George's Blog

Thursday I began this series "Questions That Must Be Asked ............ Declarations Section VII Of Loan Application" which is a follow up to a blog I did on Tuesday about the need for Buyers to be Pre-Approved for a loan "Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut ..... Pre-Appoval Letter", and the process that should be followed. In Pre-Approving a Buyer it is EXTREMELY IMPORTANT that the Loan Officer not just look at Credit and Income, or even collect documentation to verify the information that they were given, they have to complete a full Loan Application (1003). Without completing a FULL APPLICATION, mistakes are very likely to happen, because each page of the 1003 has questions if not answered can create surprises and huge problems later on.

As I stated Thursday one of the pages of the Loan Application (1003) that unfortunately does not get the full attention that it deserves, and taken for granted by many Loan Officers, is the Declarations Section VII of Page #4. Each question on the Declarations Section VII Of Loan Application only requires a YES or NO answer, and maybe that is why it does not seem to be given the same level of attention as other parts of the Loan Application.

Since Thursday I have covered the first 4 question on Declarations Section VII Of Loan Application, and today I will cover the next 2 questions, and continue to explain why these Questions Must Be Asked On The Declarations Section VII Of Loan Application and there importance. The fifth question on Declarations Section VII Of Loan Application states:

• e. Have you directly or indirectly been obligated on any loan which resulted in foreclosure transfer of title in lieu of foreclosure or judgment?

This is another one of those questions that is not as easy to answer as it first might seem. That is because if a Bank files for foreclosure, even if a Homeowner transfers title in lieu of foreclosure, or avoids foreclosure by selling the house before the Bank forecloses on them, in all likely hood that Bank is still going to report it as a foreclosure on the Homeowners Credit Report. I have seen this several times lately, where the Homeowner sold the house before they were foreclosed on, even if it wasn't a Short Sale, and the Bank got paid in full, they still report a foreclosure on the Homeowners Credit Report.  This might seem very unfair, but that is what is happening, and as far as Automated Underwriting is concerned, if it is reported as a foreclosure, its a foreclosure.

The only hope that a Borrower has in a case like this is if they get the Bank to agree to stop reporting the NON FORECLOSURE as a foreclosure, or that their Credit Scores and Debt-To-Income Ratios are within the qualifying guidelines for a Manual Underwrite, where an Underwriter will actually look at what really happened.  If they can't meet the Manual Underwriting Guidelines, then they have to wait the same time period to purchase another house as if they really did have a foreclosure.

The sixth question on the Declarations Section VII Of Loan Application states:

• f.  Are you presently delinquent or in default on any Federal debt, or any other loan, mortgage, financialobligation bond or loan guarantee?  If "Yes" give details as described in the preceding question.

It is not good to be late on ANYTHING, but if you are going to be late on a financial obligation make sure that it is not a mortgage or Federal Debt.  The Automated Underwriting in many case will forgive recent lates on credit cards, car payments, and other similar debts, but it is not forgiving of mortgage late in the last 12 months.  Even if Automated Underwriting over looked a mortgage late in the last 12 months, the Underwriter will not, because it is unlikely that an Investor will purchase a loan that the Borrower had a mortgage late in the last 12 months.

A 30 day late payment or longer on a Federal Debt in the last 12 months is pretty much an automatic denial on FHA Mortgages.  So young Borrowers with student loans need to make sure that those student loans are paid on time.  Claiming that you did not know that the loans had gone into repayment, or that you were young and foolish is not a good excuse.

If you are planning to purchase a house in the near future, make sure that all your financial obligations are paid on time, but especially your mortgage and Federal Debts, or you could find yourself waiting several months before you can purchase that new house that you fell in love with.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Thursday I began this series "Questions That Must Be Asked ............ Declarations Section VII Of Loan Application" which is a follow up to a blog I did on Tuesday about the need for Buyers to be Pre-Approved for a loan "Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut ..... Pre-Appoval Letter", and the process that should be followed. In Pre-Approving a Buyer it is EXTREMELY IMPORTANT that the Loan Officer not just look at Credit and Income, or even collect documentation to verify the information that they were given, they have to complete a full Loan Application (1003). Without completing a FULL APPLICATION, mistakes are very likely to happen, because each page of the 1003 has questions if not answered can create surprises and huge problems later on.

As I stated Thursday one of the pages of the Loan Application (1003) that unfortunately does not get the full attention that it deserves, and taken for granted by many Loan Officers, is the Declarations Section VII of Page #4. Each question on the Declarations Section VII Of Loan Application only requires a YES or NO answer, and maybe that is why it does not seem to be given the same level of attention as other parts of the Loan Application.

Yesterday I covered the first 2 question on Declarations Section VII Of Loan Application, and today I will cover the next 2 questions, and continue to explain why these Questions Must Be Asked On The Declarations Section VII Of Loan Application and there importance. The third question on Declarations Section VII Of Loan Application states:

• c.   Have you had property foreclosed upon or title or deed in lieu thereof in the last 7 years?

This question may seem easy to answer at first, but it is not as simple as it may appear.  The reason why it is not as easy as it appears is because many people who are foreclosed on consider not owning the house from the point that they were evicted from the house.  This eviction can place many times when the bank holds a Foreclosure Auction, but this not the date of the foreclosure, so technically the owners still own the house.  In fact they are considered the owners of the house up until the bank completes the foreclosure process which could be several months later.  Even the date on the "Foreclosure By Sale Committee Deed" is not the date of the foreclosure.  This date is just the date that the Foreclosure Committee (usually a committee of one) approved the foreclosure, but it is not the final date of the foreclosure. That date could be 3 to 6 months later, and it is at that point that the owners of the house have been foreclosed on and no longer own the house.

So as you can see a question that seems easy to answer is not so easy after all.  Because of the confusion that this process can create, it is important to fully investigate all foreclosures if the Borrower answers YES to this question.

FHA requires three years from the time of the foreclosure before a Borrower can qualify for an FHA Loan again, and Conventional (Fannie Mae & Freddie Mac) requires five years.  If a Borrower honestly believes that three years have past since they were foreclosed on, because that was when they were evicted form their house, and foreclosure documents are not requested in the beginning of the loan process, everyone could be in for a big surprise at the end.

The forth question on the Declarations Section VII Of Loan Application states:

• d.  Are you a party to a lawsuit?

I always thought that it would have made more sense to have this question as the sixth question after the next two questions which continue to deal with foreclosures and delinquencies on mortgages.  But higher powers then me determined that it should be placed at this point.

This question like all the others, if answered incorrectly can create major problems late in the loan process.  A Borrower can quickly go from being in great financial shape, and their Debt-To-Income Ratios falling in place, to no longer qualifying because their Debt-To-Income Ratios are now to high.  Just like foreclosures, more questions need to asked if the answer to this question is YES.

If the Borrower is the one who has brought a lawsuit against someone else, it needs to be explained, but it most likely will not create their Debt-To-Income Ratios to change.  But if they are the ones that a lawsuit is being brought against, there is a risk of an additional financial obligation that could easily put the Borrower over the qualifying Debt-To-Income Ratios for a Loan Program.  The potential risk will in a lot of cases cause a loan to be rejected, and it is something that is better explained sooner than later.

Just as I stated before about previous questions, if a Borrower answers NO to this question and it is discovered they do have a lawsuit pending against them. not only will the loan be denied, but they could face criminal charges for lying on the Loan Application.  This is because at the bottom of Page #4 Borrowers have to sign attesting to the fact that all of the information that they have provided is the truth to the best of their knowledge.

I am going to end this blog with these two questions because the next question "e.  Have you directly or indirectly been obligated on any loan which resulted in foreclosure transfer of title in lieu of foreclosure or judgment?" of the Declarations Section VII Of Loan Application will require a lengthy explanation of the problems that it can create.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Yesterday I began a series "Questions That Must Be Asked ............ Declarations Section VII Of Loan Application" which is a follow up to a blog I did on Tuesday about the need for Buyers to be Pre-Approved for a loan "Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut ..... Pre-Appoval Letter", and the process that should be followed. In Pre-Approving a Buyer it is EXTREMELY IMPORTANT that the Loan Officer not just look at Credit and Income, or even collect documentation to verify the information that they were given, they have to complete a full Loan Application (1003). Without completing a FULL APPLICATION, mistakes are very likely to happen, because each page of the 1003 has questions if not answered can create surprises and huge problems later on.

As I stated yesterday one of the pages of the Loan Application (1003) that unfortunately does not get the full attention that it deserves, and taken for granted by many Loan Officers, is the Declarations Section VII of Page #4.  Each question on the Declarations Section VII Of Loan Application only requires a YES or NO answer, and maybe that is why it does not seem to be given the same level of attention as other parts of the Loan Application.

Today I will start to go through each questions and explain why these Questions Must Be Asked On The Declarations Section VII Of Loan Application and there importance. The first question on Declarations Section VII Of Loan Application states:

• a.  Are there any outstanding judgements against you?

Even though judgments will show up on a Credit Report, they maybe reporting wrong, and need to be corrected.  A case may also exist that a Borrower just acquired a judgment, and it has not reported on the Credit Report yet.

In the first case it is important to correct a judgment that is being reported incorrectly immediately with the three Credit Bureaus (TransUnion, Equifax, and Experian), because no loan for a Mortgage can be done if the Borrower has an existing judgment.

In the second situation it is equally important for the Borrower to be honest and upfront about any recent judgments that might not be reporting yet on their Credit Report.  Just because it is not being reported on their Credit Report yet does not mean that it will not be discovered in the course of the Loan Process, or worst yet just before they are set to Close on the loan.  If it is discovered that they have a judgment and did not disclose it, not only will the loan be denied, but they could face criminal charges for lying on the Loan Application.  At the bottom of Page #4 Borrowers have to sign attesting to the fact that all of the information that they have provided is the truth to the best of their knowledge.

The second Question That Must Be Asked On The Declarations Section VII Of Loan Application is:

• b.  Have you been declared bankrupt in the past 7 years?

As in the case of judgments being reported on the Borrowers Credit Report, so are bankruptcies.  However, they are not always being reported correctly as to their status or discharge dates.  If a bankruptcy is reported on the Borrowers Credit Report, or the Borrower acknowledges a bankruptcy, it is important to immediately get a copy of their bankruptcy and discharge papers.  This is the only way that the actual dates can be verified, and documented.

If a Borrower has had a bankruptcy within the last 7 years, a loan can still be done, but the guidelines for this vary from FHA to Conventional Loans. for example:

• FHA requires that 2 years have past from the time a Chapter 7 Bankruptcy was discharged, and 1 year form the time a Chapter 13 Bankruptcy was discharged.
• In the case of a Conventional Loan (Fannie Mae or Freddie Mac Insured) the time period is 4 years for a Chapter 7 and 2 years for a Chapter 13.

The above time periods are from the time of application for a loan, and not when the loan is expected to Close.  It is very important to keep that in mind because a loan could be denied for a matter of a few weeks, if the application process is started to early.

There are exceptions to these guidelines but that will be the topic of another blog that will just focus on bankruptcies.  For now I will not go into detail on this matter, because the exceptions are few, and are far from the norm.

Just as in the case of the first question a Borrower could face criminal charges for loan fraud if they do not answer this question truthfully as a result of them signing at the bottom of Page #4 that all of the information that they have provided is the truth to the best of their knowledge.

The problems that these two questions create during the Loan Process, can be easily avoided if the Loan Officer does his/her job at the time of Pre-Approval, by taking a full application at that time and not ignoring the these Question That Must Be Asked On The Declarations Section VII Of Loan Application.

My next blog in this series Questions That Must Be Asked ............ Declarations Section VII Of Loan Application, we will cover questions c, d, and possibly e depending on the length of the blog.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

On Tuesday I posted a blog on the need for Buyers to be Pre-Approved for a loan  Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut ..... Pre-Appoval Letter, and the process that should be followed.  In Pre-Approving a Buyer it is EXTREMELY IMPORTANT that the Loan Officer not just look at Credit and Income, or even collect documentation to verify the information that they were given, THEY HAVE TO, let me repeat that, THEY HAVE TO complete a full Loan Application (1003).  Without completing a FULL APPLICATION, mistakes are very likely to happen, because each page of the 1003 has questions if not answered can create surprises and huge problems later on.

One of the pages of the Loan Application (1003) that unfortunately does not get the full attention that it deserves, and taken for granted by many Loan Officers, is the Declarations Section VII of Page #4.  If you take the time to read Section VII you will quickly see the need to ask these questions, and the problems that can follow if they are not all answered.

I plan in the next several blogs to go through each of these questions, in a series titled "Questions That Must Be Asked ............ Declarations Section VII Of Loan Application" and explain the reason why they are there, and the problems that can possibly be created if each and everyone is not properly addressed.

Most of these question will only appear on Section VII of the 1003, and are a valuable resource in identify other parts of the Loan Process/Pre-Approval that might otherwise be overlooked, and require a more careful or even further review.  By fully utilizing Section VII of the 1003 we can avoid many of those last minute surprises that we all hate, and make the Home Buying experience a lot less STRESSFUL for everyone.

Starting tomorrow I will beginning this series "Questions That Must Be Asked ............ Declarations Section VII Of Loan Application" and go through each of these questions by covering two or three of them at a time.  I hope that by the end of this series of blogs everyone that follows them will have a much better understanding of the importance of these questions, and the need for a careful review of them.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

During this series we have covered four Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut:

• Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – CHFA/FHA
• Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – VA & CHFA/VA
• Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – CHFA/USDA
• Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – FHA

In this series Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, I also advised Buyers to attend a Seminar to learn about the Homebuying Process:

• Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut – First Time Homebuyer Seminars

Knowing about what Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut is very important, because Buyers need to know what their options are if they have little or no downpayment, And being aware of the process that they will have to go through to find and obtain a loan on a house is equally important. But probably the most important thing that I feel Homebuyers need to go through the Pre-Approval Process so that they know which Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, and how expensive a house will they qualify to purchase.

Buyers whether they are First Time Homebuyers or not need to get Pre-Approved first. This is the only way that they will know what and how much they will qualify to purchase. It is highly unlikely that a Realtor will Buyer to go look at houses if they do not know what price range the Buyer is qualified to purchase in.

To determine this Buyer needs to contact a Loan Officer that will take the time to go through all the steps that are needed to Pre-Approve them such as:

• Pull their Credit Report
• Take a full Loan Application
  
• Submit the Credit and Loan Application through Automated Underwriting System.

It is important that at the bare minimum all three of these steps are done, because it is the ONLY way that a Buyer can be reasonably be assured that they will qualify for a Loan. Once the Credit Report is pulled it will provide the Loan Officer with all of the Buyer’s revolving debt, which will have to be taken into consideration in determining what they can afford. The Credit Report will also show the Buyer’s payment history, and Credit Scores. The Loan Application will include the Buyer’s Income, Residency, Employment, and Bank Information. Once all this information has been submitted, the Automated Underwriting System will determine if the Buyer is qualified to purchase a house within the desired price range. Once this has been done, the Loan Officer can provide the Buyer with a Pre-Approval Letter for them to provide to a Realtor.

A Buyer can also choose to take this Loan Pre-Approval Process one set further, and that is to actually meet with the Loan Officer and go through the formal Loan Application Process, in which they will provide all the need documentation just like they will do later once they have found a house. They will also sign a Loan Application and all the appropriate Disclosures, and an Application Fee will also be collected at this time, which will later be applied to the actual loan. The Loan Application, Disclosures, and the Buyers documents are then sent to underwriting, and will be underwritten just like an actual loan. The only difference between this Process and the actual Loan Process, is that there is no property at this time, therefore, no Appraisal will be done. By doing this the actual Loan Process will be much quicker once the Buyer has found a house and has a Sales Contract, because the Underwriter has basically already underwritten the loan up to a certain dollar amount. At that point the Buyer can choose to lock in an interest rate, an Appraisal will be ordered, and documents updated. At that point a formal Mortgage Commitment for a Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut can be given.

Buyers need to make sure that they are working with a Loan Officer that will take the time to go through everything that needs to be done in order for them to get the type of Pre-Approval that will truly mean something. If a Loan Officer is not willing to take the time to do what is needed to provide a Buyer with a meaningful Pre-Approval, then the Buyer needs contact a Loan Officer that will.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

I just had my driveway re-paved, in fact it is so recent that I will not be able to drive on it until tomorrow.  The company that I choose to do the work was Gallitto Property Management and Excavation to do my Concrete Driveway.  They came highly recommended by Doug Turner of Turner & Sons Roofing, who I had do my roof last month. I am happy to say the Rob Gallitto and Gallitto Property Management and Excavation lived up to what I was told.

I choose to go with a Concrete Driveway, because of the problems that all of my neighbors have had with regular black top paved driveways.  They just do not seem to hold up in this development because of some underground springs that we have.  Usually within about 5 to 6 years they are having to patch them, and I wanted something that would last even if it was going to cost me more.

Rob Gallitto and Gallitto Property Management and Excavationn did an excellent job and even though I had them do some extra things along the way, they did not charge me for it and stuck to their quoted price.  I was also impressed by the work and care that they took in every step of the process.  I am very happy with the work and will recommend them to those that I know who are thinking about having their Driveway redone.

I could write more about what they did, but I think that pictures speak louder than words.  Below are a few of the pictures that I took during the process.  I wish I had taken a picture of them ripping up the old driveway, but did not think about it until it was already dug up.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Friday I completed the last of the 4 Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, that I planned on covering in the series.  As good as it is to know what the Loan Program Options are for Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, it is probably even more important to learn about the Home Buying Process which will enable Buyers to use these Loan Programs.

In my opinion before a Buyer can even begin to determine what Loan Program might be best for them, Buyers, especially First Time Homebuyers need to attend a "First Time Homebuyer Seminar".  At a First Time Homebuyer Seminar a homebuyer will not only learn about the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, they will get to meet and talk to those who will play the most important roles in helping them obtaining that dream house, and help them determine which of the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut will best fill their needs.

At these First Time Homebuyer Seminars, there will usually be a Realtor, Loan Officer, Attorney, and in many cases a Home Inspector.  Each and everyone of these professionals will share their role in the Homebuying Process. and assisting the homebuyer with the decisions that will have to be made along the way.

Some of the things that will be covered at a "First Time Homebuyer Seminar" are:

• Do they really want to own their own home.
  
• The advantages of owning a home.
  
• Can they afford to purchase a home (in other words, have they considered the costs of purchasing a home)
• Realtor - The Steps In Finding A House
  • Home Search
  • Sales Contract
  • Home Inspection
• The Loan Process
  
  • Application
    
  • Loan Programs & Terms
    
  • Credit Report
    
  • Automated Underwriting
    
  • Signing Loan Application
    
  • Good Faith Estimate (GFE)
    
  • Truth In Lending (TIL)
    
  • Disclosures
    
  • Appraisal
    
  • Underwriting
    
  • Closing Department
    
  • Commitment Letter
    
  • Conditions
    
  • Clear To Close
    
• Attorney - Closing Package
  
  • Title Search
    
  • Title Insurance Policy
    
  • Day Of The Closing
    
  • Walk-Through
    
  • Signing Documents
    
  • Recording The Deed

As you can see from just this brief outline there is a lot of information covered at the "First Time Homebuyer Seminars".  This information is also covered in more detail in a series of blogs that I did back in January of 2007:

First Time Homebuyer Seminars…..Part #1

First Time Homebuyer Seminars…..Part #2

First Time Homebuyers Seminars…..Part #3

First Time Homebuyer Seminars…..Part #4

Besides providing all of this information, "First Time Hombuyer Seminars" also give homebuyers an opportunity to ask question that are important to them without having to meet with those that will play a huge role in the purchase of their home individually.  They are all there at the Seminar and happy to spend as much time as needed answering questions, both during and after the Seminar.

My next blog in this series we will cover a second very important step in determining the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut that is right for you, the Pre-Approval Process".  Look for this blog on Tuesday.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

The last few days have been really hot sticky humid days here in Connecticut, so I have been having to water the grass and flower more so than usual.  As I was watering the flowers in front of the house I started to notice that they were beginning to show signs that summer is coming to an end and that fall is around the corner.

It is amazing how mother nature knows what time of the season it is, no matter what the weather is like it knows its time.  It knows when it is time to bloom and when it is time to let its leaves fall.  This made me wonder, do we have the same sense when it comes to our business?  Do we do what needs to be done during our seasons? Do we plant when we need to plant? Do we water and grow during our growing season? And do we fully take advantage of our harvest time?

Funny how something as simple as watering flowers can make us reflect upon ourselves, and are we taking advantage of our seasons to grow our business?  These are questions that only we can answer ourselves, and hopefully answer them honestly.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Out of all the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, FHA Mortgages are the ones that I do the most.  I would say that at least 70% of my loans that I have done this year have been FHA Mortgages.  You would think that since this Loan Program is the one that I utilize the most, that it would be the easiest for me to write about, but it is opposite.  There is so much to this Loan Program, that it makes it difficult to try to capture all of it in just one blog.  Luckily I have written several blogs in the past on FHA Mortgages, so in this blog I will only hit upon a few of the main features of this Loan Program, and then provide links at the end to my other blogs for further details.

Out of the four Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut that I chose to write about in this series, FHA is the only one of the four that is not 100% financing or that presently does not have an option to make it a 100% financed Mortgage.  So why then is this Loan Program the one that I utilize the most?  The answer is simple.  FHA Mortgages only require a Downpayment of 3.5%, which does not have to come from the Borrower's own money, it is available to all Borrowers, and it has fewer restrictions than do the other Loan Programs that I have written about in this series.  Those reasons and more make FHA Mortgages a very attractive Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut.

Even though FHA is not a 100% financed Loan Program, it does not mean that a Borrower has to have the Downpayment and Closing Cost in his/her own money.  As I mentioned before even though FHA Mortgages require a 3.5% Downpayment, none of it has to come from the Borrower, it can be gifted from one of several eligible sources such as a relative, employer or labor union, a charitable organization, a governmental agency or public entity that has a program to provide homeownership assistance to low-and moderate-income families or first-time homebuyers, or a close friend with a clearly defined and documented interest in the borrower.

The same is true for Closing Costs, these funds also do not have to come from the Borrowers own money, they also can be gifted, or they can be paid by the Seller.  FHA allows Sellers to pay up to 6% of the Sales Price towards Closing Cost.  The only restriction is that they cannot contribute more than the Closing Costs, meaning that the Borrower cannot get back any remaining money that the Seller has agreed to pay, if it is not use on Closing Costs.

Another reason why FHA Mortgages are one of the preferred Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, is that FHA Mortgages do not have any of the extra points that are assessed to Conventional Mortgage by Fannie Mae & Freddie Mac, because of low credit scores or downpayment.  In fact FHA does not have a minimum credit score, Investors may impose a minimum credit score, but FHA does not.  This alone is a huge advantage that FHA Mortgages have over Conventional Mortgages.

Unlike some of the Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut, FHA Mortgages do not have any Income Limits, and even though FHA Mortgages have Loan Limits, in many cases the FHA Loan Limits are higher than the Conventional Mortgages Conforming Limits.

For all these reasons FHA Mortgages should be one of the main Mortgage/Loan Programs with Low or No Downpayment Still Available In Connecticut.  There is much more to FHA Mortgages, and if you follow the links below they will provide you with much more information.

FHA The Main Loan Program In Connecticut!!!

FHA & CHFA Condo Lists

PMI Changes Making FHA and VA Much More Go To Loan Products

FHA Condominium Approvals

HUD Website Great Resource For Homebuyers

FHA Appraisals

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com