Tag Archive for: conventional

Why FHA’s BETTER Than Conventional In Hot Markets

My wife Heejin was “on call” for weekend referrals yesterday, and she had two buyers who wanted to switch from FHA financing to 5% down conventional financing. The buyers were […]Read More

The Pros and Cons of Low Down Payments in California

When it comes to the down payment in California, buyers always want to know how low they can go. The industry standard is that down payments will be 20% of the property’s purchase price. This percentage is important because it determines if a buyer will need to have private mortgage insurance (PMI) with their loan.Read More

Minimum Income To Qualify For Various Price Points; Realistic Goals

Realistic Goals Based on Income and Down Payment Parameters One of the primary jobs of our Mortgage Analysts is to ensure borrowers have realistic home-buying goals. For example, a buyer […]Read More

Cash to Close And Reserves

Borrowers often come to us with just enough funds for their down payment, without accounting for closing costs and reserves. “Reserves” have become a bigger issue lately as more borrowers […]Read More

Short Sale Seasoning Revisited; Extenuating Circumstances Exceptions

We get so many questions about short sale seasoning that we thought we’d revisit the issue. FHA financing requires 3 years of seasoning. Conventional financing always requires 4 years now […]Read More

“Flip” Rules Again – Selling 90 Days After Purchase

We still see the occasional “Flip” surface, although not nearly as often as we saw them in 2010-2012. A “Flip” once again is a property that is purchased (usually by […]Read More

“Gift Of Equity” For a Down Payment Instead of Cash

This is a reminder that sellers can “Gift Equity” as a portion of a down payment. With conventional financing, a “Gift of Equity” can comprise the entire down payment if […]Read More

Seasoning From Bankruptcy Discharge: 2 Yrs for FHA

We have been seeing a lot of bankruptcies (BKs) lately, so we thought it was time to again mention required seasoning periods from date of discharge. For Chapter 7 (liquidation) […]Read More

Homes Do Not Need Appliances Unless “Built In”

Properties do not need to have appliances installed at close if they are not “built in” in most cases. Hence, many properties do not need stoves or refrigerators to be […]Read More