Mortgage Blog

Mortgage For Elderly Parents

Mortgage for Elderly Parents

Hi, it’s Mortgage Mack. And I had another real scenario that I thought was very interesting that I would share with everyone today.

A Mortgage For Elderly Parents can be Treated as a Primary Residence even if the Loan is in the Name of the Children Only

A real estate agent that I’ve done business with for many, many years called me and said he had a couple that wanted to buy a home for an elderly parent. And this parent is elderly and on social security and does not have a full-time job. And his question to me was, what is minimum required down payment. He assumed that in this situation that it would be an investment property for the children to buy a home for their elderly parents and will Mortgage For Elderly Parentstherefore require a much larger down payment than a traditional primary residence. And so, we were thankful to discover that FannieMae makes provisions for children to buy homes for elderly parents as a primary residence and put as little as 5% down as opposed to on an investment property.  The minimum down payments for an investment property is 15%  but the best opportunity for terms on an  investment property require a down payment of 25% down.

So, Fannie allows parents. I’m sorry. Fannie allows children to buy homes as primary residence with as little as 5% percent down for elderly parents or parent.

FannieMae also Allows Parents to Purchase a Home for Children with Disabilities

FannieMae also makes provisions for parents to buy homes for children with disabilities or who maybe physically challenged who cannot qualify on their own. In this scenario, the parents would be purchasing a home as their primary residence. They would indeed be on the Note and the Deed. And they would buy it as a primary residence for as little as 5% down.

So, I think that covers that. But you know, there’s a couple of other scenarios too where parents can buy a home for their children and the children actually be on the loan and we call that a non-occupant co-borrower and parents can also be co-mortgagors on the loan, but maybe not have ownership interest as a co-mortgagor.

And so, I’ll leave some notes and some links specific to co-mortgagors and non-occupant co-borrowers along with maybe some notes specific to our first scenario where we were able to help a couple buy a home for their elderly parents for as little as 5% down.

Hope you have a great day. Happy New Year.

FannieMae Occupancy Types for Primary Residence

See also:  FannieMae HomeReady Low Down Payment

Non-Conforming Loans

Non-Conforming Loans

Hi, it’s Mortgage Mack and Happy New Year. I hope you don’t mind the facial hair today. It is very cold in Houston, Texas. So, it’s helping me keep my face warm.

Non-Conforming Loans or Jumbo Loans – 80/10/10 – Less Money Down for Your Dream Home

You know, I have a scenario that I thought I’d share with you today. I have a young couple who have not sold their home, but they found a home they wanna buy. The home they wanna buy is in the $800,000 price range. So, that makes it what we call a jumbo mortgage loan. Now, a jumbo loan is— Maybe that’s the wrong term. Maybe a better term would be a non-conforming loan.  And what a non-conforming loan means or jumbo loan means is that— First of all, the first parameter is that the amount financed is higher than the limits established by FannieMae and Freddie Mac. And I’ll include links for both of those here in the show notes, but also— But you know, you could buy an 800,000-dollar house and it’d still be conforming or non-jumbo loan if you didn’t finance any more than 453,100.

But, in the instants of my clients, we wanna finance more than that because we have a home that we haven’t sold yet and we wanna put this through as 10% down. Now, I’ll go into that here in just a second, but I wanna make sure that I’m clear about what a jumbo mortgage loan is, is that it’s a loan wherein we finance any more than the conventional loan limit established by Fannie or Freddie, which is $453,100 for the current year of 2018 for the Houston, Texas Metropolitan Area. And once the loan amount exceeds Non-Conforming Loansthat,

then we fall into what is called the jumbo or nonconforming category at which the underwriting requirements are far more rigorous than traditional FannieMae or FreddieMac

You Can Borrower Your Down Payment with a Second Mortgage Loan

So, let’s talk briefly about our scenario and solution that I’m gonna help my clients with today. So, what I have is I have a jumbo loan that allows for as little as 10% down. Now, most jumbo loans require much more than 10% down. The traditional requires at least 20, maybe 25, but I have a special product here for them. And it’s what we call an 80/10/10. So, they can put as little as 10% down. I’m going to borrow another 10$ as what we call a second mortgage for them on their behalf. Now, I can arrange this type of financing for a client to $900,000 as the maximum amount borrowed. It does require 6 months reserves and what that means is that it will $100,000 to close and your payment was 5,000, then you have to have at least $30,000 left in the bank after closing.

Low Down Payment FannieMae HomeReady

Low Down Payment

Low Down Payment Home Loans

Hi, it’s Mack with One Trust Home Loans and thank you for being here today. You know, I’ve talked about the disaster relief mortgage recently and just had a real scenario where we had a young man who did qualify for the disaster relief mortgage, but was unfortunately not able to participate in it just because he was looking for condominiums and we just couldn’t find a condominium project in the areas that he wanted that were approved for FHA loans. As I stated before, the disaster relief mortgage is a FHA 203(h) mortgage.

HomeReady Offers Low Down Payment Home Loans for Houston Home Buyers

So today, I thought I would talk about FannieMae’s HomeReady program. Now, it is a program that is not designed just for first time homebuyers, and the down payment requirement is only 3%.  HomeReady is designed for low to moderate income and does have geographic or income restrictions for the geographic areas in which the home is located.

Low Down Payment Home Loans

You don’t have to be a first time homebuyer, but you can’t currently own a home to participate in this program. What else can I say about it?  HomeReady has a slightly lower than market interest rate. So, the interest rate is very aggressive. Mortgage insurance is cancellable. So, you don’t have to carry the mortgage insurance for the life of the loan like you would if you were to do a disaster relief mortgage. It also has flexibility on income.

FannieMae HomeReady Allows for Boarder Income

I had a young man recently whose father lived with him and helped him pay the bills. And with appropriate documentation, I was able to use a portion of that income, what we call boarder income, to help him qualify for more home.

30-year fixed mortgages and 15-year fixed loans are available for single family dwellings and condominiums as well

HomeReady does require home buyer education with Framework  or an approved HUD Counselor

I hope this information was helpful. Thank you again for attending and this MortgageMack out. Have a great day and happy holidays

Home Loan Approval

Being pre-approved can make your offer more attractive to a seller in a competitive seller’s market.

Home Loan Approval vs. Pre-Qualified Applicant

Hi. It’s Mack with One Trust Home Loans and thanks for being here. My NMLS number is 208691. And today, we’re going to talk briefly about being pre-qualified verses a home loan approval. You know, we find ourselves in a very tight inventory for houses that are for sale. It is very competitive out there. If you’re a first-time home buyer, it can be very challenging to find a home not only in your price range, but when you do, you find that you’re competing with other buyers.

Having a Home Loan Approval gives Buyers an Edge over Other Pre-Qualified Applicants

One thing that I know that will give first-time home buyers an edge in the market and even, you know, move-up buyers is to be pre-approved versus just pre-qualified. Now, in my 25-year career, the process for most home buyers starts with a pre-qualification wherein, you apply online or you apply in person, and we spend some quality time together, and discuss your goals. And we make sure that those goals are achievable based upon the income, the assets and make sure that the goals are achievable even within the framework of what you define for us with regards to your specific goals for down payment, closing costs and monthly payment.Loan Approval Process

Loan Approval Process Documents

Now, the home loan approval process takes the pre-qualification process several steps further. So, not only do we complete the loan the application,

Having A Home Loan Approval vs. Pre-Qualifed Applicantspend some time together and define your goals, but then we also put together the financial documents that are necessary to support the application, which include your W-2s for the most recent 2 years, pay stubs equal to 1 month’s income, 2 years tax returns, 2 months bank statements, appropriate identification, and some other items.  You can find a link with an approval checklist here on my video blog.

Now, what we do with that information is we not only just— Not only do we take and review it, but we submit your financial documents to an underwriter and request that the underwriter give us a pre-approval. And then we issue a pre-approval letter to you. And that letter in and of itself in a competitive situation where you are competing with other buyers can  make a difference in whether you get the property versus another person that didn’t take the process, that extra step to reassure a seller that you are indeed qualified to purchase a home.

I hope this was helpful. Please leave a comment and please tell us if there’s any of the material that you think would be of value to you that you would like to know more about. I’d be glad to share it with you. Thanks a lot.

Loans Disaster Victims

Zero down home loans available for victims in Presidential Declared Disaster Areas…

Home Loans for Disaster Victims

Hi. My name is Mack with One Trust Home Loans and welcome. My NMLS number is 208691 and today, we’re going to talk about home loans for disaster victims also called the Disaster Relief Mortgage, otherwise known as FHA 203h

If you or someone you love or know has been displaced as a result of a disaster within a Presidential Declared Disaster Area and whose home has been damaged and/or destroyed, you could be eligible for this special financing. This program does not require a down payment and has very flexible guidelines with regards to income, credit, and assets.  In addition, FHA 203(h) also allows for seller contribution up to 6% of the sales price.

Home Loans for Disaster VictimsHome Loans for Disaster Victims it Could be Zero Down

You could move in for as little as zero or for as little as it might take to rent a new apartment or a new home.  Again, the program is available in Presidential Declared Disaster Area to persons that were renters or homeowners whose homes were destroyed and/or rendered unlivable. The loan program is available for 1 year after the declaration of disaster. And if you think you might be eligible and would like to have more information, please reach out to us at mortgagemack.com or mack.blankenship@rate.com or please leave a comment under this video and I will be glad to respond to your comment.

If you have any suggestions for additional material that you think would be important to you, I would love to hear from you.

Thank you. Have a great day.

Calcon Morggage LLC, dba OneTrust Home Loans is an equal housing lender; NMLS #46375:  3131 Camino Del Rio North Suite 1680, San Diego, CA 92108.  Corporate phone (888) 488-3807.  For more licensing information visit:  https://onetrusthomeloans.com/licensing-information/.  All products are not available in all states.  All options are not available on all programs.  All programs are subject to borrower and property qualifications.  Rates, terms and conditions are subject to change without notice.

Mack F. Blankenship is a Mortgage Loan Officer at Onetrust Home Loans, 1345 Campbell Rd., #222, Houston, TX 77055.  Phone:  (346) 223—0336; NMLS #208691:  https://onetrusthomeloans.com/lo/mblankenship https://www.facebook.com/mortgeagemack/