Paying off ALL debt can double your home buying power!

So people wonder from time to time how can we afford a home?

So you go to speak to a bank and they tell you that you only qualify for $300,000. So now what? What can that buy in San Francisco at that price?

Paying off ALL your debt can actually double your purchase price when qualifying from a Banks point of view. For Example: A combined gross household income of $13,000 a month with monthly debt of $662.00, and FICO scores of 750+ can only qualify for $300,000. If that household was to pay off all debt they would be able to purchase a home at least for $700,000. (This scenario is based off of Today's rates, qualification guidelines and for example purposes only.)

Why such little monthly debt can affect your qualifying?

Banks have a debt to income ratio that's tailored to specific programs and vary from each Financial institute and available loan programs. Debt to income ratios determines the borrowers liability to the bank. Such a small amount of debt could mean a minimal increase in your D.T.I. (Debt to Income Ratio) which could be the difference of approval or getting denied.

* The above scenario if based off of FHA Access program that only requires 1/2% down payment.

For a FREE consultation to see how you can pay off your debt and how you can afford to purchase more home for your money in San Francisco call me today!

See how a family with $123,000 of debt paid it off in 4.5 years!! CLICK HERE!

Credit Problems? You can still get a mortgage!

Worried that you can’t qualify for a home loan due to lack of credit?

Did you know that some lenders will approve your loan even if you have NO FICO SCORE?!

Yes NO FICO score. Work with your mortgage professional to gather documentation to submit “alternative credit” to the lender. This is done by simply getting letters from companies and/or individuals such as your auto insurance company, PG&E company, cell phone company, cable provider, or your landlord. Have them type a letter on a company letter head that simply states you have been a customer for at least a year, you are in good standing, you have paid “x” amount on-time for the past year (2 years is even better!) and their information for reference, Signed and dated. DONE! This will be submitted to the credit bureaus as alternative credit and added as a credit supplement. So if credit issues are stopping you from buying in this great real estate market…. Get off the fence and contact me today to guide you through the process of home ownership.

HARP -Home Affordability Refinance Program

I thought I would go over the HARP program since it came up today with a client. This program can be used by individuals that had a fixed term mortgage and now will become adjustable. Also if you have a hgher interest rate and would like to lower your payment. In order to use this program the original loan must have been sold to Freddie Mac or Fannie Mae. If sold to Freddie Mac the property must be used as a primary residence. If sold to Fannie Mae it can be Primary or Secondary home. Below are the guidelines for this program.

HARP Guidelines:

*You may Finance up to 105% of property value
*Primary Residence min FICO score of 620
*Secondary Residence min FICO score of 680
*Can only finance rate & term (No Cash Out)
*Debt to Income Ratio can not exceed 45%
*No late mortgage payments in the last 12 months
*Must have owned the property for 3 months
*Current loan can not be Government. Example: FHA LOAN
*No adding/ deleting borrowers if loan is with Freddie Mac
*You CAN add borrowers if with Fannie Mae as long as the original borrowers remain on the loan.

For more information please feel free to contact me via email or phone.

GeorgeLangford@zephyrsf.com
C: 415.336.8191