Beginning of the lender presentation • Presented by Christian Cook • Residential Home Lender/Banker • Town Square Mortgage & Investments
Types of Mortgage • Before we get deeper into buyers closing costs let us discuss the kinds of mortgages available. • 1) FHA (This is the most common loan now, and most likely what you will be using to get you your home) • 2) Conventional (Traditional Mortgage) • 3) VA (Veteran’s Administration) • 4) USDA (United States Dept. of Agriculture) • 5) Sub-prime……..Obsolete.
FHA Loan • FHA mortgage loan types are insured by the government through mortgage insurance that is funded into the loan. First-time home buyers are ideal candidates for an FHA loan because the down payment requirements are minimal and FICO scores do not matter**** • Requires only a minimum 3.50% down payment
VA Loan • This type of government loan is available to veterans who have served in the U.S. Armed Services and, in certain cases, to spouses of deceased veterans. The requirements vary depending on the year of service and whether the discharge was honorable or dishonorable. The main benefit to a VA loan is the borrower does not need a down payment. The loan is guaranteed by the Department of Veteran Affairs, but funded by a conventional lender.
Conventional and Sub-Prime • Normally requires higher down payment (standard is 20%, but can be as little as 5% depending on credit score) • Please be careful of all sub-prime loans (Dinosaurs) • Most lenders today require at least a 620 credit score. There are still a few instances where you can get a loan with a 580 score
USDA only in rural area’s no down-payment needed • Eligible North Texas Cities • As of July 20, 2008 • This list is not all inclusive of the eligible areas in North Texas. It only covers the major towns serviced by Area 3. For specific eligible areas, check our eligibility website: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do or contact the local Rural Development Office. You can find all Texas USDA Rural Development offices at www.rurdev.usda.gov. • County Serviced By Cities • Archer Decatur Cities include Archer City, Windthorst, Holiday and Lakeside City • Baylor Decatur No ineligible areas in the County. Cities include Seymour • Clay Decatur No ineligible areas in the county. Cities Henrietta, Byers, Petrolia and Bellevue. • Collin McKinney Cities include Princeton, Farmersville, Nevada, Lavon, Prosper, Celina, Anna, Melissa, Westminster, Blue Ridge, Wylie • Cooke McKinney No ineligible areas in the county. Cities include Muenster, Callisburg, Valley View, Lindsay, Gainesville. • Cottle Decatur No ineligible areas in the county. Cities include Narcisso and Paducah. • Dallas McKinney Eligible cities include Seagoville and Combine • Denton McKinney Cities include Aubrey, Corinth, Little Elm, Justin, Roanoke, Krum, Highland Village, Lake Dallas, Ponder, Sanger, Pilot Point • Foard Decatur No ineligible areas in the county. Cities include Crowell and Thalia • Fannin McKinney No ineligible areas in the county • Grayson McKinney The entire county except the city limits of Sherman and Denison is eligible to include Van Alystine, Gunter, Whitewright, Tioga, Whitesboro, Pottsboro • Hardeman Decatur No ineligible areas in the county. Cities include Chillicothe and Quanah. • Hunt McKinney Cities include Quinlan, West Tawakoni, Celeste, Commerce, Campbell, Lone Oak, Caddo Mills • Jack Decatur No ineligible areas in the county. Cities include Bryson, Jacksboro, Antelope, Postoak. • Kaufman McKinney Combine, Cottonwood, Crandall, Forney, Kaufman, Oak Grove, Oak Ridge, Talty, Mabank, Kemp, Grays Prarie, Rosser, outside the city limits of Terrell • Montague Decatur No ineligible areas in the county. Cities include Montague, Nocona, Bowie, St Jo, Forestburg. • Palo Pinto McKinney No ineligible areas in the county. Cities include Mineral Wells, Graford, Strawn, Santo, New Salem, Palo Pinto, Gordon, Mingus • Parker McKinney Cities includes, Aledo, Springtown, Willow Park, Sanctuary • Rockwall McKinney The entire county east of Lake Ray Hubbard is eligible, Rockwall, Royse City, Fate, Heath • Tarrant McKinney Cities include Avondale, Azle, Blue Mound, Briar, Center Point, Crowley, Haslet, Lakeview, Oak Grove, Pelican Bay, Saginaw, Wheatland • Wichita Decatur Cities of Wichita Falls and Burkburnett are not eligible. Cities include Electra, Iowa Park, Lakeside City, Kamay • Wilbarger Decatur No ineligible areas in the county. Cities include Vernon. • Wise Decatur Cities include Bridgeport, Decatur, Alvord, Aurora, Chico, Rhome, Boyd • Young Decatur Cities include Graham, Olney, Newcastle, Jean, Loving
USDA • Primarily used to help low-income individuals or households purchase homes in rural areas. • 100% Financing
Upcoming • Possibility that the government may extend the $8000 tax credit. Nothing known as of October 25th 2009 • We are now able to help you purchase a home with a voucher (Section 8)
Good faith Estimate FHA 203B • The following is a standard FHA 203B GFE with loan commitment
GFE VA with loan commitment • The first slide is a form needed to check eligibility for a VA loan. You can also get half a percent reduction in interest through Texas VA and 1% if you are disabled • The 2nd slide is a VA GFE and Truth In Lending statement