All Posts Tagged With: "payment"
What is 3/2 mortgage loan financing?
There are a number of loan programs directed toward first-time buyers that allow the purchase of property with as little as 3 percent down. The way they work is that a purchaser puts up 3 percent of the sale price and another party puts up 2 percent. Who puts up the additional 2 percent? Programs [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Can I borrow against my 401K program to get a down payment?
With many 401K programs — but not all — up to 50 percent of the account balance, but no more than $50,000, can be borrowed. Money borrowed must be repaid. If not repaid, there can be substantial tax consequences. For details regarding your right to borrow 401K money, speak with your retirement account manager BEFORE [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Are Big Or Small Down Payments Better?
The real question is whether it’s better to put money into a home or elsewhere. Without knowing the rate of return for “elsewhere” and the level of risk and tax consequences when compared with putting money into your own home, any answer is speculation. As a practical matter, most first-time buyers have little choice — [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Can I raise a mortgage down payment borrowing from credit cards?
Let us say you borrow $10,000 from a credit card, or jointly from several credit cards. You now have a debt item which must be reported to lenders. The debt requires monthly payments, and those monthly payments will reduce your ability to qualify for a mortgage. No less important, credit card interest is vastly higher [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
Can I Buy Real Estate With Less Than 20% Down?
While so-called “conventional” loans do require 20 percent, other loan programs do not. As examples: • Qualified individuals can buy with nothing down under the VA loan program. • FHA loan programs require 3.5 percent down — and maybe less with some state assistance programs. • The “Affordable Gold” and “Community Home Buyers Program” each [...]
29Aug2008 | Peter G. Miller | 0 comments | Continued
What’s The FHA Down Payment Schedule?
The FHA down payment requirement will increase to 3.5 percent as of October 1, 2008, up from 3 percent. As explained in the 2008 FHA mortgage reform legislation, “a mortgage insured under this section shall be executed by a mortgagor who shall have paid, in cash or its equivalent, on account of the property an [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
What does “forbearance” mean?
If you miss a mortgage payment, the lender has a right to foreclose — to sell your property and recover the loan amount plus foreclosure costs. However, lenders sometimes prefer to work out matters so that foreclosures can be avoided because a typical foreclosure action results in a $40,000 loss to the loan owner. If [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can all the rent paid in a lease purchase be credited toward the down payment?
If the purchase is being financing by a commercial lender, the lender will want to know the fair market rental for the property. Anything above the fair market rental can be considered a credit toward the purchase, anything below a fair market rental represents a discounted sale price. A lower price, in turn, means the [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Do we have to make our last mortgage payment if we’re moving?
The lender is entitled to full and timely payment. If you miss a payment, the lender will file a report with credit bureaus showing the payment as late or missing, depending on when payment is ultimately received (or not received). This report can set in motion a series of problems you don’t want — the [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can I discount the sale price to create a down payment?
No. Lenders provide financing on the basis of the sale price or the appraised value, whichever is less. In the case of a “discounted” price, say selling a home worth $350,000 for $340,000, the sale price is $340,000. Lenders do not recognize a discount. A better approach is to pay full market value but to [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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