February 2017

Found 12 blog entries for February 2017.

Ways to Pay Off a Mortgage Early to Save A LOT of Money

There are a lot of ways to pay off a mortgage early or quicker than the agreed upon terms.  Below are several ideas to consider when trying to pay off a mortgage.

Refinance to a shorter term mortgage:

Top ways to pay off a mortgage early

Top ways to pay off your mortgage early

10 & 15 year terms offer lower rates than 20 or longer terms and will help save a lot of interest over the life of the loan.  Make sure that the costs compared with the savings and the time expected to keep the mortgage makes financial sense (breakeven point).  The higher payments helps pay off a mortgage early which means huge potential savings!

Cancel PMI (private mortgage insurance) ASAP

  • Certain loans require the PMI or annual
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USDA’s Updated Guidelines for Properties With Swimming Pools

May 12, 2015/in 1st Time Buyers, Frequently Asked Questions, Products, Recent Changes, USDA

Anyone familiar with the old guidelines for USDA and their requirements for swimming pools, knew you must get 1) A Pool Waiver as part of the USDA review process and 2) No value of the pool must be given unless it is above the purchase price.  Now with the December 2014 changes to the USDA 3555 regulations, the prior value restrictions is removed.USDA pool guidelines - Team Move Mortgage NC, SC, VA

Updated USDA Guidelines for Swimming Pools Include:

The agency may approve dwellings with in-ground swimming pools and have removed the prior value restrictions.

So, this means that USDA will look at swimming pools just like the other lending

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Tax Refund Used as a Down Payment to Buy a Home


Use tax refund as down payment?

During tax season, refunds help so many become homeowners!

Down payment is one of the biggest obstacles for prospective first time buyers to purchase a home.  But during tax season, many tax payers have more funds than any other time of year.  So there is no better time to qualify for a new home!  Quite often a tax refund may actually cover the whole down payment on a home purchase.  Additionally there are several programs that do not even require a down payment.  Even though down payment may not be required, assets help the strength of the borrower.  Furthermore, tax refunds may be used as assets or down payment right away.

If I Use a No Money Down Home Loan to Buy, Can I Spend My Tax

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There Are a Million Reasons Not to Buy a First Home, But They Are Wrong


There are so many misconceptions or fears that first time buyers have these days and one of our primary goals is to educate this section of the market so the dream of home ownership can be achieved.

 7 Statistics and Solutions About First Time Homebuyers You Should Know:

  1. 54% of first time buyers are married, 18% are single females, 11% are single males, and 15% are unmarried couples.  No matter your marital status, it is not a barrier to home ownership.  Married or not, one or both individuals may be on the loan.
  2. 25% of buyers 33 years or younger would move up their purchase timeline if they had down payment First time buyer solutions for buying a home

    First Time Homebuyer Solutions

    access

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Fannie Mae now excludes revolving debts paid at closing from debt ratios


Fannie mae guideline update:  paid off revolving debts are excluded from debt ratio

Fannie mae guideline update: paid off revolving debts are excluded from debt ratio

For the last few years, even if a person pays off credit cards or lines of credit at closing or before, the payments must be still included in their debt to income ratio.  Effective immediately, Fannie Mae will now exclude paid off revolving debts from a borrower’s debt ratio.  This can make a huge difference in a borrower qualifying for a purchase or refinance.

Here is the actual Fannie Mae Seller Announcement on paid off revolving debts

When a revolving account is being paid off at or prior to closing, the current policy requires lenders to document that the revolving account

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Reasons for Influx of Buyers Moving to North Carolina


Why did so many buyers move to North Carolina in 2015?

North Carolina consistently ranks very high in the annual United Van Lines Movers Study and in this article we share the reasons why so many buyers moved to NC in 2015.

Guess what?  The population continues to move away from the cold of the northeastern states to warmer areas and a 2015 Movers Study - Why people in the northeast US move to North Carolinapopular destination is the southeastern coastal states of North Carolina, South Carolina,  and Florida as you can see on this map.  Almost every time we speak to someone from the Northeast, we hear comments like “I can’t wait to get away from this brutal cold weather” or “I am done with shoveling snow” and always “What’s your weather like in NC today?”. 

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Gift of Equity FHA Loan Rules. Buyers Could Use Equity to Buy from Family!

Are you buying a home from a family member?  Family transactions may have pluses for both the buyer and seller.  A major benefit to buyers is a gift of equity.  So what is a gift of equity?  It is a little known rule which allows equity in a family member’s house to be used as the buyer’s down payment.  Basically, the seller passes along part or all of the equity in the house to the buyer.  FHA guidelines, among other mortgages, allow the seller to pass along equity as a gift.  But, it must be done correctly!

gift of equity fha buying from family

Buyer Benefits of a Gift of Equity Purchase

Finding the right house and then learning everything about it could be a daunting task.  But what if you have

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“I Want to Buy a Home-In a Year or Less!” Best Tips for Paying Rent & Why


Rent tips To prove your rent history the best, pay your rent by check on-time each month

Rent Tips to Buy a First Home

In this series, we are providing tips to avoid the Most Common Roadblocks to Home Ownership.  So far we have discussed how to solve limited or bad credit, no down payment, and not having a budget.  So lets discuss overcoming Roadblock #4.  Not being able to document rent or housing history to show, as a buyer, that you are able to handle a new mortgage payment.  So in this article we are going to provide you detailed rent tips.

Reasons to Document Rent History

First of all, there are plenty of situations where a buyer does not have to prove a rent history.  Program type and overall strength of the borrower’s file are examples for

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Underwater on Your VA Mortgage & Experienced a Hardship? There is a Solution for VA Borrowers

 

Solutions for VA borrowers that are underwater on their mortgage

Solutions for VA borrowers that are underwater on their mortgage

Department of Veteran Affairs offers the Compromise Sale Program to help VA borrowers get out from an underwater mortgage that is giving them a financial strain or hardship.

Too often VA buyers have purchased a home that depreciated in value so that their home is now underwater, they have experienced a hardship, and they are unable to sell the home for enough to satisfy the mortgage debt.  Foreclosures, short sales, or deed in lieu of foreclosure needs to only be a last resort because of the serious credit ramifications.

A little known solution to these sellers is the

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 FHA 100 Mile Rule

 To have multiple FHA loans or use rental income on a departing residence, the FHA 100 mile rule must be followed

Often buyers are relocating to a new area and 1) need a 2nd FHA loan for one of many reasons and/or 2) need to count the FHA 100 mile rule for 2 fha loans at once or counting rental incomerent on the departing residence to qualify.  FHA loans offer so many options for 1st time or subsequent buyers such as:

  1. Low down payment
  2. Allows for down payment assistance
  3. Lenient on lower credit scores or past issues
  4. Forgiving on previous bankruptcies, foreclosures, & short sales
  5. Student loans with Income Based Repayment
  6. Higher debt ratios
  7. Co-signors that will not occupy the home
  8. Gifted funds for down payment

Buyers looking to purchase a new home with an 

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