Tulsa Mortgages

FAQ

Are condos harder to finance?

Condos are not harder to finance, just different.  Stick with seasoned condo specialist and it can be one of the easiest to finance.

Can the home seller help me with my down payment?

No, the home seller can help with closing costs but cannot contribute to a seller’s down payment.

FHA does allow a contribution to the down payment, but it must be from an outright gift from a family member, borrower’s funds from a qualifying retirement account, the borrower’s employer or union, a nonprofit charity or government agency.

Can the home seller help me with closing costs?

Yes, but the maximum the seller can pay will be limited. For example:

FNMAFHLMC FHA VA USDA

Owner Occupied

LTV/CLTV

90.01 or greater

75.01 to 90.00

75.00 or less

3%

6%

9%

6%

Maximum

All Loans

4%

Maximum

all loans

Note – Vet

cannot pay

closing fee

  • or termite

inspection

No Seller

Contribution

Limit*

Closing cost

can also be

financed up to

100% of

appraised

value

Non-Owner

Occupied

2% Max

all LTVs

N/A

N/A

N/A

FNMA

Homepath

Follow standard

maximums with

the exception of

LTVs over 90%

allow up to 5%

commissions

N/A

N/A

N/A

Do I have to include property taxes and homeowner's insurance in my monthly payment?

If you have a 20% equity stake in your property, you may choose to waive the escrows in your monthly payment.  This is riskier to you and the lender, so there will usually be a slight price modification.

What types of financing are available for zero down payments?

Currently, the VA loan for veterans and the USDA Rural Development Program.

There is one down payment assistance/grant program I believe is worthwhile.  And, of course, there is the infamous OHFA if you have not owned a home in the last 3 years and don’t exceed income limits.

Can I purchase an as-is property, auction or bank-owned property with any type of financing?

If a property cannot pass inspection it will not qualify for financing with most products.  FHA 203k may work if there is NO structural damage, but call for the details as they apply to your situation.

Is FHA financing only for first-time homebuyers?

Absolutely not.  FHA is for remodelers.  The 203k loan allows you to buy a home, fix it up , and include costs in one loan.

FHA is for seniors.  If you own a home free and clear, or have a low loan balance, an FHA Reverse Mortgage may be an option.

FHA is for homeowners who want to be energy efficient.  You can include the costs of energy efficiency improvements into an FHA Energy Efficient Mortgage.

FHA is one of many great products that can help you have a dream home of your own.  Please don’t hesitate to contact me to receive an analysis report of loan options for your situation.

Should I use FHA or conventional financing?

Well that depends on quite a bit of criteria.  If your credit score is high and you have a substantial down payment or equity position, a conventional mortgage may be best.  If you want the lowest down payment possible, an FHA mortgage may be best.  But what about VA, or USDA?

Getting a good faith Fees Sheet on each of multiple options and an analysis report will show you which option is best.  The numbers never lie.  For an analysis report, click here.

What expenses have to be paid up front and what can be paid at closing?

In general, you are going to need to make an earnest money deposit when you submit an offer on a home (1% of the loan amount), pay for your appraisal within the next day or two ($400 to $450) and inspections ($325 to $395 for Electric Mechanical & Plumbing, more for you want a engineer’s report or environmental inspection.  Swimming pools can change inspections/costs too).

At the closing table you may pay the remainder of your closing costs, if any.

Please don’t hesitate to contact me to receive a good faith Fees Sheet showing your monthly payment and closing costs to the penny, please click here.

How much money do I need to buy a house?

In general, you are going to need to make an earnest money deposit when you submit an offer on a home (1% of the loan amount), pay for your appraisal within the next day or two ($400 to $450) and inspections ($325 to $395 for Electric Mechanical & Plumbing, more if you want a structural or environmental).  At the closing table you may pay the remainder of your closing costs.

You may be able to negotiate for the seller to pay your closing costs, but there are limits to how much they can pay; generally, 6% of the sales price.

FHA loans have great rates, but they require you to have some of your own money in the deal, at least 3.5% of the sales price.

An FHA Section 184 loan requires a contribution by the borrower of 2.5% of the sales price.

Conforming (Fannie Mae/Freddie Mac) Loans can be had with as little as a 3% down payment to be made by the borrower.

Rural Development Loans and VA Loans may be true 100% loans.

Please don’t hesitate to contact me to receive a good faith fees sheet showing your monthly payment and closing costs to the penny, please click here.

Can I include home improvements in the cost of my loan?

Sometimes. For example, an FHA 203K Mortgage would loan up to 110% of the purchase price for improvements.  However, there can be no structural damage and you have to acquire bids from a qualified contractor.

Please do not hesitate to contact me to receive information on how this program works and the requirements for the contractor.

When is it better to do a 15-year loan as opposed to a 30-year loan?

Generally, anytime you can afford to.  The less time you are amortized over the more you will save in interest.

How many years off my mortgage loan can I "shave off" if I pay $50 or $100 extra per month?

Of you apply principle reduction payments, you can reduce the amount of interest you pay and thereby decrease the term you pay for the total of monthly payments.

A good measure is to pay one extra mortgage payment per year towards principle.  If done consistently over the life of the loan, you can pay off the mortgage an average of 7 years sooner.

These are generalized terms.  Please do not hesitate to contact me to receive an amortization analysis for your particular situation.

Should I lower the limit on my credit cards and would it hurt my application to cancel ones I don't use?

By limit I assume you mean credit balance and not your credit limit.  One of the best things you can do for your credit is have balances that are less that 30% of your credit limits, so you want your available credit to be as high as possible and you want your balances to be minimal.
But you do want small balances.  If you pay off your credit balances to $0 every month the credit scoring algorithm will see the string of 0s as "non-use".  They will assume you put the cards in a drawer and aren't using them really.  They do not reward this well.
Instead, pay your cards off to $7 one month and then to $5 the next.  The 70 cents you pay in interest is an awesome investment in your credit scores.
But if you do throw a card into a drawer, if you cancel it you will lower your score because you have just lessened the amount of available credit you have been granted.
Generally, the best answer is to find out if you can be pre approved for a mortgage, and if you can don't make any significant changes to your credit report until your mortgage is done.
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