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