Madison McCutcheon

NMLS # 1705889

757-366-8690

madison@tidewaterhomefunding.com

Madison McCutcheon Mortgage Advisor

Home Buyer Q & A

 I am a first-time homebuyer, I don't have any money for a down payment, what are my options? If you are looking to purchase property in Virginia, the Virginia Housing and Development Authority (VHDA) offers an FHA Plus program where no down payment is required. The FHA Plus allows you to borrow 100-101.5% of the purchase price by having a 30-yr fixed mortgage at 96.5% (the FHA component) along with a 3.5-5.5% second mortgage (VHDA bond referendum), both loans are amortized at the same 30-yr fixed rate. VHDA also has a number of other programs geared for first-time homebuyers. Minimum score is 620. If you purchase a home in North Carolina, we would look to qualify the property with the USDA Guaranteed Rural Housing Loan. What trumps both of these programs? VA Eligibility.
• I was pre-qualified to purchase a home, I found a property I really liked, everything seemed to be going fine, then I had to put more money down because the HOA dues made my debt ratio too high. The dues are not included in my payment, why are they included in my payment for qualifying purposes? Eventhough any HOA dues are not included in your monthly payment like taxes or insurance, they are included for mortgage qualifying purposes as the dues are part of the debt responsibility you are purchasing with the property. They are broken down into a monthly amount and shown with your proposed monthly payment.
• I no longer live in the USA, I am a citizen and own a home we used to live in until I received orders to go to Korea. We now rent what was our home, the rate is high. I would like to refinance, but am not sure I can...help?! Sounds like you have VA eligibility, if you do, and we can prove this property was at some point your primary residence, a VA loan is a possibility. If not, then we look to see if your property is serviced by Fannie Mae or Freddie Mac. Both entities have relief refi programs, even for investment property. The rates are competitive with market rates, and it is ok if you are upside down in your property.

- Jennifer Keenan, Senior Mortgage Consultant, NMLS# 101837, Tidewater Home Funding 757-366-8690