you can document an extenuating circumstance that was the cause for the foreclosure. This change has been made by Fannie Mae due to the number of “strategic defaults” where borrowers who can spend choose to walk away. This also encourages the pursuit of short sales for borrowers who are underwater and can’t sell. Fannie Mae only requires a two year wait following a short sale to acquire a new standard home loan.

FHA still stays only a 3 year wait following the date of a foreclosure sale to acquire a new FHA loan. VA loans are the most lenient with only two years following foreclosure needed to get a VA loan.

This new rule is particularly impactful on investors wanting to get non-occupied investor loans. FHA and VA loans are only for owner occupants. So the ONLY choice for investors to get a home loan is standard financing. And investors are now out of the marketplace for 7 years following a foreclosure on their record.

Right here are some of the most up-to date benefits of standard and FHA loans:

FHA

FHA loan down payment is only 3.5% and that can be a gift from a relative, this is lowest down payment accessible of any loan today (outdoors of specialized loans this kind of as VA loans for military and USDA loans for rural properties)
Qualify FHA loan with extremely lenient guidelines…only 620 FHA loan credit score needed and 56.9% financial debt-to-income ratio (standard requirements a 680 credit score score and 45% financial debt ratio)
Optimum FHA loan up to $729,750 in numerous California locations this kind of as Los Angeles, San Diego, San Jose, San Francisco, Santa Barbara and other locations. This would permit you to purchase a house with FHA loan California up to $756,217 with only three.5% down
Conventional

5% down accessible if you have a 720 credit score score with 41% financial debt-to-income ratio
Conventional loan limits in California up to $729,750
Homepath home loan accessible on Homepath properties with three% down and 10% down for 2nd house purchasers and investors
Homepath financing accessible on Fannie Mae owner condos without any condominium checks. I "Hope" this helps ....
Scott Gilman with Prospect Mortgage knows today's rules for Fannie Mae....
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Sat Feb 5, 2011
C2 Financial Loans answered:
That is incorrect it doesn't take longer for a mortgage broker to do a purchase loan. Typically, a mortgage broker can offer a competitive rate since they have wholesale relationships with the lenders and are able to pass the savings on to you. Also, a mortgage banker who has a relationship with correspondent lenders operates in a similar fashion to a mortgage broker. Especially, those associated with bigger firms also get preferred pricing which they pass on to their client. Also, the licensing requirements are much more stringent and encompasses a thorough background check and fingerprints for a mortgage broker and banker as compared to a retail bank loan agent.

Typically, a mortgage broker and banker can often times beat the interest rates and provide a high level of client service as well.
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Thu Feb 3, 2011
Don Maher answered:
Hi
Date started
Job title
And are you still employed

That's it
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Wed Dec 29, 2010
Fred Glick answered:
Just get one. I am sure you will be getting a loan that is sold to Fannie Mae or Freddie Mac, so go to a mortgage broker (yes, I am one :) ) that will give you the raw Fannie Mae DO or Freddie Mac LP approval.

That is the best approval you can get. Then, make suer your agent shoves that down the throat of the bank to make them understand that you don't have to keep getting reapproved and have your credit score lowered and have the possibility of then NOT getting the loan.

Good luck,

Fred
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Sun Jul 31, 2011
Linda Lorenzo answered:
I think the answer is obvious, you need to stay put. Another option would be to contact your lender and see if you are eligible for a loan modification. Here is a link for details: http://makinghomeaffordable.gov/
Best of luck to you.
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Fri Feb 19, 2010
Barry Shapiro answered:
Hello again Gayle,

This is an excellent question.

The USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in California and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

To be eligible for A USDA Rural Loan in California, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval.. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area (see link below) Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance


USDA Rural loans are based on both INCOME eligibility:
http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11
AND PROPERTY eligibility guidelines:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

These two websites should answer most of your questions.
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Mon Aug 31, 2009
Kyle answered:
What is your home worth approx and what is your currect loan rates? I would need to know that to give you a quote....
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