Do I have to refinance to lower my payment?
No : if you have a conventional Freddie Mac or Fannie Mae loan you can recast. Lump sum own payment must be made then they will lower the balance an re amortize and lower the actual payment.
Which credit score does the lender use?
The lender will use the lowest middle credit score of any person on the loan.
Can I have a gift for my down payment?
Yes, as long as it comes from a family member, borrowers employer, a government agency or public entity providing home ownership assistance
Can I have an Escrow for Repairs?
Yes, as long as the repairs are not more than $5,000 and do not affect the livability of a home.
Can I purchase if I’ve had a foreclosure?
Yes, when:
Conventional: 7 years from completion
FHA and USDA: 3 years from completion or date from losses paid
VA: 2 years from foreclosure date
How long do I have to wait to purchase if I’ve had a bankruptcy?
Conventional: Ch. 7 is 4 years, Ch. 13 is 2 years from discharge
FHA & VA,: Ch. 7 is 2 years, Ch. 13 is 1 year of satisfactory payments and permission from the court
USDA: Ch. 7 is 3 years and Ch.13 is 1 year satisfactory payments and permission from the court
What is a recast?
A recast is a process to accept a large down payment to lower the monthly payment.
