More financial opportunities for same-sex marriage when purchasing a home!

viewimageThe Supreme Court decision making same-sex marriage legal nationwide will boost the mortgage demand as it provides gay and lesbian couples with more financing opportunities and stronger joint property rights.

The Supreme Court decision could spur not only more purchase lending, but also more refinancing, line of credit, among other helping to them to plan and build wealth.

Married same-sex couples also will have more access to the Department of Veterans Affairs mortgage program, said Gary Boyer, a mortgage loan officer at a brokerage in Portland, Ore.

“This has big implications as far as federal agencies. The VA, for example, has honored a same-sex spouse in states where marriage was legal, but did not honor same-sex spouses in states where it was not yet legal. Any veteran will now be able to have their same-sex spouse on the mortgage with them,” he said.       Congratulations!

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House Price Index Up 0.3 Percent in January

House Price Index Up 0.3 Percent in January

Prices-going-up-graphic-2U.S. house prices rose in January, up 0.3 percent on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI). The previously reported 0.8 percent change in December was revised downward to a 0.7 percent change.

The FHFA HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. From January 2014 to January 2015, house prices were up 5.1 percent. The U.S. index is 3.5 percent below its March 2007 peak and is roughly the same as the December 2005 index level.

How much down payment do you really need to buy a house?

How much down payment do you really need to buy a house?

the-state-bank-of-vietnam-said-wednesday-it-has-changed-its-mind-about-a-proposed-ban-on-people-gifting-foreign-money-after-the-plan-evoked-fierce-criticiSaving for a down payment is an important step in becoming financially prepared for homeownership, and there are options and opportunities for financing a home purchase that will allow the borrower to come with little or No Down Payment. For most first-time home buyers, coming up with funds for a down payment is the biggest obstacle to homeownership.

In the mortgage industry, 20% down is considered the benchmark down payment for looking strong on paper as a home buyer. How strong you are on paper will determine how you could obtain a loan.

However, being this a general standard for financial strength does not mean a requirement to get a loan. Reality is that there are home loans that can be obtain with $0 Down Payment if you are eligible.

  1. FHA loans will allow you to apply for as low as a 3.5% down payment up to the maximum conforming loan limit in the county in which the property is located. Most lenders can lend up to $417,000 under FHA guidelines.
  2. Conventional 5% Down Payment is another option for first time homebuyers. This is an excellent alternative to the higher-priced FHA loan Mortgage Insurance that allows to get rid of PMI after accumulating 20% equity after a minimum of 24 months.
  3. $0. Down payment: 2 options that are available if you are eligible:  a. VA loans allow 100% financing all the way through the maximum  conforming loan limit in the county in which the property is located.  Veteran’s Affairs mortgage loans are available to veterans, current members of the military and their spouse.  b. USDA Loans allow 100% financing through the Rural Development United States Department of Agriculture. Property must be located within an area designated to be eligible for 100% financing.

There are also 10% down payment and 15% down payment loans. All 3 of these types of loans involve PMI. As time goes on, the push will be for a minimum 20% down payment. Remember with 20% down, there is no PMI. Conventional wisdom says you should put down as much as you feel comfortable putting down to buy a home. Generally, more is better than less. But don’t wipe out your savings account to do it. You will still need to have funds set aside for a rainy day and for things to buy after buying a home.

Jumbo loans are loans that usually can go as high as $750,000 with as little as 10% down.

However keep in mind that if you’re putting less than 20% down payment on a home, your monthly property taxes and fire insurance terms are most likely to be built into your monthly mortgage payment, and you’ll maybe have to pay for private mortgage insurance, as well.

Ultimately, the minimum down payment required will depend on the type of loan that you choose. Each mortgage loan type carries its own guidelines, and today underwriters closely scrutinize a borrower’s ability to repay the loan before giving you a loan.