Home Buyer Q & A

 I am interested in purchasing a home, I sold my house a year ago as a short sale. What are my options? If your previous mortgage was not past due when the short sale took place, you may purchase a home using an FHA loan. If your previous mortgage was past due when you closed, it is viewed the same as a foreclosure. You would need to wait three years for FHA and seven years for conventional lending.
• I have been looking at a home that is listed for $575,000. I would like to only put 10% down, do I have any options? There is a program that will allow 89.9% financing with no mortgage insurance for professionals. It is not a 30-year fixed program but instead it is a 5/1 ARM. If 30-year fixed is your preference, the maximum borrowed would be 85% of the purchase price or appraised value, whichever is less.
• I have been looking at a condominium to purchase and understand the property is considered “non-warrantable”. What does that mean? Non-warrantability can be derived from many different factors. In most terms today, we refer to a condominium being non-warrantable usually because of the investor ratio (ie. how many units are owner occupied/second homes as compared to investment properties). When this ratio meets or exceeds 51%, there is an issue. This will limit your possibilities for financing. There are non-warrantable condominium programs, and yes, I have one.
• I believe I am upside down in my home, I owe more than the property is worth. Are there any options for me? Probably. Fannie Mae and Freddie Mac both offer relief refi programs for loans serviced by either agency. We are also anticipating new relief programs which will encompass more loan types to be released in March.
• I was told the funding fee on VA loans had decreased, then increased, then decreased and then increased again! How much are the funding fees and until when? President Obama signed in November to maintain the VA funding fee at the previous levels of 2.15% for first-time use with no down payment and 3.3% for subsequent use with no down payment. These percentages are in effect until 2016.

- Jennifer Keenan, Senior Mortgage Consultant, NMLS# 101837, Tidewater Home Funding  757-366-8690