Today's Mortgage Questions

Yes there is a bailout coming for almost everyone. At least that what the politicians say before the November elections. While we agree that many people have been hurt in the current recession and more will be, what we don't agree on is what limits there should be on bailouts. 

It always scares me when someone says, "We are the government and we are here to help!"

The government was always the American people and the ones who ran things were the ones we hired by electing them. (Remember - Government of the people, by the people and for the people) It used to be that our elected representatives worked hard to represent us and not to provide handouts. They worked hard for the future of our nation and not to ensure their re-election.

In our nations history we had representatives who would make the hard, tough decisions which would benefit our nation. They would do the right things.

There are many changes in FHA loans due to the passage of HR3221. One of the biggest is the demise of the Down Payment Assistance Grant. This was a donation from the seller of the home to a non-profit agency such as Neiamiah. The non-profit agency would then be sure the buyer has the down payment money at the closing. It is documented as a grant which the buyer does not have to pay back. This has been a great way for those wanting to get the great rates and low PMI associated with an FHA loan but did not have the required 3% down payment.

Fico 08 was supposed to begin almost 1 month ago but it sounds like it is not too far behind. For many people applying for loans using credit scores derived by getting themselves added as an authorized user on someone elses credit cards, this is a wonderful thing!

VA Mortgage Loans are one of the few types of mortgages left which require no down payment. If you are a qualified veteran and have your VA Eligibility Certificate you can buy a home with nothing down. The VA Mortgage also allows the seller of the home you are buying to cover your closing costs. It is a Great loan for a deserving group of people! Thank you to all who have served The United States of America!

A few things to be prepard for;

1. VA loans take considerably more time to underwrite compared to a conventional mortgage loan.

How much money should I put down on a house. This depends on several factors:

1. Are you looking for the lowest payment possible (usually trying to eliminate PMI)

2. Do you have reserve funds available after your purchase

3. Do you intend to sell in the next few years