As you shop for homes, have you checked to see how much you
As you shop for homes, have you checked to see how much you
You can now buy a home in Lee and Collier County using the USDA home loan program with NO down payment. The USDA mortgage is the ONLY no money down mortgage loan program available to non-military buyers in the United States. This program is used mostly for first time home buyers and is a perfect way to buy your first family home.
This is the loan program you wish you knew about earlier. Here, I’m going to tell you everything you need to know about the USDA mortgage; how it works, how to apply for it, and most importantly, whether you qualify for it.
This mortgage loan program is a part of the USDA’s initiative to help families in rural areas across the country buy a new home, or improve existing homes. This mortgage offers no down payment with low interest rates and is not that difficult to qualify.
Due to recent now millions of borrowers across the country are eligible for this no down payment loan program. So, this is your chance to buy the home that you’ve always wanted.
There are three ways in which this loan program works.
#1: The USDA guarantees loans issued by a local mortgage provider, much like how a VA-backed loan works. So you can get a loan at a low interest rate with no down payment. However, you will need to pay a mortgage insurance premium for the life of the loan.
#2: The USDA issues low-interest direct loans to applicants from low-income households. The interest rate for these loans will vary for each borrower.
#3: The USDA provides home improvement loans and grants, up to $27,500, to eligible homeowners that need to repair or renovate their homes before purchasing.
To qualify for a USDA mortgage, you need to be a U.S. citizen and have an income that is within the loan guarantee income limit for your county. Lee and Collier counties will have different limits so its important to speak with your mortgage lender to help find out if you fit within those guidelines. Metropolitan areas in Naples and Fort Myers area do not qualify for this program, but if you live in the suburbs or rural area, you can apply for a USDA-backed loan. To check what the income and property eligibility limits for Fort Myers and Naples, have a look at this USDA map.
Your eligibility will also depend on your household income and location and has nothing to do with your occupation – you don’t need to be a farmer or rancher to qualify.
These loans are only applicable to owner-occupied primary residences. This means you can apply only if you’re going to be staying in your new home. You cannot take them for a second home or a third home, purchased for investment purposes.
The monthly loan payment should not exceed more than 29% of your monthly income. If you have other debt as well, your total loan payments made each month should not exceed 41% of your income. However, if your credit score is over 660, you will be allowed to have a higher debt ratio but the minimum credit score allowed is 580 using one of PRMG qualifying lenders.
You must have a dependable income for a period of 2 years, at least, and your credit history should be acceptable. It really helps if your credit score is 620 or higher. You might find it difficult to get the loan if you have a credit score of less than 580. You shouldn’t have any accounts in collections for the past 1 year, if so, they will need to be paid in full on or before closing.
How to Apply for a USDA Government Loan?
If you want to apply for a USDA mortgage, give me a call and I will walk you through your best mortgage options, so that you can buy a home in the Lee county area including Fort Myers and Naples.
Next Blog: Down Payment Assistance Programs
There are lots of reasons why the Sunshine State is so popular with vacationers and with those looking for a second home. Cape Coral enjoys a great reputation as one of the best places in Southwest Florida, and there is a plenty to do and see here. It just makes sense to buy a vacation home in Cape Coral.
It really makes sense to buy a second home or vacation home in Cape Coral, Florida. Now Cape Coral is much smaller than Tampa or Miami, but it has its charms. The city offers excellent employment opportunities, quality education and most importantly for vacationers, outstanding outdoor activities.
The city boasts of one of the lowest serious crime rates in Florida. The air quality is pretty decent and the cost of living is not that high – it’s 4 percent below the national average.
As you know, there is no state income tax in Florida. Homes in Cape Coral are relatively inexpensive, and the medical care is very good. Lee County VA Medical Center and Lee Memorial are two of the biggest hospitals here and they provide high quality healthcare at affordable costs.
Cape Coral is doing pretty well economically. It has a thriving job market with a positive employment outlook of 32% in 2015. The unemployment rate was 5.5% in 2014; it’s probably lower now (in 2017). There is a large population of retirees here. Most seniors are happy about being in Cape Coral.
The first thing that strikes you when you make your way to this place is the water. The city is surrounded by the Caloosahatchee River and Matlacha Pass. There’s water everywhere at Cape Coral, over four hundred miles of navigable waterways.
This is way more than any other city in the US. Indeed, the city has more canals than Venice! No wonder it is also called as the “Waterfront Wonderland.” You can so easily buy a house here with a canal next to your backyard. You might find yourself sitting in your backyard all day long fishing in the canal! You won’t find a city like this anywhere in the US.
If you love nature, you will like the Four Mile Cove Ecological Preserve. It’s spread across an area of 385 acres and is full of animals such as herons, snakes, eagles and more. There’s a popular walking trail that passes through this area.
Also popular are Cape Coral BMX Park and Eagle Skate Park, which are generally filled with BMX racers and skateboarders. The BMX track is one of the oldest of its kind in the US. If you have kids with you, you might want to bring them here.
Cape Coral is home to a couple of quality beaches, one at the Yacht Club Community Park and the other at the Four Freedoms Park. Both beaches are dotted with cozy restaurants, picnic spots and playgrounds for kids.
Another reason to buy a home in Cape Coral is that it’s just a short ride away from the Walt Disney World Resort in Orlando. You can always take your family on a weekend to the world famous theme park, if you feel like it.
Now you know why Cape Coral is so popular with those looking to buy a second home in Florida. Hope you enjoyed reading this.
At times, the journey can be a bit bewildering. Which way should you turn? And to whom should you go for advice?
Please understand that as complex as the paths can sometimes be, we navigate them daily. Our experience is to your benefit, and it’s just part of what comprises our knowledge and resource base.
We are here for you. We will help assure a safe and timely arrival at your final destination—home.
Are you wondering how much you need to save for your new home? It may not be as much as you think.
The VA and the USDA both offer a zero down loan program for individuals and/or properties that meet their criteria.Sometimes, loans require little or no cash out of pocket. Some HUD properties are available with as little as $100 down.
Some Fannie Mae Community and HomePath® programs allow just 3% down. You may even be able to fund your down payment through gifts, grants, employers, government agencies, unsecured loans from family or even with loans against CDs or retirement accounts.
The FHA loan program allows as little as 3.5% down, and it is more lenient than most other programs on minimum credit scores.
Fannie Mae / Freddie Mac conventional loans are available with down payments as low as 5%. The minimum changes based on property type, credit score, occupancy, etc.
Are you surprised at how low you may be able to go? While many believe a 20% down payment is required, you can see now that it’s far from the only option.
Whether you’ve saved a little or a lot, reach out today, and we’ll work on finding a loan that works for you.
Are you getting ready to buy a home? Here are four keys to being prepared to make your first offer.
1. Know what you can afford and how much cash you will need. Knowing what you qualify for before looking at any homes will save you the disappointment that can come from falling in love with a home that’s out of reach. We’ll be happy to “pre-qualify” you now so you’ll know what will work later.
2. Know where you want to be. Learn about the neighborhood before you make an offer to buy. Sample the commute. Talk to would be neighbors. See the schools, shops and services before you start negotiating.
3. Choose your property type. Consider your range of choices: single family, multi-family, townhome, condo, co-op, new construction, etc. Know the pros and cons of each. Decide which is best for you, and define your search accordingly.
4. Obtain a valid pre-approval before you make an offer. This entails document verification, a credit check and automated or actual underwriting. If all is in order, you will receive the equivalent of a loan commitment that’s subject to a contract, appraisal and title work. Your pre-approval gives you and the seller confidence in your ability to close the deal once you find your perfect home.
You will probably buy a home only a few times in your life, but we’re laser focused on the process every day. We know how important proper preparation can be to making the process easy and rewarding. Now, so do you.
Reach out and we’ll start you down the road to being a well-informed, confident and happy home buyer today.
Now throughout the entire state of Florida with offices in Cape coral, Fort Myers, Naples, Sarasota, Port Charlotte, Lehigh Acres
We all know the old line about location. But buying a home takes research, research, research, too.
You will want to determine:
How much you can comfortably afford. The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you.
How much cash you need to close. Knowing how much cash you’ll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later.
What kind of property you really want. Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split, ranch, cottage, cabin, teepee…home types and legal distinctions are plentiful. Whether you are open to several styles or have your heart set on only one, narrowing your search will save time and prepare you to act when the perfect home hits the market.
Where you want to be and how long you’ll want to be there. You’ll want to strike a balance between buying what you can afford and buying what will accommodate your needs for longer than just the first few years. Assess your plans for growing your family and how your income might grow to match. Planning ahead is especially important in today’s market, when trading up tomorrow may mean both a more expensive home and a higher mortgage rate.
How the process works. This is a time when the Internet doesn’t have all the answers. The process varies for many reasons, including area and custom. Generally, purchases include: Offer, Acceptance, Inspections, Contract, Loan Application, Appraisal, Title, Loan Approval, Closing/Funding and Moving In. Many little steps can fall in between, and the process won’t always occur in a given order. It pays to speak with local experts early.
Reach out when you’re ready, and we’ll help you understand the nuances of your market today.
BEFORE: Bad Economy, Super Low Rates
Annual interest at 3.5%/3.747% APR = $7,000
Appreciation at 0% = 0
Interest minus appreciation = $7,000
AFTER: Improving Economy, Higher Rates
Annual interest at 4.5%/4.762% APR = $9,900
Appreciation at 3% = $6,600
Interest minus appreciation = $3,300
These hypothetical examples are illustrations for educational purposes only and are neither an offer to lend nor a Good Faith Estimate. Examples are based on a 30-year, fixed-rate loan with a 20% down payment. APRs are calculated using closing costs equal to 3% of the loan amount. Actual costs can be less, and actual rates are subject to change at any time. Qualification for any loan is dependent on individual circumstance and subject but not limited to employment/income, credit history and acceptable liquid assets to close.
Yes, higher rates and prices carry higher loan payments, which can make the difference between qualifying or not for the home you may really want. Plus, no one writes you a check for any appreciation realized until you sell your home, so you don’t get to actually subtract it from interest each year.
Still, if you can handle the payments in the interim, owning a home when price gains occur can have a lower net cost than when they don’t. The current market shows that appreciation can be very real indeed, and it also can occur when you least expect it. The ability of rising home values to make significant contributions to wealth should be a factor in identifying the right time to buy.
Are you thinking in terms of price alone or in the real cost to own? Reach out when you’re ready, and we’ll be happy to help!
ATTENTION ATTENTION ATTENTION
Lee county now has funds available for First Time Home Buyers to assist with down payment and closing costs on a new home purchase. The funds are available for use in the Lee County, Florida area for the following cities: Lehigh Acres, Cape Coral, Fort Myers, and Alva.
They amount available will be up to $10,000 to assist with buyers who may not have enough funds to purchase a home. Lee County will determine the amount of assistance based on need but it will not exceed the $10,000 Limit. We are an approved lender and can help you with completing the application and assist you in qualifying for these funds.
Contact us today for more information. These funds do not last all year as they are on a first come, first serve basis, so call TODAY! 239-672-6244
Congratulations on your decision to buy a new home! There are many important things to consider throughout the process, especially if you’re a first-time homebuyer. Here’s some information that will keep you on track.
A home purchase may be your largest financial transaction to date, so it’s important to make the right decisions and to keep an eye on the details. With the assistance of your Real Estate Agent and Loan Officer, it should be an efficient, pleasant, and ultimately rewarding experience.
Count On Your Real Estate Agent To:
Preview available homes to weed out those that are overpriced, or undesirable in some other way.
Present the homes that suit your needs as you’ve defined them.
Help you determine the difference between a “good buy” and a property which, because of its nature (neighborhood, market appeal, etc.), might have to be discounted if you decide to sell in the future.
Negotiate the best deal for you. With a Pre-Qualification letter from us in hand, your Real Estate Agent will be able to demonstrate that you are a qualified and capable borrower. This will strongly influence the Seller, and may make the difference between the Seller accepting your offer or someone else’s — even if your offer is lower!
Count On Your Mortgage Broker and Loan Officer To:
Assist you in selecting the best loan to meet your personal situation and goals. (This single decision can save you thousands of dollars throughout the years!)
Keep you informed of your loan status throughout the entire process.
Keep your Real Estate Agent informed of our loan progress (Note: your personal information is always kept confidential between you and us; only deal points and progress are shared).
Get the appropriate loan for you at the best rates and fees. This will save you significant money “up front” and throughout the years to come.
Count On Yourself To:
Keep your Real Estate Agent informed of any questions or concerns as they develop.
Keep the process moving by providing documentation and decisions as soon as reasonably possible. By doing so, many of the details are taken care of early in the process so you can comfortably concentrate on any last-minute details or events that require your attention.
Enjoy purchasing your home, but do remain objective throughout — to make the business decisions that are best for you.
Make sure you are pre-approved as early as possible. This will put the power of financing behind you so you can concentrate on selecting your home.
Over the last few weeks, “What is PMI” seems to be the questions that have been most popular among my clients. So here are some key things that you will need to know about private mortgage insurance and how you can eventually make it disappear.
Why do i need to save up 20% down payment to purchase a home is normally the beginning question for some who are first time home buyers and at the beginning stages of their research. Well the main reason is to avoid paying PMI (private mortgage insurance) in addition to your mortgage principal and interest payment, as well as getting a better interest rate.
When purchasing a home you have to make the decision as to who much down payment you want to put down on new mortgage loan. If your down payment is going to be less than 20 percent of the appraised value or sale price, your lender will require you to get mortgage insurance, which will be added to your total monthly payment. As a borrower, you pay the premiums, and the lender is considered to be the beneficiary. The private mortgage insurance policy will protect the lender in case you default on your payments.
Mortgage insurance fees will vary, depending on the type and size of the loan, the down payment amount and the borrower’s credit score. The percentage amount can be around 0.25 percent to 1.50 percent of the original loan amount each year. For the entire year of 2013 mortgage insurance premiums are tax-deductible and it is possible that Congress could extend deductions longer into the upcoming years.
To help you get an idea of how much will be added to your monthly payment, you can use any mortgage calculator. This will show you an estimated monthly payment which will include, principal, interest, taxes, homeowners insurance and PMI.
So now the next question will be how do I get rid of the mortgage insurance? Well, borrowers can choose to have the PMI removed sooner than later. On conventional loans only, when your loan-to-value ratio hits 80 percent, the lender will no longer require the PMI premiums and it will be discontinued. At closing, Federal law does require lenders to tell the borrower how many years and it will take for them to reach that 80 percent level and cancel PMI. It will be up to the buyer to keep track and notify the lender. Also, before the mortgage insurance is removed the borrower will need to pay for an appraisal on the home and submit it along with the request for removal, to the lender. If the borrower does not contact the lender at the 80% LTV mark, by law the lenders must automatically cancel PMI when the balance hits 78% of the original value of the home. When that time comes, the homeowner must be current on the loan.
Now please keep in mind that paying down your mortgage faster does not necessarily speed up this process. You can ask the lender to cancel the mortgage insurance but there is not guarantee they will say yes. Paying your loan down is different from simply having 20% equity in your home because its based on the current market value. Also, you are required to wait 2 to 5 years after taking out the loan to make such a request or it may be automatically rejected.
“ Automatic termination at the 78% threshold is not based on the actual payments made, but is based on the date that the loan is first scheduled to reach 78%, according to the initial amortization scheduled,” says Sara Millard, senior vice president and deputy general counsel at the United Guaranty Corporation.
On FHA loans, these are not governed by the same laws. As of the summer of 2013, the FHA mortgage insurance premium will never be discontinued and will stay on for the life on the loan. The only way to have the PMI removed will be to pay for an appraisal and refinance into a conventional loan. If after the appraisal, it is determined that you do not have 20% equity but have cash to pay down the mortgage, refinancing may still be the better options.
UPDATE: We now have refinance loan available for you to drop the MI without 80% equity. If you have at least 5% equity in the home we can refinance into a conventional loan, and still not have mortgage insurance!
There are mainly two different types of mortgage insurance. One is the MI on conventional loans which is bought from a private mortgage insurance company from a private company. The other MI is from the government loans which are only on the VA (Veterans Administration) and FHA loans. As you can see, the type of MI required will depend on the type of mortgage loan that you get. Rates on these different types of loans are different, which will determine how much or how little will be added to your monthly mortgage payment.