Have you heard of a HECM?
Home Equity Conversion Mortgage?
Are you or your spouse 62?
You could live in your home without any mortgage payments. Did you know that?
Its true.
Jacqui Hamilton
Concord Mortgage
jacqui.hamilton@concordmg.com
623-900-1935
For conventional financing that answer is going to be: it depends. With great credit as little as 5% down has you in a conventional loan. With mediocre credit, 10%. But to eliminate the mortgage insurance you still need 20% down. Sometimes, with a bit more down, you may be able to get a better rate. Having a lender who will talk to you and find out what your needs are and presents different options is the best thing. Robyn Robertson from Suburban Mortgage (480-355-8106) talks to me in this video about different types of conventional loans and what is available today in the ever changing world of home lending.
Once you have found the house and had your offer accepted there is a lot that needs to be completed. If you get all your paperwork into the lender in advance that is one less thing that needs to be done in the first week.
I sat down with Robyn Robertson from Suburban Mortgage today. (480-355-8106) We talked about how just over the phone in a quick conversation she could estimate what you should be able to qualify for in a loan. But before you head out and get serious, be sure to get all the documentation to her to confirm the numbers, and get the Pre-Qual form filled out. It not only helps when submitting your offer, but also makes the first week of the contract process easier with lending requirements already taken care of.
Today I attended a class on the FHA 203 K loan. It has always been one of those things that sounds really good but is practically impossible to get done. But I met a team of peeps all working together and getting the FHA 203k loans closed and people into their beautiful homes.
One of the challenges in todays market is that so many of the homes (foreclosures and short sales) are in poor condition. Having items and issues that need repair in order to get a loan on the property; and with both short sale and foreclosure properties being “As Is” transactions, and no repairs being completed by the seller, getting a loan approved, funded and closed can be like pulling teeth without any Novocain.
In comes the FHA 203K team!
Together, a lender who will complete this type of loan; the home inspector, termite inspector, general contractor, HUD inspector, and a handful of other people that together know what is required, are working in unison to help people purchase these distressed properties, make the needed repairs and do some remodeling and updating at the same time.
How does it work?
The home buyer finds out what they will qualify to purchase. Working backwards from there, if you qualify for 200,000 and you are going to put 20-35,000 into repairs and remodeling; look for homes priced around 160,000. At the same time you have the home inspection, also bring in the general contractor and maybe the HUD inspector too. Find out the cost for what is needed to be repaired and what you would like to have remodeled. The cost of repairs and remodeling are rolled into the final loan amount. At closing the general contractor gets in the house and makes the repairs and remodeling, a few weeks later the home owner gets to move into their beautiful newly re-done home.
This takes an experienced team, a well oiled machine and fantastic communication. I am glad to know the players! and to have been invited to join the team and help a few more buyers get into their dream home.
When your lender ‘pulls your credit’ they get a Tri-Merged credit report. That translates to, the single credit report they receive is a compilation of all 3 of the main credit bureaus reports. The lender will use your Mid-Score. That is not the average of your 3 scores, but the middle of the 3 scores.
Why do I have 3 different scores? Shouldn’t they all be the same?
It seems like all the scores should be the same, but each bureau does its own computations; coming up with their own numbers. Also, some companies only report to one credit agency, not like your mortgage that reports to all 3; So some of the credit agencies have different information to base your credit score on.
The lender will only use your mid-score to determine what type of loan you will qualify for. So if they do need to do any credit repair, they will just work with the one credit bureau reporting your mid score.
Specializing in Active Adult, 55 Plus, Retirement Communities, Relocation, Second and Seasonal Residential Real Estate
