Tag Archives: fha loan

Achieving The American Dream

Achieving The American Dream

The American Dream. Having a loving family, attaining a stable job, and most importantly possessing your own home, even if it’s not in Santa Maria, California or somewhere near the Central Coast. All of these accomplishments can be challenging at times, especially taking the next step of  having your own home. With financial planning and legalities, it all starts with a bit of knowledge of the industry and some research.

Purchasing a Home in the United States

The United States Real Estate market is tremendous, especially the Santa Maria Real Estate area since it is continuing to grow. One thing to keep in mind is that each state has their own unique set of policies, set of laws, and not to mention taxes. So don’t be surprised when you notice different tax rates in various cities and states. Also Keep in mind that their are many incentives for individuals such as veterans who have served our country. Veterans qualify for loans known as VA Loans and many lenders out there offer these kinds of incentives that better help them achieve the home of their dreams.

Property Taxes

As mentioned above, taxes vary by state. So when you are asking yourself how much house can I afford, do not forget to include property taxes as the tend to add up. They are used to fund public projects such as schools, parks, and things such as law enforcement. Knowing ahead of time what kind of taxes you will be paying will give you a better picture of the cost of living in your new home, especially if you are planning on moving out of state; do some research.

Educate Yourself On the Real Estate Market

One should also know what exactly drives house prices in the market, especially in the Central Coast Real Estate area because it has gained popularity in past years. Instability in house prices vary from state to state and from region to region. For example, a home in the Arroyo Grande, California will not have the same price as a beach from property in the Pismo Beach, California area even though their proximity is not to far apart. Same applies to locations such as Los Angeles, California and New York (especially within the city). We at Greater Mortgage Solutions and Valley Hills Realty want to teach you about the macro and micro trends that influence the real estate market. That way you can make a better decision when making a mortgage deal that is being offered to you.

So when you, a family member, or a close friend of yours is ready to achieve The American Dream, consider allowing one of our team of experts at Greater Mortgage Solutions and Valley Hills Realty help you attain the precise mortgage and the home you have always wanted. We are filled with team members that are ready to help you every step of the way.

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Do You Know The 5 Benefits Of A VA Home Loan

if you want to save a lot of money and you happen to be a Veteran then you need to read this article I will be telling you how you can save a good chunk of cash, find out how you can get up to $1,500.00 towards the closing costs.  Now if you are Vet like me ( I was in the Marines, nothing personal if you were not ) and you have been thinking about how to get a home loan because you have a goal of  buying a house or because you are in need of refinancing your home.  Then you really need to know the benefits of getting a VA home loan as well as getting started, because as a veteran, VA home loans do offer you some very good benefits.   But before you can get your there is one thing that you will have to do, and its something that everyone has to do to get their Home loan Benefits.  I will talk about that at the end of this post but for now we will go over some of the benefits of a VA Home loan.   If you are a veteran and have not looked in getting a home using your VA benefits, it may be a good time to just see what you may qualify for.

Find out how you can get up to

$1,500.00 towards the closing costs

Continue reading “Do You Know The 5 Benefits Of A VA Home Loan” »

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Get A VA Home Loan, And Buy A Home Today

Getting a VA home loan is one of the benefits that a Veteran has so that they can become a home owner, WITH LITTLE TO NO MONEY. There are other home loan programs available, such as a conventional home loans, or FHA home loans. But the VA home loan has a couple of very important features 1) is NO MONEY DOWN , THAT IS ZERO, NO DOWN PAYMENT. 2) Unlike a FHA loan that has mortgage insurance with an upfront fee and a monthly fee that can add several hundred dollars to the mortgage payment. VA does not have a monthly mortgage insurance payment tacked on top of your mortgage payment. Which allows you to either qualify for more house and even have a lower payment than someone with a loan amount as yours but they have a FHA loan.

for our troops

You don’t need to have a perfect credit to get a VA home loan you can get home loan with scores as low as 550. Compare that to a FHA loan and with the same scores, minimum down payment would be 10% VA will still allow you to come in with zero down. Please keep in mind that down payment and closing costs are two different things you still have to pay for escrow fees, the appraisal etc. Which can be a few thousand depending if the seller is willing to pay for any of the closing costs.

If you think you are ready to start the process on using your VA benefits to get a home loan one of the things you will have to do is apply for your certificate of eligibility. Click Here, and just follow the instructions, you will need to get your certificate of eligibility in order to get your VA home loan.

Something to keep in mind that even though there is not a monthly mortgage insurance fee added to your payment VA does charge what they call a funding fee that can be financed on top of your loan. If you have never used your VA benefits then the funding fee is 2.15 % of the loan amount and is added to the total of the loan amount. If you have used your VA benefits before then it does go up to 3.3%. It is a good chunk of change but you still coming in with nothing down and you have no monthly mortgage insurance payment like you would with a FHA loan which can easily be $2-300 more a month every month for the life of the loan. Now VA is looking pretty damn cheap. Nothing is really free and the funding fee is really just in case you do not pay and there is a foreclosure done on the home. The funding fee is really like an insurance on the loan.

Now lets say you filed for Bankruptcy or you had to do a short sale or a foreclosure in a previous home you had and now you are recovering. On a bankruptcy you only have to wait two years after it is discharged from the date you filed but from the date it was discharged. Very important the date your bk is discharged don’t get a bunch of debt but start working on re-stablishibng your credit. The easiest and fastest way is getting a secured credit card or even getting added on to an account. Try to shoot for 3 trade lines they do not have to be big accounts can just be $500.00 accounts but they will count towards establishing some sort of credit history and will get you points going again.

Now if you did have to do a short sale or even a foreclosure you only really need to wait two years from that date to qualify again and use your VA benefits. There is one catch, if the VA lost money in that transaction you might not have full benefits but if you know you did do a short sale or foreclosure, the best thing to do is check with the VA on that. To see if you have full benefits or only partial.

if you are interested in getting a VA home loan just ask me.

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Do You Know How Much Money You Need To Buy A Home

Buying a home is not so easy as it once was, and in the past few years since the recovery it has even gotten more expensive.   The thing is every one wants the 100 % financing deal as if they were buying a car.  Yes there are loans out there with only 1/2 % down.  But you still have closing costs.  Yes there are some sellers that will pay for most if not close to all your closing costs.

But here is the thing those scenarios are not always typical but if you have to stick to that scenario that you want a house with putting little to nothing in the process you will have to be very, very , very patient.

Because most sellers to not want to pay for all of your closings costs unless they are selling the house at a premium, but even then the house has still has to appraise in value.  Not to mention the loan that you may be trying to get is basically going to be govt. sponsored so an FHA loan or VA loan.  Sometimes the house may be in need of repairs and, so that home you want may not qualify for that loan.   Or someone may have to do the repairs and the seller may not want to so you may have to do the repairs on a home that is not even yours, and you are not guaranteed to close on the deal.  But the lender wants those repairs done period.

Bottom line is just be as prepared as possible, its better to have some funds so that you can negotiate.  Best case scenario unless you are doing a VA loan or USDA loan have 5% for the down payment.  So you can get rid of PMI anything less than that you will get with mortgage insurance.  That is as long as we talking about buying this house as your primary.  If you are doing a VA Loan or USDA loan you are in luck they do not have any PMI and which can be several hundred dollars on top of your regular mortgage payment limiting you on how much house you can qualify for.

But you should at least have 3.5 % saved up of whatever you are trying to buy, so you have some room to bargain and negotiate.  Lets say you cannot get the seller to pay for any of the closings costs or repairs.  Then apply for a FHA home loan with down payment assistant and use some of the 3.5% that you have saved up to pay for those closing costs.   The point is, save up money, I know we all like free stuff but the idea of buying a home with nothing down and no costs should not be one of them.  If you would like to see what kind of loans you can qualify for let me know.

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What If The Value Of The House On The Appraisal Is Lower Than The Sales Price ?

Unless you plan on buying a home in CASH and just love it to death.  More than likely you are getting a loan.   It does not matter if you are getting a first time home buyer loan or a loan for investment property.  You will have to get an appraisal, there is no whats or buts.  Normally this is the cost that the buyer will have to bear, and if it has been some time since you have bought a home lets say in the last 3-5 years you will find that the appraisals are a bit more expensive now.   Usually you can look to paying somewhere between $450.00 – $500.00 for an appraisal.

But anyways you will have to get an appraisal, part of getting an appraisal is really for your protection as well as the bank.   The appraiser will not only write up a report on what they think the value of the home you are planning to buy but also to see that there are no safety issues with the home.  For example that it is up to code and the roof is not falling apart, and in California that there is a working smoke detector as well as a carbon monoxide detector.

So lets say the home is for sale for $300k but the appraisal comes in at $280k.  The a couple of things has to happen.  Because even though you may be approved for a $300k loan the bank will only lend up to the appraised value.   So that means if you really want the house you will have to put up an additional $20k along with the down payment you were already going to put down.

Or your agent will send in usually an addendum to reduce the home to the appraised value.  This does not mean that it will automatically be reduced the seller will still have to agree to it.  The seller can say no way this is what I want and put back on the market if you do not agree to it.  Or you can go back to negotiations maybe meet halfway.

Something to just to keep in mind that if you were getting a FHA loan that the value on that home sticks with for 120 days or 4 months basically.  Does not matter what bank you go to when you get an FHA loan it is assigned a case number.  Now if you were getting a conventional and you really think the house is worth more you can try a different lender.  If you were using a broker he will just try a different source if you were using a bank you may have to start the process all over again at a different bank.  The file does not carry over when doing a conventional loan.

 

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