FHA Mortgage Information

First Time Home Buyer Down Payment

Good News For First Time Home Buyers:

Are you a first time home buyer trying to figure out how much you need to put down towards the purchase of a new home? Well the good news is not much at all under some Mortgage Home Informationloan programs. The idea of the traditional 20% down payment for a first time home buyer went away years ago as home prices moved higher in the early 2000’s.  Even after home prices declined after 2008 it was still very difficult for first time home buyers to come up with the traditional 20% in most urban cities.  Currently there are many different options for first time home buyers when it comes to down payments including gift’s from family members, local city or county assistance and in some cases there are gifts of equity.

As Little As 3.5% Down:

But lets say you don’t have access to one of those options and you need to plan on saving for a down payment. Currently we offer a 3.5% down payment program and this is available to first time home buyers. The great thing is that we also offer a low mortgage rate with the 3.5% down payment program and along with our other loan programs we never charge any junk fees.  Also you have the option of paying no points in you prefer or if you do want to “buy down” the interest rate you have that option as well.

Mortgage Insurance:Home Buyers In California

The 3.5% down loan program does has a Mortgage Insurance (MI) policy which is added to the actual mortgage payment made each month. This insurance is paid by the homeowner to the mortgage company each month in case you default on the mortgage. It does not cover damage to your home; that insurance policy is called your Homeowner’s Insurance (which covers damages to the home). There are additional details to the loan program and we would be happy to discuss with you all the aspects of the program.  We’ll also take the time to answer any questions you have about getting how much house you can afford, getting pre-qualified, the loan program and/or the loan process.

BBB A+ AccreditedJB Mortgage Capital, Inc.:

We offer industry low mortgage rates and a high level of customer service. We also have a top rating with the Better Business Bureau and and the Business Consumers Alliance. Loan Officer Kevin O’Connor has over 14 years of experience and can help first time home buyers with their first purchase. From loan application to closing you’ll work with one person rather than 2 or 3 like most mortgage companies. This allows for a much more efficient process, you’ll always have a direct contact with the Loan Officer and your realtor will thank you for it. Contact us today at 1-800-550-5538.

How Do I Refinance My FHA Mortgage?

Getting Rid Of Mortgage Insurance:

Do you currently have a FHA mortgage and are you looking to refinance the mortgage to get a lower rate and/or possibly get rid of the Mortgage Insurance (MI)? If so there are a few things you need to prepare before you move forward with a refinance. If you stick with the below process it will help make your refinance a much more efficient Mortgage Home Informationprocess and you just might end up with a lower mortgage rate than you thought.

Your First Step:

First have you paid all your bills, the ones listed on your credit report, on time over the last 12-24 months? Including the mortgage? Having a strong payment history is important however if you’ve missed a payment or two there still are some options for you. If you’ve missed 4 or more mortgage payments in the last 24 months and have other late payments on your credit cards or car loans you may want to wait a little longer. Discuss your situation with your Loan Officer so he can find you a proper plan and solution.

Second Step:

Do a little research online as to the value of the property. There are many online services out there and the most popular one seems to be Zillow. Keep in mind that your appraised value could be vastly different that what an online appraisal site has but at least a website like Zillow will give you a good idea. If you live in an area where homes are somewhat similar Zillow seems to be a bit more accurate compared to areas with different styles and sizes of homes.

Third Step:Home-Kitchen

Third; know your income. Sounds basic right but many people only know what their net income that’s paid to them each week. Mortgage companies use your total gross income which is higher (self employed people qualify on net income). If you are a W-2 employee take a look at your pay stub to find out what your base income is (look up the gross amount; keep commission and bonuses separate). If you are self employed then pull up your tax returns for the last two years and find your net income (not gross).

Fourth Step:

Lastly; establish a realistic objective. Is it to get rid of the Mortgage Insurance (MI)? Are you looking to do a streamline FHA refinance to get a lower mortgage rate? Whatever the reason is make sure it’s realistic and be open to suggestions from the loan officer.

Getting Your Quotes From Reputable Mortgage Companies:

Once the above is in place you’re ready to obtain quotes. Be sure to obtain 2-3 quotes from reputable mortgage companies (preferably mortgage companies that have an A rating or higher  with the Better Business Bureau). Once you have your quotes make sure you ask a lot of questions and don’t hesitate to ask a question two or three times BBB A+ Accreditedif needed.  A Loan Officer should always be willing to take the time to answer a clients question. Once you’ve located your lender it’s time to complete an application and gather your documentation. The general time frame is about 4 weeks however some lenders take 60-90 days so make sure to ask how long it takes to close.

JB Mortgage Capital, Inc.:

If you would like a quote from a top rated lender that offers industry low mortgage rates and top notch customer service than call us directly at 1-800-550-5538. Loan Officer Kevin O’Connor has over 14 years of experience and will help you with all your mortgage needs.

FHA Mortgage Rates In California

FHA Has Fixed and Adjustable Rate Mortgages:

Through various mortgage companies the Federal Housing Administration (FHA) offers low mortgage rates for those with less than perfect credit and/or those with loan Home For Saledown payments. Before the 2008 mortgage crisis FHA mortgages in California were a small percentage of the market. Currently FHA is a major player as homeowners and buyers look for alternatives to the traditional conforming loans from Fannie Mae. There are both fixed rate mortgages and adjustable rate mortgages offered by FHA and generally speaking the30 year fixed rate loan program is the most popular.

Brokers, Lenders and Banks:

Keep in mind that the Federal Housing Administration does not offer mortgage loans directly to consumers; the programs are offered by brokers, lenders and banks. What the FHA does is offer insurance to these companies when they underwrite a loan to FHA standards and guidelines. Some brokers, lenders and banks underwrite to exact FHA guidelines and others underwrite to a slightly higher standard than what FHA requires.

FHA Requirements:

That leads us to this important question; what does the FHA require? The simple is not much compared to underwriting standards 30-40 years ago. That being said it’s not as simple as just signing your name to the mortgage note and then you’re done. Those that don’t currently have a FHA mortgage still need to prove income and qualify basedLow Mortgage Rates at JBMC on a debt to income ratio however the standards are lower compared to a conventional loan. Also if you’re purchasing a home; you only need 3.5% of the purchase price as a down payment. That is great news for first time home buyers that don’t have a large down payment. Also if you have less than perfect credit; FHA is a great way to go. Reason being is that its easier to qualify for a new mortgage under FHA guidelines if you have less than perfect credit.

Considerations For FHA Loans:

So if you have one, some or all of the following you should consider a FHA loan:

  • Less than perfect credit
  • Little to no credit
  • Low down payment
  • High Debt to Income ratio

Downsides To The FHA Program:

What are the downsides of FHA? A couple of things to keep in mind: Mortgage Insurance is added to the monthly payment. Mortgage insurance is paid by you in case the loan defaults and you can’t get rid of it unless you refinance to a different loan or sell the house. FHA also A+ Ratingcharges an upfront Mortgage Insurance Premium fee (MIP) of 1.75% however this can be rolled into the interest rate (so you don’t pay it directly). The fee is 1.75% of the loan amount which is either added to the loan OR your interest rate is increased just a bit to cover the fee. Lastly; you have to impound your property taxes and property insurance with your mortgage payment when you do a FHA loan. If you prefer to do this; than it’s obviously not an issue.

JB Mortgage Capital, Inc.:

If you would like a quote on a fixed rate or adjustable rate FHA mortgage quote please be sure to give us a call at 1-800-550-5538. We offer industry low mortgage rates, and we have a top rating with the Better Business Bureau and the Business Consumers Alliance.