FHA Loan Credit Requirements You Should Know

When you’re getting ready to buy a home, it’s a good idea to talk about credit.

Selling your home? Get a home valuation. 

Buying a home? Search the local MLS.

Today we're talking about credit. More specifically, we’re talking about the minimum credit score requirement for an FHA loan. The reason we’re focusing on the FHA loan here is that it has the lowest barrier to entry for buyers.

FHA stands for the Federal Housing Administration. They are the ones that come out with all the different guidelines and rules. The FHA-approved lenders are the ones who enforce these rules. FHA-approved lenders typically require a 580 minimum credit score. If you’re below that, you may still be able to qualify, albeit with a 10% minimum down payment. However, hitting that 580 market will ensure that you can get a loan with a 3.5% down payment. 

When you’re getting ready to buy a home, it’s a good idea to set aside some money for closing costs. There was a time when I could tell my clients that we could get their closing costs covered by the seller, but we’re not in that kind of market anymore. The market is so tight now and homes are moving so quickly, by the time we submit an offer on a property there will most likely be other offers to compete against. That means that we have to make sure your offer is as attractive as possible.

If you’re not quite at that 580 credit score, you should consult with a mortgage professional so we can make sure you qualify for a home. Also, remember to keep some money set aside for your closing costs. I’d be setting you up for failure if I told you there weren’t going to be any.

If you have any questions for me, don’t hesitate to reach out and give me a call or send me an email. I’d be happy to answer any questions you may have.

Can You Qualify for 100% Financing?

I want to share an alternative home loan option that is a little more inclusive. This is a great option for anyone looking for assistance in affording their next home.

Selling your home? Get a home valuation. 

Buying a home? Search the local MLS.

Today I want to follow up on the information I recently shared with you about a 100% financing option.
 
Unlike down payment assistance, this option allows buyers to forgo a down payment altogether. However, this particular program is a little bit exclusive.
 
That’s why I want to share an alternative option that is a little more inclusive. This is a great option for anyone looking for assistance in affording their next home. The last one had a credit score requirement of 636, while this new program only requires your score to be at least 620.  

This is a great option for anyone looking for assistance in affording their next home.

So long as your score is at least 620, you can get a conventional loan with no down payment and no private mortgage insurance. Many people opt for FHA loans, but that loan type actually means you cannot get rid of your private mortgage insurance, which will cost you a couple hundred extra per month.
 
Another stipulation for the program I’m offering today is that you must earn less than $55,000 a year. If you earn more, you’re going to need a slightly higher credit score.
 
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

You Won’t Believe What’s Possible With Our New Loan Program

Selling your home? Get a home valuation. 

Buying a home? Search the local MLS.

I’m proud to announce that we just rolled out a brand-new loan program that offers 100% financing. That’s right—you don’t have to put down a down payment.
 
There are some stipulations to this program, but it’s not like most other down payment assistance programs because it doesn’t have an income cap—you don’t have to only earn a certain amount of money to qualify for it. With this program, if the property qualifies, you qualify. All you need is a 636 credit score or higher. 

With this program, if the property qualifies, you qualify.

Also beneficial is the fact that it’s a conventional loan product, which eliminates your upfront mortgage insurance premium and your monthly mortgage insurance premium (which you can find on any FHA loan).
 
I’m trying to get anybody I can who qualifies for this program to submit an application for it, so if you’re interested in doing so, don’t hesitate to reach out to me. If you have any other questions about our Atlanta market, give me a call or shoot me an email. I’d be glad to help you. 

If You Want to Buy a House in Atlanta, Avoid These 6 Mistakes

If you want to buy a house in a hot seller's market like Atlanta, there are six major mistakes you should try to avoid.

Selling your home? Get a home valuation | Buying a home? Search the local MLS

1. Not starting with your strongest offer: You have to be prepared to put your best foot forward to be taken seriously by sellers. I understand it's ingrained in all of us to try to get the most and pay the least in a deal, but if you don't get the property you want, it's a waste of your time.
 
2. Over-analyzing the purchase price: In a seller's market, this can be just as risky as impulsively buying a house because you might end up with no house at all. Once you talk to a mortgage lender and determine the price range you want to buy in and the area you want to live in as well as the type of home you're looking for, you need to jump on the right house when it comes along.
 
3. Working with an inexperienced agent: Buyers need every little bit of help they can get in this seller's market, so you want to work with a seasoned professional who sells more than one or two houses a year. You want an agent with a track record of helping their clients get exactly what they want.

You have to be prepared to put your best foot forward to be taken seriously.

4. Not being pre-qualified or pre-approved for financing: With inventory as low as it is and homes selling so quickly, we suggest that our clients go through full underwriting approval on the front end before you even find a house. It speeds up the process after going under contract on the property so you can move quickly through the due diligence period, which can only be done if you've gone through the pre-approval process.
 
5. Not being prepared for a bidding war: Bidding wars happen more and more now than we've seen in the past, so we want to be sure you're ready for it. A bidding war totally changes the game as far as time frames, contingencies, terms, conditions, and the dollar amount that go into your offer. You might also want to shop a little below your budget in case a bidding war takes place and the price comes up. We don't want to bid you out of your pre-qualified amount.
 
6. Not being able to learn from mistakes: You should be able to both acknowledge that you've made a mistake and learn from it. There's no shame in realizing your offer wasn't accepted; the issue comes in when you're not willing to adjust your strategy to win the next time you make an offer.

If you have any other questions about the home buying process or anything at all relating to real estate, give me a call or send me an email. I'd be glad to help you out!

My 4 Top Tips for Buying a Fixer-Upper

Selling your home? Get a home valuation. | Buying a home? Search the local MLS.

If you are thinking of buying and renovating a fixer-upper, there are a few things you need to know.

First of all, make sure that you do your homework. Figure out what you can afford and find out which neighborhoods are trending upwards. That way, if you do a renovation or major rehab project, you will be able to recoup that equity you are looking for. I can certainly point you toward some areas that are increasing in value.

Next, start evaluating the projects that you want to handle inside and outside of the home. Before you actually get started, plan what you intend to do. What repairs need to be addressed in the home? Keep in mind that not everything in a house needs to be fixed before you move into it; some projects can be completed over time.

Evaluate the project and yourself.

It’s also important to be real with yourself. What projects can you tackle on your own, and which ones should you hire a professional for? You might be very handy around the house, but that doesn’t mean you should fix the roof or redo the hardwood floors on your own. If you need any recommendations for a professional, let us know. Sometimes hiring a professional can be worth your while.

Finally, evaluate the project and yourself. Consider whether or not you are ready, willing, and able to complete the renovation. Renovation involves a lot of destruction. Whether you live in the house while you renovate it or move in after renovations are done, you need to evaluate the scope of the project before you make your move.

If you have any other questions about fixer-uppers or about real estate in general, give me a call or send me an email. I would be happy to help you!

Why Should You File for a Homestead Exemption?

Selling your home? Get a home valuation. | Buying a home? Search the local MLS.

If you purchased a home in 2016, you have the ability to file for a homestead exemption on your primary residence. A homestead exemption is a great way for you to save money.

You cannot file for a homestead exemption on a rental property or vacation home, but you can file for one on your primary residence. Basically, a homestead exemption reduces your tax liability on your property taxes, which saves you money. The amount of money depends on the county that you live in.

I have a document that I can share with you that has links to all of the counties in our area. All you have to do is click on the link to get to the tax assessor’s website and you can file for the exemption. Most counties allow you to file for the homestead exemption online but some, like Cobb County, require that you mail in the application.

A homestead exemption will save you money on your property taxes.

No matter how you file for the home extension, you will save money every month on your mortgage so long as your property taxes are escrowed in. When you file, you need to submit a copy of your deed. You should get the deed from your closing attorney four to six weeks after closing. If it’s been longer than that, reach out to your closing attorney to get a copy. 

If you would like a copy of the document with the links to the tax assessors’ websites, just email me at pazi@pazirealesate.com and I’ll send it along to you. Of course, if you have any other real estate questions, don’t hesitate to reach out to me. I would be happy to help you!