Considering Jumbo Loan Washington State?

Jumbo Loan Washington StateConsidering Jumbo Loan Washington State? High end real estate in Seattle requires a bit more time when searching for the proper financing. Sure, most mortgage companies offers both conforming and jumbo loans, but there are companies that tend to specialize in jumbo financing. By doing this they have special relationships with jumbo investors and can offer more of a boutique-style options in addition to standard, jumbo fixed rate fare.

Jumbo mortgages are those that are above the local conforming loan limit. In most of Washington the conforming loan limit is $417,000 yet in certain areas deemed “high cost” due to the higher median price of homes, the conforming limit can be as high as $625,500 (parts of California, Florida, etc) That vast bulk of conforming loans are those underwritten to Fannie Mae and Freddie Mac guidelines. When lenders approve a loan using these standards the loan is eligible for sale in the secondary markets, freeing up additional cash to make still more mortgages. Jumbo loans also have a secondary market though not as robust as the conforming marketplace. In some cases, jumbo lenders keep their loans in-house with no intention to sell. In all, jumbo loans account for around 20% of the overall number of mortgages approved each year.

All this means is there are choices for jumbo products but not nearly as many conforming loan options. Mortgage companies that tend to specialize in the jumbo category built special relationships with jumbo investors and build their market and mortgage products around this strategy. Getting jumbo financing isn’t all that different from a conforming loan and all one might discover is the minimum down payments for a jumbo loan are greater and mortgage rates may be slightly higher although that has started to change in recent years.

Up until around 2007 and 2008, jumbo financing was across the board. Stated income, even 100% financing programs were introduced. No document loans could be found where nothing regarding the financial details of a borrower was verified. Yet after the mortgage collapse, jumbo lenders pulled way back and it wasn’t really until around 2012 when jumbo lenders got back in the mortgage game and rates began to more resemble conforming rates than those for a jumbo loan.

Today, borrowers can expect to put at least 10% down payment for a jumbo loan with a full suite of mortgage rate product offerings. However, select lenders are now again offering up to 95% Jumbo mortgages in Seattle with fixed rates ranging from 15 to 30 years or adjustable rate hybrid offerings of 3/1, 5/1, 7/1 and 10/1 programs. Hybrids offer a slightly lower rate than a fixed rate product for an initial fixed period of time before turning into an adjustable rate that can change annually. Buyers can learn more about the 95 percent Jumbo financing options in the video below.

Programs that require only a 5% down payment and utilizing a second lien for the remaining 15% percent, keeping the first mortgage at the 80% loan-to-value level and avoiding mortgage insurance. Your loan officer will be able to do the math for you to see if putting , 5%, 10% or 20% or more is better for your personal situation.

Mortgage companies that specialize in the jumbo product know which type of jumbo program best suits your needs. While most jumbo lenders approve an application in much the same fashion, sharing basic qualifying guidelines, there can be other “tweaks” to an approval process that one jumbo lender has that another does not. For example, one program might only require one year’s worth of federal income tax returns instead of two for the self-employed applicant. This can be advantageous to someone whose business had a down turn one year but recovered nicely in the next. Because most programs average year over year business income, one bad year could keep someone from getting approved. Other differences may be different credit scores and down payment requirements. Some programs allow for higher debt ratios than others.

The point is this- while jumbo loans are all categorized by the size of the loan, there can be differences from one program to the next. Experienced jumbo lenders know just where to look when a special circumstance comes into play.

Five Stars assists buyers in across the country including those in Washington: Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Yakima, Spokane Valley, Federal Way, Bellingham, Kennewick, Auburn, King County WA.  They can be reached at ph: 800-871-2636  or by visiting www.FiveStarsMortgage.com 

 

 

 

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Texas 100 Percent USDA Rural Housing

USDA loans TexasTexas 100 Percent USDA Rural Housing: Did you know that certain Government backed mortgage programs like USDA Rural Housing offer flexible home financing option for first time home owners in Texas?  First time buyers starting out don’t have many options today to purchase a home with NO money down.  In fact VA and USDA are the only government loan options that still allow TX buyers to purchase a home with $0 cash down payment. The USDA home loan program offers many advantages buyers just won’t find in an FHA loan or conventional loans. A few of these advantages include:

  • 100% financing – That’s right, the USDA mortgage is one of the only remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home.
  • Low monthly mortgage insurance, 100% financing.
  • No cash savings requirement.
  • Texas USDA RD loans program allows for closing costs to be either paid by the seller in full, or permitted to be accumulated or “rolled into” the total amount of the loan if home appraisal is high enough. This allows buyers to need very little money upfront to buy your home.

The USDA 502 Guaranteed loan is available to all home buyers purchasing in eligible locations. The program is not reserved exclusively for first time home buyers. Even better, buyers are not required to take any special class to get approved. Complete a loan application and search for a home all in the same day! Give us a call at 904-302-6060 or just submit the short info request form on this page.

Buyers will need to insure they meet basic lender loan qualification requirements below:

  • The property must be located in an area that is designated Rural by the USDA Don’t let the word “rural” discourage you as many suburban locations just outside of Austin, San Antonio, Midland, Lubbock, Amarillo, Beaumont, Fort Worth and Odessa are still approved. Buyers in more populated locations like Dallas and Houston are encouraged to learn more about the FHA Mortgage here.
  • 620 credit score required to get approved
  • USDA Rural Housing is available for primary home transaction only (no investment properties or second homes)
  • Available for first time buyers or seasoned home buyers (Buyer cannot own another home at time of purchase)
  • Buyer income is limited to a maximum of 115% of the median income Please contact us for the latest USDA income limits in Texas
  • W2 income or self-employed is allowed (income and employment must be fully documented)
  • Gifts for closing costs or down payment (if desired) is permitted
  • The home purchase price including upfront USDA Guarantee Fee can be financed into the loan
  • Seller or lender can contribute up to 6% of the sales price toward the home buyers USDA closing costs
  • Single family homes only (no mobile or manufactured housing)
  • Safe 30 year fixed interest rate

USDA Mortgage Source serves home buyers in all 50 states. Contact us today to learn more about 100% financing options available.  Ph: 904-302-6060

Serving: Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Brownsville

 

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Florida Government Home Loans

Florida Government Home LoansPretty much all Florida Government home loans today –  FHA, USDA Rural Housing and VA – require the similar things when getting pre approved. Here are several key points to think about when deciding to apply for a Government home loan. First time home buyers will find this information especially useful, please contact us below with any questions.

 

Credit Profile:

In most cases a 620 FICO score is necessary to get approved for the USDA government home mortgages today. Other programs like FHA and  VA loans can be done with possibly lower scores down to 600, especially with larger down payments.  In addition do not forget that a credit score requirement DOES NOT guarantee loan approval, just about all banks and lenders have even more waiting conditions concerning home buyers having any previous bankruptcy short sale or property foreclosures. Even more time is also required for USDA Rural loans. A clean One year monthly payment history on any other consumer credit lines is crucial to look after.

Household Income:

Your income should be consistent and documentable in 2016. The times of “stated” type income or no documentation loans are long gone. Showing income properly will often present an issue with self employed or 1099 workers, particularly those who have not been independently employed for not less than two years. Finance companies and banks frequently wish to see a 2 year employment history. Minor interruptions in a borrowers job history might be okay, just as long the gap isn’t a long time, or unexplained. Examples would be a bad illness, maternity leave, etc.  Recent college graduates enter the work force are usually are exempt from the 2 year employment regulation.

100% Rural Housing USDA Mortgage:

USDA loans are available to just about any home buyer wishing to buy a dwelling in a rural approved location. 100% financing, low fix rate term and easy approval makes this an excellent choice for eligible home buyers. But don’t automatically think “way out in the country” Many locations in Fla are still approved and “zoned” for USDA.  Even some suburban communities around Jacksonville, Tampa, Orlando, Gainesville, Ocala, etc.   Click here for the USDA eligibility map. USDA loans do have household income limits according with the amount of family members in the home, county, etc. Read all the USDA FAQ’s here. The link is loaded with tons of helpful information.

Other Home Financing Options in Fla:

FHA Home Loans

FHA financing is the most popular government back loan program. FHA home mortgages have to have a minimum 3.5% down-payment, there are no net income limits, regulations or property location disadvantages. FHA also permits the home seller to pay buyers closing costs. Contact us below learn all about FHA mortgage loan standards in Florida.

VA Home mortgages

Offered to all eligible prior and existing armed forces members. VA is one of only two home loans that allows 100% financing.

  • VA 100% financing home purchases: Most conventional lenders require at least 10% down payment which is not possible for many Veterans and military families. FHA requires a 3.5% down payment and has very high monthly mortgage insurance. Because a VA Mortgage is guaranteed to the lender (by Veterans Administration) they do not require a down payment.
  • VA loans do not have mortgage insurance (PMI): Even with $0 down payment, a VA Mortgage does not have mortgage insurance (PMI) as part of the monthly payment. Conventional programs with less than 20% down and FHA both have expensive mortgage insurance that can cost buyers several hundred dollars every month. No PMI is a huge advantage of VA loans.
  • VA loans have very low interest rates: Because VA Mortgages are guaranteed by the Department of Veterans Affairs, the risk level associated with default is much lower. As a result the interest rates are usually lower than a conventional program with less than 20% down. Like a VA loan, FHA and USDA loan programs are also backed by the government and have similar interest rates.
  • Easy qualifying criteria: VA Mortgage guidelines are more flexible than many other loan programs. The VA mortgage is guaranteed by the government and most lenders have lower credit requirements, making them easier to qualify. Current minimum credit score requirement for most lenders is 620.

Homeowners that presently have a VA, USDA and FHA loan can also look into the wide range of streamline loan refinancing alternatives available at this time. Interest rates are currently the lowest they have been all year. All these products allow the home owners to re-finance REGARDLESS of the mortgage loan to value. If you now have a USDA Mortgage loan, contact us to find out more about the USDA Pilot refinance program. Homeowners that have a VA loan can learn more about the VA IRRRL Refinance here.  Homeowners with a FHA can learn more about the FHA Streamline here.

Have a question? Contact us today at ph: 904-302-6060 – we serve home buyers nationally. Also feel free to submit the Info Request Form located on this page for quick service.

Serving Fla: Jacksonville, Miami, Tampa, St. Petersburg, Orlando, Hialeah, Tallahassee, Fort Lauderdale, Port St. Lucie, Pembroke Pines, Cape Coral, Hollywood, Gainesville, Coral Springs, Miramar, Clearwater, Sarasota, Naples, Ocala, Daytona Beach

Posted in FHA HUD Loans, First Time Home Buyers, General USDA Information, USDA Rural Refinance, VA Home Loan | Tagged , , , | Leave a comment

Government Home Loan Rates May 2016

May 2016 Government mortgage interest ratesBelow we have listed the latest Government home loan rates for May 2016.  The programs include USDA Rural Housing, FHA and VA.

Mortgage rates overall have dropped over the last month, reaching levels not seen since November, 2012. At that time the conventional 30-year fixed rate hit an all-time low of 3.3 percentage points. If you are looking to refinance your home, now is great time to see if you could save some money on your monthly payments, cash out/debt consolation, or reduce your loan term.  If you’re buying a new home, it’s a good time to lock in a low rate as rates are currently near historic all time low levels. The mortgage interest rates below are based on May 2nd 2016, rates can and do change each week depending on bank or lender. The rates listed are based on 720 and above credit scores, 30 yr fixed terms and no discount points.  Applicants with lower credit scores can expect slightly higher rate adjustments as normal.  Borrowers can contact us at ph: 904-302-6060 for the latest rates, or just submit the quick information request form on the right side of this page.

USDA Rural Housing – 3.375% ( 30 year fix term)

FHA & VA – 3.25% ( 30 year fix term)

According to Fannie Mae’s most recent National Housing Survey, a little over 50% of consumers think mortgage rates will be higher one year from today, and another 43% think rates will stay near their current levels. The survey is meant to measure changing consumer mindset toward mortgages and housing nationwide.  Only 5% of those surveyed expect mortgage rates to drop in the future.

Keep in mind, USDA, FHA and VA all offer easy streamline refinance options for home owners. The USDA refinance is only available to home owners that have a USDA loan. No cash out is permitted on the USDA streamline refinance program.  FHA and VA refinance options are available to most home owners that qualify and/or have eligibility in the case of VA.  VA will still permit up to 100% cash out on their refinance program.  Most of these refinance programs are “streamlined” with little documentation needed and often no new appraisal required.

Contact us 7 days a week with question. Please visit www.UsdaMortgageSource.com or call 904-302-6060. Serving new buyers and existing home owners nationwide.

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USDA Guarantee Fee Reduction October 2016

USDA Guarantee Fee October 2016Great news today from USDA Rural Housing in regards to the one-time upfront guarantee fee, and the annual (monthly PMI) fee.  These USDA loan fees are going to reduced across the board starting 10/1/2016.  This reduction will apply to both purchase and USDA refinance transactions and will stay in place until September 2017.

USDA Guarantee Fee Reduction October 2016: Example of saving for a buyer purchasing a $175,000 home.

Guarantee Fee Savings ( amount of overall closing costs reduction)  =  $3,062.00

Monthly Mortgage Payment Savings = $37.00 per month.

The USDA upfront guarantee fee and annual fee structure that will be effective for Single Family Housing Guaranteed Loan Program (SFHGLP) loans in fiscal year (FY) 2017, which begins October 1, 2016 and ends at the close of business on September 30, 2017.  The upfront guarantee fee will be reduced from 2.75% to 1.0% of the loan amount.  The annual fee will be reduced from 0.50% to 0.35% of the average scheduled unpaid principal balance for the life of the loan.

This USDA fee reduction is great news for first time home buyers that often have little money to put down on a home. The USDA mortgage is still 100% financing with secure 30 year fix rate terms.

Questions about USDA 502 Guarantee Loans?  Please contact USDA Mortgage Source at ph: 904-302-6060 or visit www.UsdaMortgageSource.com  We serve buyers across the nation 7 days a week.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Posted in First Time Home Buyers, General USDA Information, USDA Homebuyer Q&A, USDA Program Updates, USDA Rural Refinance | Tagged , , , , | Leave a comment