Useful Tools, Loan Programs & Mortgage Articles

There are numerous loan programs available for the purchase of vacant land – otherwise referred to as “lot loans.” These loans are underwritten in the same manner as a loan for developed land and you will need standard income and credit documentation that is required in any real estate transaction. Most lenders will also require a minimum down payment of 10% since lending upon vacant land is considered a slightly higher risk.If you decide to buy a piece of vacant land with the intentions of building your own home you can typically find a lender that will do a “construction to permanent” loan. What this means quite simply is they will lend you the money necessary to purchase the land and then they will finance the construction of your project until it is completed. This has several advantages: you sign only one set of loan documents and do not have to worry about re-qualifying, re-appraisals, additional closing costs or signing additional loan documents. In addition, you will likely have the opportunity to lock in an interest rate based on today’s market rather than waiting until the project is complete.

If you decide to apply for a construction loan, you will be required to provide some addition information in order to assist the appraiser and the lender in determining the value of the home after it is built:
· What is going to be built or constructed?
· What materials are going to be used?
· How much will the material cost?
· How much is the actual work going to cost?
· How much did the land cost, what is it worth today?
· How much will be spent on plans and permits? The lender will also want to know about your choice of general contractor who will be awarded the contract and the actual text of the construction contract. They will likely want a copy of the contractor’s resume and a copy of their credit report in order to ensure that he/she is experienced, has a proven tract record, and will be able to perform under the terms of the contract. Some lenders have a copy of a construction contract that they want you to use and others just require a copy of the one of your choice.If you are looking to buy vacant land or would like to obtain a construction loan, please fill out the PickYourOwnRate.com form and an experienced mortgage professional in your area will contact you promptly.

Commercial properties come in all sizes and are intended for a wide-range of uses, but they can be mortgaged just like a residential structure. This type of loan can range from the tens of thousands to the hundreds of millions depending on the structure and the location. They can be for purchase or refinance and sometimes they require a personal guarantor. Similar to residential loans, commercial loan programs include short term adjustable rate mortgages as well as fully amortizing fixed rate loans usually for up to thirty years. Here are some of the more common types of commercial property: Commercial properties come in all sizes and are intended for a wide-range of uses, but they can be mortgaged just like a residential structure. This type of loan can range from the tens of thousands to the hundreds of millions depending on the structure and the location. They can be for purchase or refinance and sometimes they require a personal guarantor. Similar to residential loans, commercial loan programs include short term adjustable rate mortgages as well as fully amortizing fixed rate loans usually for up to thirty years.If you are looking to buy a commercial property for your own personal business use or even as an investment or if you would like to refinance a commercial property you currently own please fill out the PickYourOwnRate.com form and an experienced mortgage professional in your area will contact you promptly.

If you have never owned a home before – or have not had ownership interest in the last three years according to some lenders – you are considered a first-time homebuyer. Buying your first home can be a daunting task, but it does not have to be. Most lenders have special programs available for first-time buyers that allow for 100% financing. In fact, depending on your credit score you may qualify for over 100% financing so that you can finance your closing costs as well.

The most important thing when buying a home (particularly your first home) is your credit. Almost every lender has some sort of “no doc” program available; which means you do not have to document your income, assets, or employment. However, you always have to document your credit history. If you previously owned a home then you would have a mortgage history on your credit report – and if you made your payments on time this would help offset other areas of concern on your credit report. Since you are a first-time buyer you will not have a mortgage history to show the lender that you have been responsible in paying a mortgage previously. As a result, the better your credit is the better off you will be.

There are many things you will want to consider when buying your first home. The first thing you need to think about is how much can you afford each month. In addition to the cost of repaying the mortgage, you will also need consider the property taxes, the homeowner’s insurance premium, flood insurance premium (if applicable), and property or condo association dues (if applicable). These additional costs can add up quickly and take a serious bite out of the budget you set for yourself.

You should also consider the location of the property – is it somewhere that you would be happy living long-term if the market slows down and you are unable to sell? Is it large enough in case the size of your family increases? Is it close to things that are most important to you such as: your workplace, schools, shopping, entertainment, etc.?

In mortgage lending terms, a Foreign National is a citizen of another country who visits on vacations or relocates to the U.S. for business, educational, or employment opportunities.

For years, 30%-35% down was the industry standard and Foreign Nationals were only offered variable rate mortgages often with stiff prepayment penalties, high rates, and expensive closing costs. Today the industry standard is a 20% down payment, although 10% down is available. Most mortgages no longer have prepayment or early redemption penalties, and 30 year fixed and 15 year fixed mortgages are available to all borrowers.

Additionally, Foreign Nationals are now characterized as borrowers with ITINs (individual taxpayer identification numbers), or those borrowers who have a legal right to live, work, or study in the U.S. (visa holders). Most lenders require no down payment or small down payments such as 3%, 5%, or 10% down for borrowers with visas or ITINs, depending on immigration status, length of residency, work and credit history in the U.S.