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

Make Your Next Home a Richmond II

Easier Short Sales for Military Homeowners

A new policy is now in effect for military members with PCS orders to help sell a home as a short sale. Short sales generally require homeowner’s to be in default on their mortgage. With the new policy, military members who purchased their home on or before June 30, 2012 can sell for less than the balance on their mortgage even when they are current on their payments. The mortgage must be backed by Fannie Mae or Freddie Mac – this information can be found on their websites.

For the full article on this new policy visit:: www.DSNews.com

Call today for more details!
Danielle Hifko
New American Mortgage
910-581-6398

Loan Program Down Payments

What are the down payment requirements on different loans?

FHA – minimum of 3.5% down

USDA – 100% financing, no down payment required!

VA – 100% financing, no down payment required!

Conventional – minimum of 5% down

What are the loan program fees associated with each loan?

FHA – up front mortgage insurance premium of 1.75%, monthly mortgage insurance premium until 20% equity and five years of having loan

USDA – up front funding fee of 2.00%, small monthly insurance premium for life of the loan

VA – 2.15% up front funding fee for first time VA use, 3.3% up front funding fee for subsequent uses. No monthly mortgage insurance

Conventional – No up front charges, Private mortgage insurance charges until 20% equity is obtained.  If there is at least a 20% down payment there will be no mortgage insurance charged at all.

A reminder for VA loans: If there is a down payment between 5%-10%, the funding fee will be reduced to 1.50%.  If there is a down payment of 10% or more, the funding fee will be reduced to 1.25%.  This is applicable on loans of first time VA use or any subsequent use.

All up front funding fees and mortgage insurance premiums may be financed into the loan amount.

Call today for more information!

Danielle Hifko

New American Mortgage

910-581-6398

Insurance Changes

When obtaining a new mortgage, you must provide the homeowner’s insurance information to your lender.  From here the lender reaches out to the insurance company for needed paperwork – this can take five minutes, or up to two weeks to obtain.  

What we are starting to see in this area due to the wind and hail requirement, is the insurance companies not providing any sort of “binder” of insurance to the lender.  Payment will be required upfront by the buyer and then the application will be sent off for review and a policy number.  From here, everyone waits until the insurance paperwork is processed and provided.

It is now more important than ever to provide the insurance information as far in advance as possible so there are no last minute hold ups!

Contact me today for more information!

Danielle Hifko

New American Mortgage

910-581-6398

Our Spring Incentive is Here!

Rental Properties

When applying for a new mortgage loan, what does the lender need from you when you have rental properties?

It is common for mortgage companies to require a copy of your current rental agreement.  They may also ask for a payment ledger from a property management company if it is maintained by a third party.

If you are moving from you current residence that will become a rental property, the mortgage company may require extra documentation that includes rental agreement, copies of first rent check and security deposit, and proof of deposit into your account.  Again, if it is managed by a property management company, they may require documentation from the management company that it has been received.

Contact me today for more information!

Danielle Hifko

New American Mortgage

90-581-6398