I 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
- 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.
- 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
- 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
- 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
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.
This is the first of many blogs about what I am working on this week. I hope this will give readers or visitors to my site more of a look at the kinds of things I can do. When a new client calls me they usually first ask me “So what do you do?” and my answer is usually “What do you need done or are looking to get help with?” I do such a different variety of things and am probably capable of so many more. It is hard to sum up what all I can do in just few short minutes on the phone. It is easier for me to hear what they need and respond with if it something I have done, can do with training, can look into, or no I just don’t feel comfortable saying I can.
I started my business to use my knowledge of technology, past experience, creative and problem solving skills I have to help people. When I worked for a team of agents I think one of the best things I did for them was to come up with systems to help them with whatever the problem may be. For example, they had over a hundred Supra lockboxes and some had been lost over the years. Supra lockboxes are not cheap and it was upsetting to the agents that they could not find these boxes. Things in our office were only getting busier and we had more people putting on and taking off these lockboxes from houses so it was made a point that we needed some system to make sure that lock boxes where being picked up and returned. So I came up with a check in and check out system for the lockboxes. Now the same solution I came up with for them may or may not work for another agent and their team, but I am confident a solution can be found.
So weekly I would like to mention some of the things I am working on and maybe someone out there needs help with similar things.
Week of Oct. 7 thru. Oct. 13
- I am reconciling 6 bank accounts for a Property Management company for the months of July thru. Sept. in QuickBooks. This entails a lot of detailed data entry and research on my part. The Owner of the company writes checks using QuickBooks but the rest is up to me to enter using copies of checks, deposit slips, and bank statements. As with a lot of things there is some human error involved and copies of everything are not being scanned in and stored in Dropbox. This makes for some interesting research on my part.
- I am going to do a BPO (Broker Price Opinion) and submit it on Disposolutions website. This is a third party website for REO properties.
- I have also worked on processing a contract according to Keller Williams compliance. That means I know exactly what Keller Williams wants in their files and I make sure everything is submitted and filled out correctly. The client will send me what all they have to go along with a binding contract. I will go through it and if anything else is needed I help get it. With Keller Williams if the file is complete prior to closing you can request to get paid at closing which I shoot for, for all my clients. It is the difference between depositing money right after a closing or having to wait a couple more days to get your money.
- Update pictures and verbiage for listing in MLS, FMLS, flyers, and various other websites.
- Since this is my first week I want to mention that last week I was working on gathering contact information from QuickBooks and emails and making sure that contacts in Gmail’s database were up to date and each contact was tagged appropriately.
- Another thing I did last week was update a client’s website. I really enjoyed doing this and am very happy with the way it turned out. There are many other things I would still like to do to it.
Okay will that is all for now. I will do this again next week and hope that my adventures with this business don’t get too repetitive. Have a great week everyone!
If you owe less that $625,000 on your mortgage the banks want you to refinance at historically low rates.
Calculate New Home Payment
- Refi rates hit 2.9% APR
- Refi trick saves homeowners up to $145,000
- Homeowners urged to refinance
Selling Real Estate has changed so much in such a short amount of time. We have gone from the days where you posted a sign in the yard, put out some flyers, advertise in the local Real Estate magazine, held a few open houses and BAM you sold a home. That is not the case in today’s market. Then it was very hands on and now it is driven by the internet, but where do you find the time. Between phone calls and filling out contracts, sending out marketing emails and blogging doesn’t fit into your daily schedule. So that is where an assistant comes in, but are you ready to take on an assistant even part-time? You need help, but not sure you have even part-time hours to offer, then that is where I fit in. I work for you when you need me and no more. From the smallest of tasks or one time use to long lengthy projects and a continued relationship I am the one for you. If this is something you may be interested in please contact me.