FHA vs. Conventional loans...Why one versus the other?
FHA has increased their Mortgage Insurance Premiums again by 10 basis points, and it now remains on the loan, for the life of the loan. This will increase the payment for a $250,000 loan by $20 per month. In reality, FHA has increased the Mortgage Insurance Premiums for a loan of this type by $154 per month since 2010. The down payment required is 3.5%.
The Conventional lenders have come up with new products to take away some of the FHA business and put it back in their hands. Private Mortgage Insurance now saves the borrower from $111 up to $220 a month over the FHA Mortgage Insurance Premium, depending on whether the borrower will put 3% down or 5% down. The other benefit options offered with the Private Mortgage Insurance is that the premium will drop off after the loan amount reaches 79%, and it can be tax deductible.
To reap the full benefits of the Conventional Private Mortgage Insurance the credit scores need to be a minimum of 680.
Planning is the most important step for the best loan products, so contact me and let's start with your new home adventure today! Sherry Bitner 941-504-1445, NMLS#197312.
If you are looking to purchase a foreclosure, these Fannie Mae (FNMA) HomePath properties are an excellent opportunity. We have a special FNMA HomePath program for financing these properties as well.
There is no Mortgage Insurance on the loans.
There is no appraisal required.
Owner Occupied properties are 97% Loan to Value (LTV), or a 3% down payment is all that is needed. (Less than an FHA down payment of 3.5%.)
Second Homes and Investor properties are 90% LTV, or a down payment of only 10%. Investor programs are normally a maximum of 80% LTV, or 20% down.
FNMA will pay a portion of the closing costs as well.
If the property needs repairs, you can add up to $10,000 to the mortgage, sign the loan documents, and then do the repairs.
To locate properties on the web, go to www.homepath.com enter in the county and state and search.
If you like what you see, give me a call because you will want to have a pre-approval before you go looking at these homes. They go fast and your Realtor will want to make sure you are ready to write an offer as soon as you find a home you like. Make sure you also bring your checkbook because you will need to make a deposit when you write the offer.
Call me today for more details - this is an excellent opportunity - while it lasts! It's a jungle out there...I am your guide!
Sherry Bitner, 941-504-1445 - your Mortgage Loan Originator, NMLS#197312
You are cordially invited to our Homebuyers Workshop! Come and learn the latest happenings in Real Estate, Home Inspections and Mortgage Lending.
August 21, 2012 or August 28, 2012
7pm to 8pm
Blue Skye Lending Office
8130 Lakewood Main Street, Suite 205
Lakewood Ranch, FL 34202
Guest Speaker: Teri Girimont, Coldwell Banker
Tom Mahoney, Home Inspection Team
Sherry Bitner, Blue Skye Lending
Please RSVP - Seating is limited. Sherry@SherryBitner.com or call 941-504-1445. We look forward to seeing you!
If you are planning on purchasing a home in the near future, you need to do some extra planning when purchasing a home that needs Flood Insurance.
You see, the National Flood Insurance Program is up for approval in Congress. And, we all know what that means! They are only approving the program for a 60 day extension and plan to debate a more substantial bill in June to overhaul the entire program. Some issues up for debate are whether or not to cover second homes or vacation homes, and other topics such as how much the premiums will increase. Oh my...now what?
So, for the present time, you will be required to fill out an application for flood insurance, pay the premium, and wait for the approval of the insurance from the government (which can take up to 30 days) prior, yes you heard me, PRIOR to closing! You had better plan to have a closing date of at least 60 days built into the sales contract if you are buying a home in a flood zone. If it takes less time, you can always close sooner. But if the government gets backed up with applications...well, you don't want to loose the house before you even buy it, do you? It is always better to be safe, than sorry.
If the property you are purchasing is not in a flood zone, you do not need to purchase flood insurance as a requirement to close your loan. BUT...and this is a big BUT...you may want to consider purchasing it anyway. Ask your insurance agent why you may need this...and he will tell you what your homeowners insurance doesn't cover. You can also go to www.FloodSmart.gov if you are considering purchasing flood insurance.
Moving is a perfect time to prepare for a disaster...it really is! As you unpack, inventory your home, room by room. Take photos or videos to support any claims in the future. Scan your documents and photos and keep them on your flash drive in a safe deposit box and send a copy to a family member or friend who lives in another part of the country.
Then, in the future, when you purchase something new, add a scanned copy of the invoice and photo to your documents and you will be updated in case of a disaster. You have to unpack anyway, so add a pen and pad of paper (and the camera) to the "open first box" when you move!
Informing you of how to protect your dreams once they come true is our life long endeavor!
Let's get started making those dreams come true!
Well, at least for a couple of special lenders on our list! We represent a large number of lenders and this type of loan is not available with every lender. But, we have closed several of these rare "animals" in the past few months. If you have a special need, let's talk!
Knowing our lenders, and what they do, is our best asset! Call me today and let's talk about how I will be able to help you!
Sherry Bitner, M.P.