NSH Mortgage Reports

 

6 New VA Cash-Out Refinance Guidelines & Requirements

6 New VA Cash-Out Refinance Guidelines & Requirements   VA Cash-Out Refinance The VA home loan program was created more than 70 years to provide affordable home-ownership to U.S. military veterans. Updated: six new VA cash-out refinance guidelines and requirements for 2018. NSH Mortgage has the knowledge and tools that can help you discover how much you can save on a VA cash-out refinance loan during 2018. To date, over 22 million current and former members of the U.S. Armed Forces have taken advantage of a VA mortgage. The loan provides zero down home buying and never requires mortgage insurance. But the program extends beyond helping the home buyer. It helps the homeowner, too, by offering the VA cash-out refinance option, with which the eligible veteran can tap into their home equity and receive cash back for any purpose. Like all VA loans, the program requires no mortgage insurance, even though any other loan type on the market requires it for loans with less than 20% equity. The VA cash-out loan is the only refinance available today that permits cash to the borrower with a loan to value of 100%. For veterans, this loan could be the best way to put home equity to work to complete long standing financial goals. Rates are low, and approval is easier than for standard cash out programs.   What Is A VA Cash-Out Refinance? A VA cash-out refinance is a type of VA loan that allows the homeowner to turn their home equity into cash. The cash-out refinance is one of three VA loan subtypes, which are: The VA home purchase mortgage. The VA streamline refinance also known as the Interest Rate Reduction Refinancing Loan or IRRRL. VA cash-out refinance. The VA cash-out is the more flexible of the two VA refinance options. It allows you to: Receive cash back at closing of the loan. Refinance a non-VA loan. A VA streamline refinance allows a loan size only big enough to pay off the existing loan and pay for closing costs. Additionally, the veterans must have a current VA loan already. The cash-out option, though, allows the veteran to open a loan amount up to 100% of the home’s value, receiving cash back to use to pay off other debt, buy a car, pay for home improvements, or any other purpose. For example, an eligible veteran or homeowner owns a home worth $200,000. Her…

5 More New And Easy Steps For FHA Loan Limits That Can Help Multi-Unit Home-Owners During 2018

5 More New And Easy Steps For FHA Loan Limits That Can Help Multi-Unit Home-Owners During 2018   FHA Loan Limits Rise In Every County The Federal Housing Administration (FHA) has released a mortgage loan limit update. Five more new and easy steps for FHA loan limits that can help multi-unit home-owners during 2018. NSH Mortgage has the knowledge and tools that can help you with discovering how much you can save on your multi-unit home. Effective immediately, FHA insured mortgages are now available for loan sizes up to $679,650 for one-unit homes. FHA loan limits are higher for double unit, triple unit and quadruple unit properties, and for homes in Honolulu, Hawaii and several other Hawaiian cities. During 2018, FHA loan limits may be higher in nearly every county nationwide, with a new floor loan amount of $294,515.   What Is A FHA Loan? It can be confusing, but the FHA is not actually a mortgage lender. Rather, it is a mortgage loan insurer. The FHA provides insurance which protects against loss the banks which make FHA loans. The FHA keeps a book of rules and says, so long as you make loans that follow these requirements, we will insure those loans against loss. FHA backed loans are often easier for which to qualify than their conforming mortgage counterparts, and come with several home buyer friendly characteristics. As a few examples of the FHA’s buyer friendly rules: FHA mortgages require a down payment of just 3.5%. FHA loan down payment monies can be gifted from a family member. The minimum credit score requirement for a FHA loan is 500. There are other FHA loan perks, too. For example, FHA loans are assumable. This means that a future buyer of your home can assume its existing mortgage at whatever the mortgage rate happens to be. If today’s mortgage rates are 4% and rates are 10% when you sell, instead of applying for a new loan, your buyer can assume your existing 4% FHA mortgage rate instead. Another FHA loan perk is that FHA mortgage rates do not change with low credit scores, or property type. FHA mortgage rates are the same, no matter whether your score is a 740 or a 580. For instance, whether you live in a single family home or a quadruple unit. Everyone gets access to the same FHA mortgage rates.   2018 FHA Loan Limits By County In…

4 Important New Guidelines that Home Buyers Should Review For FHA Loans In 2018

4 Important New Guidelines that Home Buyers Should Review For FHA Loans In 2018   FHA Loans Approvals In Reach For More Buyers FHA loans have long been one of the most popular mortgage types available. Four important new guidelines that home buyers should review for FHA loans in 2018. NSH Mortgage has the knowledge and tools that can help you investigate how much these new rules for FHA Loans can help you out. Roughly 20% of all mortgage applicants will opt for a FHA loan because of its buyer friendly guidelines according to mortgage software company Ellie Mae. FHA was designed to help home shoppers with lower credit scores and a small amount of cash in the bank. The busy spring home buying season is beginning, and mortgage rates have been near their lowest levels in years. FHA remains the right choice for many home buyers. Thanks to recent policy changes within FHA, lenders could start approving more loans. Buyers could have a much easier time purchasing a home, and applicants who were previously turned down could receive a FHA mortgage approval in 2018.   FHA Making It Easier To Qualify The Federal Housing Administration (FHA) is a government agency that insures home loans. However, the FHA does not actually lend any money, this responsibility is left to banks and non-bank lenders like mortgage brokers. The agency insures the loans which in turn allows lenders to issue approvals with low down payments and less than perfect credit scores. But FHA will only insure a loan if it meets its standards. Lenders approve loans imperfectly, sometimes missing the mark when it comes to FHA guidelines. Minor errors and mistakes make their way through the loan process. Sometimes, borrowers and other third parties intentionally commit fraud, unbeknownst to the lender. Lenders can take a serious financial hit because of these mistakes. FHA can require the lender to absorb the financial loss that FHA was supposed to insure against. The uncertainty has made lenders hesitant to approve credit-worthy FHA home buyers. This is an unintended consequence for FHA. The organization’s mandate is to increase home-ownership levels in the U.S. But loan refusals were the real world effect, as lenders feared high penalties for mistakes. To combat this, the FHA announced that it would not penalize lenders when loans went through with minor mistakes that had no bearing on loan approval. This takes a…

5 Important Factors You Should Know Before You Buy A Duplex

5 Important Factors You Should Know Before You Buy A Duplex   Trying To Buy A Duplex Living in a multi-family home while renting other units are a great way to build wealth, but it is not as simple as some make it sound. Five important factors you should know before you buy a duplex. NSH Mortgage has the knowledge and tools that can help you when you are trying to buy a duplex and which mortgage will best suit your needs.  One of the smartest ways to build wealth is by buying real estate, particularly rental properties. Warren Buffett has recently made a statement saying that he would buy a couple hundred thousand single family homes, as an investment right now if he could. Buffett realizes the value that rental properties can bring not just in terms of monthly cash flow but also in appreciation and deductions. But let’s face the facts here. Most of us cannot afford to buy a few single family homes as rentals while affording our own home, let alone buy a couple hundred single family homes. This is why there has been a recent trend in home buyers purchasing duplexes or even multi-family units to live in one unit while renting out the others. When it comes to buy a duplex with less than 5% down, the strength of your application really counts. The question very often is not what you can afford, but whether you can fit within tight lender guidelines.   What Exactly Is A Duplex? A duplex is a property with two units at one address. It is traditionally a way to get into the investment real estate game, because you get shelter for yourself, plus rental income and extra tax breaks. The rent can offset or even completely cover your mortgage and other costs. Uncle Sam likes duplex properties, and rewards them with two sets of tax rules. The owner occupied unit can be treated as a primary residence. The rental unit can be treated as investment property. You can depreciate and write off related repairs and improvements for the rental unit. For details, see a tax professional.   Buying A Duplex With Less Than 5% Down Lenders have mixed feelings about duplex properties. The same property may or may not qualify for a mortgage depending on strange and obscure requirements. The chart below shows two ways that lenders can look…

5 Important Factors To Prep You For When You Move In Or Out Of Your Parents’ Home

5 Important Factors To Prep You For When You Move In Or Out Of Your Parents’ Home   Do Not Freak Out If you have not noticed, more adult children are moving back home with their parents. Five important factors to prep you for when you move in or out of your parents’ home. NSH Mortgage has the knowledge and tools that can help you in finding out if you are or can become financially stable to live on your own. With there being 25 million adults out there, roughly.  This may cause a bit of panic for both parties but if you want to make this work, you need to set some ground rules. In addition, if you need a guide on helping you buy a home or if you are deciding on what to do now read this article as a reference to help guide you in life.   Understanding Adult Children You as one of those 25 million adults who have swallowed their pride, usually their savings, and chose to move back in with their parents. As most Millennial adults would attest, the choice was not easy but the right one. For example, if you as a tenant were living in an apartment for the last three years, sharing a two bedroom apartment with your significant other and a roommate. Then all a sudden, your spouse gets pregnant. Now you are juggling the high cost of living and raising a child at the same time which is hard work. By the time you have reached the end of your lease you would have to make a difficult decision. Either, in staying there and to keep trying, or go back to living with your parents.   Pros And Cons The obvious benefit is in the cost, essentially free rent. If you can manage to get a job quickly. Additionally, if you have just become self-employed or have a part time job, you can now start saving more and paying down your debt much faster. You also have a chance to reconnect with your parents as an adult. Moving home is like getting the best landlord ever. But you still have a landlord. As the one moving back, understand you are moving into a house of their rules. Those days of you walking around in your underwear at your place are done back home with mom and dad. Remind yourself it…

10 Important Factors You Need To Consider Before You Put A 20% Down Payment On Your Mortgage

10 Important Factors You Need To Consider Before You Put A 20% Down Payment On Your Mortgage   What Is A Down Payment? A down payment is the amount of cash you put toward the purchase of a home. Ten important factors you need to consider before you put a 20% down payment on your mortgage. NSH Mortgage has the knowledge and tools that can help you in finding out if using a 20% down payment on your home the best option for you at this time. It may be expressed as a percentage. For instance, it usually takes a 20% down payment to buy a home without private mortgage insurance. It may also be expressed as a dollar amount. As in, you have $15,000 available for a down payment. Loan programs today allow you to choose almost any down payment you would like there are even zero down payment mortgages. How Much Should You Put Down On A House? So, the question most home buyers face right away is, Should I make a large down payment? Each buyer should come their own conclusion. But it is becoming more popular not to make a large down payment, for several reasons.   Why Do Mortgage Lenders Require Down Payments? Down payments are all about lowering risk for the mortgage lender. Statistically, the more the home buyer invests upfront in the property, the less likely he or she is to default on the loan. Therefore, lenders sometimes offer lower mortgage rates to buyers with higher down payments. However, the lenders’ assumption is flawed.   Exceptions That Do Not Prove The Rule VA loans, for instance, require zero down, yet have one of the lowest default rates of any loan type. In addition, the lower default rates among those who can meet higher down payment requirements may have little to do with the argument. Home buyers who can make a massive upfront investment tend to be more financially stable and established in their careers. High down payment requirements may have nothing to do with the fact that they did not default. So, while you might hear that it is more conservative to make a large down payment, it is only partly true: it is more conservative for the lending institution. A large down payment is actually riskier for the home buyer.   Should You Make A Larger Down Payment? How much should you put down on a house as much…

10 New Important Rules For Investment Property Mortgage Rates

10 New Important Rules For Investment Property Mortgage Rates   Investment Property Mortgage Rates Are Higher Investment property is supposed to make you money. Ten new important rules for investment property mortgage rates. NSH Mortgage has the knowledge and tools that can help you with your investment property mortgage rates in finding out how much you can save. Ideally, its value will increase over time. Or your renters will pay your mortgage. You get tax benefits, too. So why, then, are investment property mortgage rates higher than rates for owner occupied houses?   How Much Higher Are Mortgage Rates For Investment Properties? The reply depends on the style of investment property, your credit worthiness, and your down payment. For instance, a well qualified buyer financing a personal residence with 20% down, as of this writing, will pay a APR of 3.875%, with a Fannie Mae risk based pricing adjustment of .75%. That surcharge adds .75% of the loan amount to the fees, not the rate. If this same borrower financed a rental home instead of a primary residence, there is another surcharge. It does not matter how good your credit is. Fannie Mae and Freddie Mac adds another risk based pricing adjustment, and it depends on the loan to value of the mortgage. Here, a 80% investment property loan comes with a 3.375% charge. Altogether, someone with a 720 credit score pays 4.125% in additional fees. In many cases, the borrower chooses to pay a higher interest rate instead of paying all those extra points. Additionally, it has 4.125% in fees that can be covered by an extra .5% to .75% addition to the rate. That means for a prime borrower with 20% down and a 720 FICO score, he or she will pay 4.375% to 4.625% to finance investment property, as of this writing. Keep in mind that this is for a single family residence. Buy a duplex and you get hit with another 1.0% to your fees, or a .125% to .250% addition to your rate.   The Difference Between A Home And A Business During the housing crisis in the later 2000s, mortgage lenders got a big surprise from their good borrowers. Researchers from the Wharton School examined mortgage crisis era foreclosure statistics. They ended that even good homeowners tend to stop paying their mortgages when their house becomes a bad investment. In fact, prime borrowers accounted for…

7 Important Factors On Why Now May Be The Best Time Of Year To Buy A Home

7 Important Factors On Why Now May Be The Best Time To Buy A Home   Knowing The Right Time To Buy Experts say the right time to buy a home is when you feel right about purchasing. Here, are seven important factors on why now may be the best time to buy a home. NSH Mortgage has the knowledge and tools that can help you in figuring out when is it the best time to buy a home. That means being financially and emotionally ready, of course. Additionally, this could be the best time of year to buy a home and hit both of those goals. But truth is, certain times of the year can be better for buying than others, based on the market. Many believe we are heading into a friendly season for home shopping. That is due to many factors.   A Perfect Storm Of Home Buying Weather One is that colder weather may bring out less buyers competing with you for houses. In addition, new research suggests buyer confidence is up. Current favorable conditions may make this an ideal time to hunt for a home and score a deal. So explore your housing market. Take advantage of factors in your favor. Indeed, when you are ready, to commit to buying. Your timing will be perfect.   Just The Facts Findings from Fannie Mae’s 2017 Home Purchase Sentiment Index (HPSI) should give buyers cause for optimism: The HPSI rose in September by 0.3 points to 88.3. It is up 5.5 points versus one year earlier. More Americans polled by Fannie Mae now state that it is a good time to buy a home: 28%, up 10% points. More Americans say it is a good time to sell a home: 38%, up two points, and just shy of the survey high of 39%. Fewer think that home prices will increase: 40%, down eight points. More and more people are feeling more secure in the workplace: 75% say they are not concerned about losing their job, up one point.   Deciphering The Data The biggest driver for the increase in the HPSI is the rebound in the good time to buy sentiment. This was especially true of renters surveyed. Perceptions of easing inventory helped boost the net share saying that now is a good time to buy. It is said that this corresponds to less home price appreciation sentiment…

7 Important New Factors That May Help You Decide If A Home Warranty Is Worth It

7 Important New Factors That May Help You Decide If A Home Warranty Is Worth It   Home Warranty When it comes time to buy real estate, we all worry about prices and financing. Seven important new factors that may help you decide if a home warranty is worth it. NSH Mortgage has the wisdom and tools that can help you with deciding if a home warranty is right for you when buying a home. But what about a home warranty? That is a piece of the puzzle which is often overlooked, much to the buyer’s lament.   Home As A Product If we think about a home in the sense of it being a product, then we would like to know that our product works. In practice, once a home sale is over and the property settles, it is ours. The seller rides off into the sunset and no longer has a responsibility for repairs unless we want to get into a time consuming legal wrangle.   Three Ways To Protect Yourself When You Buy We can offset some of the risk of condition in several ways. First, as a condition of buying the home, we can require a professional home inspection satisfactory to us. If we do not like the inspection results, the deal is off. Second, if we buy a new home it likely comes with a ten year warranty. Actually, some of the warranty is for ten years but not all of it. There might be ten year coverage for major structural items, two years for the electrical and mechanical systems, and one year for workmanship. In addition, new components like the heating and air conditioning system, refrigerator, or garage door opener may have their own warranties. However, with existing homes, there may be little or no forward protection. Indeed, homes can be sold in as is condition. Caveat emptor (buyer beware) is the practical standard for existing homes. Third, we can get a home warranty.   The Value Of Home Warranties What we are looking for with our home purchase is an assurance that what we buy will work as it should. While a seller may promise to make well on any defects such promises are often unenforceable. Here are a few plans for costs you did not have as a renter: The seller may refuse to make the repair. The quality of the repair may…

Alert: 4 Steps You Can Take As A Tenant To Combat Against The Rising Rent Crisis And How To Keep Up With The Costs

Alert: 4 Steps You Can Take As A Tenant To Combat Against The Rising Rent Crisis And How To Keep Up With The Costs   The Rent Race If low mortgage rates were not enough to push you toward home buying. Four important steps you can use as a tenant against rising rent and costs. NSH Mortgage has the wisdom and tools that can help you with your rent. The latest analysis by Apartment List might hold the key for the incentive to push you into the right direction. Concerning Apartment List, rising rents are causing almost 20% of today’s renters to struggle with monthly payments.   Tenants In Trouble For its analysis, Apartment List surveyed more than 41,000 renters across the country on rental insecurity issues. Namely, their abilities in paying or not paying for their rent. What the analysis revealed was pretty astounding. Apparently, it is not just America’s lower earning residents who are having trouble keeping up with rents. Those higher on the income spectrum are, too. In fact, 10% of renters earning $60,000/year or more haven’t made at least one month’s rent this year. Specifically, for those making $30,000 or less, that share jumps up to 27.5%. Difficult payments and evictions are most prevalent in the South and Midwest, according to the analysis. Phoenix and Memphis, Tennessee both show eviction rates of around 6%. In fact, with this data on millions of users across the nation, we are able to estimate eviction rates at the local level for metros across the country. We find that many of the metros with the highest eviction rates are located throughout the South and Midwest, while perhaps surprisingly, more expensive coastal metros tend to have lower eviction rates.   Rising Rents: A Problem For Everyone The major problem lies in the fact that rent is on the raise. In addition, while the Census Bureau’s latest data presents that the incomes and wages are on the rise, yet it is still not enough. Alternatively, for years rent growth has outpaced wage growth, and a severe lack of affordable housing affects many parts of the country. Additionally, you may be wondering how to buy a house with low income or with a low credit score. Although programs, such as Section 8, provide assistance for low income renters, these programs are underfunded, and only a small share of those eligible for benefits actually receive them.   Get Out Of The…