Buying a Owner Occupied Triplex or FourPlex With an FHA Loan is a post from: FHA,VA and Conventional Home Loans in all 50 States

It’s amazing that you can buy a 3 or 4 unit property with an FHA loan with 3.5% down if you occupy the property as your primary residence and the property meets certain requirements.  Buying a 3-4 unit property can be a great way for a home buyer to get started in real estate using an FHA loan.  Many times after collecting the rents from the other units that you rent out, your totally housing payment would be less than rent and less than if you bought a condo or a single-family-home.  Eventually you could move out of the 3-4 unit property and then keep it as an investment property, and eventually pay off the mortgage and have the cash flow income and equity build as an excellent investment for life.

In order to put the minimum 3.5% down using an FHA loan to buy a 3-4 unit property there are some special requirements you have to meet:

1. 85% of the current gross market rents for all 3 or 4 units must be equal or greater than the mortgage + property taxes + home insurance (PITI).  If rents are less than equal to PITI, then you will have to increase your down payment until equal or greater.

2. You have to have three months of PITI in cash reserves after your close on the purchase.

So let’s saying you are buying a 4 unit property for $400,000 and the market rent for each unit is $1,000.  The total gross income would be $4,000.  You multiply $4,000 X 85% to get $3,400/mo.  And then let’s say the PITI with 3.5% down on a $400,000 4 unit property with an FHA loan is $2,648.   So in this case it would work and you would only have to put 3.5% down to purchase the 4 unit property.

So the FHA loan is a great way to get started to purchase.  Remember you buy by April 30th 2010 (and close by June 30th 2010) you may be eligible for an $8,000 tax credit.  Here some highlights to remember about FHA loans:

• Only 3.5% down required and those funds can be gifted from a relative
• Low 30 year fixed interest rates
• You don’t need perfect credit to apply for an FHA loan and be approved
• The seller can credit you 6% for FHA closing costs
• FHA has the most flexible qualifying guidelines of any loan available today

Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting approved for a FHA Loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA specialist)

858-922-7899

homeloan8@gmail.com

You Don’t Have to Be a U.S. Citizen To Apply For a FHA Loan is a post from: FHA,VA and Conventional Home Loans in all 50 States

What many people don’t realize is that you don’t have to be a U.S. citizen to apply for an FHA Loan and be approved.  The following resident aliens are eligible for FHA Loans:

1. Permanent Resident Alien – you will only have to document your permanent residency (front and back copy of card) and provide a copy of your social security card.
2. Non-Permanent Resident Alien – you will only need to provide copy of valid social security card evidence you are able to work in the United States

So if you are working in the United Stated legally, you can take advantage of the wonderful FHA financing program to buy a home.  Here are some highlights of the FHA Loan:

• Minimum down payment is 3.5% and that 3.5% can be a gift from a relative
• Non occupying co-borrowers allowed to asset in qualification
• You don’t need perfect credit, so if you think you have bad credit you may still be eligible for a FHA Loan
• 50 year low 30 year fixed interest rates
• FHA 203k Loan provides money to fix up the house you buy
• 3.5% down on owner-occupied duplex, triplex and fourplex
• Condo’s and manufactured homes OK
• FHA is NOT just for first time home buyers!  You can own other homes.

Give me a call at 858-922-7899 or email at homeloan8@gmail.com if you have any questions at all about getting approved for a FHA Loan.

Warmest Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA specialist)

858-922-7899

homeloan8@gmail.com

Applying for FHA Loan Non-Borrowing Spouse Debts Included is a post from: FHA,VA and Conventional Home Loans in all 50 States

In community property states, FHA Loans require non-borrowing spouse’s debt obligations that appear on their credit report to be included in the borrowing spouses debt-to-income ratio required to qualify for a FHA Loan.  So this means even if your husband or wife is not going to be a co-borrower on the FHA Loan, his or her car payments, credit card payments, student loan payments, etc… have to be included in the qualification process.  However it is very important to note that the credit quality of the non-borrowing spouse is not a factor in deterring loan approval.  So in other words, the spouse that is not going on the loan can have very bad credit and it will not affect the FHA Loan approval.   It is often the case that the reason an FHA borrower chooses to not have a spouse go on the loan as a co-borrower is because his or her credit is poor and will affect the approval of the loan.

The following is a list of community property states:

• California
• Arizona
• Idaho
• Louisiana
• Nevada
• New Mexico
• Texas
• Washington
• Wisconsin

Remember, it is only items that appear on a credit report that must be included in a borrower’s debt ratio to qualify for an FHA Loan.  Items such as cell phone bills, insurance bills, utility bills, etc… are not included.

Also, if a non-borrower spouse has an excessive amount of collection accounts that appear on their credit report, the FHA underwriter may want these collections cleared.  But this is on a case-by-case basis.

And as a refresher, here are some highlights of the FHA Loan, the very best loan available today for those with less than 10% down payment:

• Only 3.5% down required and that can come from a gift from a relative
• Flexible underwriting guidelines
• Not credit score driven
• Low 30 year fixed interest rates
• Non-occupying co-borrowers are OK
• No cash reserves required
• FHA 203k renovation loans available where part of your loan includes money to fix up the house!

If you have any questions at all about getting approved for a FHA Loan, please email me at rob@affinity-financial.com or call at 858-922-7899.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer (and FHA Loan Specialist)

rob@affinity-financial.com

858-922-7899

USDA Loans Offer 100% Financing In Rural Areas is a post from: FHA,VA and Conventional Home Loans in all 50 States

The USDA Home Loan is a little known mortgage option available to home buyers in rural areas of California and the rest of the U.S.   And there are a lot of areas that are considered rural, even areas that are less than 1 hour drive from cities like San Diego, Los Angeles, San Francisco, and San Jose.  This is really a super loan program that not many take advantage of because they don’t know about it.

Advantages of USDA Home Loan:

• 100% financing, NO down payment required
• No monthly mortgage insurance (unlike FHA and conventional loans (with <20% down) that carry monthly mortgage insurance
• Great 30 year fixed interest rates
• You do not have to be a first time home buyer to get this loan
• Seller can pay for all your closing costs

Here are some other factoids about USDA Home Loans:

• Your income needs to be within 115% of the area median
• Has to be your primary residence and 1 unit only

Here is an example of some areas in California that qualify for USDA Loans:

San Diego County

• Alpine, Ramona, Valley Center, Campo, Julian, Rainbow, Pauma Valley

Riverside County

• Desert Hot Springs
• Coachella
• Sun City
• Winchester
• Idyllwild

San Bernardino County

• Lake Arrowhead
• Big Bear

Imperial County

• Almost the entire county

Sonoma County and Napa

• Windsor, Healdsburg, Guerneville, Calistoga, St. Helena, and much more

Contra Cost, Alameda, Solano

• Byron, Rio Vista, Isleton

Placer, Sacramento, San Joaquin, El Dorado

• Lincoln, Auburn, Ripon, Lathrop

Central Valley Counties

• Tehachapi, lots of the towns surrounding Bakersfield, Fresno, Modesto, Merced, Redding and more qualify

Monterrey, Santa Cruz, San Luis Obispo, Santa Barbara, Ventura

• Boulder Creek, Scotts Valley, Moss Landing, Prunedale, San Juan Bautista, Paso Robles, San Miguel, Morro Bay, Solvang, Santa Ynez, Carpentaria, Ojai

That is just a brief example of some areas.  In the rural counties of the state, you can assume most of the county is eligible. 

So give us a call or email today if you have any questions about USDA Rural Development Home Loans.  Direct 858-922-7899 and email rob@affinity-financial.com.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

rob@affinity-financial.com

858-922-7899 (direct)

FHA 203k Loan a Good Solution For Bank Owned Fixer-Upper’s is a post from: FHA,VA and Conventional Home Loans in all 50 States

•  Only 3.5% down payment required and that can be a gift
• You don’t need perfect credit
• The lender will lend you the purchase price of the home + the cost to fix it up
• 30 year fixed interest rates

 Below are some tips on how to find the right house with the right things wrong with it to maximize your investment in your home. 

• Quality of school district
• If the house is located next to a noisy street or freeway
• Crime in the area
• Floor plan of the house

• Painting is #1.  If you can find a bargain that just needs a good paint job, often you can raise the value substantially just by painting it.
• Flooring: replacing carpet and refinishing hardwood floors
• Lawns: taking brown lawns and making them green
• Updating kitchens and bathrooms
• Adding new light fixtures 

• Foundation repair
• Replacing electrical wiring
• Moving interior walls and adding rooms
• Replacing plumbing systems