In Today’s Top Stories: This Year’s First Time Homebuyers Can Expect to Have More Choices in Terms of Housing Loans

One of the three big credit bureaus, TransUnion, predicts that there will be 8.3 to 9.2 million first-time home buyers between 2020 and 2022. This is almost 50% more new home buyers than 2015, and 25% more than 2017.

Where is the trend coming from? First, unemployment is low. More people have the opportunity to save money for down payments, and home prices aren’t rising quite as fast as they have been in recent years. Home loan interest rates, including on 30-year and 15-year fixed rate conventional, FHA, and VA mortgages, continue to be at low levels.

What do first time home buyers want in their first home?

The traditional view of a “starter home” leading to starting a family, then moving up the home-buying ladder isn’t as common as it used to be. Today’s first time home buyers are more interested in using home ownership as a wealth-building tool. They primarily see home ownership as a good financial alternative to paying rent. Some first-time home buyers may still be living with family or may be sharing housing. In this case, privacy and a place to call their own are the primary motivators.

What has delayed first time home buyers so far?

Student loan debt continues to be a challenge for many potential first time home buyers. Some buyers are waiting to get a better job or advance in their careers before making the move to buy a house. And still other first time home buyers aren’t aware of the variety of home loan options that are available to them.

Two thirds of the potential first time home buyers surveyed by TransUnion in 2019 said they hadn’t heard of either Fannie Mae or Freddie Mac, the two government-sponsored home mortgage enterprises that buy the majority of conventional mortgages issued by banks or other lenders. And a large number of first time home buyers still think they need perfect credit, a high income, and a 20% down payment to even consider buying a house.

If you’ve been thinking about buying a home for the first time, you’ll benefit from the help of an experienced home mortgage professional. California Platinum Loans can tell you what your options are and guide you through the process. You can join the new first time home buyers in taking advantage of good home buying conditions and low mortgage interest rates in 2020.

Sources

https://themortgagereports.com/57571/2020-will-be-a-big-year-for-first-time-homebuyers-analysis-shows

California Platinum Loans

  https://californiaplatinumloans.com

Is the Condo You Want to Buy Non-Warrantable?

What does it mean if you want to buy a condo but it’s non-warrantable? You want a mortgage, but you may have heard you can’t get financing for a non-warrantable condominium. If you’ve found a condo you love in the neighborhood you want, but get the news that it’s “non-warrantable,” can you still get a home loan to buy it?

What Does It Mean If a Condo Is “Non-Warrantable”?

This term refers to criteria established by Fannie Mae and Freddie Mac, the two main agencies that buy conventional mortgages from the original lenders, usually a bank. Both of these agencies have requirements for condominium projects as a whole to be eligible for financing that qualifies for their programs.

Buy Conventional Mortgages

One way a condo could be “non-warrantable” is through owner payments to the Homeowners’ association. If more than 15% of owners are behind on their HOA payments, then a condo in that association is non-warrantable. At least half of the condos in an association must be owner-occupied for the condos to be warrantable, also. Condo projects that require a membership, for example, golf clubs or country clubs, aren’t warrantable.

Fannie Mae and Freddie Mac don’t keep ongoing lists of which condominiums are warrantable, but you can find lists of condos that qualify for FHA or VA loans. If the condo is on these lists, it’s very likely to be warrantable as the lists have similar criteria.

Lenders will order a project review to determine if a condo is warrantable or non-warrantable as neededHow do you get a loan for a non-warrantable condo?

You’ll need to work with an independent mortgage broker who has access to direct lenders, also called portfolio lenders, who may specialize in non-warrantable condo loans. You’ll have an easier time finding these opportunities if you work with an experienced mortgage loan professional who can offer you a variety of financing options, all in one place.  So you are completing a single mortgage loan application and the independent mortgage broker working on your side is able to filter through dozens of wholesale channel portfolio lenders that lend on non-warrantable condos and select the best-fit lender for your unique situation. Call or email us here at California Platinum Loans for more information on these and many other loan products.

Source

https://www.valuepenguin.com/mortgages/non-warrantable-vs-warrantable-condos

California Platinum Loans

  https://californiaplatinumloans.com

Have An FHA Home Loan? STOP Wasting Your Money NOW- Refinance NOW And Eliminate Your PMI/Mortgage Insurance ASAP

If you have an FHA loan, you may be getting tired of paying mortgage insurance every month in addition to your house payment and property taxes. There are so many advantages to FHA loans, but they do require you to pay mortgage insurance, sometimes called MIP (Mortgage Insurance Payments). On a conventional mortgage, mortgage insurance can also be called PMI (Private Mortgage Insurance). Unlike your life insurance policy, MIP doesn’t protect your family if you should become ill or die. It protects your lender and the amount of money they have loaned for your home.

Can you remove mortgage insurance from an FHA loan?

If you paid less than 10% down payment on an FHA loan, you will pay mortgage insurance for the life of your loan. Part of the insurance is a one-time mortgage insurance premium, which is paid when you took out the loan. Usually, the lender will finance this one-time insurance payment as part of your loan. You’ll also continue to pay an annual mortgage premium based on the length of your mortgage.

FHA rules for mortgage insurance payments are complicated. If you got your FHA loan after June 3, 2013, and you made a down payment of more than 10% on a 15, 20, 25 or 30-year FHA loan, you are eligible to apply for cancellation of your mortgage insurance payment (MIP) after 11 years. For older FHA loans taken out before June 3, 2013, you will pay MIP up to 78% LTV based on your original purchase price. Older FHA loans with borrowers who paid more than 22% down never had a MIP requirement. You may be able to refinance your FHA loan with a lower MIP depending on your equity in the home. If you’ve missed a mortgage payment during your loan, you won’t be able to drop the MIP until or unless you refinance into a conventional loan. HUD and FHA can change these rules at any time at their sole discretion.  So it’s best to reach out to an independent mortgage broker and home loan professional at California Platinum Loans for the most current guidelines as they relate to your specific FHA loan.

Can you refinance your FHA mortgage to eliminate MIP?

Another option for getting rid of mortgage insurance is refinancing the mortgage completely. You have many options for different home loan products which could not only eliminate your mortgage insurance requirement but could also provide you with lower monthly payments.

If you’re tired of paying mortgage insurance every month and you want to put the money to better use, contact a home loan professional today to learn your options for eliminating mortgage insurance on an FHA mortgage by refinancing your current FHA loan into a new conventional mortgage loan.

Source

https://themortgagereports.com/55984/get-rid-of-pmi-or-mip-mortgage-insurance-with-a-refinance

California Platinum Loans

  https://californiaplatinumloans.com