Before you reach the closing day, you will want to make a decision as to how you will “hold title” to the property. This decision has legal, tax and estate planning ramifications. Therefore, it may be prudent to consult an attorney or certified public accountant (CPA). The following information is supplied for informational purposes and […]
FAQ’s on Reverse Mortgages
One of several significant financial instruments available for seniors today is a Reverse Mortgage. No matter what you may have heard, Reverse Mortgage can be used for either purchase or refinance of a property. What is a Reverse Mortgage? A Reverse Mortgage is a federally regulated program for homeowners, aged 62 and older. It […]
Do You Need Help Buying a Home?
Many buyers need help buying a home because they don’t have enough information about how banks evaluate the borrower’s income. Here are some little known facts that will help you with your purchase: -If you are a W2 employee, Fannie Mae criteria dictates that the total of all monthly payments does not exceed […]
Condominium Financing
In certain parts of the country, especially in bigger cities, condominiums are extremely common. In the past several years condo financing has became a lot more complicated since, unlike a house (where a lender is only concerned with a clean title), condominiums must meet very strict guidelines for a bank to approve a mortgage. These […]
203K Loan
In a different article we described a common scenario: when an FHA appraiser finds potential safety hazards and, for the bank to approve the loan, the seller must carry out the repairs necessary to address the problems. If the seller refuses the only option for the buyer – provided they still want to go through […]
FHA Loans
During the boom of sub-prime lending, when anyone and their mother qualified for a mortgage, FHA lending was almost non-existent. Conversely, during the past several years anyone who does not have a 20% down payment or who has sub-par credit turns to FHA as the only solution. The Federal Housing Administration (FHA) was formed by […]
How Banks Make Money
Did you ever think about how banks make money? Their main source of income (other than charging us a myriad of different fees) is lending money and collecting interest on loans. Banks will only lend money when they feel that the loan will be repaid. Makes sense, right? You would do the same. The strongest […]
Refinancing
Refinancing is the process during which you can replace your current mortgage with a mortgage under new terms, either with the same or new lender. Since there needs to be a closing for every refinance, there are closing costs associated with this process. There are a variety of factors to consider while making the decision […]