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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

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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.

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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.

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

Lake Oswego Real Estate Loan Options

Want to purchase a home yet think you might not qualify?  Don’t have a down payment?  Have a low credit score? Here are some loan options to purchase you may not know about. This is also how a Mortgage Broker can assist you vs. a bank.

Loan Options

Lake Oswego Real Estate Loan Options.lakeosowegorealestateblog.wordpress.com

Lake Oswego Real Estate Loan Options.lakeosowegorealestateblog.wordpress.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. My website is also available.

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 Veteran Home Loan Programs

Have you been wanting to purchase a home but think as a Veteran, or even a disabled Veteran, you wouldn’t qualify. Well there are, in fact, numerous opportunities for you to purchase that home you’ve been wanting to buy for you and your family, with no money down.Lake Oswego Real Estate Veteran Home Loan Programs.lakeoswegorealestateblog.wordpress.com

Available Veteran Home Loan Programs

Active Duty/Veteran Construction Loan – Detail Verified 3/3/14 Last Updated 04/16/08
A program in which the Veterans Administration (VA) is authorized to guarantee loans to eligible veterans to construct a residence to be owned and occupied by the veteran as a home. The no down payment loan may include simultaneous purchase of the land on which the residence is situated or will be situated. This program is available nationwide for a loan limit of $417,000.

Dream Makers Grant Program – Detail Verified 3/4/14 Last Updated 11/14/12

A program that offers financial assistance of up to $5000 in the form of a 3-to-1 matching grant to first-time homebuyers who are veterans or active-duty military service members. The buyer must contribute at least $500. Buyer must be a first-time homebuyer or have not owned a home for at least three years or you have lost your home through divorce or disaster. This program is available in the US.

Oregon Veterans Home Loan – Detail Verified 3/5/14 Last Updated 11/14/12

A fixed-rate, primarily purchase-money, home loan program designed to provide some degree of economic parity to honorably discharged veterans. Veterans did not have to enter the service from Oregon nor be discharged back into the state. Oregon Department of Veterans’ Affairs (ODVA) loans are conventional loans, different from federal Veterans Administration (VA) loans. Federal Veterans Administration (VA) forms and disclosures do not apply. Available throughout the State of Oregon.

VA Home Loans – Detail Verified 3/5/14 Last Updated 04/07/08

A program that provides veterans a loan with no down payment requirement. This program is available to veterans anywhere.

VA Loans/Native American Veterans on Trust Lands – Detail Verified 3/5/14 Last Updated 6/5/13

A program available to Native American veterans who wish to purchase or construct a home on trust land. A VA direct loan can be used to purchase, construct, or improve a home on Native American trust land. The maximum loan amount is the same as the Federal Home Loan Mortgage Corporation (also known as “Freddie Mac”) single-family conforming loan limit. That limit is currently $417,000 for loans made on Federal Trust land located in the 48 contiguous States and $625,000 for loans made on Federal Trust land in Alaska, Hawaii, and the South Pacific. Contact a VA office with loan activities for information regarding the current loan limit and any other questions you may have. The land must be on Native American trust land.

VA Special Home Adaptation Grant – Detail Verified 3/5/14 Last Updated 10/22/13

A benefit program for the veterans and service members who have service-connected disabilities. They may be entitled to a grant subject to program eligibility requirements for the purpose of acquiring a land, constructing an adapted home, or modifying an existing home to meet their mobility needs. The goal of the Special Home Adaptation (SHA) grant program is to provide a barrier-free living environment that affords the veterans or service members a level of independent living he or she may not otherwise enjoy. This grant can be used anywhere in the US, including states, territories and commonwealths, and outside the US.

VA Specially Adapted Housing Grant – Detail Verified 3/5/14 Last Updated 10/22/13

A benefit program for the veterans and service members who have certain service-connected disabilities. They may be entitled to a grant subject to program eligibility requirements for the purpose of acquiring a land, constructing an adapted home, or modifying an existing home to meet their mobility needs. The goal of the Specially Adapted Housing (SAH) grant program is to provide a barrier-free living environment that affords the veterans or service members a level of independent living he or she may not otherwise enjoy. This grant can be used anywhere in the US, including states, territories and commonwealths, and certain approved countries outside the continental US.

Search Additional Programs

Source: PMAR

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 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 What Is QM

Along with the housing crisis, it brought us new terms to become familiar with. Now there’s another new one, the QM.Lake Oswego Real Estate What Is QM.lakeoswegorealestateblog.wordpress.com

Guest Author:

Kevin Donahue|NMLS ID#316884|Sr. Loan Officer
Guild Mortgage Company|Builder Division | Company NMLS 3274
(c) 503.501.6468 | (o) 503.210.4122

QM rules the lending landscape. So what now? For Guild Mortgage, it’s business as usual. The past three weeks have been littered with internal updates, announcements and program changes in preparation for these new layers of rules and requirements.

What Is QM?

In a nutshell, the area of the business most impacted seems to be Jumbo’s (strict debt ratio maximum’s of 43%, more strict underwriting approach to income, etc.). The Conforming Market (Fannie, Freddie and HUD in this case), all remain relatively unchanged. The Mortgage Insurance options from which a consumer can choose from has become more restricted, unfortunately. The (true) Mortgage Broker? I wouldn’t want to be one in this climate, personally.

What Does The Public See Regarding QM?

Here’s a link to see the Mortgage Rules.

MARKET RUMBLINGS

With the ever rising costs of originating loans, many small-to-mid sized banks, Credit Unions and even under performing lenders are reconsidering their commitment to the mortgage market.

Does the dawn of the QM era and all its restrictions also represent the start of the ‘Alt-A’ come back? I’m reading where investors feel it might be, believe it or not. No doubt their attorneys are hard at work in finding and running with the ambiguity of written law. I say ‘all the best of luck’ in making it happen!

Looking For A Lake Oswego Home?

You can use the link at the top of this page to search for Lake Oswego or Portland metro area real estate, or give me a call at 503-804-9685.

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 condo or home. If you want to know the value of your property 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

Lake Oswego Real Estate Types Of Loans

Are you wanting to purchase a Lake Oswego home?  Are you stumped as to what type of loan or financing you should get? Before you ever make an offer, you should get pre-approved for a loan.Lake Oswego Real Estate Types Of Loans.lakeoswegorealestateblog.wordpress.com

WHAT KIND OF LOAN SHOULD I GET?

There are a multitude of loan programs available today. Most likely, based on your income, debts and FICO score, your lender, at the time you are making application for pre-approval, will discuss various loan programs with you.

Ask the questions. You should never leave without having all the details sorted out in your mind and know exactly what you are getting. It is always a good idea to compare two-three different lenders and their Good Faith Estimates before committing to a loan.

Below are some basic loan programs. Over the years, there have been many others, only to have come and gone. Most likely, there will be new programs again but for now, here are the basic ones you should know about:

FIXED RATE MORTGAGE

If you plan on living in your new home for a long period of time, 7-10 years or longer, you may want to consider a fixed rate mortgage. There are 15, 30, some 40 year loans and variations thereof. You can treat a 30-year loan just like a 15-year loan but not be restricted like you would on a 15-year loan program. There are buy-downs of interest rates with discount points, 80-20 loans, etc. Your loan officer can provide you with this information.

However, with a fixed rate mortgage, the loan does what it says. Your interest rate remains the same throughout the life of the loan term.

If you put at least 20% down, you won’t have a reserve account set up for your homeowners insurance or property taxes. There are current discussions about the down payment on fixed rate loans changing, so contact a loan officer or me to make sure you know the latest loan requirements.

ADJUSTABLE RATE MORTGAGE (ARM)

Some of these adjustable rate mortgages could be blamed on the fall of the housing market, although there were other players and circumstances involved in the current housing collapse as well. There are still ARM’s but you need to be careful and understand how the loan will adjust, the interest rate, and when it will do so.

If you plan on living in your home for a very short period of time. If you know for absolute certain you will be moving under 3 years or the max 5 years, an ARM could be the loan program for you.

As this loan matures, your interest rate will adjust periodically based on an index which is selected early in the loan process. The ARM carries a lower monthly payment at the beginning of the loan term, making it an attractive option for owners who may not live in the home longer than 5 years. Consult with your loan officer to make sure you are getting the right loan for your situation.

CONVENTIONAL – CONFORMING LOANS

Typically conventional financing is based on a loan limit at or below $417,000 for a single-family home. Other factors such as credit, assets, and income are weighed during the approval process, but the loan amount in most states must not exceed $417,000 for a conventional or conforming loan. This is a tried and true standard loan program.

JUMBO – NON-CONFORMING LOANS

Jumbo financing has had a rough time of late. Many buyers who want to purchase homes in the higher end prices have had some difficulty obtaining a jumbo loan. Jumbo financing is based on a loan limit which exceeds $417,000 for a single-family home. Other factors such as credit, assets and income are weighed and may have more strenuous requirements than those obtaining conventional financing. A larger down payment may also be required.

GOVERNMENT LOAN PROGRAMS

There are many government loan programs. And, again, due to the economy, special needs, certain city or state particulars, some government loans may only be available for short periods of time.

However, some of the true stand-by government loans that have existed for what seems like forever are:

  • FHA – The benefit of utilizing the FHA loan program typically lies in credit requirements which are less stringent and most require only a down payment of 3-5% which often times can be a “gift” to you, the borrower. The FHA loan can be used whether you are a first-time homebuyer or, a seasoned homebuyer, buying your last home when downsizing. Every borrower can benefit from this program.
  • VA – The VA loan program allows Veterans to utilize their benefits earned when purchasing or refinancing a home. The VA program can be used to refinance your home not only for interest rate reduction but for cash-out purposes as well.
  • USDA – Rural Development Loan. There are restrictions as to how and where this loan can be obtained. Typically a purchase will qualify for a USDA loan if it is in an outlying area however there are some locations within city limits that qualify as well. Sherwood, Canby, Forest Grove, etc. are but a few of the many areas that can qualify for a USDA loan. Ask your loan officer whether the area you are planning on purchasing in is a qualifying area. You may be able to take advantage of this program with ZERO DOWN on some home purchases and up to 102% of the home value on refinance transactions. Loan amounts exceeding the value of the home may not be allowed for certain tax deductions. Consult with your CPA or tax preparer regarding your situation and the IRS.
  • 203 K or sometimes called the FHA Streamline 203 K – This is a great tool for neighborhood and community revitalization. It expands the ability to financed unfinished new construction or renovation projects. This is a good loan program if you are buying a foreclosure or short sale that will record upgrades or work before you move in. This loan can also be used to refinance or purchase.

Need More Financing Help?

At any time you have questions or concerns, contact your loan officer, or me at 503-804-9685, a financial expert or tax accountant. It is far easier to know what you are getting into up front than it is to undo something you didn’t know about or were unsure of that can cause long-lasting problems.

Check Out This Blog For More Information

If you have any further questions, on this blog’s sidebar under the topics, I have a “financing” category with updates on all the financing available or changes made to loan programs plus the current interest rates. Check that out regularly to keep up-to-date.

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 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.

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!"

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