Home Ownership At Your Fingertips
Below are several of the most basic questions about purchasing a home. Whether it is your first or fifth, purchase requirements can change. We can go into greater detail of your personal needs during your 30 minute free consultation.
Down Payment
Depending on your loan program, down payments can range from 0% to the standard 20% down.
Down Payment Gifts
Down Payment Gifts are acceptable on all loan types. There are documentation requirements including verification that the money being received is truly a gift and does not have to be repaid as well as where the gift provider obtained the funds.
Understanding your Debt
Debt to income (DTI) ratios are always a hot topic.
Front-end DTI is a calculation of your total housing expense (principal, interest, taxes, insurance, and HOA). This DTI should not exceed 28% of your total income.
Back-end DTI is a calculation of all of the debt showing on your credit report in addition to your new mortgage payment. This should not be more than 36% total.
Income Requirements
You will need a minimum of 2 years job history.
Time spent in school can count towards your employment history if you are employed in the same field as your studies. Continuous employment does not need to be with the same employer and gaps of employment are acceptable depending on the loan program.
Credit Score
The better the credit score the better the interest rate. However, there are loan programs that allow for credit scores to be as low as 500. Your credit score will also affect down payment requirements.
What Type of Loan is Best
The most common loan programs used are FHA, VA, and Conventional loans. Once your information is reviewed, you will be able to select the best program for your purchase.
If for some reason you do not meet the requirements for standard lending, there are specialty programs available.
Make Sure to Schedule your Free Consultation to Discuss your Personal Circumstances