WHat do I need down to buy a home?

The down payment. Cue the dramatic, fear-filled suspense music. Yeah, it’s scary. Coming up with enough cash to put down when buying a house is the single biggest roadblock for most hopeful home buyers. But how much do you really need?

What is a down payment?

A down payment is the cash you pay upfront to get a home loan. It is deducted from the total amount of your mortgage and represents the beginning equity — your ownership stake — in a house and property.

This excerpt from Nerdwallet.com CLICK HERE to read more.

Great opportunity in Millville NJ

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Historic Wheaton Mansion home and storefront in Millville’s Art District. Great mixed-use property for retail, professional office, bar and more. Kitchen has tiled counter and backsplash and stainless steel appliances. Hardwood flooring and crown molding throughout home. Separate commecial store front accessible from inside home with kitchen area and storage. Great place to live and operate a store front. Sale includes two separate off street parking lots in rear, public water and sewer, natural gas heat, central air. UEZ Financing Available.

Call today and ask about property # 80. Stacy 856-364-0772

Move in Ready Home in Glassboro

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Welcome to this move-in ready, 3 bed, 1 full bath home located in a quiet Glassboro neighborhood! Many features and improvements have been done to this home in recent years which makes for low-maintenance living! Features and updates include: updated bathroom, updated exterior paint, front porch and landscaping, updated kitchen with 42″ cabinets and a sunroom addition, windows with a lifetime warranty and custom blinds, a spacious 3-bay garage with updated roof and doors, newer pool and pool deck, and a new french drain and sump pump system installed in the basement. There is a partially finished basement which can be utilized as extra living space. There is an additional room in the basement which is being utilized as a wine cellar. The wood stove in the living room heats the majority of the home. The list of features goes on and on, and being conveniently located near shopping, schools and major roadways, this home has everything you could ask for. This home also qualifies for the HomeSeeker $10,000 grant program for First-Time Homebuyers. Schedule your private tour today to see the true beauty of this home!

Call today and ask to tour propety # 78. Stacy 856-364-0772

 

First Time Home Buyers

Below is a link with a few handy tips for first time home buyers.

CLICK HERE:

The most important thing you can do is hire a full time professional to help guide you throught the process. Please feel free to give me a call anytime. Whether buying your first home, 2nd home or making an investment I would be happy to assist.

Stacy Schnell 856-364-0772

Click here for a few testimonials: 

Below are a few of the questions clients often ask when making a purchase.

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Question: What qualifies me to be a first time home buyer ? 

A- If you’ve never owned a home, you are considered a first-time home buyer. But you are allowed to be a previous homeowner and still qualify as a first-time home buyer. According to the FHA, you can do so if you have not been an owner in a primary residence for at least three years leading up to your purchase.

Question: What are closing costs?

A: Closing costs are a fee charged for various items the lender charges. These fees are an additional cost that is added onto the amount of the loan. For example:  can include items such as loan processing fees, attorney’s fees, transfer taxes, title insurance costs, inspection fees, and more. You can ask for help with these fees in certain loan situations from the seller but still must supply your down payment for the loan.

Question: What is a seller concession?

A: When there is a seller concession in place, the seller will pay for part or all of the closing costs. Different loans offer different percentages that a seller can contribute.

Question: How much money will I need down? 

A: This depends on what type of financing that you qualify for with your mortgage company. Each depending on credit score and down payment.

FHA loan requires 3.5% down and you will need to get private mortgage insurance.FHA does allow closing costs to be paid by the seller. A friend or relative can also gift the closing cost amount to the borrower.

Conventional Loan can be as high as 20% but are now lending with 5% and even 3%. Conventional loan borrowers making a down payment of less than 20 percent will need to get private mortgage insurance (PMI). The good news is that once you reach a loan-to-value ratio of at least 78 percent, you can cancel the insurance. The only way to not pay your closing costs out of pocket would be to include a seller credit as a contingency of your offer.

USDA Rural Development or USDA loans come with 100% financing. This means that no money down is required and closing costs can be either paid by the seller or financed into the loan. In short, no-money-down means the home buyer is typically not required to pay any out-of-pocket expense when the house closes. … No Closing Costs.

Can I qualify for an FHA loan?

What is an FHA Loan?

An FHA loan is a mortgage that’s insured by the Federal Housing Administration (FHA). They are popular especially among first time home buyers because they allow down payments of 3.5% for credit scores of 580+. However, borrowers must pay mortgage insurance premiums, which protects the lender if a borrower defaults.

Borrowers can qualify for an FHA loan with a down payment as little as 3.5% for a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made.  It’s important to remember though, that the lower the credit score, the higher the interest borrowers will receive.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment. Essentially, the federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments.

FHA Loan Requirements

For borrowers interested in buying a home with an FHA loan with the low down payment amount of 3.5%, applicants must have a minimum FICO score of 580 to qualify. However, having a credit score that’s lower than 580 doesn’t necessarily exclude you from FHA loan eligibility. You just need to have a minimum down payment of 10%.

The credit score and down payment amounts are just two of the requirements of FHA loans. Here’s a complete list of FHA loan requirements, which are set by the Federal Housing Authority:

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money can be gifted by a family member.
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ back-end ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent. FHA-qualified lenders will use a case-by-case basis to determine an applicants’ credit worthiness.
  • Typically borrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made if you are out of bankruptcy for more than one year if there were extenuating circumstances beyond your control that caused the bankruptcy and you’ve managed your money in a responsible manner.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit. Exceptions can be made if there were extenuating circumstances and you’ve improved your credit. If you were unable to sell your home because you had to move to a new area, this does not qualify as an exception to the three-year foreclosure guideline.
  • The property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).

    Benefits of FHA Loans: Low Down Payments and Less Strict Credit Score Requirements

    Typically an FHA loan is one of the easiest types of mortgage loans to qualify for because it requires a lowdown payment and you can have less-than-perfect credit. For FHA loans, down payment of 3.5 percent is required for maximum financing. Borrowers with credit scores as low as 500 can qualify for an FHA loan.

    Borrowers who cannot afford a 20 percent down payment, have a lower credit score, or can’t get approved for private mortgage insurance should look into whether an FHA loan is the best option for their personal scenario.

    Another advantage of an FHA loan it is an assumable mortgage which means if you want to sell your home, the buyer can “assume” the loan you have. People who have low or bad credit, have undergone a bankruptcy or have been foreclosed upon may be able to still qualify for an FHA loan.

    Mortgage Insurance is Required for an FHA Loan

    You knew there had to be a catch, and here it is: Because an FHA loan does not have the strict standards of a conventional loan, it requires two kinds of mortgage insurance premiums: one is paid in full upfront -– or, it can be financed into the mortgage –- and the other is a monthly payment. Also, FHA loans require that the house meet certain conditions and must be appraised by an FHA-approved appraiser.

    Upfront mortgage insurance premium (UFMIP) — Appropriately named, this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250. This sum can be paid upfront at closing as part of the settlement charges or can be rolled into the mortgage.

    This excerpt from Zillow to Read more on how to qualify simply CLICK HERE

Well maintained two story home on a private wooded lot

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Located in MillvilleNJ this home features an eat-in kitchen with stainless steel appliances and double sink open to Family room. Family room has gas fireplace and skylights for extra lighting. Tiled foyer, separate dining room and formal living room. Spacious bedrooms, bathrooms have tile flooring and surround, partial basement. New roof, two car attached garage with auto door opener, rear concrete patio, large fenced-in backyard. Holly Height Elementary School, easily accesible to Routes 49 and 55.

Call today and ask about property #72 Stacy Schnell~ Cell: 856-364-0772

This listing presented by The Scott Sheppard Team.

6 Things You Must Do Before Buying a Home

(TNS)—Buying a home is a huge investment—probably the most significant purchase of your life. It’s not something you should do without preparation.

Before you start on the road to homeownership, make sure you are ready.

Improve your credit score.
A high credit score snags you the best deals. “Below 660 or 680, you’re either going to have to pay sizable fees or a higher down payment,” says Barry Zigas, director of Housing Policy for the Consumer Federation of America.

This excerpt from RIS Media, please CLICK HERE to read more.

Build your dream home here!

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Once in a lifetime opportunity to build your dream home on your own private LAKE in Lawrence Township New Jersey! This 22 acre parcel consists of approximately 6 acres of land and 16+/- acres of water with an abundance of wildlife and fish. Standing on the edge of the water you can see hundreds of bass, sunnies, perch, & trout right under your nose. Build-able area on higher ground left of the lake subject to a soil & perc test, plot plan, letter of determination from NJ DEP, and final approval from Lawrence Township. Convenient access to shore points.

Call today or click here for more information and ask about property #73!


Stacy Schnell ~ REALTOR® Associate 
Direct: 856-364-0772
Berkshire Hathaway HomeServices, Fox & Roach Realtors® 
1450 E. Chestnut Ave. 1B-Vineland
Office: 856-691-0091  / Fax: 856-324-9103 
Find Me On FaceBook  Connect With Me On Linked In  Follow Me On Twitter

 

Open House

Please join us:

OPEN HOUSE FLYER 1269 VENUSJoin The Scott Sheppard Team team members Jake Hatki and Stacy Schnell in Vineland to tour this beautiful home! Come by and check it out located at 1269 Venus Drive, from 12PM-2PM Saturday the 24th! We look forward to seeing you there!

For more information, contact Jake Hatki by Call/TEXT at (856) 506-7852 or Stacy Schnell at (856) 364-0772 (Call/TEXT)