First Time Home Buyer

CalHFA Dream For All Shared Appreciation Loan Program

CalHFA Dream For All Shared Appreciation Loan Program is a path-breaking progarm for California first-time home buyers. This is to be used in conjunction with the Dream For All Conventional first mortgage. Upon sale or transfer of the home, the homebuyer repays the original down payment loan, plus a share of the appreciation in the value of the home (details below). How Can I Qualify for CalHFA Dream For All Shared Appreciation Loan Program? Be a first-time homebuyer. Occupy the property as a primary residence; non-occupant co-borrowers are not allowed. CalHFA borrowers must…
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FHA Annual Mortgage Insurance Premiums Reduced for 2023 Loans

FHA annual mortgage insurance premium was reduced today for loans endorsed on or after March 20,2023, per the latest announcement. What is FHA Mortgage Insurance Premium? FHA (Federal Housing Administration) loans are insured by Housing and Urban Development. To insure the lenders against default, it charges insurance premiums from the borrowers. There are two kinds of insurance premiums - Upfront Mortgage Insurance Premium (UFMIP) and Annual Mortgage Insurance Premium (MIP). How much is FHA's Upfront Mortgage Insurance Premium (UFMIP)? FHA's UFMIP is 1.75% of the loan amount. So, if you are borrowing $400,000,…
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Mortgage Options for First Time Homebuyers

What are the Mortgage Options for First Time Homebuyers? Buying your first home is a unique experience. For many, it comes with a mix of excitement and worry. The process is unfamiliar, and you don’t want to make any mistakes. It is also a decision that could affect your financial future for many years. You might not know much about the mortgage options for first-time homebuyers. A mortgage isn’t just one mortgage. There are different types of home loans. Picking the right one can save money or make it easier to service the…
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What Does 2023 Conforming and FHA Loan Limit Mean for you?

In most of the United States, Conforming Loan Limit for one-unit properties for 2023 will be $726,200, an increase of $79,000 from $647,200 in 2022.​ The new high balance loan limit for high cost counties one-unit properties will be $1,089,300, up from $970,800 in 2022. Conforming loans are acquired by and conforms to the guidelines set by Fannie Mae and Freddie Mac. Similarly, FHA’s “floor” and “ceiling” loan limits will increase from $420,680 and $970,800 in 2022 to $472,030 and $1,089,300 in 2023, respectively, for a one-unit property. What Does 2023 Conforming Loan…
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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…
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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…
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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…
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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…
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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…
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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…
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