I have published quite a few blogs lately on the benefits of buying a home now rather than waiting. But these are very interesting questions that home buyers should know the answers to when they are thinking about buying their first home or trading up or down. Although the Fannie Mae guidelines state that you must have 3.5% downpayment, Collier County has access to USDA loans that allow for 100% financing. I recently closed a property where the buyers had to pay nothing at all at closing because we had the seller give them a credit for closing costs and they were able to finance 100% of the mortgage. They were renters before and their monthly mortgage payment is lower than they were paying in rent! That makes it a great deal for this young family.Naples Real Estate
Home3 Crucial Questions Most Home Buyers Don’t Know the Answer To…DO YOU?
I have published quite a few blogs lately on the benefits of buying a home now rather than waiting. But these are very interesting questions that home buyers should know the answers to when they are thinking about buying their first home or trading up or down. Although the Fannie Mae guidelines state that you must have 3.5% downpayment, Collier County has access to USDA loans that allow for 100% financing. I recently closed a property where the buyers had to pay nothing at all at closing because we had the seller give them a credit for closing costs and they were able to finance 100% of the mortgage. They were renters before and their monthly mortgage payment is lower than they were paying in rent! That makes it a great deal for this young family.
Whether you are considering the purchase of your first home or trading up to the home your family frequently fantasizes about, there are three crucial questions you must know the answer to:
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What is the minimum down payment required to purchase a home?
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What is the minimum FICO score required to qualify for a mortgage?
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What is the maximum Back-End DTI Ratio allowed?
A survey conducted by Fannie Mae revealed startling information: most Americans don’t know the answer to these three crucially important questions. Here is a graphic showing the results of the survey:
The percentages are quite disturbing but can explain why so many people believe they are not eligible to purchase a home whether it is a first home or a trade-up home. Here are the actually requirements as per Fannie Mae:
Bottom Line
If you are considering purchasing a home, make sure you are aware of all your options before moving forward.
Courtesy of Keeping Current Matters August 2016
DTI Ratio stands for Debt to Income Ratio. The mortgage broker adds up all your debt, credit cards, car payments, student loans etc and adds the mortgage payment, insurance, taxes and any HOA fees to that amount. You can use 45% of your monthly income to pay those bills. A 620 credit score is not hard to attain. If you don’t have it now, the mortgage broker can help you clean up your credit so that you do qualify. Call me for a referral to a wonderful mortgage broker who will work with you and fit you into the best program for you.
Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a home of your own.