My New Blog

"The Best Mortgage Interest Rate" This is the goal of every new home buyer or anyone looking to refinance their current mortgage. It is important to get the best possible interest rate for your new mortgage.

We all hear the radio and television ads providing great super low interest rates that seem too good to be true. My professional opinion is that there is a very good chance that you will never get that advertised mortgage interest rate. Keep in mind that the idea behind these ads is to get the phone to ring. They have to provide the best lowest rate to get you to call, the rate is available. But, it is available to the absolutely best borrower with all the pieces falling into place to give that great rate away.

The number one question I hear from new borrowers is; 'what's your rate?', if I were a loan officer only interested in gaining your business I would provide an interest rate that would make you say.....WOW!

It is at this point that I tell the borrower that I can give them just about any interest rate they want, if they are willing not to look too closely to the paperwork. This is what happens to many borrowers, they like the interest rate so much the are willing to ignore the specifics of how they got that low interest rate.

The mortgage industry has gone through a drastic change since 2008, we have all heard about the Mortgage Meltdown but what many new borrowers have not heard is the resulting changes the industry has gone through to reduce Lender exposure to perceived risk. Lenders have overlayed loan guidelines and the pricing of interest rates with layers that end up costing the borrower more but reducing what they consider risk. Risk based interest rate pricing is all the rage with every lender, every GSE, FHA, VA, USDA, and Conventional mortgage guaranteer.

What does this mean for you as a new home buyer or someone who wants to refinance? Number 1; there is no generic mortgage interest rate, all interest rates are customized to the situation and circumstances of the borrower. This customized interest rate can vary widely from what you are expecting, either lower or higher. You cannot listen to the radio or television and think you will know what interest rate you will receive, you cannot just call a lender and ask for their interest rate. Get a customize quote and go into your new home purchase or refinance with more knowledge, it will serve you well.

There are many factors that will determine your interest rate some are obvious, credit score, loan size, term, loan program. Other factors are not so obvious, debt to income ratio, type of loan (Governmental or Conventional), even geographical location can sway interest rates.

if you would like to learn more about this or to receive a no obligation mortgage interest rate quote CLICK HERE to be taken to a new page on this website where you can request a CUSTOM MORTGAGE INTEREST RATE QUOTE.

The best Jumbo Mortgage Lender in the ENTIRE St. Louis and St. Charles area! What exactly does that mean? What constitutes the best? Is it the lowest interest rates? A large and ranging selection of mortgage programs? Easier qualification? The answer to the question of what lender is the best Jumbo lender in the area will depend on you and your needs.

Ever since 2008 when the mortgage industry went through some dramatic and lasting changes it is the Jumbo mortgage market that got hurt the worst. Many home owners and home buyers looking to purchase and finance a new home or refinance have found it extremely difficult if not nearly impossible to get a new mortgage. Most lenders at the time did not want to take the risk of providing Jumbo mortgages so they restricted their programs or did away with them all together. Now, it is the start of 2012 and there are several lenders putting their toe into the water of Jumbo mortgages, they are testing the water but I am seeing a lot of great changes to the Jumbo mortgage mortgage.

WHAT IS A JUMBO MORTGAGE?

In the St. Louis area and all over the State of Missouri the conventional maximum loan limit is set at $417,000, so any loan over the conventional loan limit cannot be bought by FannieMae or FreddieMac. Any mortgage loan with a principal balance of over $417,000 for the most part will be considered a Jumbo mortgage.

LOWEST JUMBO MORTGAGE INTEREST RATES!

Is having the lowest interest rate for Jumbo mortgages the criteria for making USA Mortgage the BEST Jumbo Mortgage Lender in St. Louis and St. Charles Mo? Well, I certainly think it wouldn't hurt, interest rates greatly effect your house payment when your loan amount is so much higher than the norm. So looking for a lender with the lowest interest rate is paramount to many Jumbo borrowers.

A .250% difference of interest rate on a principal balance of $800,000 equates to a annual savings of $2000, over a short 5 year period this is a savings of $10,000! As anyone knows, your money in your pocket will do better for you than it would in your banker's pocket.

Are you looking for the lowest interest rate? If you are; please make sure you are considering the cost of getting that extremely low interest rate. With that warning having been made I will offer you this; I have not found any Jumbo Lender in the St. Louis area who can beat USA Mortgage's Jumbo interest rates across the board and especially so when you consider the cost of gaining that low interest rate.

Do you want the lowest Jumbo interest rate for your new home purchase or to refinance your current mortgage? I encourage you to contact me or visit my website and ask for a quote, it only takes a few minutes to save thousands of dollars. If the lowest interest rate isn't the only item you need in a new Jumbo Mortgage than I know USA Mortgage is your answer.

A WIDE ARRAY OF JUMBO MORTGAGE PROGRAMS!

Jumbo borrowers seem to be more in need of wider or more lacked underwriting standards than government loan and conventional loan borrowers.  Back in 2008 all of the Jumbo lenders made their deepest cuts to the lending guidelines that made borrowing money so easy, they made their lending guidelines so tight that only a few borrowers could actually get a Jumbo mortgage. Recently, many lenders have loosened their guidelines. Though Lenders still pay attention to risk it is easier to get a Jumbo Mortgage today.

As of this writing I still have no ability to provide a mortgage to a Jumbo borrower who cannot prove income, there still is no Stated Income loan programs available to Jumbo borrowers. I do have a program that allows for stated assets, and this has helped a few of my recent borrowers get new mortgages! 

We aren't back to the old days but I doubt we will ever see those days return. I am doing more and more Jumbo loans today because the lenders I work with are opening up their lending guideline to allow more borrowers in. To discuss all that is now available would be too plentiful to put into this already too long article, I suggest you contact me or visit my website to learn what is available to you. Below is a list of some highlights of what many new Jumbo borrowers are finding at USA Mortgage:

• New Loans up to a $3,000,000.00
• Loan to Value ratio of 90% on purchases and refinances, single loan (rate and term only)
• No Mortgage Insurance option up to 90% loan to Value, single loan
• Adjustable Rate Mortgages: 1/1, 3/1, 5/1, 7/1 and 10/1 options
• Fixed Rate Mortgages: 10 year, 15 year, 20 year, and 30 year options
• Interest Only options
• CASH OUT options up to a 90% Loan to Value
• Credit Scores as low as 650
• Second Homes and Condo eligible options
• Maximum 50% total debt to income ratios
• Self Employed are welcomed
• Stated Assets
• Cash out up to $250,000 cash in hand option
• Single appraisal options

What else may you need to get your new Jumbo Mortgage loan? Give me a call, send me an email or visit my website and find your answer there. If you are looking to purchase a new home or refinance you existing home in the St. Louis area, St. Charles, Chesterfield, Clayton, Ladue, Frontenac, Town and Country or anywhere in Missouri you owe it to yourself to see what USA Mortgage can do for you. From the lowest Jumbo interest rates to the best jumbo loan programs, we have it all waiting for you.

It's back! After leaving Missouri, St. Louis, St. Charles and the surrounding area HUD has brought back the $100 Down Payment Program for a limited engagement! $100, that is all you'll need for a down payment to buy a foreclosure offered for sale by the government.

Yes, the U.S. Department of Housing and Urban Development has brought back the $100 down payment plan. This could be a tremendous opportunity for some people, first time home buyers or perhaps those looking to downsize.

HUD Foreclosures? So, just what kind of home can you buy with $100 down? Some of these are modest homes, some are in poor condition, but many are great bargains, family homes in great neighborhoods. many are large homes perfect for a family. You can find a database of HUD owned homes HERE. There is quite a range of homes, complete with photos and descriptions.

Don't be concerned if you find homes that look to need some minor repairs or more, there is a mortgage loan program perfect for purchasing these HUD foreclosures that need work, it is the FHA 203k Renovation mortgage. If you would like to learn more about the FHA 203k mortgage and how it can work for you clickHERE.

THE $100 DOWN PAYMENT PROGRAM HAS THE FOLLOWING REQUIREMENTS

1. HUD foreclosed homes only! The FHA $100 down payment loan is for the purchase of HUD foreclosure homes.
2. Have to use FHA financing, you cannot use conventional financing. Cash buyers are fine.
3. Owner-Occupants only, no investors.
4. You are required to have an earnest money investment of $1,000 for properties listed above $50,000 and $500 for properties less than $50,000. Your earnest money will be returned to you at closing as a credit on the Closing Statement. It is possible to get your earnest money back at closing!
5. No appraisal unless utilizing the FHA 203k Renovation Mortgage
6. Loan amount cannot exceed the Full List Price
7. YOU MUST OFFER FULL LIST PRICE!

$100 AND THAT'S IT!

This program allows you to negotiate a 3% seller concession of the agreed upon sales price to go toward your closing costs. Imagine possibly purchasing a new home with just $100 out of your pocket. It may be possible that the seller's concession amount will not cover all your closing costs, if that is the case ask your lender to cover the remaining closing costs and now you are purchasing a new home with just $100 down payment. Not all lender will or can offer to pay your closing costs to learn more about lender paid closing costs click HERE.

Ok, you can't get the seller, HUD, to provide you a seller concession, and your lender will not or cannot pay your closing costs. (You should have called me) The there are a couple other options available to you through the several down payment assistance programs in the area. Don't let the name fool you, the money these programs provide can go to closing costs too. IF you would like to learn more about these programs and what could be available to you click HERE.

THE $100 DOWN PAYMENT INCENTIVE HAS TO BE ON THE EXECUTED CONTRACT!

The HUD $100 Down Payment Incentive Program has to be on the executed contract presented to HUD's M & M contractor. What this means is that you have to request this incentive when you send the signed contract in. This is why you must work with a well qualified real estate agent who has knowledge and experience working with HUD foreclosures. Do your homework with your real estate agent because you will only have one chance to get this part right!

GET PRE-APPROVED BEFORE YOU GO OUT HOME SHOPPING

As mentioned before if you are going to finance your HUD foreclosure purchase you must do so with an FHA mortgage, more than likely you will utilize the FHA 203b or the FHA 203k Renovation Mortgage. The FHA mortgage qualification guidelines are some of the easiest in the industry, FHA allows for higher debt to income ratios, credit qualification is more relaxed than conventional, this is the loan program for most first time home buyers.

If you would like to learn more about the FHA mortgage please click HERE or if you would like to learn about the FHA 203k Renovation Mortgage click HERE. Lastly, if you would like to get a free no obligation pre-approval visit my website at www.bobrutledge.com, here you can learn about me and about financing your next new home.

In you’re a Real Estate Agent chances you are in some capacity, working with Foreclosures, Short Sales or other types of distressed property.

If you’re not working that market yet then maybe you want to add it to your bag of tricks! If you work that market then you and your clients could be better serve if you have an understanding of the mortgage products that are needed to finance that purchase.

The king of distressed property mortgage loans is clearly the FHA 203K Loan! Before I get into the details on what you need to expect, how you write the 203K offer and the other caveats to FHA 203K financing, I want to say one thing – please WORK WITH AN EXPERIENCED RENOVATION LOAN OFFICER. Now that we have that out of the way, on to the task at hand.

Writing a FHA 203K Purchase Offer

• Put FHA 203K in the Purchase Contract – Many lenders require this to be there, but it also lets the seller and/or listing agent know that those property condition issues that have killed deals in the past are NOT going to be an issue this time around.
• Provide for a Longer Contingency Period – Best practice says allow for enough time to get the Home Inspection AND a Contractor Bid. 70% of my clients underestimate the the cost of the renovation initially. Keep the mortgage contingency as close to the closing date as possible.
• Give 45 Days to Get Closed – 203K Loans have additional 3rd party items to work through, give some additional time for the buyer to get a couple contractors to the house AND give the contractors time to price accurately.

What to Expect During Your FHA 203K Transaction

• Expect the Appraisal to Come Later in the Process than You Are Used To – FHA 203K Appraisals are based on after repair value. Because of this we must have the contractors bid in hand to give to the appraiser before we can order the Appraisal
• Expect to Provide More Access to the Property – Inspectors, Contractors and the HUD Consultants will all need access to the property.
• Keep CALM – There’s more going on with a 203K Loan. There are more 3rd parties activities going on with can cause potential for delays. If you have chosen an experienced loan officer who knows the FHA 203k process well you’ll be fine even with a delay or two.
• All in all FHA 203K loans are not that much more difficult from the Real Estate agent side. This is especially the case if you have chosen an experienced RENOVATION SPECIALIST to work with. Can I recommend a good, very reliable and highly experience FHA 203k Specialist to you?

Now, get out there and sell someone a foreclosure already! By the way, FHA 203K Loans are not just for distressed property, you can use them on move in ready homes as well. Don’t limit yourself, sometimes your buyers need some help seeing the vision.

Need a FHA 203K PRE-APPROVAL? It’s one small click away

If there is anything I can do to help with a home buyer or a seller using the FHA 203k to buy a new home or sell their home please do not hesitate to contact me.

Are you looking to purchase a home in a rural community, but wondering where to begin looking for help with a home mortgage? Good News! The U. S. Department of Agriculture (USDA) has a home loan guarantee program that can help you obtain a home loan mortgage. The USDA Rural Development mortgage program offers to qualified borrowers residential home loans in rural communities. With the help of this mortgage program you can be living in a new home with little or NO MONEY DOWN!

Established in 1949, the USDA Rural Housing Loans program of the US Department of Agriculture has helped more than 2.7 million rural citizens take advantage of the opportunity of to own a home. For over half a century, the program has formed partnerships with carefully selected lenders in each state. In turn, the lenders provide the loans with a repayment guarantee from the USDA, in case the loan should ever default. The USDA backing means that loans are less risky to mortgage lenders who can proceed with confidence and offer home financing to those individuals who meet the USDA Rural Development guidelines.

For those who qualify a USDA mortgage can offer many advantages over other home loan programs available in the marketplace. Here are 10 reasons to consider a USDA Rural Housing Loan:

1. This is one of few zero money down mortgage programs available to borrowers outside of the military. The 100% financing option is one of the most attractive features of a USDA mortgage, as it can be tough for first time home-buyers to come up with a five, ten, or even twenty percent down payment when purchasing a home.

2. Borrowers are required to take out private mortgage insurance, this is a very recent change. But, the monthly mortgage insurance factor is .3 percent as opposed to FHA monthly mortgage insurance factor of 1.15 percent.

3. Combine USDA / Rural Development zero down payment with down payment assistance or lender paid closing costs to purchase a new home with little to nothing out of pocket.

4. No maximum purchase limit. The USDA Rural Development mortgage has no maximum purchase price limit.

5. Families with lower incomes and those with less than perfect credit may be able to qualify. In fact, this program is specifically for those with lower incomes, and borrowers who make above a certain amount (varies by county) may not qualify.

6. Competitive 30-year fixed rate mortgages make for lower monthly payments that are geared towards ensuring the successful repayment by borrowers.

7. USDA mortgages are intended to finance "modest dwellings", which can help buyers avoid purchasing a home that is above their means.

8. Less restrictive underwriting guidelines. Borrowers must still provide a credit history report. But the flexible guidelines allow potential homeowners with spotty or bad credit to still qualify for a home loan.

9. Seller paid closing costs are permitted, up to a certain percentage of the loan amount. This can enable a home purchase with few up front out of pocket expenses.

10. Homes that are "fixer-uppers" may qualify for extra funds for rehabilitation. Home repairs can be included in loan. Looking to purchase a "handyman special" home? Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs.

Who is eligible?

Any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA Rural Development home loan. An applicant for the USDA mortgage guarantee loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations. An individual or family must show proper legal capacity to own property in the U.S.A., own no home or dwelling currently, and have insufficient resources to qualify for a conventional home mortgage.

It is important to understand that not everyone will qualify for a USDA mortgage. The property must be located in an area that is designated as "rural" by the USDA, and the loan amount must fall within allowable limits (varies by county.) The borrower must meet the guidelines for eligibility and be able to show based on their income and credit history that they will be able to repay the loan as agreed. For those who qualify a USDA Rural Housing loan can help make cost effective home ownership a reality.

How to get started

USA Mortgage is the number 2 USDA Rural Development lender in the State of Missouri; let our experience and ability go to work for you. Allow me to show you how to purchase your next new home with zero down payments and have your closing costs paid for you. Zero down payment plus zero closing costs equals a new home with your savings in your pocket.

CONTACT ME TODAY!

Since 1934, the Federal Housing Administration, (FHA) has offered home ownership assistance to Americans in the form of FHA financing. The program originated to combat the effects of the Great Depression, when the rate of foreclosures and loan defaults were high and home ownership for the average American was very low. In response to the recent economic downturn, modifications have been made to the FHA program. Now there are even more reasons to consider FHA financing.

1. FHA financing allows home-buyers a low down payment alternative for their home purchase. The minimum down payment is a low 3.5%. Click here to learn about Down Payment Assistance in Missouri.

2. Low interest rates and very reasonable closing costs. With an FHA loan it is permitted for the closing costs to be paid by the seller, by the LENDER, or as a gift from a relative, non-profit, or government agency. This can make a home purchase possible with very low out of pocket expenses. Click here to see how a lender can pay your closing costs!

3. Even borrowers with less than perfect credit may qualify. FHA has several mortgage options that have a minimum credit score that is required for all applicants, but it tends to be much lower than conventional mortgage programs.

Have you been turned away because you credit scores fall from a 580 score to a 640? Click here to find out how you can get an FHA mortgage now!

4. FHA loans are not just for single-family homes. For qualified borrowers, they may be available for 1 to 4 unit properties. The homeowner must live in one unit, as FHA loans are strictly for owner occupied homes, but the additional units can be rented out helping to offset the mortgage cost or generate income. Alternatively a multi-unit home could be used to accommodate a large, extended family.

5. There is a specialty FHA program available (203K loans) that allow the cost of buying a fixer-upper and making the necessary repairs to be financed in the mortgage. This is a great program to purchase bargain homes that need a bit of repair, buy the home at a low price, finance the repairs and have a home with equity. Click here to learn more about the FHA 203k Renovation loan.

6. Another specialty FHA loan is designed to keep Senior Citizens in their homes, allowing them to borrow from their equity to provide cash to live on. This is called a Reverse Mortgage.

7. The Energy Efficient Mortgage (EEM), also from the FHA, is designed to finance the expense of energy efficient home improvements. Home owners can improve their own property and make a positive impact on the environment.

8. FHA loans have much more flexible underwriting guidelines, over conventional mortgages, to fit today’s home buyer. Much higher debt to income ratios, the FHA mortgage provides for a non-occupant co-borrower to help a new home buyer qualify for a new loan.

9. In addition to loans for a home purchase, there are also FHA programs that offer funds for refinancing and debt consolidation. Cash out refinances to 85% loan to value, and for a rate and term refinance you can utilize a 97.75% loan to value. This is very useful in today’s lower home values environment.

10. FHA mortgages are assumable, which means after you have owned you home for a while and are ready for another new home the mortgage interest rate you currently have can be assumed by the new owner of your home. This is a great selling tool when you have an interest rate lower than the current market rate.

To learn more about the FHA mortgage program and other mortgage programs that can help you purchase your next new home please feel free to contact me. I welcome the opportunity to answer your questions, find down payment assistance for your new home purchase, provide you alternatives that will save you money and give you a great interest rate, or refer you to another lender who may be able to help when I cannot.

The FHA-insured mortgage market share has increased 10-fold since 2006, spawning a huge class of first-time FHA borrowers around the country. FHA mortgages are identical to conventional mortgages in most ways, they're offered as fixed rate or adjustable; they're available with 15- or 30-year terms; and they don't come with prepayment penalties. But, because FHA mortgages are government-insured, FHA homeowners get access to a special, FHA-only program known as the FHA Streamline Refinance.

Want to learn more about FHA Mortgages? Click Here

FHA Streamline loans can help homeowners lower monthly mortgage payments and interest rates. But what do you need to qualify for an FHA Streamline loan? To begin, you need an existing FHA mortgage—if you don’t have an FHA loan but want to refinance, your options include conventional refinancing or applying for an FHA refinancing loan.

This refinancing option is considered streamlined because it allows you to reduce the interest rate on your current home loan quickly and often times without an appraisal. FHA Streamlined Refinance also cuts down on the amount of paperwork that must be completed by your lender saving you valuable time and money.

FHA Refinancing regulations have been modified to clarify the aspects of some FHA refinance rules and to tighten those rules in other areas. Among the changes are modifications to the Streamline Refinance program–the non-credit qualifying (in most cases) refinancing loan offered by the FHA.

Summarizing the FHA Streamline Refinance:

Perfect 12 month mortgage payment history. This means over the past 12 months you cannot have had one late payment on your mortgage. BUT, that's it we will not look at any other credit history!

Minimum 580 Credit Score

210 Day Waiting Period, FHa requires that borrowers have made 6 mortgage on their current FHa insured loan and that 210 days pass from the most recent closing date of your current FHA mortgage.

Empoyment Verified BUT NOT Income, no pay check stubs, no W2 forms, no income tax returns. But, you must be working and we will verify your employment.

No Appraisal, The FHA isn't concerned about home value -- it's insuring your loan regardless. Therefore, the FHA does not require appraisals for its Streamline Refinance program. Instead, it uses the original purchase price of your home, or the most recent appraised value, as its valuation point. Homes that are underwater are still FHA Streamline-eligible.

Loan Balances Cannot Increase to Cover Loan Costs; FHA prohibits increasing a streamline refinance's loan balance to cover associated loan charges. The loan balance is limited by the formula of Current Principal Balance + Upfront Mortgage Insurance Premium. All other costs, lender fees, title charges, re-establishing a new escrow account must be (1) paid by the borrower, or (2) CREDITED BY THE LOAN OFFICER. This is referred to as a No Cost Refinance and done frequently.

Streamline Refinances Still Require FHA Mortgage Insurance:

Nearly all FHA borrowers make two types of mortgage insurance payments -- upfront, and annual. Upfront mortgage insurance is paid at closing and is equal to 1 percent of the loan size. For example, a $100,000 FHA loan requires a $1,000 upfront mortgage insurance premium (MIP) paid at closing. The FHA adds this insurance payment to your new, starting loan balance by the FHA as part of the Streamline Refi program.

The Good News About Upfront MIP is that it's refundable! If you refinance your current FHA mortgage within its first 36 months a portion of your original Upfront MIP gets credited to your NEW Upfront MIP payment. Since the refund is prorate the sooner you refinance the bigger your refund. See Chart below.

The number requirement for an FHA Streamline Refinance is that there must be a net tangible benefit to the borrower. Without meeting specific tangilbe benefits a lender cannot provide you a Streamline Refinance.

If you have a FHA mortgage and you want to see if you are eligible for a Streamline refinance I will need a couple items; (1) a recent mortgage statement, (2) the Note for your current mortgage, (3) the HUD1 Settlement Statement

With these three item I can determine if you meet the net tangible benefit requirements, calculate your Upfront MIP refund, and get you closed within 30 days!

At USA Mortgage we are getting FHA Streamline Mortgages done that other lenders cannot. Please, contact me today and lets discuss how we can start saving you significantly on your mortgage tomorrow.

So you are a First Time Home Buyer or at least you are considering buying a new home. You have heard that you can own a new home for less than what you would be paying rent on a comparable place. You want to own because you want a place to call your own, you hate the neighbors in the apartment next to you, your landlord never responds, you want to change the color of your walls, your apartment is just way too small. Whatever your reason for looking to own your first home, this is a great time to be considering making the move!

The 2 Big Worries of Most First Time Home Buyers: Getting Approved and Money to Close

By now we have all heard that it is harder now to get a new mortgage than ever before. That you have to have a 20% down payment. That lenders are saying NO, that banks aren't lending, and that home sales are way down and foreclosures are way up. Well, some of this is true and a lot is false.

Before the sub-prime lending market fell apart it was very easy for nearly anyone to get a new home loan, it was too easy. I recall a loan program where if you had a 580 credit score, your debt to income ratio was at 50% or less, you didn't need a down payment and you were at least one day removed from your Bankruptcy discharge then you were qualified to buy a new home.  Ironically, except for the one day out of Bankruptcy I can still get many first time home buyers a mortgage through FHA financing who have these qualifications.

Not everyone can qualify for a new mortgage, some who want to own their own home just have not earned the ability to have a lender provide them the funds to buy. But, is it impossible for MOST home buyers to get a mortgage to purchase a new home...NO!

There are 3 basic loan programs to work very well with first time home buyers, USDA, VA and FHA. USDA is a great 100% financing program for low to moderate income home buyers who want to own a home outside of urban areas. The VA mortgage program is for Veterans and those serving our country in the Armed Forces, another great 100% financing program. But, the number 1 loan program for owning your first home is the FHA mortgage.

FHA Mortgage Qualification for First Time Home Buyers

Since every lender has their own rules or overlays to getting an FHA approval, I will only speak about what I can do. FHA has their own guidelines that every lender has to abide by, but many overlay these rules with their own guidelines that make getting approved a bit more tedious. At USA Mortgage we have the ability to approve your mortgage straight from the FHA underwriting manual, this makes getting your new home much easier.

We want a minimum of a 580 middle credit score of your 3 available scores, this 580 score doesn't mean an automatic approval it is just the number we need to get you to the starting line. An underwriter will take careful consideration of your credit history to determine if you have the WILLINGNESS to pay your credit obligations. Are you paying your credit obligations on time and as agreed then you have a very good chance of being credit approved. Truly, it is that simple.

Next we will look at your ABILITY to pay your obligations, this is a simple ratio test. We will take your monthly gross income and compare it to your potential new house payment and most if not all of the credit obligations we find on your credit report. If you fall at or around the debt to income ratio guideline then you are income qualified. The debt ratio for contained within the FHA guidelines is 31% for your new house payment and 43% for your total debt to income ratio. These guidelines are NOT absolutes, I have received approvals with total debt to income ratios as high as 50%.

Getting approved for a new home loan especially for first time home buyers who utilize the FHA mortgage programs will find that it is not overly difficult. I usually have an answer for you within the course of a day, many times much faster. Would you like to have a professional evaluation of your ability to qualifying for a new home loan? Please, feel free to contact me. If I can't get you approved for a new mortgage today, we will set a plan in motion that will get you there. If you want to learn more visit http://www.bobrutledge.com/FHAMortgageMissouri or http://www.bobrutledge.com/FHAlessthenperfectcreditmortgage.

I Don't Have The Money Saved For a Down Payment

This is the second concern of many First Time Home Buyers, mostly because they keep hearing that it takes a 20% down payment to get a mortgage approval. BALONEY! The minimum down payment for FHA is 3.5% of the sales price, USDA and VA has no minimum down payment requirements.

There are many places for a first time home buyer to come up with the required down payment for an FHA mortgage, in fact in the FHA underwriting guidelines they mention 24 different resources a first time home buyer can use for down payment. When I first visit with a potential home buyer we go over that list and they are amazed at the fact that they did have the down payment available to them.

But, keep your money in your pocket. There are many groups that provide down payment assistance to first time home buyers, the State of Missouri has a nice program, Florissant, Wentzville, St. Peters, St. Charles, O'Fallon, Dardenne Prairie, Weldon Springs, St. Paul are just a few of the cities around the St. Louis area that offer down payment assistance, Then there is St. Louis County, St. Charles County and Jefferson County that has down payment programs too. Funds available for down payment help can range from 3% of the loan amount with MHDC or from $3,000 to as high as $10,00o from the local government agencies. If you want some help with down payment assistance programs and qualifying for these programs please feel free to contact me or visit http://www.bobrutledge.com/FHAdownpaymenthelp

Getting a New Home With Little To No Money Out of Pocket

Now you know there are mortgage programs for first time home buyers that don't require a down payment, that there are programs that provide down payment help but what about the remaining costs to getting a new home. Besides the down payment there are costs that are referred to as closing costs. In today's housing marketing it is not unusal to have the seller of your next new home pay for your closing costs, this is considered standard and acceptable. With FHA in many instances the seller can pay up to 6% of your closing costs.

As a lender I can help pay your closing costs too, for nearly all my first time home buyers I have been paying for the cost of the appraisal and waiving all lender closings costs. This has helped with keeping your money in your pocket as well as making it much easier to negotiate with the sellers as they are not giving up that money from the sale of their home. If you would like to learn more about this special first time home buyer program visit http://www.bobrutledge.com/FHAlowinterestratesnolendercos

Home Loans for Those with Poor Credit and Low Income – St. Charles and St. Louis Missouri

A low income coupled with a poor credit history does not necessarily make you ineligible for a home loan. Please, notice I used the word Poor and not Bad. Bad credit can stop you from getting a mortgage now but possibly not later down the road.

Steady Employment and Salary Requirements

Most often, because it is indeed a different way of life, loans for folks with bad credit and low incomes are more often used in rural communities, but not always, first time home buyers are generally have lower incomes. In rural communities incomes are apt to be lower and many have not really had an opportunity to establish a credit rating of any kind. So, most often when the terms poor credit are used, it really means little to no credit history. Loan amounts are based on the salary of individuals and he or she must meet certain income limits and have steady and reliable employment.

Closing Costs and Down Payments

For most poor credit home loan borrowers, the biggest obstacle seems to be coming up with down payments and closing costs. Closing costs are primarily administrative fees that go toward paying for title and deed searches to ensure there are no other owners of the property, as well as for processing documents, transaction fees, and also for legal costs. Down payments are often required to ensure that the borrower has a stake in retaining the property and making payments. They also lower the actual cost of the mortgage. The closing costs are often an amount fixed by the lender and can be rather low. There are many loan programs that do not require a down payment; also there are many down payment assistance programs available to first time home buyers and home buyer with moderate to lower incomes.

Submitting Applications for Low Income Bad Credit Home Loans

Future Home Owners interested in obtaining a poor credit low income home loan, should submit applications that clearly state their financial situation and their needs. Lenders will want to see an explanation for poor or no credit reports. The borrower should be quite explicit and honest as to what happened, or did not happen, to bring their credit scores to the present state. Lenders also want to see a plan for repaying the loan, what sacrifices the borrower might be willing to make to own their own home.

A Lender will look at two items when underwriting your poor credit and low income mortgage application, your willingness to pay your obligations and your ability to pay your obligations. Paying your obligations is simply a comparison of your income against your debts, if you fall within the debt to income ratios you are set to go.

Your willingness to pay your debt obligations is more subjective; people with a poor credit history or no credit history have a more difficult time initially proving to an underwriter that they should approve your mortgage application. Be prepared, get to know your credit history very well, explain and prove and you will be fine. Your mortgage loan officer is your advocate between you and the underwriter, work with them and they will be able to help you get through the underwriting process.

I Can and Will Help with Getting You a New Home

Every month I am attending closings of new home owners who thought they would never be able to own their own home. They came to me because they had low credit scores, no money saved, little income, no credit scores, whatever their concerns were we were able to work together to get them a home.

Can I help you? Maybe, but we won’t know until you take the first step and contact me.

Five Tips For Home Buyers With Poor Credit Who Want A Home Loan in St. Charles and St. Louis Missouri

If you have poor credit, finding funds to finance your dream of home ownership will not be a walk in the park, but there are lenders out there who want to help you. Just be persistent and do not restrict yourself to one lender and then give up. Here are five tips when you start your quest for bad credit home mortgage loans.

Tip One: Find a Good Deal

Finding a property that already has some equity when you purchase could mean an easier path to financing with a poor credit home mortgage loan. Lenders may view it almost as favorably as a down payment. They may even consider the loan to value ratio of the property. Check with your lender to see if this might help you. Be thinking about an FHA 203k Mortgage.

Tip Two: Be Creative

Creative financing could help your quest for a poor credit home mortgage loan. Look into down payment assistance programs, but in areas that offer down payment assistance. There are many cities and counties throughout the area that offer down payment assistances. Work with lenders that can and will help you with the closing costs involved. Find a real estate agent well versed in negotiating selling concessions to help with keeping your money in your pocket.

Tip Three: Down Payments

Even with bad credit, borrowers may qualify for 100% financing, but the interest rate could be considerably lower if you were able to put down between 3-5%. Save as much as possible for a down payment. Indeed, it may be advantageous to wait six months to get a home loan so you can build your down payment. Of course, if you cannot wait and do not have a down payment, you can aim for down payment assistance. Save your money though, having money in the bank after you close will help make an underwriter’s decision much easier. Use down payment and closing cost help to keep your money in the bank and make you a better borrower.

Tip Four: Shop Diligently

You may get a flat refusal from one lender and then turn around and get another lender who will bend over backwards for you. NOT ALL MORTGAGE LENDERS ARE THE SAME! Do not be led into the trap that if one lender cannot help you, no lender can. Indeed, lenders are different in the kind of mortgages they can execute, experience and ability.

Tip Five: Credit Scores

Some really simple acts can improve your credit scores without a lot of extra effort. All three of the major credit bureau - Experian, Equifax, TransUnion - have websites where you can dispute incorrect items on your credit report. It is an easy and quick process. Of course, keep all current bills on time. Keep your credit inquiries to a minimum since too many queries can make you look desperate. While you are in the process of landing financing, do not open any new credit cards, auto loans, or any other credit transaction. Do Not Pay Off any past collections, judgments, or past due accounts until you speak with a lender who you trust and will provide advice.

Home Mortgage Bottom Line

Do not let poor credit squelch your quest for home ownership. With the right moves and right advice, you should be able to secure a mortgage or home loan very quickly.