Purchases
CONVENTIONAL MORTGAGE LOANS-
Guidelines for obtaining a mortgage loan through the
Federal National Mortgage Association (FNMA):
- Total debts, including house payment cannot
exceed 36% of gross income (after tax).
- Generally 2 years employment in the same line
of work, however, if you have changed occupations and increased your income
this is usually acceptable.
- A minimum down payment of 5% is required in
most cases, a 3% down payment can be made for a 1st time home buyer with
limited income.
- Credit for the last 2 years is expected to be
near perfect.
NO MONEY DOWN 100% FINANCING
Guidelines for obtaining a mortgage with no money
down and potentially zero out of pocket expense.
- Total debts, including the house payment
cannot exceed 45% of gross income.
- Though 2 years is required, there should be no
gaps in employment and there should be a minimum of 1 month on the current
job.
- No down payment.
- Credit should be fair, no major
delinquencies in the past 2 years.
NO DOCUMENTATION REQUIRED
FINANCING
- Income does not matter.
- Perfect for self-employed borrowers who write
off all or most of their income.
- Potentially no down payment, however, 10% down
is the general rule of thumb.
- Credit needs to be near perfect.
"B" PAPER FINANCING
- For those borrowers with less than perfect
credit ranging from 1 or 2 lates on the mortgage, to those borrowers
currently in foreclosure.
- Rates are generally higher than conforming
FNMA products.
- Debt ratios can be as high as 55% on most
products.
- Perfect for those who have equity in their
home and are looking to repair their credit rating by doing a consolidation
loan.
- Loan to values can be as high as 90% on most
products.
F.H.A.
- 3% down payment required (can be a gift)
- Need near perfect credit, however, credit file
can have some minor problems
- If no credit is listed alternate credit
(utilities, insurance, rent checks) can be used
- Seller can pay full closing costs/pre-paids
- Back end debut ratio (all debts
including house payment divided by income can not exceed 40%
Refinance Example
We have re-created a typical situation in which
we were able to save a customer over $800 a month! Granted, not all situations
are this dramatic (we have found most come close). We are confident we can
improve your current situation.
|
CURRENT SITUATION |
MORTGAGE EXPRESS SOLUTION |
| DEBT |
BALANCE |
PAYMENT |
DEBT |
BALANCE |
PAYMENT |
| 1st Mortgage |
$45,000 |
$445 |
1st Mortgage |
$80,000 |
$570 |
| 2nd Mortgage |
$9000 |
$200 |
2nd Mortgage |
$0 |
$0 |
| Dept. Store |
$5,000 |
$210 |
Dept. Store |
$0 |
$0 |
| Automobile |
$12,500 |
$365 |
Automobile |
$0 |
$0 |
| Credit Card |
$6,000 |
$150 |
Credit Card |
$0 |
$0 |
| TOTAL |
$77,500 |
$1370 |
TOTAL |
$80,000 |
$570 |
|
|
|
TOTAL MONTHLY SAVINGS
$800 |
Mortgage
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