You are currently browsing the category archive for the ‘Financing’ category.

Lake Oswego Real Estate Oregon Financing Update

We had a few housing data points out this past week which are important to note. First off, the FHFA’s monthly Home Price Index provided some further evidence of the continued increase in home prices, even amidst the extreme lack of inventory. The monthly increase for April was .7%, bringing the year-over-year increase to 6.8%. If we take a look at the individual numbers, the best performers continue to be the Mountain (+8.9%), South Atlantic (+8.0%), and Pacific (+7.5%) regions.

In other news, New Homes Sales for May rose by 2.8% to a seasonally adjusted rate of 610k. April’s rate of 569k (-11.4%) was revised up to 593k (-7.9%). Apart from volatility in March and April, primarily due to pretty wild sales swings in the West, new home sales have been on a steady average of 605k per month over the past four months.

In a Thursday interview with the Wall Street Journal, St. Louis Fed President Bullard said he supports beginning the process of trimming the Fed’s balance sheet, however he sees no reason for the Fed’s projected rate path to be so steep. Regarding the balance sheet, Bullard would like the Fed to start the cash flow roll-off “sooner rather than later,” adding “We’ve outlined an approach that is going to be very much a go-slow approach, and so I think we could start the ball rolling. It’s going to roll very slowly anyway.” Addressing the recent inflation weakness, he said, “I’m open to the idea that maybe there was just some noise in there, that’s possible, but it looks more broad-based to me, and now with other corroborating factors like the 10yr yield coming down to low levels, oil prices falling, it just doesn’t look like there’s a lot of price pressure.” This is why he says the 3 hikes-a-year pace the Fed continues to project is “unnecessarily aggressive.”

As we look at the markets, interest rates continue to grind sideways, as equities have seen a slight decline to end the week, while crude prices continue to hover near their lowest levels in ten months. Looking at Treasury yields, the 10yr continues to trade our short-term range of ~2.13-2.22% and we expect this range to continue until the next ‘bigger’ headline hits the newswires.

Our bias remains neutral for the time being, however, technical charts still suggest a trade to lower rates is very possible. A break under 2.13% brings the talks of a 2% yield back to the table. If we see the market consolidate and we trade up through the 2.22% level, you can expect the next line in the sand to come in around 2.30%.

Until we have a bigger headline event, we expect to chop throughout the range with possible tests on either extreme. Looking ahead to this week, we have a healthy mix of Fedspeak, along with a few top tier data points with Durable Good and GDP.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated. If you are looking to purchase, this is a great way to search. Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move. I can help you move forward.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Advertisements

Lake Oswego Real Estate Oregon Financing Update

Oregon Financing Update

What a wild ride this week has been.  New low yields on the 10 year note. Housing Starts fell 5.5% in May, worse than market consensus.  Permits were also weak, dipping 4.9%.  All components showed declines with single family starts off 3.9% with permits for single family off 1.9%.

Part of this is due to a shortage of lots and labor. Jobless Claims fell 8K to 237K with the 4 week moving average now at 243K which were right in line with May. This should produce strength in the June Employment Report.

The Philly Fed Business Outlook fell sharply from 38.8 to 27.6 in June yet the May figure looks like an outlier to us.  New orders continue to hold up at 25.9 versus 25.4 with backlogs rising 5 points to 14.  Solid results out of the Philly market.  The Empire State (NY) Manufacturing Survey jumped from -1 to 19.8 which may be the largest one month jump in the history of the index.

With the Fed and most of the high tier data out of the way for the week, we’re seeing a new range trade developing between 2.08% and 2.18%.  Currently we are testing the upper limit of this range at 2.164%. At the same time, we see the FOMC raising rates by .25%.  They have telegraphed this to the market for months and with 88% of participants expecting it, we see it as a done deal.

We also feel that this will be the last hike this year, forgoing any additional hikes in 2017 given the current state of the economy.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move. I can help you move forward.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate Oregon Financing Update

After equities rebounded in Thursday’s session, we opened Friday morning with most major indices across Asia, Europe, and the U.S. posting more positive results. In turn, Treasury yields have traded back higher, as we close out what has been a rather volatile week. After the continued “political bombs” hit the tape one after the other this week, Friday gave us a bit of breather with an empty-data day.

Looking ahead to next week, the calendar will include a good mix of eco data and Fed activity, primarily starting with Wednesday’s release of the FOMC Minutes, followed by GDP and Durable Goods Orders on Friday.

Interest Rates

Looking at interest rates, it’s probably a little too early to tell what exactly lies ahead in the coming week(s). We think a slight consolidation was justified, especially after seeing such a strong move lower in yields primarily driven off of political headlines. Going forward, we think the market will now work itself more into a “sideways” motion, that is, until the next big headline hits the newswires. We are marking a short-term range for the 10yr at ~2.17-2.26% and we can expect that range to continue into next week. While we see the 2.17% mark as more of a “minimum” target, the larger time frame charts point to a ~1.92% low.

Given all of the crosscurrents in DC, combined with a lot of very mixed economic data on a global basis, we wouldn’t at all be surprised to see another stronger push lower in rates. That said, we all need to be careful with how volatile this market is and how fast it can turn … keep in mind that we are only one headline from going the other direction to higher rates. Bottom line and our current bias, when the market gives you an opportunity, take it and move on.

https://lakeoswegorealestateblog.wordpress.com/

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move. I can help you move forward.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

 

Lake Oswego Real Estate Oregon Financing Update

If we take a quick recap of the past week, there were three top headlines that consumed the newswires. We saw the FOMC statement on Wednesday, the House passing the Health Care Reform Bill on Thursday, and the Non-farm payroll report for April on Friday. Starting with the FOMC on Wednesday, there was little excitement that came from the Official Statement. The Fed Funds rate was left unchanged with no signals of any definite rate hike coming in the June meeting. The Fed did note that the economic data of late has been on the softer side, specifically with consumer spending weakening. Inflation, although still below the 2% target, is still expected to reach that mark within the next 12 months. There were no comments made about the balance sheet reinvestment except that the Fed will continue to buy MBS as they invest the proceeds of the current book. Overall, no real changes out of the Fed and market reaction was overly muted.

Thursday, we saw the House vote and pass the Health Care Reform bill by a vote of 217-213. As expected, the new bill would eliminate many of the provisions of the Affordable Care Act. President Trump promised that premiums and deductibles will be coming down under the GOP plan and said that he feels “confident” the measure will make it through the Senate. Bottom line is that both parties agree that if something is to be done, it’s going to be a long road ahead.

Finally, non-farm payrolls for April were released Friday, showing 211k new jobs. The headline was better than market expectations of a 190k increase. Diving into the number, the government saw a strong showing for April as jobs grew by 17k in that sector. Private payrolls grew by 194k, which was close to market consensus. Looking at revisions, the March report was actually revised even lower on the headline number, down to only 79k new jobs from a previously reported 98k. If we look at the total now between March and April, the data shows a 290k job creation which is back in line with what economists are projecting. To conclude, the unemployment rate surprisingly dropped to 4.4%, average hourly earnings rose .3%, while the average workweek notched up from 34.3 to 34.4. Overall, the April data is unlikely to change any of the Fed’s outlook and does not remove a June rate hike from the cards.

Looking at the market and interest rates, the 10yr note has made its way back toward support around ~2.35/36% this week. A push through that level would suggest yields test a ~2.39%, then ~2.45% level in the week(s) ahead. For us to have a shot at lower rates again in the short-term, 10s would have to see a strong push back through resistance around ~2.24%. Until that time, a defensive strategy is what we continue to suggest, meaning lock in your loans and move on down the road. Looking ahead to next week, the overall schedule is on the lighter side to start us off, but CPI and Retail Sales data will come into play on Friday.

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move. I can help you move forward.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Lake Oswego Real Estate FHA Financing Credit Requirements

The busy buying season is here!  If you are thinking of purchasing a new Lake Oswego home or Portland home in any of the metro areas, now is the time to get your financing in order and obtain your pre-approval to buy.

While there are many ways to finance a new home purchase, here is one possibility – an FHA loan.  What is required to get a pre-approval?  Some of the guidelines are below or I would be happy to refer you to one of my experienced loan officers to start your process.  Just give me a call at 503-804-9685.

Credit Requirements for FHA Loans

Good Credit History Makes it Easier to Qualify

FHA loans provide great assistance to many first time home buyers by offering mortgage loans with lower down payments. While this is a benefit for many people, recent changes in policy may have put the loans just out of reach for some would-be homeowners with questionable credit history.

Credit History and Score Requirements

https://lakeoswegorealestateblog.wordpress.com/

For those interested in applying for an FHA loan, applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.

If your credit score is below 580, however, you aren’t necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.

So if you’re planning to buy a Lake Oswego house, and your credit score doesn’t meet the minimum, you should weigh the advantages and disadvantages of putting down a larger down payment or using those funds to try and improve your credit score first.

Benefits of an FHA Loan

The reason why FHA loans are so popular is because borrowers that use them are able to take advantage of benefits and protections unavailable with most traditional mortgage loans. Loans through the FHA are insured by the agency, so lenders are more lenient. Here are a few benefits you can enjoy with an FHA loan:

  • Easier to Qualify

    While most loans exclude applicants with questionable credit history and low credit scores, the FHA makes loans available with lower requirements so its easier for you to qualify.

  • Competitive Interest Rates

    You’ve heard the horror stories of subprime borrowers who couldn’t keep up with their mortgage interest rates. Well, FHA loans usually offer lower interest rates to help homeowners afford housing payments.

  • Lower Fees

    In addition to lower interest rates, you can also enjoy lower costs on other fees like closing costs, mortgage insurance and others.

  • Bankruptcy / Foreclosure

    Just because you’ve filed for bankruptcy or suffered a foreclosure in the past few years doesn’t mean you’re excluded from qualifying for an FHA loan. As long as you meet other requirements that satisfy the FHA, such as re-establishment of good credit, solid payment history, etc., you can still qualify.

  • No Credit

    An FHA loan usually requires two lines of credit for qualifying applicants. If you don’t have a sufficient credit history, you can try to qualify through a substitute form.

For many Lake Oswego home buyers, using an FHA loan can really make the difference between owning your dream house comfortably or turning it into a financial nightmare. The FHA provides a wealth of benefits for applicants that qualify, so make sure you’re making full use of them.

Source:  https://www.fha.com

Searching for Real Estate

My phone app http://app.summarealty.com/SMAFZ, has recently been updated.  If you are looking to purchase, this is a great way to search.  Or, if you want instant notifications from RMLS™, please let me know and I can arrange for you to receive alerts for listings as soon as they come on the market for sale.

Thinking of Selling Your Lake Oswego Home?

Interest rates are still low and there is still a huge pool of buyer demand. Buyers are ready and willing to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

Having worked in Lake Oswego as a Real Estate Broker since 1978 and lived in Lake Oswego since 1988, I know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Here’s a loan program you may not know about. Are you a physician looking to purchase a home?

Lake Oswego Real Estate The Physician Home Loan Program

The Physician Home Loan Program from PrimeLending:
It’s Just What the Doctor Ordered
 

Are you a medical professional and  thinking about buying luxury homes, the Physician Home Loan Program can provide the solution to your jumbo housing needs.
Down payment options as low as 10%*

Loan amounts up to $1.5 million • No mortgage insurance required

Exclusive Benefits for Medical Professionals:

  • Available for first-time and seasoned homebuyers
  • Medical school loans waived from qualifying ratios*
  • Projected income allowed for qualifying purposes**
  • Gifted down payment options available
  • 1-unit, primary residence only
  • Borrowers can close on loan up to 60 days before starting new employment
Since 1986, PrimeLending has stood for strength and commitment to customer care. We’re committed to helping make the dream of homeownership a reality for those who work to help others. You can count on us to listen to your needs and prescribe the loan program that’s best for you.
Get in touch today to learn more about
all the financing options today!

Prime Lending Logo
Donald MacKay
Senior Loan Originator
NMLS: 120906
503.716.3715(direct)
503.975.1532(cell)
866.574.6439(fax)
5800 Meadows Road Suite 160
Lake Oswego, OR 97035
don.mackay@primelending.com
www.MacKayTeam.com

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here.

Thinking of Selling Your Lake Oswego Home?

Prices have slowed since July in Lake Oswego and you may want to know the value of your home in today’s Lake Oswego real estate market. Interest rates are still low and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2017. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

FHA Loans IncreaseCurb_Appeal

Lake Oswego Real Estate FHA Loans Increase For More Buying Power

The Federal Housing Administration (FHA) announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017 These loan limits are effective for case numbers assigned on or after January 1, 2017, and will remain in effect through the end of the year.

Portland Metro and Lake Oswego Loan Amounts Rise

The new FHA Loan Limits effective in 2017 rose to $408,250 for a single family home, $522,600 for a duplex (2 family), Tri-Plex (3 family) $631,750 and a 4-family (Fourplex) to $785,100.

A property that consists of more than 4 families, i.e. a 6-plex, is considered a commercial loan.

How FHA Determines Mortgage Limits

FHA calculates forward mortgage limits based on median house prices in accordance with the National Housing Act. FHA’s Single Family forward mortgage limits are set by Metropolitan Statistical Area and county. Loan limits for reverse mortgages are also calculated but these do not vary by MSA or county; instead, a single limit applies to all mortgages in the regardless of where they are originated.

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here.

Thinking of Selling Your Lake Oswego Home?

Prices have slowed since July in Lake Oswego and you may want to know the value of your home in today’s Lake Oswego real estate market. Interest rates are still low and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Market_Rates

Lake Oswego Real Estate Oregon Financing Update

Non-farm payrolls for September were a miss at only +156k new jobs. Market expectations were in the neighborhood of 166k-180k. The unemployment rate also rose to 5% and the participation rate rose from 62.8% to 62.9%. Average hourly earnings rose +.2% and brings the year over year rate to 2.6% as expected.Market_Rates

All in all, this should still keep December on tap for a possible rate hike by the Fed as the numbers are still considered ‘solid enough’. Market reaction to the numbers this morning was overly muted and 10 yr yields look to settle out the week right around the support level of 1.74-1.75%.

As we look ahead to next week, we will have a shortened week due to the Monday holiday so things won’t get going until Tuesday. We expect the market to still hold the 1.75% level, however, if broken early in the week, we can expect rates to be on the rise.  Advice to clients would be to get locked in and move on down the road.

don_mackay

Search For Real Estate

I have a new search site available to find Portland metro and all outlying properties for sale.  You can view RMLS™ information here. My website is also available.

Thinking of Selling Your Lake Oswego Home?

Prices have slowed since July in Lake Oswego and you may want to know the value of your home in today’s Lake Oswego real estate market. Interest rates are still low and there is still a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. Call me at 503-804-9685 if you are thinking of making a move.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws.

Summa_1

Lake Oswego Real Estate Does HUD Owe You A Refund?

Have you ever owned a home that had an FHA Mortgage? You might be owed a refund.

HUD Refund

Under the Freedom of Information Act (FOIA) of 1986, the Department makes available to the public a cumulative listing of unpaid Distributive Shares and Mortgage Insurance Premium refunds for Mutual Mortgage Insurance mortgages that remain unpaid for a minimum of 2 years. The Department provides the Mortgage Insurance Refund List to the public.

You can access this link to see if you are owed any money.

How To Qualify For A HUD Refund

Anyone who ever had a mortgage insured by HUD/FHA may be due a refund on part of the mortgage’s insurance premium or a share of the earnings.

You may be eligible for a refund of a portion of the insurance premium from HUD/FHA if you:

  • acquired your loan AFTER September 1, 1983
  • paid an upfront mortgage insurance premium at closing AND
  • did not default on your mortgage payments.

Search For Real Estate

You can use this phone app to search for the home of your dreams either on your cell phone or tablet – http://app.summarealty.com/SMAFZ

My Lake Oswego REALTOR® Betty Jung, Summa Real Estate Group website is also available and you can search for Lake Oswego real estate or any homes for sale in the metro PDX area or surrounding communities.

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs! “There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of Federal copyright laws

Lake Oswego Real Estate Using Cash Gift For A Down Payment

Know Your Cash Gift Rules And Protocols

Lake Oswego Real Estate Using Cash Gift For A Down Payment

Photo Credit: Prime Lending

As we wind down the gift-giving season, we think it’s a perfect time to share some information on a gift that isn’t usually wrapped in festive paper or tied with a pretty ribbon – Cash gifts for a down payment on a new home.

Many first-time and even repeat homebuyers use financial gifts to help pay for a down payment on their new home. But to ensure the funds are acceptable to your lender, gift givers and receivers must follow the strict rules and protocols for giving, receiving and using financial gifts for a down payment.

Giving A Cash Gift For A Down Payment

Financial gifts for down payments are widely acceptable when they come from family (parents, grandparents, siblings, spouses, children). Some mortgage programs, like FHA, do allow for individuals outside of family to gift cash for a down payment, such as an employer, government agency or a close family-friend. Gifts from non-family members will require proof of a long-standing relationship.

Current financial gifting limits allow for an individual to gift up to $14,000 to any one person without incurring a gift tax. If married, each individual may gift separately up to $14,000, to the same person, totaling $28,000. If a married couple is gifting to anther married couple, each individual may separately gift up to $14,000 to each of the other two individuals, essentially totaling $56,000.

Giving the cash gifts must be done in a particular manner. If you’re gifting money for a down payment, you can’t just hand someone a box of cash or make a bank transfer without careful tracking and authorization.

First, you must provide a signed Down Payment Gift Letter, stating that the money is intended for the sole purpose of purchasing a home and is not a loan. PrimeLending recommends that you and the homebuyer work directly with your lender to draft an appropriate letter that includes all of the required information.

With the Down Payment Gift Letter finalized and signed, you will write a check for the dollar amount stated in the gift letter. Writing checks may seem archaic, but it’s the preferred method for lenders, and it’s easier to track than a wire transfer. 

Receiving A Cash Gift For A Down Payment

If you’re the lucky receiver of a financial gift for your down payment, you can’t just deposit your check using an ATM machine. You have to physically walk into your bank to make the deposit in person. Make sure you’re using the same bank that you will use for withdrawing all of your money required at closing.

Be mindful not to deposit your gift check along with other gift checks (using multiple cash gifts for a down payment is acceptable), miscellaneous checks or cash. You need to keep each deposit transaction separate and collect a receipt for each deposit.

With the gift secure in your bank account and with copies of all of your required documentation, you will work directly with your lender to appropriately transfer they money to the escrow company handling your home-buying transaction.

Using A Cash Gift For A Down Payment

Cash gifts are acceptable for many loan programs, including conventional loans, jumbo loans, FHA loans, VA loans and USDA loans. How much money you’re eligible to receive and the requirements for using cash gifts for down payments vary with each type of loan.

For example, when using a conventional loan you can use a cash gift for the entire down payment as long you’re putting down 20% or more. If you’re putting down less than 20% on a conventional loan, then you may use only some of the cash gift while paying part of it out of your own pocket.

For FHA or VA loans, you can use a cash gift for your entire down payment, unless your credit score is on the lower side. With a lower credit score, you may be responsible for paying at least 3.5% of the loan amount payment yourself.  Talk with your mortgage lender to find out details and determine which loan program best fits your home-buying circumstances.

PrimeLending understands that buying a home does not come with a one-size-fits-all formula. That’s why we specialize in pairing homebuyers of all demographics and socioeconomic backgrounds with a mortgage program that makes sense for them. If you’re ready to purchase a home using a financial gift as a down payment, contact a PrimeLending loan specialist to learn about your options and requirements. We’ll walk you through every step of the financial gift giving and receiving process!

*PrimeLending is not authorized to give tax advice. Please consult your tax professional for tax advice for your specific situation.

Source: Prime Lending

Search For Real Estate

You can use this phone app to search for the home of your dreams either on your cell phone or tablet – http://app.summarealty.com/SMAFZ

My new website is also available and you can search for Lake Oswego real estate or any homes for sale in the metro PDX area or surrounding communities – http://www.summalakeoswego.com/realtor-betty-jung

Thinking of Selling Your Lake Oswego Home?

Prices are increasing at a fast pace in Lake Oswego. Interest rates are still low and there is a huge pool of buyer demand. I have ready, willing and able buyers ready to purchase your home. If you want to know the value of your home in today’s real estate market, please call me at 503-804-9685.

Moving to Lake Oswego?

Want to know more about Lake Oswego? I’d love to be your buyer’s agent, please give me a call at 503-804-9685.

I have worked in Lake Oswego as a Real Estate Broker since 1975 and have lived in Lake Oswego since 1988 and know all the neighborhoods! The real estate market is “hot” here in the Portland metro area and Lake Oswego. I am ready to assist you with all your real estate needs!

“There is no substitute for experience.”

ALL ABOUT…..Lake Oswego Real Estate. Copyright 2008-2016. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is in violation of federal copyright laws

Contact Betty Jung

Betty Jung, Broker
REALTOR®
CRS, GRI, ABR, SRES, CNHSS

Summa Pacific Cascade
4949 Meadows Rd. #100
Lake Oswego, Oregon 97035

Licensed in the State of Oregon

503-804-9685 Cell

or email:betty@bettyjung.com

"Selling Real Estate Since 1978. There Is No Substitute For Experience!"

Follow ALL ABOUT…..Lake Oswego Real Estate on WordPress.com

Recent Comments

Archives

Visitors

  • 6,791 hits

Betty’s Copyright

(c) Betty Jung 2008-2017.

All photos and content are copyright protected and may not be reproduced in any form.

DMCA Copyright Logo

© ALL ABOUT.....Lake Oswego Real Estate.

All Rights Reserved.