Sandy Aichner's Lake Norman Blog

 

So you are looking for a mortgage to help purchase your new home or to refinance your current home. You have spoken to a loan officer and find out that you can't obtain a FHA loan for several different reasons. Some of these reasons might be ....

•   You don't show enough money as income

•   You don't have the 3.5% down payment that is required

•   You are not a U.S. citizen, so what are your options?

•   How can I get money to fix up my home?
  

So what are my other options out there to help me obtain financing for my home? Let's take a look what is still out there. The types of mortgages that I will be mentioning are for primary residences only.

 

 

 

Types of mortgages or FHA loans :

 

 

• FHA Mortgages :  This is not just for those that have less than perfect credit. Up to 6% seller concessions allowed. Also, better relaxed guidelines when it comes to CH 7 & CH 13 bankruptices.  Also allowing for better cash-out scenarios. Just a very solid loan and depending on the down payment, the rates are usually better than conventional loans with credit scores less than 700.  Please read : FHA loans vs convnetional loans - the true numbers

 

 

• Conventional Mortgages : Very tough to describe because you need to be approved in the underwriting system, which is usually DU or LP. FHA loans can still be manually approved, conventional loans can't. And there are PMI issues and those properties in declining market areas.
  

 

 

• VA loans :  For those veterans with 3 months of service in war time and those with 2 + years non-war time.  Allows for 100% financing and 4% seller help. No monthly mortgage insurance.
  

 

 

• USDA loans :  Allows for 100% financing and there are no specific percentages when it comes to seller concessions. It is more cost specific.  You don't have to be a first time homebuyer. There are income restrictions and property area restrictions.  No monthly mortgage insurance.
  

 

 

• Stated Loans / NINA loans / No doc loans :  I mention all 3 because some people get the terms confused. There really aren't any strong stated or no doc loans left in today's market. But I still have access to a very good NINA loan, which stands for no income and no assets. Which means you still need to show a job. And you can still do cash-out loans with this mortgage.

 

Quick product outline :

     70% LTV on purchases - credit scores above 700               65% on rate & term refinances

     60% LTV on purchases - credit scores from 651 - 700         60% on rate & term refinances

     50% LTV on purchases - credit scores from 600 - 650         50% on rate & term refinances

 

Subordinate financing allowed - for LTV's greater than 65% LTV, max CLTV is 80%. These LTV percentages are for loans up to 1 million dollars. There are program LTV's for loans above 1 million.

 

There are restrictions that apply to different states and counties. There are tradeline differences & property restrictions. All of this will be talked about in a separate blog later this week.

 

 

• Foreign National Loans :  These loans are for those individuals that are not U.S. citizens. There are different variations to this program depending on your credit scores and if you have U.S. credit or without U.S. credit. For those without U.S. credit, you need to reduce all LTV's by 20%.

Quick product outline :  For those with U.S. credit

     70% LTV on purchases - credit scores above 700               65% on rate & term refinances

     60% LTV on purchases - credit scores from 651 - 700         60% on rate & term refinances

     50% LTV on purchases - credit scores from 600 - 650         50% on rate & term refinances

 

No cash-out allowed on these programs.

 

 

• FHA 203-K loans - This is consider like a rehab loan for both purchases and refinances. There are 2 main types of the 203-k loan.

 

The 203-k loan - There is no loan restriction limits except those set by the HUD for the FHA county limits, for the maximum mortgage amounts. (meaning, how much you can borrower to fix up the home)  The main difference is that you can use this money to even for the foundation & that you need a HUD consultant to review the costs.

 

The 203-k streamline or the streamline 203-k - You can borrower more than $35,000 for repairs and it can't be used for the foundation. The other major difference is that you don't need a HUD consultant to clarify the costs of the repairs.

 

 

 

Overall, these are just the basic details. Some of what is mentioned above is what I have available to my borrowers and could be different from other lenders. There are also state and local grant programs and other types of loans, but they are more detailed and state specific. For more information on these loans mentioned above, please don't hesitate to contact me at : jbelonger@ihmci.com

 

 

 

 

 

 

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!

Copyright © 2009 by Jeff Belonger