Tag Archives: Mortgage

Mortgage Products Offered by Homestar Financial Corporation

Homestar logoI went to a class this week given by The Ryder Team of Homestar Financial Corporation and it was very informative of the types of loans available and the details about the loans. I thought I would pass on this information. This information was good 11/21/2013.

Quick Reference Guide

USDA Loan

  • If the borrower is pre-qualified for a USDA loan then the property has to be eligible as well. To find out go to www.thinkrd.com
  • 100% Financing, 30 year term, not down payment
  • Need 45 days to close a USDA loan
  • No max purchase price but the loan amount can not exceed appraisal value
  • Eligible repairs can be included into the loan. Limited to the lesser of 10% of the purchase price or $10,000
  • To qualify for this loan the household income can not exceed the limits, which are determined by county and household size.
  • Closing costs can be included in the loan if it doesn’t exceed the appraisal value
  • Seller paid closing costs and gifts have no limit.

FHA

  • Down payment as low as 3.5% (can be a gift – not cash)
  • Up-front MIP Funding Fee – 1.75% can be included in loan
  • Need 30 days to close
  • Seller can pay up to 6% in closing costs/pre-paids
  • FHA Loan Limits are by County

FHA 203K

  • Same down payment and up front fee as FHA loans
  • Need 45 days to close
  • House must appraise for purchase price plus cost of approved repairs
  • Repairs have to be made or overseen by licensed contractor
  • Extra inspection fees will be charged to borrower
  • Money for repairs available no sooner than 31 days after closing
  • Buyer cannot get paid to do the repairs

VA Loans

  • 100% Financing
  • Fixed Rate 30 year loan
  • Lenient qualifying terms
  • Allows seller to pay most loan costs up to 4% as part of purchase agreement (borrower can NOT pay appraisal fee, attorney fee or doc. prep. fees: must be paid by seller) – t lease 2%
  • Minimum credit score is 620
  • Those available are – Veterans, Active duty personnel, Reservists/National Guard Members, qualifying surviving spouses

Conventional Loans

Fixed Rate Mortgage

  • Choose the loan repayment term of 10 to 30 years
  • Loan to Value of 95% so 5% down is the lowest you can go
  • Seller concessions are 3% of 90% or greater, 6% on 75.01 to 90% and 9% on less than 75% (investment is limited to 2%)
  • Minimum credit score of 620
  • Maximum loan amount is $417,000
  • Gift of 20% requires no borrower funds, less than 20% requires at least 3% from the borrower

Adjustable Rate Mortgages

  • Initial rates are usually lower than fixed rate mortgages
  • ARMs have an initial fixed rate for 3, 5, 7, or 10 years, then are paid off at an annually adjusted rate during the remainder of the 30 year term
  • Seller concessions, credit score, and loan amount are the same as Fixed Rate Mortgages

Georgia Dream Homeownership Program

  • Maximum Household Income: (Barrow, Bartow, Butts, Carroll, Cherokee, Clayton, Cobb, Coweta, Dawson, DeKalb, Douglas, Fayette, Forsyth, Fulton, Gwinnett, Haralson, Henry, Newton, Paulding, Pickens, Pike, Rockdale, Spalding or Walton Counties) 1-2 persons $69,00; 3+ persons $79,500  All other countries: 1-2 persons $59,500; 3+ persons $68,500
  • The sales price of the home cannot  exceed $200,00
  • This loan is available to first time home buyers, those who have not owned a home in the past three years and those who purchase a home in targeted areas.
  • Down Payment Assistance – use this loan in conjunction with a Georgia Dream First Mortgage Loan
  • Borrower(s) must complete credit counseling
  • Borrower(s) must contribute a minimum of $1,000 to the purchase – can be a gift
  • Down Payment Loan Options: STANDARD $5,000 PEN: Eligible home buyers who are employed in qualified public protection, military, health care or education qualify for $7,500 CHOICE: Eligible home buyers whose household includes an individual living with a disability qualify for $7,500
  • Plan for a 60 day closing
  • Must follow FHA Guidelines
  • The down payment assistance laon is an interest free second mortgage with no payments. this loan is NEVER forgiven. when the home is sold or the loan is refinanced the down payment assistance loan must be repaid.