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fha-updateWhen you are looking into your first home to purchase in the Bothell, Mill Creek, Lynnwood, Edmonds, or Seattle area and you are starting the loan pre-approval process, there are a few different loan programs to choose from.

1. FHA financing – which always has the up front mortgage insurance and monthly mortgage insurance built into your payment. The monthly mortgage insurance premium is 1.15% if financing over 95% or 1.10% if less than 95% with a 30 year mortgage and 15 year over 90% is .50% and from 89.99% to 78.01% it is .25% per month.

2. Conventional with mortgage insurance or no mortgage insurance per month, there are different ways to make this happen, there is always a premium to be paid, you can pay it all at one time, the seller can pay it through the closing costs, but be careful as conventional financing allows only so much in closing costs over 90% financing, make sure you are working with an experienced loan officer on these programs.

Another way to structure this is to have your monthly mortgage insurance premium be a little higher per month, reason for this is there is no premium paid in advance, but it does increase your monthly payment.

With conventional financing there are more considerations of what is called credit risk pricing to take into account, the higher your credit scores the better your mortgage rates can be, due to the risk layering set in place by FNMA and Freddie Mac guidelines.

To know which one is best for you, it is important to know your FICO scores, your total debt to income per month, also known as credit liabilities, your reserves i.e. savings, retirement funds, stocks, etc., and the loan to value, which will be your down payment.

When seeking pre-approval around the Seattle, Edmonds, Bothell or Mill Creek area your loan officer will ask for your financial paperwork over the last 2 years and will need to pull your credit, to give you the best way to structure your loan program and options.

Here is a good informational website: www.davidhaleymortgage.com

Seeking Good Loan Officer in Seattle connect with David Haley

Happy Mortgage Shopping!

 

This is my first blog and there has been many changes along life’s way and certainly in the lending industry.

Back in 2008 there were over 13,000 loan officer/mortgage brokers in Washington State.  Now, we are under 4,000.  It has a lot to do with all the lending and educational hurdles.  The folks in this industry typically are full-time hard working professionals.

For all those people you knew who use to do loans, here is my advertisement.

I am still in business and would be happy to hear from you!  Why would you call or want to do business with me???  Fair question.  I can say this, after licking all my wounds from this crazy business, I am still standing!  Why?  Because I love this business.

Yes, it is now more difficult to do home loans but I am still doing them and having a great deal of success by educating the buyers and sellers along with my extensive follow-up.

I can definitely say that today’s real estate agents have been knocked around harder than we (lenders) have.  The seller needs to sell even though the values have dropped.  That is not a fun conversation to have!  I get it!  For those Realtors still doing business – good job!  That will pay dividends as there is always ebb and flow, with the pendulum swinging too far left and then too far right but soon it settles in the middle and evens out.  Okay to chuckle here…For those that are new in real estate that is all you know and for the veterans, you know the motto and creed: contacts, shake those hands and plenty of face time.  That is what it is all about!

Now to address the title question: Yes, these are still 100% Financing – Zero Down Loans*

VA Funding Fees Are as Follows:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 2.15% Funding Fee 2.40% Funding Fee
5% 1.50% Funding Fee 1.75% Funding Fee
10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)
2.15% Funding Fee 2.40% Funding Fee
Interest Rate Reduction
(IRRL) Refinance
0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans
1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

 

Additional Use / Subsequent Use:

Purchase and Construction

Loan Type Down Payment Active Duty Personnel / Veterans National Guard / Reservists
Purchase & Construction 0% 3.30% Funding Fee 3.30% Funding Fee
5% 1.50% Funding Fee 1.75% Funding Fee
10% 1.25% Funding Fee 1.75% Funding Fee

All Other VA Home Loan Types (Other Than First Time Use)

Loan Type Active Duty Personnel / Veterans National Guard / Reservists
Regular Refinance
(including cash out)
3.30% Funding Fee 3.30% Funding Fee
Interest Rate Reduction
(IRRL) Refinance
0.50% Funding Fee 0.50% Funding Fee
Native American Direct Loans 1.25% Funding Fee 2.00% Funding Fee
Manufactured Housing
& Mobile Home Loans
1.00% Funding Fee 1.00% Funding Fee
VA Home Loan Assumptions 0.50% Funding Fee 0.50% Funding Fee

The funding fee on VA Assumptions and Interest Rate Reduction Refinance Loans is currently 0.5%. This rate remains unchanged regardless of the number of times it is used.

VA funding fee must be paid within 15 days of closing or included in the loan amount.

Veterans whose entitlement is based on active duty will pay a 2.15% fee on their first VA loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

Veterans whose entitlement is based on Guard/Reserve service will pay 2.40% on their first loan and 3.30% on all future loans for the purchase of a home or cash-out refinances.

USDA – Not just for Beef! It is a loan too…. who would of guessed? Your Home Buyers????

New USDA Funding Fee Changes:

For the first time in the history of USDA, the Single Housing Guaranteed Loan Program has implemented an Annual Fee.   The annual fee will be calculated based on the guaranteed loan amount and based on the average annual scheduled unpaid principal balance for the life of the loan. 

Effective October 1, the upfront guarantee will decrease from 3.5% to 2% for purchase loans.   The up-front guaranteed fee for refinance loan transaction will remain at 1 percent.   In addition, an annual fee of .30 will be calculated when the loan is made and every 12 months thereafter until the loan is paid in full or no longer outstanding and the guarantee cancelled or expired.

Well I hope you enjoyed the reading, and if you made it this far you are still awake and ready to do some business!

Look forward to hearing from you.

David Haley

David Haley | Mortgage Loan Officer MLO-76555
Contact David Haley
425-471-6039
4720 200th St. SW, Ste. 205
Lynnwood, WA 98036
www.DavidHaleyMortgage.com

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