Posts Tagged ‘Purchase’

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Home loans for single mothers – Financial assistance to help single mothers purchase Home

December 26th, 2010

Today’s America has a wider percentage of families being raised by single parents, more than before. In the current statistics, about 35% of homes in the United States are led by single parents, and around 40% of these homes are maintained financially by single moms, some of which are living below poverty levels.

Some banks may think that single mothers are high-risk borrowers, so single moms applying for a bank home loan may end up not getting approved. If you are a single mom dreaming of owning your own home where you can safely raise your children, do not give up that hope yet. There are other sources of home loans for single mothers, as well as government programs that can help you realize your dream of buying your own home.

Here are just a few of the government programs that single moms who want to purchase a home for their families could avail of:

1. The Housing and Urban Development does not really provide home loans for single mothers, but they provide loan guarantees for borrowers who may not otherwise qualify for a bank home loan.

If you are a single mom, you can avail of the FHA assistance that the Housing and Urban Development provide, and once you get approved, you are more likely to be able to apply for a bank home mortgage loan.

2. The Housing Choice Vouchers Program is another HUD assistance program for single moms wanting to buy a home for her family. You have to check with your state, because every state has its own policies in giving out housing choice vouchers. Although this program is not really home loans for single mothers, it helps them and other minorities purchase a home using these financial assistance vouchers.

3. The Home Investment Partnership is also another program of the HUD which provides assistance to families with low income to come up with down payments that they need to purchase a home. You need to prove financial need to qualify for these program, as it is more geared towards small income families, not just for single moms.

Home loans for single mothers is not really impossible. You just need to do a lot of research to find out the sources for these home loans, and work with a reasonable mortgage lender who can customize a package that you can easily afford.

One mother wanted the best for her family should never give up his dream to own a home where she can raise their children properly and safely. She needs to find means of how it can be used for home loans for single mothers, and pushing to make his dream a reality.

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Home Purchase Loans

December 1st, 2010

When you begin window-shopping for a home, you will soon find out that the number of houses available is almost outdone by the number and variety of home purchase loans available. Every year, lenders come up with new and innovative ways to package mortgages. They tweak them with complex interest rate schedules, they simplify them with basic low-cost approval and closing processes; and they trick them out with bells and whistles that are the latest up-to-date version of the reinvention of the wheel in terms of home purchase loans.

Doing Home Purchase Loans Research

Yes, it can be overwhelming. But no, it doesn’t really have to be. To shop for home purchase loans without getting bogged down in frills and dog and pony shows – and without wasting time with mortgages that are not appropriate for your particular needs – it is a good idea to first do some homework.

Talk to a mortgage advisor, or visit the Internet and research basic articles about how the mortgage business works for consumers looking to purchase a home. Familiarize yourself with the basic jargon, and the basic types of mortgage loans. Once you are up to speed enough to understand the mortgage loan process, the difference between an ARM and a fixed rate, you will also be well on your way to knowing the difference between paying an arm and a leg and getting a bargain.

Ask yourself a few basic questions:

1. How long will I live in the house?

2. How much money do I want to use for the down payment?

3. How much do I want to pay each month?

4. Do I think interest rates are going up for the long term, down, or sideways?

5. Do I have enough liquid assets to satisfy my lender’s reserve requirement? (Confirm your reserve requirements with your mortgage advisor.)

6. Have I been employed in the same line of work within the last two years?

7. Can I verify at least two years of rental or mortgage history?

Once you have the answers, you will be ready to consult lenders to help you clarify your goals and find loans that are tailored to suit you. Don’t be afraid to ask your lenders any questions you believe are important, compare prices and terms, and be honest. If their competitor offers a better deal, say so. They will probably try to beat it, and by doing so, you’ll come out a winner.

Optionwide Home Loans provides detail information on Home Purchase Loans to all home buyers with all types of credit and financing needs. For more information on home purchase loans visit us at www.Optionwide.com.

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FHA home loan options for refinancing or purchase

April 13th, 2010

There are many FHA home loans that offer benefits for both refinancing and buying a home. Years ago, FHA mortgages were only considered for first time homebuyers. While FHA loans are great for 1st time homebuyers, they are also good mortgages for refinancing and purchasing.

One notable feature of a FHA mortgage is that they are available for borrowers with less than perfect credit. FHA guidelines do not use credit scores as the primary function for underwriting like most conventional lenders do when considering qualifications. Consumers with low fico scores, even past bankruptcies being reported by credit repositories, like Tran Union, Equifax, and Experian.

Most FHA lenders underwrite and approve home loans based on debt to income ratio and the proposed borrowers ability to repay the mortgage. Another benefit for government lending is that lenders and brokers assume very litle risk because our HUD insures FHA loans against defaults.

With FHA loans, you will be obligated to document your income, employment and provide letters of explanation regarding any late payments and derogatory credit. If you need cash out, the FHA lender will want a letter explaining how you intend to use the cash.

Any way you look at it FHA loans have become the recommended option for borrowers with no equity to refinance. In addition homeowners with poor credit scores will be advised to consider FHA mortgage loans because there are very few mortgage options available today, and several non-prime options there usually carry high rates of excessive pre-payment penalties. FHA mortgages have no pre-pay and the mortgage rates, FHA remains low in comparison with subprime or not in compliance rates.

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FHA Home Loan Options For Refinance Or Purchase

April 7th, 2010

There are many FHA home loans that offer benefits for both refinancing and buying a home. Years ago, FHA mortgages were only considered for first time homebuyers. While FHA loans are great for 1st time homebuyers, they are also good mortgages for refinancing and purchasing.

One notable feature of a FHA mortgage is that they are available for borrowers with less than perfect credit. FHA guidelines do not use credit scores as the primary function for underwriting like most conventional lenders do when considering qualifications. Consumers with low fico scores, even past bankruptcies being reported by credit repositories, like Tran Union, Equifax, and Experian.

Most FHA lenders underwrite and approve home loans based on debt to income ratio and the proposed borrowers ability to repay the mortgage. Another benefit for government lending is that lenders and brokers assume very litle risk because our HUD insures FHA loans against defaults.

With FHA loans, you will be obligated to document your income, employment and provide letters of explanation regarding any late payments and derogatory credit. If you need cash out, the FHA lender will want a letter explaining how you intend to use the cash.

Any way you look at it FHA loans have become the recommended option for borrowers with no equity to refinance. In addition homeowners with poor credit scores will be advised to consider FHA mortgage loans because there are very little subprime options available today and the few non-prime options out there typically carry high rates with excessive pre-payment penalties. FHA mortgages don’t have pre-pay’s and the mortgage rates with FHA remain low compared to subprime or non-conforming rates.

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Bad Credit Home Purchase Loans – Should You Purchase A Home?

March 12th, 2010

Today, those with damaged credit have more opportunities to borrow to buy a house than they have had in the past. There are many lenders that specialize in what is often referred to as a bad credit home purchase loan. However, as with many things in life, just because you can, doesn’t mean you should. Indeed, loan availability could be considered a small part of the decision of whether or not you should purchase a home at this time.

What You Can Do

To help you in deciding whether or not you should purchase a home, the first step should be to run the numbers to find out what type of mortgage rates you may be eligible for and how much it would cost you to buy now. It’s better to do this before speaking with any lender offering bad credit purchase loans.

The first number you’ll explore is your credit rating, using information from one or more of the major credit reporting agencies. Among the best known is Trans Union, Equifax, and Experian. Then, you’ll need to consider the loan-to-value ratio, or the relationship between how much you want to borrow and the worth of the house. Your debt-to-income ratio, or how much your total debts are in comparison with your current income, is another factor that will influence the type and rate of loan that is available to you.

What You Should Do

You can use the numbers you collected above to determine what terms and rates may generally apply to your financial situation and, with the help of a mortgage calculator, make an estimate of what a loan for a given amount will cost you monthly. There are a variety of other factors, such as points and closing costs that will affect that number, but for initial decision making as to whether or not you should purchase a home at this point in time, it is useful.

There are many lenders willing to offer you a loan, even if your monthly mortgage payment surpasses the 30% of your income that is typically recommended. That does not make it a good idea. There are other expenses involved in home ownership that you’ll need to factor in, such as repairs and maintenance. Buying too soon could place an undue and unnecessary financial on your shoulders.

Consider and compare the advantages to waiting. You’ll have time to shop for the best bad credit home purchase loan possible. You’ll be able to save for a bigger down payment and continue to improve your credit rating. All of these actions may translate into better rates and terms, which will allow you to pay less in the end.

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