Types of loans
There are about as many different types of home loans as there are homes
for sale. Fully understanding what types of loans are available and what you
qualify for is the first step in developing a strategy as you approach buying or
sell your next property.
Example: Client really likes a home but the property is in need of some major repairs.
The client does not have the necessary funds to both purchase the home and make
the updates so the decision is made not to purchase the property.
Answer: By using the government 203 (K) program the buyer can purchase the
property with a loan that covers both the purchase of the property along with paying a
licenced contractor to perform the needed update for as little as 3.5% down.
Be prepared by talking with a local lender today to determine what is right for
you as you begin your search for a new or used home.
What is PMI
PMI stands for Private Mortgage Insurance. It is required when you purchase
or refinance a home with a Loan to Value greater than 80% of appraised value
or purchase price whichever is lower. PMI works as a foot in the door for
most buyers when they do not have the 20% down payment.
PMI REMOVAL
When the loan to value on the property reaches 80 or less due to home appreciation. Based on current appraised value.
Home improvements made to a home making the current loan 80% or less of new appraised value.
Making additional loan payments bringing the loan down to 80% or less of the original purchase price.
Automatic removal as payments made reduce loan to value below 80% of original purchase price.
