Home Buyer Q & A

  •  I am trying to determine whether we are going to build a home or negotiate with our builder to purchase the house complete.  What are my options?  I do have VA eligibility, and we believe this project will cost approximately $450,000 complete, I can put up to $40,000 down.  Most construction loans will allow you to borrow 80% of value.  Our construction and/or construction/perm will allow you to borrow up to 85% on a case-by-case basis.  A $40,000 down payment is not quite 10%, you would need a minimum of 15% down, or $67,500.  With VA eligibility, if you bought the property complete, you would need a down payment of $4,800.  One option does not meet your parameters, the other does easily.             
  • We are interested in buying a new home.  We don't really want to sell our existing home because of current values and what we owe.  We would like to keep the property and rent it for a while.  How does this work?  If either of you have ever had experience as a landlord, we can count lease income and offset the mortgage payment.  You must have a 12-month lease.  If neither of you have landlord experience, then you are qualified on the new home with both payments.             
  • I am a first-time homebuyer.  I spoke with a mortgage person with another company, and he told me not to bother calling him until I had $3,200 in the bank.  Is this true?   If you are a first-time homebuyer, you are eligible for the VHDA programs.  The FHA Plus program will allow you to borrow 100% of the purchase price.  Homebuyer education is a requirement.  There is lots of additional information on the VHDA website.      
  • We would like to refinance our house, but we aren't sure it is worth it or not.  Our current rate is 5.875%, our monthly principal and interest is over $1,900 each month, and we have a 2nd we would like to keep as is.  Is this possible, and will we save money?  Our current balance is $295,000.  The opportunity we have currently with mortgage rates is unprecedented.  At current mortage rates, your monthly payment would just over $1,400 each month.  The second can probably be auto-subordinated.  So, it sounds like it is all good for you.

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