The Cost of FHA Home Loans going up?

So is the cost of buying a home going up?  The answer to a lot of home buyers is YES. 

FHA has announced that they will increasing the Up Front Mortgage Insurance Premium (UFMIP) by.75% and the annual by .10%.   As of April 1st  2012, the new UFMIP will 1.75% and the annual will go up to .65%

What is a FHA mortgage?  A FHA home loan is a loan that is backed by the Federal Housing Administration.  It provides for low donw payment home loans.  Through FHA you can buy a home with 3.5%  down payment and a FICO score down to 640 and in some cases 620 in California.  FHA also allows for higher DTI's,  non-occupying co-borrowers, gifts for down payments. 

 FOR FREE PRE-QUALIFICATION GO TO HERE

So what do this increase mean to you.  #1 It will not mean more money directly out of your pocket.  Why?  Your UFMIP can be financed into your loan.  But it will mean that you will have a higher loan amount and subsequently payment.  Also it will increase your payment with the increase in annual MI or monthly MI with the .10 increase.  

But will it decrease your buying power or how much you can buy??

 Click here to see if will effect your buying power

Click here for Credit Repair

For more information on California Home Loans and Mortgages

Call me at 831-801-8667

Keith Woeste
American Financial Network
NMLs 292588
Get a FREE home buying evaluation Here

http://www.mortgages4california.com/
http://www.hollistermortgage.com/

Whaat does it mean to get pre-approved for a Home Loan?

So what does it mean to get preapproved???

Before you begin looking for a home it is very important to get preapproved.  This will give you an idea of how much of a home you can afford.  And if you will qualify at all.

So what happens when you get pre-approved for a Mortgage. 

For a FREE Pre-approval contact Keith at hollistermortgage

1. We pull and evaluate your credit. (Offer credit help if work needs to be done.)
2. Evaluate you income.  Based on your pay stubs
3. Evaluate you work and work history.
4. Evaluate you assests.  If you have enough for a down payment or closing costs.
5. Evaluate you debt to income ratio (DTI)

All these things put together helps us pre-approve you.  It also give you a range of what you can and cannot afford.   For example if your DTI is too high you will have to look for a cheaper home.

For more information contact me at mortgages4california

Call me at 831-801-8667

Keith Woeste
ANF
NMLS 292588
hollistermortgage
mortgages4california
repairmy-fico

# 4 and 5 of the 20 Whats of Home Mortgage

4. What hurts my credit scores? - High balances on credit lines hurt your score. Any amount that exceeds 20% of your account limits will hurt you score. Late payments will hurt your score. Late payments will stay on you report for 7 years. Collections will hurt your scores. In fact, FHA and USDA require all collections be paid. On conventional loans it is decided by the underwriting system. Tax Liens will significantly hurt your scores. And obviously foreclosures, short sales and bankruptcies will affect your scores.

For More Home Loan Information and FREE Interest Rate Quote go to mortgages4california


5. What is the minimum down payment? For FHA the minimum down payment is 3.5%. For USDA you can get a “0” money down home loan. With a “VA” loan (for military vets and active military only) you can purchase with 100% financing. With a conventional loan you can buy with 5% down up to a loan amount of $417,000. Above $417,000 it is 10% down payment. ( Note: for conventional loan FICO score can affect your down payment amount and interest rates)

Calfornia Home Loan Interest Rate Quote hollistermortgage

Keith Woeste
AFN
831-801-8667
NMLS 292588

The 20 What of Mortgage #2 and #3

Here is Number 2 and 3 or the Whats of Home Mortgage

2. What is a home loan credit report and the FICO score? A home loan credit report is a report called a “Tri-Merge Credit Report.” It is a credit report that merges your credit report form all three Credit Bureaus. The three are Trans Union, Experian and Equifax. It will combine all into one. The FICO score is the number that each credit company establishes for you. They use credit lines (credit cards, car loans, home loans etc…), account balances, current and late payments, collections, foreclosures, short sales, and derogatory to calculate a FICO score.

Got to mortgages4california


3. What is the minimum credit scores need for a home loan? The minimum score is 640 for a FHA home loan. In some cases a score of 620 can obtain a FHA home loan. For a conventional loan the minimum score is 640, but you with the lower the credit score the higher the interest rate. With FHA the interest rate does not adjust with the FICO score.

To reach us for more go to hollistermortgage

Keith Woeste
AFN
831-801-8667
nmls 292588
hollistermortgage
repairmy-fico

The 20 Whats of Home Mortgage

Here are the 20 Whats of Home Mortgage.  #1

This report is designed for people looking to buy a home or interested in a home mortgage. I have been in the mortgage industry for many years. I love helping people reach the ultimate goal of buying a home. The best feeling is to get a “thank you” when some gets there dream home.


There are always many questions that relate to home mortgages. I am writing this report to answer those questions. Thus, I am calling this report the “What” to answer your questions. So here we go…

1. What is a mortgage? It is a loan secured with your home through the use of a note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which is the loan.

For more home loan information vists hollistermortgage or mortgages4california

Keith Woeste
Hoem Loan Consultant
831-801-8667
NMLS 292588
http://www.hollistermortgage.com/
http://www.mortgages4california.com/
repairmy-fico