The basics of mortgage financing for each type of mortgage financing as it relates to credit, income and assets follows. We have included helpful tips that will help home buyers in situations that are unique and do not follow cookie cutter conventional financing.Credit score: Currently, the lowest credit score is 620 if no mortgage insurance is needed. And, 640 if mortgage insurance is required. Loan officers cannot manually underwrite conventional loans. They must have an Approve/Eligible in the automated underwriting system.Unlike Federal Housing Authority (FHA) loan - Conventional loans carry risk based pricing adjustments so the lower the credit score the higher the rate and mortgage insurance rate. Typically, a buyer with low credit scores will be much better served using FHA financing because the rate and Mortgage Insurance (MI) will cost less for them.Income:The maximum debt to income ratio is typically 45%. However, a Loan Prospector with good … [Read more...]
Veteran Buyers
Veteran buyers or active-duty service members are in the drivers sit when it comes to purchasing a home. Besides…….sellers should welcome the experience of helping a veteran buyer purchase a home.Veteran buyers have everything working on their behalf to purchase a home. Check out the following points:Veteran buyers requires no money down The seller can pay any or all of the buyer’s closing costs Most lenders can help pay some of the veteran’s closing costs with just a small increase in the interest rate A veteran can get all of their needed cash as a gift A veteran can even borrow the money that they need for closing, as long as they qualify carrying that loan payment. A veteran does not need a first-time buyer program…so a VA loan can be approved and closed in 30 days A veteran does not pay any monthly mortgage insuranceVeteran buyers are the most sought after buyers out there because a VA mortgage is the easiest type of mortgage to process…And, no down payment is … [Read more...]
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