Man, I wish I’d said that!
Man, I wish I’d said that!
I took a little break, (sorry about that!) but today I’m getting back to you to tell you about the last type of loan available for home buying… Rural Development Loans, or the RD loan. Below are some basic facts about lending guidelines for Rural Development loans.
I sure hope that Minimum down payment amount caught your eye…0%! I am not kidding!
Keep in mind a Rural Development loan is most likely going to be used by a “First Time Home Buyer”, but you don’t have to be one! Although, according to the Minnesota Housing Finance Agency, in 2014, 40% of Minnesota home buyers were first time home buyers! That’s a lot of first time home buyers and this agency stands behind their willingness to help buyers realize their dreams.
Of course there are other considerations to be able to qualify, like income limits for instance, but you should definitely check with your lender to see if you and the property you’re considering meet the requirements!
If you need a great lender with tons of experience with RD loans, give me a call. I know just who you need to speak with!
If you’re looking for a Realtor that believes in, appreciates and takes care of first time home buyers, give me a call.
I’d like to remind you that all of my first time home buyers receive a 1 year home warranty at closing; paid by me…not many Realtors do that! This is my gift to you to help you through your first year as a home owner.
If you’re eligible for a VA loan, it doesn’t matter if you’re a first time home buyer or a home buying veteran! Veterans Affairs loans are for Service Members, Veterans and some surviving spouses of military members. For more information, go to www.va.gov or call your favorite lender to see if you qualify.
A VA loan is actually funded by a private lender, just like an FHA or Conventional loan. The VA merely stands behind and guarantees a portion of the loan to support the lender in the case that you’re not able to keep up with your mortgage.
Below are some basic facts about lending guidelines for VA loans.
Applicants must meet certain service requirements and present a Certificate of Eligibility. A veteran will also pay a VA funding fee. This is required because a VA loan requires no down payment and has no monthly mortgage insurance. The amount of this fee varies, but your lender can help you with this. This fee can be financed or paid in cash, but it must be paid at closing.
As a 20 year veteran family of the United States Air Force, we’ve taken advantage of our VA loan benefits time and again. This is a wonderful perk for those who serve their country. Check with your lender to see if your time in service will help you qualify.
If you need a great lender with tons of experience with VA loans, give me a call. I know just who you need to speak with!
If you’re looking for a Realtor that believes in and appreciates our military as only another service member can, call me. Remember, all of my first time home buyers and military members receive a one year home warranty at closing. This is my gift to you to help you through your first year as a home owner.
To those who are currently serving and have served, thank you.
Conventional loans are not as commonly used as FHA loans by first time home buyers, but if you can qualify for one, it’s most definitely the way to go. The amount of down payment needed is the real challenge for most buyers. Below are the facts regarding Conventional loans.
*Being a first time home buyer, PMI might not be something you’re familiar with. A Conventional loan is a private loan, unlike an FHA loan which is government backed. PMI or Private Mortgage Insurance is the coverage you pay which covers your mortgagor in case you default on your loan. It is protection for your lender and it’s the trade-off for a being able to buy a home with as little as 5% down.
If you’re getting a Conventional loan and have 20% set aside for your down payment, there won’t be any PMI because banks see you as a lower risk than someone who has less than 20%.
PMI costs typically range from 0.3% to 1.15% of the total loan amount. There are different options available regarding how your PMI is paid. The total amount can be rolled into the loan, you can pay it up front or you can include it in your mortgage payment. You’ll want to speak with your lender about the best way to handle it.
And that brings us to one of the most important steps for first time home buyers…finding a lender! I would love to refer you to one of the many awesome lenders I know!
If you need an awesome Realtor call me, I’m here to help!
Have a great day and happy New Year!
No offense to my mortgage lender friends, but I think the most boring step for first time home buyers is learning about the types of loans available. For that reason, I’m going to keep today’s discussion about FHA loans short and sweet.
FHA, or Federal Housing Administration loans are the most common loans used by first time home buyers. Below are some important facts about lending guidelines for FHA loans.
The 3.5% is your down payment only. You will still need to write a check for your earnest money and at closing you will have to come in with money for your closing costs.
Earnest money is the check that will be presented with your offer for the seller’s broker to hold in a trust account until closing. That money is used towards your down payment, but the check will be cashed once your offer has been accepted, so make sure you have the money in that checking account. Depending on the price of the home, the seller and other miscellaneous factors, earnest money is typically $1,000.
Closing costs are the fees the bank will charge to give you a loan. It is typical to ask the seller to help with these costs, which is where “Maximum Seller contributions” comes in. Your Realtor will be discussing this in length when you’re ready to write an offer because more than likely, you will be asking the seller to contribute to your closing costs.
As a first time home buyer, you may face some challenges finding a home that will suit your needs that you can afford. My advice is to be patient and always listen to your lender and your Realtor. If you need help finding an awesome lender, call me!
You should also call me if you need an awesome Realtor! P.S. This is my blog so I can say whatever I want.
Have a super day everyone.
Notice the title isn’t “Should I have a Realtor?” or “Why use a Realtor?” That’s because this point is a no-brainer. Every first time home buyer should have a Realtor and I’m going to discuss the “why’s” and “how’s” of finding your Realtor.
But first, let’s address the most common question for first time home buyers…“What does it cost me to use a Realtor?”
Well, I’m happy to tell you that typically, it costs nothing. There is a caveat here and I’ll get to that, but first…as most people know, Realtors work on commission. When a seller signs a contract with a “listing agent”, that seller agrees to pay a certain percentage of the sale price of the home to the listing agent’s broker. At closing, that commission is split between the seller’s agent and the buyer’s agent. Therefore, you as a buyer are being represented and it costs you nothing to use the skill and knowledge your Realtor has to offer.
This could change if you look at a For Sale By Owner, but that’s a whole different subject. This is the caveat I mentioned and if you have a good agent, they will cover this situation thoroughly if it occurs.
Finding an agent is easy; there are a lot of us! Finding a great agent that you like and trust, that will put your interests first, that knows the market well and has good negotiation skills, someone who works well with other Realtors, will take the time to educate you as you go through the process and finally will show up at the closing table to see this right through to the end can be a bit more challenging!
A Realtor doesn’t receive a dime of compensation until the sale is complete, or when the buyer and seller “close” on the home. Some people might think a Realtor will sell them anything just to get a deal done. Of course, that could happen, but in my 14 years of practice, that is not typically the case with the agents I deal with on a daily basis and it’s never been the case with me. My goal is not to assist you in buying just your first home, but to develop a relationship which brings you back to me to help you buy all of your homes, and your friend’s homes and your families homes…get it? I want to be your Realtor; period.
Well, that’s it for today. Check out my story at www.catyokom.com. Get to know me and as always, get in touch with me if you have questions.
Thanks for reading!