The two types of loans offered by a local mortgage lenders are conventional loans and FHA Home Loans.
We are going to be discussing FHA insured loans and some of the changes the Federal housing finance agency has put into place for local lender financing. As a local Santa Rosa mortgage lender, I can offer you an FHA insured loan to purchase or refinance a home. Some facts about FHA loans; the typical housing and debt to income ratios are 31/43. This means as a borrower your housing payment cannot exceed 31% of your gross monthly income. The 43 figure represents the total amount of debt that you have in addition to your housing payment cannot be more than 43% of your gross monthly income. Visit my previous entry here http://www.sonomacountymortgages.com/2010/11/07/getsonomacountymortgage/ one of the benefits of being a local Santa Rosa mortgage lender is that I can sit down and explain these numbers with you in person.
FHA Home Loans allow you to have a non-occupant co-borrower to help you qualify for the mortgage payment. FHA Home Loans will lend up to 96.5% of the value of your home if you are purchasing a home or refinancing your current home mortgage. If you are refinancing mortgage and are paying off debt or receiving cash out the maximum loan to value will be 85%. In order to take out an FHA insured mortgage you must also have 640 credit score or better.
Because you are receiving an FHA Home Loan insured by the federal government you will have to pay mortgage insurance both upfront and a monthly basis.
The calculations on the mortgage insurance are as follows 1% of the loan amount and .90% on a monthly basis. You also must have no mortgage lates or rental lates in the last 12 months. Depending on qualifying ability going through a local Santa Rosa mortgage lender the qualifying ratios can be expanded to 36/50. In addition the down payment needed is 3.5%. These down payment monies can also come in the form of a gift. A gift must be from a blood relative and the money needs to be sourced with bank statements. Presently, interest rates on FHA insured loans are in the low 4’s. Get qualified for an FHA Sonoma County Mortgage Today, no obligation prequalification.