FHA Loans

Be aware that if you are planning on applying for a FHA Mortgage loan, you will need a FICO score of 580 for the 3.5 % down program. You will be denied all program loans if your score is 500 or less. The underwriting criteria  is also more stringent.

Good or bad, this is all a reaction to the Real Estate problems of the last few years. Which were caused by the lax policies of Fanniemae and Freddiemac.

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Great Home Loan Rates

Conforming ($417k or lower – Pmt based on $250k loan amt)
RATE         APR          P&I Pmt
4.125     4.258      $1211       30yr Fixed
3.750     3.939      $1818       15yr Fixed
4.500     4.658      $1266       30yr Fixed investment
3.000     2.872      $1054       5/1 ARM
3.375     3.220      $1105       7/1 ARM
4.250     4.896      $1223       30yr Fixed FHA
3.250     3.021      $1088       5/1 ARM FHA
Fantastic pricing also availble for VA & USDA
 
Jumbo (over $417k loan amt  -  Pmt based on loan amt listed)
RATE         APR          P&I Pmt   
5.000     5.159      $2684       30yr Fixed to $500k
5.000     5.167      $5368       30yr Fixed to $1million
3.875     3.674      $3526       5/1 ARM at $750k
3.000     2.811      $3162       3/1 ARM at $750k

Up to $3million loan amounts available, call for details

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Understanding Your Credit Rating

If you are thinking about buying a new home, or vacation home or income property, or real estate of any type, you need to start thinking about your credit reports and what they say about how you pay your bills, because the mortgage lenders will want to see them also before approving your loan. How well you have handled your credit obligations in the past is going to determine the loan you get, or don’t get. 

One good thing is that your credit rating is available to you.  Your credit history is maintained by three different private companies called credit reporting agencies: Equifax, Trans-Union and Experian.
(Their websites and phone numbers are listed at the end of this article)
You can order your report by phone and charge it to your major credit card if you like. It usually takes about a week to arrive. You can even order your report online directly from each of the three agencies, but they have to verify your identity before you can obtain any private information.
 
You want the information directly from each reporting agency, even the mistakes and blemishes and all, so you can see what exactly is on each one.  If you see obvious mistakes, you can get them cleared off in time to start your loan process. Be sure to order a copy from each of the three companies, because if an error exists on even one of the reports, it may negatively affect your chances of getting the loan you want. It is not unusual for one company of the three, to have a mistake on your credit report. 

Your credit report lists all the consumer credit that has been extended to you over the past seven years. It will show what your highest balance has been and what your current balance was on the date last reported by the creditor. It will also show how many payments you made on time and how many late payments were late. Late payments are grouped into categories showing how late you were.  (For example: if your credit card payment was over 30 days late one time, it might not be considered too serious. But if payments were over 60 days late four times, over 120 days late two times and over 180 days late one time, you have had a serious problem. That problem is going to impact your ability to borrow money)

It makes sense to find out about your credit and correct any errors now. Regardless of how many credit problems you have had in the past, there are two good points to remember.  First, negative credit information can be reported in your credit file for only seven years. After that, it drops out and cannot even be considered. The one exception is bankruptcy, which can be reported for 10 years. But after that you start with essentially a clean slate. Second, lenders are much more concerned about how you have handled your credit recently than with what happened several years ago. Even if you have had a bankruptcy, if you have kept your nose clean and paid your bills on time since then, it is possible you could qualify for a loan after as little as two or three years.

One of the best developments in the world of lending has been risk-based pricing. That’s a five dollar term for the ability of lenders to offer higher priced loans to borrowers based on their demonstrated ability to repay. In other words, even if you have slightly fractured credit, you can still likely get a loan. It just may cost you a little more.

 To Reach the Three Credit Reporting Agencies:
1  Equifax can be reached at 800-997-2493.
2  Trans-Union  can be reached at 800-888-4213.
3  Experian  can be reached at 888-397-3742.

Or search them out on the web.

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Is now a good time to buy a home?

I get asked this all the time.  And my answer is always the same, “Yes!”  Here are just a few reasons why:

1.  Buyers Market!  Right now we are in a buyers market.  The inventory of homes is high and prices have still not bottomed out.  There is a lot to choose from which gives you more opportunity to find the house that best fits you and your family’s needs.

2.  Low Interest Rates!  Current interest rates are sitting right around 5%.  This is a great time to jump on the lower interest rate as they are expected to start to climb again, soon.  Lower interest rate means a lower payment or a bit more in a house!

3.  Tax Credit!  Whether you are a first time home buyer or a repeat buyer, there is a credit for you.  This is not a tax decuction, it is FREE money!

4.  Buyers agent is FREE!  As your buyer agent, I will cost you NO money for my services!  I am licened in Washington and Oregon and love to help clients find their next home!  Consider me your personal home finder!  Give me a call and put me to work for you.

360-607-4100

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