How Underwriters View Owner Occupied Vs. Non-Owner Occupied Transactions

There are many times when a homebuyer truly intends to occupy a home as a primary residence only to be told by a mortgage underwriter and subsequently their loan officer that their claim of having the intention to occupy a property as a primary residence was not adequately credible. This often happens when a property purchase is being made while another property is being retained. The consequence of a decision on the part of the underwriter to not agree with a homebuyer’s intent to occupy a property as a primary residence can lead to larger down payment requirements and inferior …

Fannie Mae and Freddie Mac Near Deal to Bring Back 3% Down Financing

The Wall Street Journal published that a deal between the FHA, Fannie Mae and Freddie Mac is much closer to becoming real than had been anticipated. Nobody knows the exact timing of the implementation of the deal but there are two significant parts that will benefit the consumer. The first element has to do with making it crystal clear to lenders what is expected of them when delivering loans to Fannie Mae or Freddie Mac or getting them insured by HUD. This clarity will mean that lenders won’t be afraid of loan risk nearly to the extent that they now …

Planning Your Home Purchase With a Mortgage Recast

Often times, seemingly in a fantasyland, home buyers might want to buy their new home first non-contingent on a home sale and sell their retained home shortly after moving into their new one without a financial inconvenience.  They might want to do this to get a better price due to negotiating from a position of strength or it might simply be a matter of logistical convenience.  Whatever the reason, the difficulty arises when they want to use the equity from the home that they’d be selling to achieve a lower payment on their mortgage for their new home.  Most would …

Your Rental Rate: Too High, Too Low – Rent vs Own Home Calculator

Every time we read an article online about taking a more analytical approach to deciding whether or not to buy a home, you’ll always get comments about how “personal” or “emotional” the decision is but if you’ve found this page, that’s not why you’re here.  You’re looking for a “left brain” experience and you’re going to get it. When analyzing a decision on a move, it’s important to know the variables, have all the tools and take the whole decision under consideration.  It can be frustrating poking around all over the internet to find these facts, tools and calculators so …

New Minnesota Housing Mortgage Loan Programs – not just for First Time Homebuyers!

Through the Minnesota Housing Finance Agency (MFHA), the State of Minnesota offers eligible homebuyers loans with subsidized interest rates and mortgage insurance for low-to-moderate income homebuyers, that is correct, it is not just for first time homebuyers anymore! Start Up is the new Minnesota Housing statewide mortgage loan program for low-to-moderate income first-time homebuyers.  Click here for detailed information on Start Up (first-time homebuyer loan program). Step Up is a new Minnesota Housing loan program for non-first-time homebuyers to purchase or refinance a home.  The program offers affordable fixed-rate loans and access to down payment and closing cost loan options …

Buy Your Home With a Low Down Payment of $100.00!

During the fall of 2011, all HUD owned properties that are under the jurisdiction of the Denver and Atlanta HUD Homeownership Centers are eligible for the $100.00 down payment purchase incentive.  What this means, home buyers in Minnesota, Wisconsin and the additional states under Denver & Atlanta’s jurisdiction can purchase a HUD Owned Property with just a $100.00 down payment.   Purchasing a HUD property could be a great way to reduce out-of-pocket expense, but there are some things you should know first.  To purchase a home with the $100.00 down payment incentive the HUD Owned Property must be:  Owner Occupied. …

Getting Married? Buying a house? Why not use your registry for a Down Payment Registry?

If you are planning on getting married soon and buying a home — then why not use your registry as a Down Payment Registry.  This is a nice way to help add to your down payment funds. FHA has a Bridal Registry Program that allows the funds you receive as wedding gifts to be used towards your down payment. Guidelines for the Bridal Registry Program This program was originally introduced in 1996 as a way for FHA to promote homeownership. For many years this program sat almost dormant, but in the last several years with the economy tightening up newlyweds have …