Category Archive : FHA, VA & Conventional Related

4 ways to use PMI to beat FHA mortgage insurance with a Conventional Loan

       CONVENTIONAL Loans / FHA, VA & Conventional Related

  When you put down less than 20% of the purchase price, Conventional loans (those backed by Fannie Mae or Freddie Mac) require Private Mortgage Insurance (PMI). Before we look at ways to manage the PMI imposed on you, it’s important to know that (Conventional) PMI is a different animal to the Mortgage Insurance that comes with FHA loans. And…… Read More »

Little Known Fact About VA Loans: How Much Seller can Really Contribute

       FHA, VA & Conventional Related / VA Loans

The Seller can contribute a total of 8% towards a Veteran’s home purchase There’s much misunderstanding in the Lending industry, even amongst Loan Officers and Underwriters regarding how much the Dept of VA allows a Seller to contribute on a home purchase transaction. The confusion arises from misinterpreting  the VA’s definition of “Seller concessions”. You see, in the VA’s eyes,…… Read More »

Some Better News About Private Mortgage Insurance (PMI) !

       CONVENTIONAL Loans / FHA, VA & Conventional Related / General / Latest News & Updates

Private Mortgage Insurance (PMI) is a necessary evil when you borrow more than 80% on a Conventional loan. But in 2007 the Govt. passed the Mortgage Forgiveness Debt Relief Act which allowed PMI to be tax deductible if you fit certain income criteria. Unfortunately that Rule expired in 2011 which meant in 2012 homeowners couldn’t write off PMI as a…… Read More »

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What if mom wants to sell to me and I have no money for FHA downpayment?

       FHA Loans / FHA, VA & Conventional Related

The majority of transactions involving financing are ‘arms-length’ transactions where Buyer and Seller are strangers and have had no previous relationship. However, often a parent wants to sell to their kid, or a similar family-2-family sale happens where the buyer has no money for a standard FHA downpayment (3.5%). Is there a way for the buyer to take out a…… Read More »