Rental Homes

Wake up money seminar!!

December 10, 2013 by Michael Dunn

Curious about investment property?? Come learn how buying investment property can benefit you and your family. We will cover different loan programs that are available along with different avenues to come up with the down payment money. There will be also be a title representative and loan officer at the seminar to answer all of your questions. Finger foods and beverages will be at 5:30PM and the seminar will start at 6:03PM. Contact me ASAP to RSVP for this event!!

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Parents for kids OR kids for parents!!

June 23, 2011 by Michael Dunn

FHA has a loan program that the financial industry has lovingly labeled: The “Kiddie-Condo” Loan (although, they are not limited to the purchase of a condominium … it can be a standard single-family home, duplex, etc.)
Essentially, here are the highlights:
1. The maximum FHA loan for Sandoval, Bernalillo, and Valencia Counties for a single family dwelling is $271,050.00. (Higher loan amounts are available for 2, 3, and 4 unit dwellings.)
2. The min. down payment on 1 unit dwellings is approximately 3.50% of the purchase price. (You may be able to qualify & the funds are available, for the MFA program which includes 3.0% grant money in combination with this FHA loan, your actual down payment could be .50%.
3. Parents can purchase the home and place their son or daughter in it. (The reverse can happen too. Let’s say the children have some elderly parents with a fixed income, they … the children … can qualify for the home … adding whatever income and debt that the parents have … and qualify based upon the combination thereof.)
4. They all will be on title for FHA purposes. Different for FHA/MFA.
5. Qualifying is based on the strength of the buyers’ and parents’ credit scores, debt to income ratios, etc.
6. New: The child is not required to have taxable income, however, credit must be acceptable with at least 1 credit score. If the child is a student with no income, non traditional credit is NOT allowed. FHA will no longer allow alternative sources of credit for borrower’s who have no credit or taxable income at all.
7. Borrower’s must have 2 months cash reserves for total PITI monthly payment of their own funds. No gift of reserves is allowed.
8. This program is used many times by families who choose, while their child goes to college, to have them in a house … rather than in a dorm. Sometimes the program is used to help a young family get a head-start.
9. During that time, everyone in the family is benefiting from home ownership and the appreciation associated with it, while not wasting money for housing for the student (if applicable).
10. The child also benefits, as he or she is establishing a credit rating of their own.
11. The parent benefits in as much as the normal down payment on “investment” property can be as much as 30% and the interest rate would be higher as well. This would be considered “owner-occupied” as the son or daughter is living in the home.

Please call Rachel for the details. Rules and guidelines are subject to change at all times. Be sure to follow-up with Rachel Donovan with Legacy Loan Officer for any updates.

***Rachel Donovan
Legacy Mortage
License # 368845
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

Is a 2/1 Buy Down Your Solution to Your Next Mortgage?

June 16, 2011 by Michael Dunn

Make your home ownership experience more comfortable with a 2-1 Buy Down from Legacy Mortgage. The loan is a FIXED 30 year loan with a reduced interest rate for the first 2 years. This program allows you a lower payment those first years leaving more cash each month for the little extras.

How the loan works. The first year rate is 2% points below the market rate, the 2^nd year rate is 1% point below, and years 3 – 30 are at the market rate from when you closed.

This loan starts with a lower interest rate for the first 2 years and is FIXED for the next 27 years.
An example is, year 1 rate would be 3.0%
Year 2 would be 4.0%
Years 3 – 30 would be 5.0%
The cost is 2.5% of your mortgage amount. A $100,000.00 mortgage would cost $2500.00.
Buyer or seller can pay this.
The principle and interest payment on a $100,000 30 year fixed at 5% is $536.82.
The principle and interest payment on the 2-1 Buy down $100,000 loan first year at 3% is $421.60 a difference of $115.22 per month.
The principle and interest payment for the 2^nd year at 4% is $477.42 a difference of $59.40 per month.
The principle and interest payment for years 3-30 is $536.82.

This loan allows you to have a reduced payment during those first few years of homeownership making the transition much more comfortable for buyers.

Call Legacy Mortgage and Rachel Donovan to get all the details on this loan as well as all other mortgage loan options.

Rachel Donovan
Legacy Mortgage
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/