First Time Home Buyer

Low Down Payment Mortgage Options for Home Purchase

The low down payment mortgage option might be what you would be dreaming of when you do the math, then check the balance in your savings account, and then do the math again. By your calculations, it'll take another three, maybe five (!) years to save enough for a 20% down payment on your first home. What's worse, home prices keep rising, and that's pushing the timeline further away. If only there was a way to make it happen sooner and use the money you've already saved. The good news is there are…continue reading →

How to Qualify For a Mortgage When You Have Student Loans

A lot of first-time homebuyers who graduated in the last few years have one big question to answer - "How to qualify for a mortgage when you have student loans"? That's exactly what I answer in this blog post. The guidelines are different depending on which kind of loan program you are trying to qualify for, so lets look at each one of them. Conforming Loans These loans are backed by government agencies - Fannie Mae and Freddie Mac. For 2022, the loan limit is $647,200 and goes as high as $970,800 for…continue reading →

High-Balance and 2nd Home Loans to Become More Expensive

Both Fannie Mae are Freddie Mac, the two agencies that purchase conforming loans, are going to charge additional fees thus making 2nd (vacation) homes and high-balance loans more expensive. What is a 2nd home and High-Balance Loans? Sometimes my borrowers confuse 2nd home as the home they buy after they have purchased their first home. That's not the case.  A 2nd home is defined as a vacation home; a home that's not rented out and is also not your primary residence. High-balance loans are loans with loan amounts higher than the basic conforming…continue reading →

How Mortgage Interest Works

Knowing how mortgage interest works is pretty important when you buy a house. Your mortgage rate is one of the main things that determine how much you’ll be paying every month towards the home.    So how exactly does it work? Let’s take a look.    How Mortgage Interest Works - The Basics As you probably already know, very few people pay with cash when buying a home. A mortgage just makes sense because it lets you borrow money at relatively low-interest rates.    The interest rate is there so the bank can…continue reading →

Can a Mortgage Include Renovation Costs?

Buying a home is a big deal. Buying a fixer-upper that needs renovations is an even bigger deal. The question is, can a mortgage include renovation costs so it doesn’t have to come out of your pocket right now?    The short answer is yes - there are actually a few options you have available.    Mortgage Renovation Loan #1: Fannie Mae Homestyle Renovation  This type of renovation mortgage offered by Fannie Mae was created to help lenders have more options to offer their potential clients. Because so many people are renovating their…continue reading →

How to Prepare to Buy Your First Home in 2022

In this post, I will cover everything you need to know about buying your first home including how to prepare to buy your first home in 2022. My book - My First Home was a #1 best-seller on Amazon.com and I have personally helped hundreds of First Time Home Buyers prepare to buy their first home. First Step - Choose the Right Loan Officer/Lender The first step of preparing to buy your first home in 2022 is to find the right loan officer and lending company. You should look for a Loan Officer…continue reading →

Rent Payment History to Help Increase Homeownership

To help increase homeownership opportunities for borrowers, Fannie Mae is enhancing its underwriting guideline to consider a borrower’s positive rent payment history in the credit risk assessment. Effective immediately, when the borrower is currently paying rent of $300 or more, and a 12-month Verification of Asset (VOA) report is obtained by the lender, Fannie Mae, a government agency, will improve the credit risk profile of a borrower helping them to qualify for a mortgage which they might not have otherwise. The borrower and the property must meet the following guideline: The borrower must…continue reading →

Fixed Rate vs Adjustable Rate Mortgage (ARM)

Whether you are buying a new home or planning to refinance, you may be asking the question - Adjustable Rate Mortgage (ARM) or Fixed mortgage rate - which one is better? When you are trying to make a decision on whether to take an Adjustable Rate Mortgage or a Fixed Rate, you should consider two factors: How long do you plan to stay in the property? What is the difference in the interest rate between an ARM & a Fixed? Let me elaborate this: Rates on ARMs are usually lower than fixed-rate loans.…continue reading →

3 Things You Need to Know When Buying a Home

The process of buying a home for the first time can be a stressful experience. This decision comes with many responsibilities and often steps that we know little about.   If this is your first time buying a home, you need to know the important details to make the best decisions. Remember this is probably the most significant investment you will ever make in your life, so you must have the best information available to decide.    Buying a house for the first time should be an exciting and enjoyable process. Here are three things…continue reading →

Qualifying for FHA loans with Student Loans is Easier Now

  A recent announcement by Housing and Urban Development (HUD) has made qualifying for FHA loans easier for borrowers with Student Loans. The debt to income ratio plays an important role in qualifying for any mortgage including FHA loans. It's the ratio of your monthly obligation towards debts vs your monthly qualifying income. Before: Earlier student loan payment was calculated as follows: either the greater of 1 percent of the outstanding balance on the loan; or the monthly payment reported on the Borrower’s credit report; or the actual documented payment, provided the payment…continue reading →