New Conventional Product

New American Mortgage has a new conventional loan product! It offers only 3.00% down, compared to the normal 5.00% minimum requirement. This is a great alternative program for buyers who are looking to purchase, but may not have enough down payment for the other programs.

What are some of the requirements?

You will see most of the same requirements as other loan types.

Some additional requirements include:
-No other properties owned
-Two months reserve payment (whether it be liquid or retirement)
-680 Credit score

For additional information, contact me today!

Danielle Hifko
New American Mortgage
910-581-6398

Where’s your money coming from and where is it going?

What is the mortgage company looking for in your bank statements when you are applying for a loan?

The mortgage company focuses on where your money is coming from. This is to verify the income and to check for any large, out of the ordinary deposits. It is important to verify there is no money that you have borrowed and failed to tell them about.

Do they focus on where you’re spending?

No, the mortgage company will review your running balance to see just how low your account goes, but they are not focusing on where you are spending the money at.

It is common with the military to see extra deposits when transferring from another duty station. Although we know they come from the military, the mortgage company has to document these deposits to ensure the money does not have to be paid back.

Contact me today for more information.

Danielle Hifko
New American Mortgage
910-581-6398

USDA Loans

How does a USDA loan work?  

This is a government backed loan that allows 100% financing for home buyers!  There are stipulations that include a limit on household income and property eligibility.  

Household income limitations are determined by the location of the home.  In our local areas of Onslow, Craven, and Carteret counties, the household income limit is $74,750 for a home of up to four people (limit increases when there are more people in the household).

To determine property eligibility, the address can be entered on their website which will tell you if the home is in an eligible area.

What are the USDA fees? USDA charges 2% of the loan amount up front – this fee can be financed into the loan – Ex. Home price of $100,000, charge of 2% ($2,000), total loan amount will be $102,000.  There is also a small monthly fee included in the mortgage.  This mortgage insurance is kept throughout the life of the loan – the amount will decrease with time as you gain equity in the property.

Before closing, the loan must be sent directly to USDA for approval.  In North Carolina, we are currently seeing a turn-around time of about two weeks.  This time needs to be considered when setting a closing date.

For more information, call today!

Danielle Hifko

New American Mortgage

910-581-6398

Gift Money for Homebuyers

Receiving money from family to help with a down payment on your new mortgage loan?  This is acceptable for a mortgage but has to be documented.  What is generally needed for this?

Each mortgage company may require something a little different, but here is what you should expect:

-Signed gift letter from buyers and gift donors – the importance of this is to show that the money is a “gift” and does not have to be paid back

-Copy of the check or proof of transfer of funds

-Bank printout from buyer to show the money was deposited into the account to verify there are now funds for the down payment

-Bank statement from gift donor to show the ability to give funds

Although this last step may seem a little invasive to the gift donor, it is important for the mortgage company to verify the funds due to fraud in the past.

Call today for more information!

Danielle Hifko

New American Mortgage 

910-581-6398