Home Buyer Q & A

 Home Buyer Q & A:

  • We want to refinance our home.  We currently have an FHA mortgage, and we keep hearing talk that a streamline refi may be the way to go - can you please explain?  Absolutely, as of June 11th, the guides on streamline refinances has significantly changed.  You can now refinance your home with an existing FHA mortgage without an appraisal and the mortgage insurance is substantially reduced.  Up-front mortgage insurance is .01% (you read this correctly) and monthly premium is .55% (yes, do you remember that from a long time ago?).  This is an excellent opportunity for individuals to refinance and take advantage of historically low rates.  Please know with any loan enhancement, credit overlays from the investors are evident.  We have received a few, so I would suggest anyone interested obtain your case number, lock your rate and get it moving while there is so much choice.           
  • We are going to be building a home, we want to obtain FHA financing.  Is there an FHA construction loan?  Actually, there is.  However, in order to obtain an FHA construction loan, a local bank would need to provide funds.  This is the trick.  I am not currently aware of a local institution who will allow such a high loan-to-value on a construction loan.                
  • We recently moved here from out-of-state.  My employer will allow me to continue working at the same income, and I will occasionally travel for work.  Is this a problem?  Honestly, it depends what you do.  Commuting any more for any position is possible within reason.  Your employer will need to provide a signed letter stating your arrangement along with income information during the arrangement.  If your company is going to cover travel expenses for commuting, this should be included.  If not, a reasonable amount monthly would be estimated and included in your debts.           
  • We really want to buy a second home.  How much do we need as a down payment?  If your loan amount will be $417,000 or less, you can borrow up to 90% of the purchase price, of course provided the property appraises.  Of course, you will have monthly mortgage insurance with a loan amount in excess of 80% of the purchase price.

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