Lender paid mortgage insurance is getting more attention these days. It did not use to be a common scenario because rates used to be so much higher than they are today. With the lower rates we are able to obtain, we can afford for it to be bumped up a quarter percentage or even a half of a percentage point in order for the lender to pay for the insurance. This is true even for borrowers that were planning to put down 20 percent on the purchase of their home in order to avoid paying PMI at all. Why should…
Author: Tech Admin
If you put less than 20 percent down on the purchase of a home, you are going to have to pay Private Mortgage Insurance, but it is not as simple as you might think. You have options when it comes down to how you pay the insurance. There is no getting around having it in one form or another, but you do have options on how you pay for it. The most common way is to pay on a monthly basis, but you can also have the lender pay it up front for you, eliminating those monthly charges. The Difference…
The FHA offers many benefits which first-time home buyer can take advantage of. One of these benefits is the ability to purchase a new home with a very low down payment and with less than perfect credit score. Even borrowers who have a significantly lower DTI ratio can take advantage of an FHA home loan. Borrowers can also enjoy more lenient guidelines and requirements when they choose to fund their home loan with an FHA home loan. These advantages are what make the FHA home loan a popular choice over other conventional home loans. Am I Eligible? Truth be told,…
A majority of home buyers whether it be their first time buying a home or their 10th, down payments are usually the biggest headaches for home buyers. With the HomeReady™ Mortgage Program from Fannie Mae that headache is alleviated. The HomeReady™ Mortgage Program offers 3.0% down payment for first time home buyers. Benefits to the HomeReady™ Mortgage Program Besides the wonderful benefit of 3.0% down payment requirement, the next best thing about the HomeReady™ Mortgage Program is the flexible source of your down payment. You can use money out of pocket, you could borrow from your 401(k), you could…
Last year, the VA helped about 73,000 veterans avoid foreclosure. The VA home loan is still one of the only loans to offer no down payments. Today, VA home loans are available to more than 20 million veterans and active military members. As banks tighten lending standards the demand for VA home loans has increased tremendously and they’re easier to qualify for than conventional mortgages. Although the US Department of Veteran Affairs is not a lender, the loan is made through private lenders and are guaranteed by the VA as long as the borrower qualified and guidelines are met. The…