Dreams do come true millennials … and easier than you may think! A recent survey conducted by one of the Cumberland County Mortgage lenders, United Wholesale Mortgage (UWM), has made us realize we aren’t doing a very good job getting the word out, so, let’s set the record straight… you got this! Homeownership is obtainable, with little to no money down. That’s right, no money down mortgages! You don’t have to forgo your avocado addiction to save for your down payment – and trust me, you deserve that extra Starbucks java on Friday!
91% of millennial respondents in the 2017 survey view homeownership as a financial investment that is not easily obtainable. 91%! Let me repeat, you got this! Through programs like the USDA Rural Development loan, potential homeowners can apply for a mortgage with $0 down and low interest rates. This often means, mortgage payments that are equivalent to or in some cases less than what you’re paying in rent! And if you’d like to look at other loan options, or maybe owning a multi-unit so you can let renters help pay your mortgage payment (wicked smart… in my opinion), you can do this for as little as 3.5% - 5% down. Some loan options even allow the down payment to come as a gift from family members –thanks, Mom and Dad!
Still not sure you’re ready, know you’re not alone -
Other interesting findings in the survey:
But, you can do this! Reach out to your favorite Cumberland County Mortgage loan officer and begin the conversation; it’s free, no-obligation, no-pressure, and can even be done via email or text. Or, you can start slow by browsing houses online and use a mortgage app to see what you’d be looking at for a payment – try our Corey Scott Team’s https://corey-scott.loanzify.com/ .
Stop dreaming, stop paying your landlord’s mortgage (or move out of Mom and Dad’s basement), and make home ownership your next achievement. Hey, according to our partner UWM, this means you’ll be more likely to complete other rites of passage like credit cards, auto loans, 401(k)s and new cars – adulting while sipping on your grande Caffè Americano!
- Megan Scott, (a very old) millennial Loan Officer with the Corey Scott Team
Eligibility- Who Qualifies for the VA Home Mortgage?
As talked about in a previous post (click here), the VA Mortgage Loan is a useful tool for anyone who has served in the military and is looking to purchase a home. If you are a member of the military, veterans, reservists or National Guard then you would be eligible to apply for a VA loan. Additionally, spouses of deceased military members can also apply if their spouse passed away while on active duty.
Someone who is currently an active member of the armed forces can qualify for a VA loan after only six months of service. However, if you are a member of the armed forces reserves or the National Guard you must wait six years to be eligible for the VA loan. Reservists, members of the National Guard and active-duty members generally are eligible after 90 days of service during war periods. The rule of thumb being that if you have served on foreign soil, the more likely you will be eligible for the VA loan.
If you are looking to obtain financing through the VA, an important document that is needed is the certificate of eligibility. The certificate of eligibility is a document that the Veteran’s Administration will issue to you when they determine you qualify for the VA loan. If you are looking to use the VA for your next mortgage, you must complete the VA Form 26-1880 which is the Request for a Certificate of Eligibility for VA Home Loan Benefits. When the VA confirms your service you will be issued the Certificate of Eligibility that verifies to a lender you are eligible for the VA loan.
The VA does not require a minimum credit score in order to obtain a VA loan however the minimum credit score will vary depending on the lender that will service the loan. Most lenders require a credit score of at least 580.
Types of Fees Associated in the VA Loan
While less expensive to finance than conventional mortgages, the VA loan still requires a small one time funding fee depending on your status in the military and the amount of money you are willing to use as a down payment on the home. If you are using the VA to finance your mortgage for the first time and would like to forgo a down payment, you are required to additionally finance 2.15% of the loan amount at closing of your mortgage (although for disabled veterans this is waived). If you have money saved up and are able to put down at least ten percent then the funding fee percentage drops to 1.25 of the loan. Reservist and members of the National Guard additionally will pay a higher percentage rate then active-duty members will.
What will I need in order to qualify for the VA Home Mortgage?
· Social Security number
· Residence addresses for the past two years
· Names and addresses of your employers over past two years
· Your current gross monthly salary
· Names, addresses, account numbers and balances on all checking and savings accounts
· Names, addresses, account numbers, balances and monthly payments on all open loans
· Addresses and loan information of other real estate owned
· Certificate of Eligibility and DD-214 (for veterans only)
· W2's for the past two years and current check stubs
· For self-employed individuals, you will need to provide personal tax returns for the past two years, current income statement and balance sheet for the business
As always if you have any questions about the VA home mortgage or any other types of mortgages, please contact me and i'll be glad to help! Thanks again for reading!
What is the VA Home Mortgage? What are its benefits?
You may have heard about the VA Home Mortgage while researching different types of home loans. The VA program is an attractive and helpful loan program to help veterans obtain reasonable financing for their next home. The program started in 1944 with the GI Bill which was signed into law by President Franklin D. Roosevelt. This bill was intended to provide veterans with the ability to purchase a home with no down payment and affordably give the dream of homeownership to thousands of veterans and their families.
The VA Loan is still assisting veterans today with home financing with a maximum loan amount of $417,000. The full value of the property along with the funding fee may be borrowed with this program. As first intended back in 1944, a purchase of a home with the VA loan financing can be made without any down payment at all and also offers lower interest rates then normally available with traditional financing. Other perks to the VA loan include no monthly mortgage insurance premiums to pay as well as a property value appraisal.
The VA loan program only requires that you or your spouse intend to live in the property and call it your home. You can build your own dream home, or buy a manufactured home as well as buy an income property that contains up to four units as long as you occupy one of the units in the building. Also the VA loan is available for home owners who want to repair their home, make weatherization improvements or refinance an existing home loan.
Our next blog will cover who is able to qualify for the VA loan as well as what types of documentation is needed when applying for this loan. As always if you have any questions concerning the VA loan or any other types of loans please contact me at any time!
And a BIG thank you to all of our brave citizens who have served for our country!
One of the many questions that first time home buyers ask is what exactly are closing costs and how much will they cost me out of pocket? Closing costs can vary and they are based on the property that you are looking to buy and additionally where the property is located.
Some of the closing costs when purchasing a home include:
· A fee for running your credit report.
· A loan origination fee, which lenders charge for processing the loan.
· Attorney’s fees.
· Discount points, which are fees you may pay in exchange for a lower interest rate.
· Survey or mortgage inspection fee, which a lender requires to the verify property lines and compliance with the town.
· Title search fees, which pay for a background check on the title to make sure the title is free and clear of things such as unpaid mortgages or tax liens on the property.
· Lender's and owner's title insurance, which protects the lender in case there is a title defect that the search may have missed.
· Escrow deposit, which pays for property taxes and private mortgage insurance in advance.
· Recording fee, which is paid to a city or county in exchange for recording the new land records.
Closing costs range depending on the purchase price and taxes and insurance. So, for an example if you are purchasing a home that cost $150,000, closing costs may be $3,500 in one town but in a more expensive town it could be close to $5,000. Often, many of the fees that make up closing costs home buyers can negotiate with the seller of the home over who pays these fees.
As always, if you have any other questions concerning closing costs or the home buying experience please let us know! Have a great day!
Just wanted to send out a quick note on how rates ended on Friday and what happened in the mortgage world over the week. Also, if you need any lending help or questions, don't hesitate to reach out to me!
The biggest news was on Thursday when the initial jobless/unemployment numbers came out. The number was right on with what was expected, which is a good thing for all of us. Rates got a little better (if the number came in much higher than, rates would have gone up).
Rates right now are actually at the best levels they have been in 2014! Next week is a big week - on Wednesday we have the Federal Open Market Committee (FOMC) announcement. This is a group within the Federal Reserve - and usually the biggest market mover of any month. Depending on what they say, it may even drive rates lower!
As soon as we hear what the announcement is, we will send it out so you know what to expect and what rates are likely going to do!
At end of business on Friday - here is a snapshot of the rates for the most common loan types we originate. Remember, these rates can change depending on credit score, down payment, etc.
As a mortgage lender, I take pride in helping all of my clients through the home buying and refinancing process. As a former real estate agent, I know all aspects of a real estate transaction and do everything to ensure my clients close on time and with the best rate possible.