For first-time homebuyers, purchasing a home is a huge financial commitment and in today's pricing environment its also a considerable financial challenge for many Americans. However, homebuyer grants can significantly lighten the financial load, grants aren't available to all home buyers and are usually aimed at lower income buyers. Understanding Grant Eligibility Requirements vary between programs, several common elements are worth noting: • Income limits: Many programs consider households that earn 80 percent or less of the area median income (AMI) as “low-income.” Therefore, access to these programs is restricted to those within this income range. Moreover, the income limits adjust depending on the number of household occupants. • Home price limits: Certain programs may restrict your spending to a specific range of residence prices. These limits are largely dependent on the local housing market. • Buyer’s contribution: Despite the substantial assistance provided, most grants mandate that the homebuyer contributes some cash. The common requirement is 1 percent of the purchase price or $1,000—whichever is greater. • Residency status: Typically, grants are only available to those intending to make the purchased property their primary residence, not a rental or second home. • Education requirements: Numerous grant programs require you to complete a homebuyer education course before you can access the funds. Here are some larger programs to consider but there are many state and local programs as well. HomePath Ready Buyer Program Offered by Fannie Mae, a government-backed mortgage enterprise, the HomePath Ready Buyer program allows you to claim up to 3 percent of your home’s purchase price for closing costs. However, your property choice is limited to HomePath properties, foreclosed homes owned by Fannie Mae. Completing a homebuyer education course is a prerequisite for this program. National Homebuyers Fund The nonprofit National Homebuyers Fund offers grants for down payments and closing costs, which can amount to 5 percent of your home’s purchase price. Notably, you don’t need to be a first-time homebuyer to qualify. However, you do need to secure a mortgage lender who participates in the program. Assistance is available to help find suitable lenders. Good Neighbor Next Door Program Offered by the U.S. Department of Housing and Urban Development, the Good Neighbor Next Door program is open to law enforcement officers, teachers, firefighters, and emergency medical technicians. This program offers a 50 percent discount on homes in designated revitalization areas, which becomes a freebie provided you live there for three years. However, like the HomePath program, you don't have the freedom to buy just any home. State and Local Grants Beyond nationally available programs, financial assistance may be obtainable through local organizations. Many states offer grant programs for first-time homebuyers, especially those relocating for work. Consult your state’s housing finance authority or ask your real estate agent for advice on local grants. These are just a few options to consider. You can schedule a consultation with us on our website and we can review your situation to help you see what you can qualify for and your different program options.

Finding a skilled loan officer who is attuned to your needs and can assist you through the process is essential. Here are five questions you might want to ask your home mortgage lender. What are my home loan options? This question will help gauge the loan officer's expertise and understanding of your specific situation. You may need to share some personal financial information, but a credit check shouldn't be necessary at this stage. Could you explain the mortgage process? A competent loan officer should be able to outline the steps from application submission to loan approval. They should also provide insights into legal and real estate aspects or direct you to your real estate agent for further information. What do I need to provide for loan approval? Before submitting any documents, ensure your loan officer explains what they require and why. Detailed financial information and a credit check will be necessary after completing the mortgage application, but this should only be done with your consent. Can I pre-qualify? Consider discussing with a lender before house hunting. They can prequalify you based on a few documents, giving you an idea of your purchasing power without going through the full process. A prequalification letter can also make you a more appealing buyer when you're ready to make an offer. How long is the entire process? This question will help you understand the timeline from application to approval, allowing you to plan accordingly. Remember, the duration can vary based on several factors, including the type of loan, your financial situation, and the lender's processes. We would love to schedule a consultation with you to answer these questions in more detail and with specifics to your individual needs. Just visit our website and click on "Schedule Consultation".

There are numerous benefits to being self-employed - you're your own boss. However, when it comes to securing a mortgage, the process deviates slightly from traditional mortgages. It often involves additional requirements and more administrative procedures. Here are some tips to help you get organized and approved if you're self-employed. Apply for a mortgage when your income is high. We understand this is easier said than done, but lenders will focus most on your income from the last two years. If your income fluctuates, it's best to apply in a high-income year. This strategy can help you qualify for a larger loan amount and a lower interest rate. Lower your DTI. Your debt-to-income ratio is one of the critical factors in getting approved. Therefore, it's beneficial to pay down both business and personal debts. Also, avoid opening new lines of credit a few months before applying. Don't mix business and personal finances. Keep your business and personal finances separate by maintaining distinct bank and credit card accounts for business and personal use. This separation helps lenders easily discern business income and expenses and demonstrates that you are managing your business professionally. Please feel free to give us a call or contact us through our pre-qualification app, and we can determine which product best suits your needs. You may be a candidate for a Qualified Mortgage (QM) or a non-QM lender. Either way, we can review and help you get started!

With summer around the corner, a lot of people are asking if a swimming pool will add value to their home (to be clear, we are talking about in-ground pools here). The answer is, it depends. Studies show that it can add 5% or more to the value of your home, but these studies pre-date Covid. If you are in a warmer climate like Texas or Florida, pools can add more value and may be more desirable. In fact, if your home is in a high-end area where most homes have pools, lacking one can actually lower your home's value. Of course, you have to take into account the building and maintenance costs, as well as whether your yard has enough space to accommodate a pool while still leaving ample area. It's probably a good idea to add a pool for your own enjoyment rather than just building one to increase resale value. If you'd like more feedback on your property and how it fits into the market, feel free to schedule a consultation with us on our website for more details and the latest market conditions. We can also discuss lines of credit to fund pool development.

We all know that interest rates are higher than they were a year ago (and we all hope they don't stay that way). A product that is becoming more popular is a 2-1 buydown, which provides a lower interest rate for the first year of the loan, then increases in the second year, and the third and subsequent years will have the full interest rate. To compensate for the lower payments, a fee is charged. A buydown can be financed by either the homebuyer or the home seller. This payment can take the form of mortgage points or a one-time sum placed in an escrow account managed by the lender, which is then used to subsidize the borrower's reduced monthly payments. Often, sellers, including home builders, utilize 2-1 buydowns as an incentive for potential buyers. Buydowns are not available for all loans; for example, they are available on FHA loans but only for new purchases and not refinances. Check with us to see if a buydown makes sense for your situation.

When you apply for a mortgage you have to provide a lot of documentation, like bank statements, tax returns, and pay stubs. But sometimes, lenders also require a letter of explanation to better understand your financial situation. This letter can be essential in securing loan approval and should be treated as a requirement. It helps fill gaps in your financial picture and provides a deeper understanding of your ability to repay the mortgage. A letter of explanation is typically requested when specific information in your application raises a red flag for the lender. For example, it may be needed to explain a job change, past credit issues, new credit card applications, large bank transactions, or unsteady income sources. Proactively submitting a letter of explanation can be beneficial if you are aware of potential issues in your application. Of course in the event you need to provide a letter, we can help with it so you’re not in it alone :)

If you are going to be getting a loan funded Fannie Mae or Freddie Mac there are new few changes coming on May 1. Upfront loan fees will be changed due to alterations in Loan Level Price Adjustments (LLPAs), which are fees that differ for each borrower based on factors such as credit scores, down payments, property types, and more. These adjustments are connected to credit scores and the size of down payments. In certain instances, individuals with higher credit scores might end up paying more, while those with lower credit scores could pay less. What do the fee modifications entail? The entire fee matrix, based on credit score and down payment, has been revised. Although having an excellent credit score still results in lower fees compared to a poor credit score, the penalties for lower scores will be less severe after May 1st. For instance, with a credit score of 659 and borrowing 75% of the property's value, you'll face a fee equivalent to 1.5% of the loan balance. Prior to these changes, the fee would have been 2.75%. On a hypothetical $300,000 loan, this equates to a $3,750 reduction in closing costs. Conversely, if your credit score is 740 or above, you would have been charged a 0.25% fee on a loan for 75% of your home value before May 1st. After this date, you might pay up to 0.375%. If want to see how this affects your borrowing costs fill our our online qualifier or schedule a meeting on our website.

If you are ready to purchase a house – you are probably going to be excite and maybe a little nervous. Here are 5 important things to do on a walkthrough to help lower any anxiety or future surprises. 1. Look For Wet Spots Check the ceilings for wet spots (rings or circles) and discoloration around windows. They can cause issues down the road and be hard to fix! 2. Check The Wiring Turn on the switches, dimmers, check the doorbell, garage door, basically check it all. If things are not working right, there could be an overall wiring issue. 3. Inspect the Bathroom Again look for water damage around toilets, showers and tubs. Also make sure everything is working properly, flush the toilets, check the showers and faucets to make sure the hot water works. 4. Test the hardware Basically check everything from fans to the washer and dryer. Make sure it all works. 5. Run the heat and AC You want to make sure the heat and AC are working properly – turn them on and let it run a few minutes. Finally make a checklist for all the items to be included in the sale and have the owner sign-off or initial it so there’s no confusion or disagreements at closing. If you want to review with us - just go to our website and schedule a call with our easy online calendar tool.

If you're fortunate enough to be considering buying a second home, but not sure about using it as a vacation house or as an investment property to generate income, understanding the differences between the two types of property is important to determine how much you'll pay to finance and own it. A second home is a vacation home, while an investment property is rented out with the goal of generating income. If you're considering renting out the property occasionally, defining it depends on how much time you spend in it. If you use the property for 14 days or less during a year, it would be considered a rental property and the income earned would be taxable, but you would also deduct the expenses associated with the property. The distinction between a second home and an investment property is important not only for tax purposes but also when seeking financing for the home. Investment properties usually have more stringent underwriting guidelines than second homes and primary residences because there is an assumed greater risk of default on properties that borrowers don't occupy. The stricter standards for an investment property might also include a larger down payment requirement. The tax implications for second homes and investment properties are also different. Mortgage interest is fully tax-deductible for investment properties, and owners can also deduct many expenses related to the property. In contrast, if you have more than $750,000 in mortgage debt between two or more properties, you've maxed out the amount you can use to deduct interest. Homeowners who own a second home can only deduct mortgage interest if it falls within the $750,000 total debt limit. In summary, accurately defining a property as a second home or investment property is crucial to understand the financing and tax implications. Homeowners who wish to purchase an investment property should be prepared for stricter underwriting standards and a larger down payment requirement. Meanwhile, owning a second home is easier to finance, but tax deductions are limited. To see how much you qualify and borrowing costs for today’s market fill out our quick purchase analyzer on our website.

This week we saw mortgage rates fall again according to data provided by Freddie Mac. This continues a streak now stretching four weeks, as homebuyers benefit from lower borrowing costs. The average rate on a 30 year fixed rate mortgage fell to 6.28% down from 6.32% a week earlier. Freddie Mac chief economist Sam Khater stated, “mortgage rates continue to trend down entering the traditional spring home buying season.” While rates have fallen there are still challenges for home buyers including low inventory of available for sale in many markets. If you are thinking about buying a new home this spring check with us to see how much you can get pre-qualified for. You can fill out our 30 second analyzer on our website to get started.