These two loan options go head to head for the home buyers who typically have less than 10-20% for a down payment. Both options offer an affordable path to home ownership, and both exist because they fit different applicant criteria. This is a lot of information and can be overwhelming at first! When you’re ready, I can work through both with you and start a strategy for your personal situation and plans. The Basics: A low down payment minimum is required for each. Mortgage insurance is set up differently but it is required with both (if you’re putting less than 20% down). It is not required that you be a first-time home buyer for either. Each has a minimum credit score requirement which also depends on the lender you work with. Both programs require you to occupy the house you purchase using the loan. Key Differences: Mortgage Insurance: FHA is fixed at one rate, no matter what your credit score is, as long as you qualify. FHA mortgage ...
Whether you are a first time home buyer or have purchased many homes in your lifetime, the minimum qualifications that lending institutions require are the same. These are typical guidelines, however they may be flexible depending on the situation. Check with myself or your loan officer. All of these qualifications exist so the lender and the borrower can examine if the borrowers are in strong financial standpoint. The banks, government, city, and myself, don't want to put a home owner in a position where they struggle to pay the monthly mortgage payment and are left without money for everything else. Qualifications for buying a home Employment History : The first sign that somebody is ready for the responsibility of a mortgage payment is that they have stable work history for at least the past two years. For the duration of those two years, if you did happen to change jobs, the jobs should be in an alike industry. Note: If you have been going to school, and have just recentl...
In a Nutshell: Property in America is a BIG deal. Knowing exactly who owns it, if anyone else has a hold on a piece of it, and who has rights to play on the property, is an equally BIG deal. Here is the peace of mind you are paying for with title insurance: The seller you are buying from is actually the seller. The seller will own the property outright (clear) by the time it is transferred over to you. If someone ever legally put a lien (a right to possession until a debt is paid in full) on the property and the seller didn't tell you about it when you bought it, and the person that placed that lien on the property wants their money at the time when you own the property, the title company will handle it and you can sleep good at night! For all these things, the seller pays for the policy which insures you (owner’s policy), and you pay for the policy which covers the lender (because they have a loan amount interest in the property as well). The policies are paid at closing,...
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