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...
Refer to this list when you want to understand key words throughout the mortgage process; always reach out to me if you have any questions. To search for a particular term: On mobile Google Chrome, tap the 3 vertical dots in the top right corner, then select “Find in page”, then search for the term On a PC, simultaneously press the Ctrl and “F” key, then search for the term On a Mac, simultaneously press the Command and “F” key, then search for the term Amortization Over the term (30yr, 15yr, etc.) of a mortgage, a portion of the set monthly payment is applied to the principal balance, and a portion pays for interest charges. As the principal balance get smaller after years of payments, a greater portion of the mortgage payment is applied to the balance because the interest charge is calculated based on that now sm...
Comments
Post a Comment