Friday, March 26, 2010
Wednesday, March 10, 2010
Grant Funds Available For Homebuyers in OH, KY and TN
If you are a homebuyer that is frantically trying to save enough for the required down payment for the purchase of your new home, you may be able to qualify for a grant up to a maximum of $5,000, based on documented need. The Federal Home Loan Bank of Cincinnati has made a total of $200,000 available through the "Welcome Home" program. Funds are available for homebuyers purchasing in Ohio, Kentucky, and Tennessee. There are restrictions including loan and income limits. Homebuyers have to have at least $500 of their own funds and if he or she is a first time homebuyer, complete a homebuyer counseling program. The funds are distributed on a first come, first serve basis, so they are expected to run out quickly. Home buyers must have a fully-executed purchase contract, signed loan documentation, and all corresponding income and asset documentation to register for funds. Please contact me immediately if you are interested at bahale1@gmail.com or (513) 520-6044.
Friday, March 5, 2010
Debt Ratio Defined
You may be wondering what you can manage to pay each month for a house payment. Your debt ratio can give provide that information to you. You want to make sure that you are purchasing a home in the price range that will keep your house payment in your affordability comfort zone.
The definition of total debt ratio, from a homeowner’s perspective is the following: your total monthly debt service plus total monthly housing expense divided by your monthly gross income.
The items that are used to determine your debt service are the following:
Monthly car payments
Monthly credit card minimum payments
Monthly installment loan payments
Monthly student loan payments
Monthly child support and/or alimony payments
Also, if you have purchased something “12 months same-as-cash” and that agreement doesn’t require a minimum monthly payment, your mortgage consultant will take 5% of the remaining balance and use that as the minimum monthly payment as required by current underwriting guidelines.
Your total monthly housing expense is comprised of the following:
Principal and interest payment
Private mortgage insurance (if applicable)
Property taxes
Homeowners insurance
Condo/Homeowners association fees (if applicable)
Most loan parameters are calling for total debt ratios under 45%. This means that if you make $3,000 per month gross income, you can qualify for a loan with total monthly debts of $1,350.
Let’s look at an example:
A prospective homeowner makes $3,000 gross income per month. They have a $250 per month car payment and 2 monthly credit card payments of $50 each. That means that they have $350 in debt service monthly. To stay at or below a 45% debt ratio, they would need to keep their monthly housing expense (in total) at $1,000 or less.
Your mortgage consultant will also calculate your housing ratio, which is your total monthly housing expense divided by your monthly gross income. In the example above, the prospective homeowner’s housing ratio would be 33%.
Some loan programs are more restrictive about the maximum allowable limits for your housing ratio. Your mortgage consultant will guide you through the calculations, so that you know exactly what your debt ratio will be in each possible loan scenario and price point.
You will also want to look at your monthly net income (the amount you actually see in your checking account!) and consider your other monthly bills and expenses, such as insurance(s), utility bills, food, entertainment, education, etc, along with your current monthly debt service, and make sure that your prospective monthly housing expense fits into your monthly budget. You don’t want to end up “house poor”!
Calculating your debt ratio is a crucial first step in determining what price point you will qualify for in regards to your home purchase. Please contact me to help you analyze your debt ratio at (513) 520-6044 or email me at bahale1@gmail.com
The definition of total debt ratio, from a homeowner’s perspective is the following: your total monthly debt service plus total monthly housing expense divided by your monthly gross income.
The items that are used to determine your debt service are the following:
Monthly car payments
Monthly credit card minimum payments
Monthly installment loan payments
Monthly student loan payments
Monthly child support and/or alimony payments
Also, if you have purchased something “12 months same-as-cash” and that agreement doesn’t require a minimum monthly payment, your mortgage consultant will take 5% of the remaining balance and use that as the minimum monthly payment as required by current underwriting guidelines.
Your total monthly housing expense is comprised of the following:
Principal and interest payment
Private mortgage insurance (if applicable)
Property taxes
Homeowners insurance
Condo/Homeowners association fees (if applicable)
Most loan parameters are calling for total debt ratios under 45%. This means that if you make $3,000 per month gross income, you can qualify for a loan with total monthly debts of $1,350.
Let’s look at an example:
A prospective homeowner makes $3,000 gross income per month. They have a $250 per month car payment and 2 monthly credit card payments of $50 each. That means that they have $350 in debt service monthly. To stay at or below a 45% debt ratio, they would need to keep their monthly housing expense (in total) at $1,000 or less.
Your mortgage consultant will also calculate your housing ratio, which is your total monthly housing expense divided by your monthly gross income. In the example above, the prospective homeowner’s housing ratio would be 33%.
Some loan programs are more restrictive about the maximum allowable limits for your housing ratio. Your mortgage consultant will guide you through the calculations, so that you know exactly what your debt ratio will be in each possible loan scenario and price point.
You will also want to look at your monthly net income (the amount you actually see in your checking account!) and consider your other monthly bills and expenses, such as insurance(s), utility bills, food, entertainment, education, etc, along with your current monthly debt service, and make sure that your prospective monthly housing expense fits into your monthly budget. You don’t want to end up “house poor”!
Calculating your debt ratio is a crucial first step in determining what price point you will qualify for in regards to your home purchase. Please contact me to help you analyze your debt ratio at (513) 520-6044 or email me at bahale1@gmail.com
Thursday, March 4, 2010
U.S. Department of Housing and Urban Development (HUD)
HUD protecting children from lead paint.Details -->U.S. Department of Housing and Urban Development (HUD)
Subscribe to:
Posts (Atom)