A year ago on this very day, May 21, 2009 mortgage rates jumped. Isn’t it amazing that we are in such a different place than we were then? We have watched the rates go up and down and up and down with no clear picture as to how this thing was going to end up, and we still don’t really know what is going to happen.
The market has changed and times of change, it’s just a matter of figuring out how we are going to weather those storms. One day is better than the next, so how do we manage? We can’t just give up, we need to tap into resources that have been here for us all along, but that we just haven’t used. We need to make better choices with the understanding that it affects our family and our friends. It certainly affects our children the most, but we don’t think of it that way.
The market may continue to change, and your personal circumstances may change, but the one thing that remains the same is the decision that is left up to us. We can either forge ahead and look at our options and be responsible, or we can choose to not try and just bury our head in the sand and pretend that things will get better without our imitative. Forging ahead is the only option for me.
Showing posts with label mortgage rates. Show all posts
Showing posts with label mortgage rates. Show all posts
Friday, May 21, 2010
Thursday, May 20, 2010
Rent Credits Toward Your New Home Purchase
Rent to own is a popular option these days, and they do work out well for some who are looking to buy a home in the future, but how does this work?
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
Get an FHA Approved Condo
If you are looking to buy a condo FHA you can, but there are some specific requirements that FHA has regarding condos. Typically in the past, it was not recommended to buy a condo because they were hard to resell. Families would opt for a house before a condo.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
An FHA Checklist for You
When applying for an FHA loan, here are a few things you will need to bring with you to your appointment.
1) Make sure we have your residential address for the past two years.
2) We need your social security number in order to pull your credit report.
3) Names and addresses of your employers over the past two years as well.
4) We will need to know your gross monthly salary at your current job. If you work more than one job we will need that information too, so we can include that in your income.
5) We will need all pertinent information to your checking and savings accounts.
6) We need any pertinent information for any loan you are currently paying on; that includes any installment loans, mortgage loans, and credit cards.
7) All information pertaining to other real estate you might own; this would include rental property, commercial property etc.
8) An approximate of all personal property is helpful, because if you own anything of value, the lender will consider that as security for your loan.
9) If you are a veteran, we will need your certificate of eligibility. This form is also known as a DD-214.
10) Your two most recent paystubs and w2’s for the past two years. We need to make sure that we are looking at the correct year-to-date income for you.
11) Personal tax returns over the past two years are required if you are self-employed, and a business balance sheet is helpful.
This is the documentation that is necessary to help get your loan started. Over the process we may need more documentation as everyone’s needs are different.
1) Make sure we have your residential address for the past two years.
2) We need your social security number in order to pull your credit report.
3) Names and addresses of your employers over the past two years as well.
4) We will need to know your gross monthly salary at your current job. If you work more than one job we will need that information too, so we can include that in your income.
5) We will need all pertinent information to your checking and savings accounts.
6) We need any pertinent information for any loan you are currently paying on; that includes any installment loans, mortgage loans, and credit cards.
7) All information pertaining to other real estate you might own; this would include rental property, commercial property etc.
8) An approximate of all personal property is helpful, because if you own anything of value, the lender will consider that as security for your loan.
9) If you are a veteran, we will need your certificate of eligibility. This form is also known as a DD-214.
10) Your two most recent paystubs and w2’s for the past two years. We need to make sure that we are looking at the correct year-to-date income for you.
11) Personal tax returns over the past two years are required if you are self-employed, and a business balance sheet is helpful.
This is the documentation that is necessary to help get your loan started. Over the process we may need more documentation as everyone’s needs are different.
Market Watch on Rates
When the market watch rolled out this morning, they were speaking of another volatile day in the market. Lenders ended up having to continue extending low rates due to the market conditions. This is not great for them, but good for buyers. Right now, rates are probably the most aggressive we have seen in a very long time.
Just the day before the lender s felt that they would be able to raise rates in confidence that the market would open up high, but even with all the momentum it received it fell just as fast. Is this crazy or what? They keep trying to predict the week ahead, but don’t really know as to whether or not they can whip out that crystal ball to see if they can tell us what is next?
Just the day before the lender s felt that they would be able to raise rates in confidence that the market would open up high, but even with all the momentum it received it fell just as fast. Is this crazy or what? They keep trying to predict the week ahead, but don’t really know as to whether or not they can whip out that crystal ball to see if they can tell us what is next?
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