Tag: 203b

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You should set aside money each year for your home’s maintenance, repairs, and upgrades. A good place to start is 1-4%. If you want to do more substantial work on your home, you might want to look into additional finance options. I can answer any questions you have about financing for major work on your home. #thehelpfulLO #home #house #listreports #finances #happyhomeowners #smartmoney #investment #moneytips #mortgage #loanfficer #realestate

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FHA Mortgages Texas

FHA Mortgage Texas

MortgageMack Here.

Today we’re going to discuss FHA loans, specifically the FHA 203b program, FHA also offer disaster relief mortgages which you can find information about on my vBlog.

FHA Mortgages in Texas

FHA Mortgages in Texas – What is a FHA Home Loan?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). … However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 550 or higher with OneTrust Home Loans.

Benefits of a FHA Mortgage…

  • Low down payment of 3.5% and you do not have to be a first time home buyer or meet income limits as FannieMae requires for their 3% down program
  • The minimum credit score with OneTrust Home Loans is 550 subject to approval wherein the minimum score for a conventional loan is 620
  • FHA will allow for a person to currently be in a Chapter 13 BK as long as they can prove on time payments to the courts for 12 months in accordance with their original BK plan and a letter from courts granting permission to enter to a mortgage transaction
  • Allows the seller to pay up to 6% of the sales price towards the buyer closings and pre-pays not to exceed the actual total of the closing costs and pre-pays wherein conventional will only allow 3% from the seller with 3 to 5% down payment
  • There are no income limits but the maximum mortgage for Harris County and the surrounding area is: $331,200 for a single family dwelling and higher for 2 to 4 unit residences
  • The debt to income ratio is much higher for FHA affording people the opportunity to buy more house. Subject to AUS approval, I’ve seen DTI up 57% approved and recently closed a transaction with a 57% DTI ratio wherein conventional is limited to 50%.

FHA Mortgages in Texas

So, those are some the benefits of FHA and the #1 reason folks might avoid FHA is the extra mortgage insurance costs relative to a conventional loan.  FHA’s has an upfront mortgage insurance premium of 1.75 and monthly, depending on down payment and length of the loan of as much as .85% and the monthly amount is permanent for the life of the loan.

Most owner don’t live in their home past 9 years, so I’m not sure the permanency of the monthly mortgage insurance is that big a deal.

In summary, FHA is great loan program that offers more opportunity to more folks who want to own a home.

If you or someone you know would be interested in knowing more about a FHA home loan, call me or email me at [email protected] or go to www.mortgagemack.com to apply and please subscribe to my vBlog at www.teammortgagemack.com

I look forward to your questions and comments.

Thanks for watching and have a great day!  MortgageMack out

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.