Helping U Find The Right Mortgage

Questions And Answers About FHA Loans

What is an FHA loan?

The Federal Housing Administration (FHA) offers loans that they back/insure to protect investors. Because of this backing, FHA loans give homebuyers that might not otherwise qualify, an opportunity to borrow money to purchase a home.

Do I have to make a certain amount of money to qualify for an FHA loan?

There are no specific minimum or maximum income limits to qualify for an FHA loan.

Do FHA home loans require a down payment?

Yes. FHA backed loans require as little as 3.5% down payment. Your down payment can come from gifted funds.

What's the minimum credit score I can have to qualify for an FHA loan?

Of course, the better your credit score, the more likely you can get pre-approved for a loan. The minimum credit score is 580 to qualify for an FHA loan with Mitch's preferred lender

Questions And Answers About Conventional Loans

What is the difference between a Fixed Rate and Adjustable Rate Mortgages?

A fixed rate means your principal and interest payment will not change during the fixed period, but an adjustable rate means your principal and interest payment could increase or decrease depending on market interest rates.

Which is better- a fixed or adjustable rate?

This will usually depend on how long you plan to stay in your current home. If you plan to stay around 7 years or less an adjustable rate mortgage may be for you. Loan officers can give you the best options for your situation.

When do I bring my down payment to buy a house?

You will need to have the funds available before we can submit to final underwriting but you will not bring any money until the day of closing and all funds will go to the title company.

Can I finance my closing costs into my home loan?

Not directly. You can negotiate with the seller in your purchase offer to pay your closing costs or you could select a higher interest rate that offered lender paid closing costs. This is commonly called "seller's concessions".

Questions And Answers About ARM Loans

What is the difference between a Fixed Rate and Adjustable Rate Mortgages?

A fixed rate means your principal and interest payment will not change during the fixed period, but an adjustable rate means your principal and interest payment could increase or decrease depending on market interest rates.

Which is better- a fixed or adjustable rate?

This will usually depend on how long you plan to stay in your current home. If you plan to stay around 7 years or less an adjustable rate mortgage may be for you. Loan officers can give you the best options for your situation.

When can I lock in my interest rate?

You must have a sales agreement with a property identified to lock your rate. We need to also insure that the lock period is long enough to get to the date of closing.

What happens if the interest rates increase before we close on the loan?

As long as your interest rate is locked, then it will never change.

Questions And Answers About VA Loans

What is a VA Mortgage?

VA loans, guaranteed by the U.S. Department of Veterans Affairs and Ruoff Home Mortgage, help service members, veterans, and eligible surviving spouses become homeowners. In fact, there are several VA loans to choose from.

How much of a down payment do I need to make if I'm buying a home with a VA loan?

The best thing about the VA loan is that a down payment is not required. Any money you can put down upfront will help lower your monthly costs, however.

Who is eligible to apply for a VA home loan?

In short, most active military service men and women, veterans and surviving spouses are eligible for VA benefits, including VA home loans.

Can a seller pay the closing costs if I'm buying a house with a VA loan?

Yes. Mitch can usually submit your offer to buy a home, with the seller paying towards your closing costs.

Why do some sellers reject offers that include VA Mortgages?

VA mortgage loans also come with minimum property requirements that can end up forcing home sellers to make many repairs. Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency's mortgages.

Questions And Answers About Physician Loans

What is the minimum credit score I can have?

Your credit score should be higher than 680 to qualify for this loan. It is better to have a credit score over 700, however.

Do my student loans qualify as part of my debt in my debt-to-income ratio?

For the Doctors Only Loan, your student debt is not counted in your DTI ratio. The ratio must be under 45% otherwise.

Can I get this loan if I’m still a medical student?

No, unfortunately two of the requirements for this loan are proof of a medical degree and a signed contract proving that you will start a job as a doctor within 90 days.

Questions And Answers About Piggyback Loans

Are The Interest Rates On The 1st And 2nd Loans a Fixed Rate or an ARM

The interest rate for the first mortgage may be fixed or variable. The interest rate of the second mortgage or home equity loan is typically a higher rate that is usually variable and changes with the level of interest rates in the economy. A variable interest rate can be a disadvantage during a period of rising interest rates or inflation. If your rate rises, so will your loan costs.

Is It More Difficult To Refinance If There Is a 2nd Mortgage In Place

The 80-10-10 loan can be difficult to refinance because the lenders of both the first and second mortgage (assuming they are different) have to agree to the refinancing. You may have an even harder time convincing both lenders to refinance if the value of your home has declined. However, when it's time to refinance, if you can consolidate both loans into one larger loan then it should not be any more difficult to refinance than would otherwise be the case.

Questions And Answers About JUMBO Loans

What is the minimum credit score I can have?

Your credit score should be higher than 680 to qualify for this loan. It is better to have a credit score over 700, however.

What is the minimum purchase price for a jumbo loan?

In 2021, the loan limit reached $548,250 but will likely rise in the coming years. There could be some counties where this limit is higher, so check with Mitch's preferred lender to discuss your individual situation.

Are there any government-backed options for a jumbo loan?

Yes. The U.S. Department of Veterans Affairs may back your jumbo loan if you qualify. Your down payment requirement on this loan could be as high as 25%.

Questions And Answers About Bridge Loans

Is It Easy To Get A Bridge Loan?

Since in a worst case scenario you could end up making mortgage payments on two homes and the same time, to be approved for a bridge loan typically requires strong credit and stable finances. Lenders may set minimum credit scores and debt-to-income ratios. Generally speaking, if your financial situation is shaky, it could be difficult to get a bridge loan

Is a HELOC (Home Equity Line Of Credit) The Same As A Bridge Loan

Similar to a Bridge Loan, a home equity line of credit: Also known as a HELOC, allows you to borrow money against the equity you have in your current home. It’s a bit like a credit card, with an approved line of credit, where you paying interest on the amount you actually use at any given time. HELOC's may have lower interest rates than you would with a bridge loan. To use a HELOC vs a bridge loan typically means obtaining the HELOC approval BEFORE you put your house on the market, since few lenders will approve HELOCs once your house is currently for sale