- I am trying to determine whether we are going to build a home or negotiate with our builder to purchase the house complete. What are my options? I do have VA eligibility, and we believe this project will cost approximately $450,000 complete, I can put up to $40,000 down. Most construction loans will allow you to borrow 80% of value. Our construction and/or construction/perm will allow you to borrow up to 85% on a case-by-case basis. A $40,000 down payment is not quite 10%, you would need a minimum of 15% down, or $67,500. With VA eligibility, if you bought the property complete, you would need a down payment of $4,800. One option does not meet your parameters, the other does easily.
- We are interested in buying a new home. We don't really want to sell our existing home because of current values and what we owe. We would like to keep the property and rent it for a while. How does this work? If either of you have ever had experience as a landlord, we can count lease income and offset the mortgage payment. You must have a 12-month lease. If neither of you have landlord experience, then you are qualified on the new home with both payments.
- I am a first-time homebuyer. I spoke with a mortgage person with another company, and he told me not to bother calling him until I had $3,200 in the bank. Is this true? If you are a first-time homebuyer, you are eligible for the VHDA programs. The FHA Plus program will allow you to borrow 100% of the purchase price. Homebuyer education is a requirement. There is lots of additional information on the VHDA website.
- We would like to refinance our house, but we aren't sure it is worth it or not. Our current rate is 5.875%, our monthly principal and interest is over $1,900 each month, and we have a 2nd we would like to keep as is. Is this possible, and will we save money? Our current balance is $295,000. The opportunity we have currently with mortgage rates is unprecedented. At current mortage rates, your monthly payment would just over $1,400 each month. The second can probably be auto-subordinated. So, it sounds like it is all good for you.
- Jennifer Keenan, Senior Mortgage Consultant, NMLS# 101837, Tidewater Home Funding 757-366-8690