Approved! Credit Availability increased in April!

Approved! Credit Availability increased in April!

An increase in credit access was reported in April according to the Mortgage Bankers Association’s Credit Availability Index (MCAI).

The Index increased 0.5 percent month-over-month to 122.0 in April. The increase was driven by new offerings of FHA’s 203K homewr-df-refinance-7 improvement program, new VA offerings, and new jumbo products.

The MCAI and its four components are designed to show relative credit risk/availability based on information about borrower eligibility and underwriting criteria gathered for over 95 lenders and investors and combined with data from Ellie Mae’s All Regs Market Clarity product.

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Long Due…Fight against Veteran Homelessness!

Long Due…Fight against Veteran Homelessness!

The U.S. Department of Housing and Urban Development (HUD) troops thanksgivingand Washington, D.C. based non-profit alliance National League of Cities (NLC) have taken another step in the Fight against Veteran homelessness by issuing a Memorandum of Understanding (MOU) in several U.S. Cities, however still is not enough!

What is the MOU?  Is just a memorandum that calls for the development and execution of regional forms as part of a joint effort by HUD and HLC in order to raise awareness and understanding of the benefits of joining the Mayors Challenge to End Veteran Homelessness, at least a good start.

As directed by the MOU, HUD’s resources will be made available to:

  • Make it a priority to assist those veterans who are most vulnerable to homelessness or suffering from chronic homelessness;
  • Focus outreach efforts on identifying and engaging those veterans who are homeless;
  • Target veterans who are in need of short-term rent services in order to be integrated back into communities and assist them through re-housing interventions;
  • Utilize resources to help veterans who are ineligible for the VA’s programs to attain housing;
  • Increase preventative measures through early detection of at-risk veterans to help them get and sustain stable housing; and
  • Closely monitor progress toward the goal of ending veteran homelessness, which includes tracking the progress of goals aimed at finding permanent housing for veterans.

A louder message should be sent to end Veterans homelessness, this is for real not a dream. It should be our goal to reach out for more veterans and their families, to make this a reality.

Thank You for protecting us, and our country. God Bless America!

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.