Deaf Mortgage

PMI = Private Mortgage Insurance

If you do not put down more than 20% down payment on the house, you will have PMI. Its Mortgage lenders's protection from losing the loan to people who has loan under 20% down payment.

If 20% or more, PMI is waived. Veterans Affairs (VA) loans waives the PMI. One more bank do waive PMI if you are under 80% of the medium income in a specific county.

Is that clear?

Deafness

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shel90

One big con about VA loans is that they have very strict guidelines on the conditions of the houses and I am telling u from experience, the guidelines are VERY strict. Our lender almost didnt approve of this house cuz the paint outside was the wrong color so the seller had to repaint the base of the house just to meet the guidelines. VERY strict!

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Deaf Mortgage

Similar guideline as FHA. Strict as making sure house is up to code and up to date with age of house.

IE... Roof will need to be younger than 8 years (I believe so) to waive repair... painting issue is another one.

VA is very similar as FHA.

Difference is... VA no pmi, FHA high pmi with low interest.

Foxrac

Oh really? how is wrong colors?

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Pinky

I understand that clear. Is this new build in 21 century? Why I couldn't have to paint on the wall to match the decorate?? If move out and can redo on white paint on walls. What do you think?

Wow! I didn't know that. My dad used to have a VA loan the house in 80"s. We moved to other house with wrong color from someone. It's very old house. It need to fix. My dad just died in 1997. I didn't know about 21 century VA's guideline rules. My dad discharged the army from Korea in 70's. Is mortgage different than from past to now?

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Deaf Mortgage

Depends on the guideline. They will inspect the house first and see if it actual qualify as it is. They will tell you what needed to be repaired. It can be a long process.


More likely the guideline has changed few things since 1980's as we are approaching late 00's. Market is difficult on many banks. Not all banks are created equal.

Deaf Mortgage

PMI = Private Mortgage Insurance

Have to add PMI fee on your loan only if you only put down less than 20% of the house value (purchase agreement).

Example:
House purchase agreement price is $200,000
20% down payment is $40,000 (your own saving bank)
Then loan will be 160,000.

160,000 vs 200,000 is 80% Loan to Value (LTV).

If you put down less than 40,000 on the $200,000... means you will need to pay PMI. The closer to 80% LTV, the lower PMI is.

Right now market is allowing MAX 95% LTV (requiring 5% down payment).

I have found few programs that are allowing 100% LTV (0% Down payment). But requirements are very strict.

IslandBreeze07

What programs? What strict requirements? High FICO score? Please let us know. Thanks

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Deaf Mortgage

I believe 580 FICO requirement, 2nd community mortgage to assist you for LTV to be 100%. IE... 1st mortage will be 95%, 2nd Mortgage is 5%. But 2nd mortgage is from community mortgage to help people with down payment.

If you have more questions regard of this program, you can PM me directly. I am open for discussion and education purpose of this topic.

IslandBreeze07

I will, thanks!!! It's good to hear about the FICO. No worries! The market is still tanking, with so much inventory out there. I could be wrong, but it does not appear to pick up until mid 2009 or so. That's when we're looking at a move.

It's decently easier to rent for now. No PMI, no Florida insurance and property taxes for now. May look at agricultural areas to save on property taxes.......since we do want to add horses in the future.

Wouldn't it be hard to carry two mortgages? Pay one, pay other?

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Deaf Mortgage

Why pay two mortgage? If you live in one, rent out the second house. Allow the tenant to pay your mortgage. That how many house investors do.

Make sure you have rental certification to allow tenant live in your second home.

Deaf Mortgage

Another requirement for this NO PMI is that your income will need to be 80% below the county average.

IE: If you live in Minneapolis's Hennpeins County. The average income would be 60k salary.

80% of 60k is... 48k. You will need to make below 48k in order to qualify for no PMI. Its designed for low income especially for SSDI community or low income with several kids. It will help out some. Few tens into few hundreds.

Dont get too excited about this program I am learning about. Its very strict program.

shel90

I have no idea...all I was told that the seller had to repaint the base of the house before the house could get qualified. Boy, he was so pissed!

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shel90

I didnt know that either until we applied for the loan and learned how strict the guidelines were.

I dont know if the mortgage requirements are different today than from the past. I am not an expert in that area.

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Deaf Mortgage

The first post on the thread explains how much the mortgage requirements has changed since Jan 2008.

Those who purchased before Jan 2008 experienced easier guideline.

IslandBreeze07

Hmmm, this may work. I'll ask about this requirement sometime in 2009. Thank you. I'm second tier but working on getting to first tier before getting anywhere near a Lender. Otherwise, renting is still fun!

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Deaf Mortgage

Can you clarify what you mean by working to get on 1st tier?

IslandBreeze07

Credit. Second tier is Good. I want to get to Excellent. Better rates when you have excellent credit.

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Deaf Mortgage

Interesting how you describe it as tier.

I don't remember if I wrote about what is bad and good credit score. I will type one when I get chance to.

As long your credit score is above 580, you will get a loan. If 620, better loan... If 680, better then 720+ is utopia. Do you have any idea where you are?

Do you know that mortgage with no debts will speed up your credit score up faster. Mortgage is the best thing to build your credit fast. Ironic?

shel90

By having a mortgage will increase my credit score faster? What about having a mortgage and other debts?

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shel90

I remember when I was working trying to build up my credit score and it was almost over 700 at one time. My car broke down so I had to buy a new car and to my dismay, it brought my credit score down by around 50 points. I couldnt beleive it!

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IslandBreeze07

My sister said when you get approved for a mortgage, it helps your credit. Weird but it happens that way. She bought quite a few.

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IslandBreeze07

Or with debts under 30% of the available credit balances. 740 now, but I have two balances that are high. One of them low rate so I threw debt all over up that one. Other, shoot down! I could get a house now but I don't wanna freak out over everything closing costs, PMI, Fl insurance, property taxes when my rent has not been raised in three years. One more of great rent. I can't complain. I feel fortunate. More time to get things in order for a good rate and a good deal.:fing ersx:

I appreciate talking with ya deafmortgage. I read your blog. That's an awesome service!

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Deaf Mortgage

Thanks! The blog is to spread awareness. I will create outside blog for the entire USA Deaf community learn about their credit history and how to get a good loan etc...

If you have 740 as credit score number... that is very good. Get yourself ready to buy a home by at least 5-10% down payment. 15% is better. Interest rates will drop more as you increase your down payment.

Examples:

200,000 house priced

5% Down Payment = $10,000 and loan at $190,000 @ 6% interest

10% Down Payment = $20,000 and loan at 180,000 @ 5.75% interest

15% Down payment = $30,000 and loan at 170,000 @ 5.5% interest.

The more you put down on the house means you are less risk.

Higher credit score means you are less risk. These are just basic factors of High FISCO (credit score) and bigger Down Payment.

Don't forget to at least 5%. Depend on what county of state you live in. Review the Soft Market = Buyer Market's guidelines. A lot information there to know. If declining market, make sure add 5%... To minimal of 10% down payment.

I am writing this to get people ready for purchase a home. Than last minute want to buy a house and find out that they cannot get a home due to no money to down payment. There are down payment programs that can help first time house buyers.

It was good to talk with you back n forth on this forum. I want to continue to educate more people about how mortgage and loans works with credit score.

I guess I will add credit score information soon. Anything over 720 is perfect candidate for lowest interest available.

Another factor to consider is how much your income compared to your debts. Its based on monthly income and monthly bills of debts loans. Not including the bills of utilities such as TV, Internet, electric etc... They look at credit card, car loans, student loans, personal loans and mortgage loan to determine the %.

Blah blah... these can be added to credit score thread I will create. Separate topic.

IslandBreeze07

DeafMortgage,

You are doing everyone a great service on this thread, keep it up! Not everyone, even hearing people know everything so it's a great educational thread.

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Deaf Mortgage

Thank you! Share your knowledge for its our only survival in this wacky world.