HomeReady™ Program Will Offer 3% Down Payment On Conforming Loans

Fannie Mae Announces New Low Down Payment Mortgage Product Fannie Mae made big news this week when they announced a new mortgage product designed for low to middle income borrowers. The move officially retired the MyCommunity mortgage that had been a mainstay Fannie Mae product for years. Fannie Mae’s announcement of the HomeReady™ mortgage, an innovative lending option aimed at helping creditworthy borrowers with lower and moderate incomes, has been greeted by mortgage lenders with much anticipation and provides a viable - and possibly more affordable - alternative to low-down payment FHA financing.…continue reading →

3 Secrets about PMI Your Mortgage Lender is Not Telling You

What if knowing three simple facts could save you thousands and help you ensure your mortgage is in the hands of a true mortgage pro? Valuable info, right? Good, because by the end of this post you will know those facts and be armed with some specific questions you can ask your mortgage lender that are designed to separate a talented loan officer from run-of-the-mill paper pusher. Get a Live Mortgage Quote What is Private Mortgage Insurance? Private Mortgage Insurance (PMI), is a tool used to protect mortgage lenders' against loss on loans…continue reading →

Real Cost For First Time Buyers [Infographic]

Let's be honest: the recession that hit the U.S economy only a few years ago hit us all pretty hard. This truth is especially evident for the generation of young adults who recently graduated from colleges across the country-many of whom left their schools with unimaginable amounts of debt and few jobs available to them to take advantage of. As a result of the recession, the U.S. has seen a significant increase in the amount of young adults moving back home to live with their parents after graduation. But despite these facts, very…continue reading →

Qualifying for a Mortgage On EAD and H1B, L or O Work Visas in 2021

If you are a non-permanent resident on a valid work permit like H1B, L1A, L1B or O Visa or an Employment Authorization Document (EAD), you need to be aware of few mortgage guidelines to qualify for Conventional or FHA loan. The following base qualification is required: 2 years of employment history in the US (In some cases employment history in a foreign country may be combined, especially if working for the same organization) 2 years of credit history in the US (In some cases, a foreign credit history may be combined, especially from…continue reading →

FAQs About Getting A Mortgage Pre-Approval

Whether you are a first time home buyer, looking to buy a second home or an investment property, the first step in the process is to get pre-approved. What is a pre-approval? A pre-approval is a process where a lender reviews your income, employment, credit and assets. After reviewing the credit qualifications, the lender will issue a pre-approval letter mentioning how much home loan you might qualify for. Why should I get pre-approved? There are several reasons: You will know how much loan you qualify for. You will know how much your estimated…continue reading →

Bay Area First Time Home Buyer Seminar At ICC, Milpitas, CA

If you are thinking of buying your first home in the Bay Area, you don't want to miss this free event. I am leading a panel discussion titled - "How to buy your first home in the Bay Area". The seminar is on October 27th, 2013 at 3:00 PM. The event is hosted by India Community Center, 525 Los Coches St, Milpitas. You do not need to be a member to attend. The panel will consist of a Mortgage Lender (Me), Real Estate Agent and a Financial Planner. The goal is to educate…continue reading →

First Time Home Buyer Free Web Workshops

As part of Home Ownership Workshop (HOW) for first time home buyers, I am conducting a series of four webinars where I will talk about all aspects of home buying. The entire series is free. Find below the topics I would be covering along with a link to register for each of them. If you register and not able to attend, we will email you a recorded version of the webinar. Of course, I encourage you to attend the webinar live, because that way you can ask me questions during the webinar. Webinar…continue reading →

FHA + CHDAP = 0.5% Downpayment Loan For CA First Time Home Buyers

By combining an FHA loan with California Homebuyers Downpayment Assistance Program (CHDAP), First Time Home Buyers in California can buy a home for as less as 0.5% downpayment. Here's how it works: We do FHA Loan as the first mortgage of 96.5% Loan-to-Value Ratio (LTV) and combine that with 3% second mortgage provided as part of CHDAP. CHDAP is a deferred payment second mortgage which becomes due in full when you refinance or sell the home. However, CHDAP may be resubordinated in some cases at the time of refinance and hence may not…continue reading →

FHA Wont Allow Cancellation Of Mortgage Insurance Anymore; Increases Premium

FHA recently announced changes to mortgage insurance premium for home loans insured by the agency. The new guidelines will make FHA loans more expensive. You will also need to pay mortgage insurance for the life of the loan in most cases. Changes to FHA Annual Mortgage Insurance Premium The below chart shows the changes coming to FHA mortgage insurance premium. This goes into effect for loan applications on or after April 1, 2013. If you got a 15 Year Fixed loan with a Loan to Value (LTV) ratio under 78%, you could avoid…continue reading →

Qualifying For FHA Loans To Become Tougher, Costlier

Last month FHA announced increase in mortgage insurance premium and prolonging cancellation of mortgage insurance (read the full report here). But looks like those steps are not enough to restore FHA's reserve requirements as mandated by congress. FHA commissioner and government are proposing/considering several new proposals that would make qualifying for FHA loans tougher and costlier. Let's look at some of these proposals: Down payment on loan amounts over $625,500 to be increased by 1.5%. From 3.5% it would be raised to 5%. FHA is also considering eliminating loan amounts over $625,500 altogether,…continue reading →