Have you every asked this question? Can I have 2 FHA loans at the same time? Or have you asked the question about a lease agreement on the property? Dealing with today’s loans can be very confusing. One reason for this is the many different updates that have accured over the past few months in the mortgage industry. Here is what you need to know in reference to 2 FHA loans.

There are two exceptions to having two FHA loans at the same time:

1. Relocations: The homebuyer is relocating and establishing residency in an area not within a reasonable commuting distance (typically 50 + miles- but underwriter discretion) from the current principal residence. Note that the relocation does not need to be employer mandated to qualify from this exception.

OR

2. Sufficient Equity in Vacated Property: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal, in addition to using forms Fannie Mae1004/Freddie Mac 70, may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055, and for condominium units, form Fannie Mae1075/Freddie Mac 466. IN ADDITION (this is NOT an OR- it is AND), the lender must document that the number of legal dependents increased to the point that the present house no longer meets the family’s needs (this one is tricky- and you might need the assists of your loan officer.

So what about Lease Agreements. How do you handle lease agreements?

The answer is:

Here are the exceptions of being able to use a lease agreement to offset current house payment when FHA is being used for financing of current property:

1. Rental income on the property being vacated, reduced by the appropriate vacancy factor as determined by the jurisdictional FHA Homeownership Center (see http://www.hud.gov/offices/hsg/sfh/ref/sfh2-21u.cfm) may be considered in the underwriting analysis under the following circumstances:

2. Relocations: The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance (typically 50 miles- but underwriter discretion) . A properly executed lease agreement (i.e., a lease signed by the homebuyer and the lessee) of at least one year’s duration after the loan is closed is required. FHA recommends that underwriters also obtain evidence of the security deposit and/or evidence the first month’s rent was paid to the homeowner.

3.  Sufficient Equity in Vacated Property: The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property. The appraisal, in addition to using forms Fannie Mae1004/Freddie Mac 70, may be an exterior-only appraisal using form Fannie Mae/Freddie Mac 2055, and for condominium units, form Fannie Mae1075/Freddie Mac 466.

So there you have it. If you are looking to buy or sell your next home contact me today! Or visit me at my website at:www.sellorbuyhomefast.com

Is this the question that you are constantly asking yourself? How can I buy a home even if I don’t qualify for a sub-prime loan? What if I told you that you still could buy a home even when you get turned down for a home loan. I bet you are kind of scratching your head right now… How is that possible? How can I get in a home even when I don’t qualify for conventional financing?

Well here are a few answers:

1. You will have to be creative in your offer to the seller.

2. You need seller’s who has a need to sell: Relocating, etc

3. You need sellers who is open minded to listening to another way of getting there property sold.

So why no one every told me that there was a different way? Well because a lot of people don’t know how to think differently. I was talking with a group the other day and it seem like they where saying that if a new pair of jeans come out and it becomes stylish then we all tend to buy them based on the crowd. It’s the same way as buying a home. We have become so use to hearing lenders say no until after the third no we usually give up. What I want you to do is snap out of it! Stop allowing the no’s to keep you from moving forward in trying to purchase a home. I’ve learned that you have to get pass the no’s to get to a YES….. Just like right now you are ready to buy your next home and your lender has turned you down…..

Here is the question to ask your lender:

1.”If I don’t qualify for 100% financing what amount do I qualify for?” Do you qualify for a 95% loan or do you qualify for 90% loan or do you qualify for a 85%….. Find out what you can qualify for….

2. If you find out that your credit is below the minimum credit score then what other strategies are there?

(A.) You can ask that seller can you rent there home for at least 12 months to 2 years and have an option to buy the home. (Note: Within this period you need to make sure that you are re-establishing credit and doing debt settlement with some creditors that want come off of your credit report. )

(B.) You can ask the seller will they owner finance there home to you with a little money down.. This amount can be 3% or more down…. What does this do for you? It helps you to qualify because you are not dealing with conventional financing guidelines. (C.) You can check out FHA guidelines to see if you qualify for FHA financing.

Did you know that:

FHA has come out with new guidelines? Look below to see some of the following things.

No minimum FICO score- FHA allows “common-sense” decisions.

Maximum loan amount for Dallas, Kaufman, Collin, Denton, Rockwall and Hunt Counties is $200,160 (Sales price of 204,760 with the 2.25 down payment) Minimum Down Payment is 2.250%, but can roll in all cost with $0 out of pocket.

Buyer must make a 3% investment unless down payment is paid as a Grant/Charity (DAP) contribution.

Seller can contribute up to 6% of the Sales Price without using a Charity (DAP) contribution. No Termite Inspection Required.

No Non-Allowables required for the seller. Buyer can currently be in a Chapter 13 Bankruptcy.

It is an assumable loan (important when rates go to 8% and they are at 6%).

Buyer can have Federal Tax Liens and not have to pay them off!

(D.) Did you know that if you serviced in the USA army, Airforce, Marines or Etc you may qualify for a VA loan… Just look below at some of the guidelines:

NO Minimum FICO score is required*There is NO down payment required!

Seller can pay any/all of reasonable buyer’s closing cost!

Buyer CAN currently be in chapter 13 BANKRUPTCY*Sales Price can go up to $417,000*Can have unpaid collectionsCan go as low as an 4.20 Fixed Rate if used in conjunction with a Texas Veterans Land Board program.

**Some limitations apply
(Note: Above information on FHA and VA loans where provided by one of my loan officers:
Linda Davidson. If you would like to receive her information feel free to contact me….)

The above information lets you know that yes you still can buy a home. You might have a things to do list. But, don’t you think it would be worth giving it a try? So don’t give up. Keep your goals before you and like the old saying: “If first you don’t succeed, then try, try again.” Don’t give up on the dream of home ownership. You can have a home too!

Your Next Action Plan:

1. Find a Realtor and Lender that understands FHA and VA guidelines. Also find out what you can qualify for.

2. Get your credit report and see what things need to be settled and what things can be taken off.

3. Find sellers who will agree to terms of allowing you to rent and then give you an option to buy.

4. Talk with Sellers and see if they will Owner Finance there home.

So you are ready to make the first step in purchasing a home, and want to know what to do first? Then, this article is for you…. True, you can start your car up, drive in any area, and search for neighborhoods that you want to live in. But, before you do. I want you to consider the price of gas right now. Before you get your heart set on that dream home and burn gas going address to address there is something you should know first. You need to get an Approval by your lender first. Noticed I didn’t say prequalification, but I said approval letter. So what is the difference between prequalification and approval. Glad you asked….

Prequalification occurs before the loan process actual begins. This is the first step after initial contact is made with the lender. During this process, the lender or mortgage broker gathers information about your income and debts, and makes a financial determination about how much you may be able to qualify for. This process is normally your initial contact with the lender.

This is also where the lender will pull a credit report to see if you qualify for some of there promotional programs. (Note: Consult with your lender to find out what programs are available.)

Approval goes a step further than prequalification. It is when you turn in all the necessary documents in to a lender. These documents may include w2 forms, tax returns, etc. Once the Lender has the documents these documents are turned into the processing department. The processing department prepares your documents for underwriting.. The lender will then have your Approval letter based on all the documents being turned in.. They will also let you know the maxium amount loan you are able to finance.

Once you have this approval letter you are ready to call up your local Realtor or start driving looking for homes. Think about this for a second…… If you where to present an offer to a seller and you have an approval letter in your hands from your lender, you become a very strong candidate when it comes time to put an offer in on a home. Also you can present your offer with confidants knowing that your lender is behind you…. It also makes the transaction go a little smoother on the lending end….

So Your Next Assignment Before You Go House Hunting:

• Get all your documents into you lender and get a Approval Letter!

Remember: If you are in the DFW Metroplex Area or thinking about moving to DFW Metroplex feel free to browse my site at: http://www.sellorbuyhomefast.com/

I thought I would write a few little tips if you are thinking about buying a new home… If you are thinking about buying a new home there are something that you want to keep in mind.

(1.) Make sure you are dealing with a reputable builder…..

You have to understand that it is buyers beware…. You have to make sure that the builder has been around for a while…. In Texas I’ve see so many new builders that are building homes….. Make sure that they are not a fly in the wall company.

(2.) Don’t be afraid to ask questions…..

When you deal with a sales person remember , their job is to sell you a home. You have to make sure that you feel comfortable when dealing with them. If for some reason they sound too push, or they are not giving you enough information. Don’t be afraid to find a different person to work with. Sometimes larger companies allow other communities sales people to find a home in a community that fits your needs…

(3.) Learn your warranties …..

Make sure you find out about all of your warranties…. Learn what the warranties will or will not cover…. Make sure you know what are consider items that are fixable and items that will only carry 1 or 2 year warranties. To many people fail to understand what the builders will cover. Thats why you have to know your warranties before you sign on the dotted line….

(4.) Learn about the naborhood and subdivision……

Just because its a new subdivision does mean that you don’t need to do your homework….. Don’t be afraid to ask a few people who have moved in the community about the community… Find out from the police department about how many times they get called out to the community…

Make sure that its not a high volume of calls…… Try and found out what was there before the community was built. If the sales person cannot answer go to your records building and research the subdivision to see if it was just a farm land or vacate land…….

(5.) Understand the paperwork that’s involved….

Understand the paperwork that is involved when signing an agreement. If you do not understand it, then you need to hire a Realtor to look over it….. Remember, you want people who are in your corner looking out for you…..

(6.) Use a Realtor….

Don’t count out the fact that just because it is a new community that you don’t need a Realtor….. Realtors can be good tools for information if they are familiar with the naborhood… Ask the Realtor to run comps and try and find new home sales so that you can get a good idea of what new homes sales look like in a naborhood…. This will let you know exactly what your home maybe worth and allow you to make a solid decision… Also you can have them look over the paperwork…. Sometimes they can pick up errors that you might have missed……

(7.) Remember you can use your own mortgage company or bank if need be….

Many times Builders have incentives to get buyers to go thru their mortgage companies… Always remember that you don’t have to use them if u choose not to…… Remember to negotiate who pays title policies…. Sometimes builders, will use paying title polices to get you to go with there mortgage company….. There is nothing wrong with going with a builders mortgage company to get the better incentives…

Make sure that there mortgage company is providing you with good customer service…. If for some reason you find a mortgage company sending you the paperwork without explaining to you what is going on then you might want to look into finding someone else to deal with that will provide better services…… Remember, they are getting paid , so why not get the best service……. Don’t be afraid to walk away from a deal if you don’t feel comfortable doing it….

I do hope that this helps you in your search to find a home… If you are in the Dallas/FT WORTH area and you need a home I would be happy to assist you…….. HAPPY HOUSE SHOPPING!

Do you ever ask yourself this question. What is your right as a borrower? Many new buyers don’t realize that they do have a right. As the borrower there are a few things you are entitled to. I thought I would post these few things so that you know what your right is as a buyer and a borrower of a new loan.

1. You have the Right to shop for the best deal possible when it comes to a loan.

2. You have the Right to compare the charges of different mortgage brokers and lenders .

3. You have the Right to be informed about the total cost of your loan including the intrest rate, points and other fees.

4. You have the Right to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.

5. You have the Right to know what fees are not refundable if you decide to cancel the loan agreement…

6. You have the Right to ask your mortgage broker to help you understand exactly what he or she will do for you.

7. You have the Right to know how much the mortgage broker is getting paid by you and lender for your loan.

8. You have the Right to ask questions about charges and loan terms that you do not understand.

9. You have a Right to a credit decision that is not based on your race,color, religion, national origin, sex, martial status, age or whether any income is from public assistance.

10. You have a Right to know the reason if your loan was turned down.

Please Note: That the above statment is based on Texas Laws and could vary from State to State. So please research this information to make sure that it applies to your state.

Well if you are new to buying a home. Then these are the question that you sometimes ask. So what is the best way to buy a home? Well, lets start with a few basic steps that you want to keep in mind when you buy a home.

Step 1. Make sure that you have your Financing lined up.

Now, I know that this sounds backwards but it is true. You want to make sure that you know how much you can qualify for. This one step will save you so much time and gas. Why waste time looking at homes you don’t qualify for when you can spend the same time finding the home that you can purchase in your price range. That’s way you want to make sure that you have your financing lined up. Make sure that when you are dealing with your lender you get your Pre-Approval letter. This helps because when you decide to make a offer on a home you can show the For Sale Buy Owner or the Listing Agent that you are ready to buy. Also make sure you understand the terms of the financing such as: Fixed rates, Arm Rates etc.

Step 2. Make sure you have the areas you want to live already outline.

Another problem area you want to tackle , make sure that you know the area you want to live in. I would suggest that you have three different ones lined up. Make sure you put your best choice first, followed buy the second and third. This will allow you to focus your attention on the ones you really like. If the first choice is not avaliable then you have the second and the third to fall back on.

Step 3. Do you need a professional to represent you or are you a do it yourself person?

If you never bought a home before you might want to consider having a Realtor to represent you. Don’t be afraid to have someone else represent you if you don’t understand the terms and the paperwork. Now if you like to do things yourself make sure that you understand the paperwork. Most buyers make their mistakes when they don’t understand what’s going on in the transaction.

Step 4. Make sure that you have a inspector or a experience contractor look at the home before you buy it.

This will save you so much time if you have the money to hire one. A license inspector can check the home out and tell you what’s wrong with the house. It will also save you the headache of learning about the defects after the purchase. If you don’t have the money for any inspector you might want to consider having an experience contractor (possible a friend or family member look at the house for you) Must contractors understand structure and construction of the house and if they are a friend or family they just might do it for you because they know you.) Also if you have a friend or family member that does plumbing and electrical work or air condition work you could have them take a look at it for free.

Step 5. Make sure that you check for termites.

Here in Texas we are known for termites. I don’t know, it might vary from State to State but make sure that you have a pest control person inspect your home for termites. This charge will vary from state to state so make sure you get quotes.

There you have it an easy outline to follow. Remember if you would like further assistant in buying and selling your home make sure that you contact me so that I can assist your or for faster service fill out your information on our website and someone will reach you. Thanks in advance

Hello,

Just thought I would leave this message to invite you to ask me questions about Real Estate. If you would like to find out something feel free to leave comments …. Thanks again

Waiting to answer your question,

The Expert