Types of Loans and Loan FAQ

As some of you may know, I work almost exclusively with my dear friend and colleague Glenn Wheeler, formally of Pioneer Mortgage LLC. Glenn and his partner, T.J. Orr, are now members of the Buckeye State Bank family and have some very helpful information below on loans. The last few years have shown a fickle market with remarkably low inventory, therefore education is key to ensure a successful purchase.

Types of Loans

VA Loans

This is a fabulous loan for Veterans and active military personnel. These loans require NO money down up to $453,100 and have no PMI. Loans higher than $453,100 will require a down payment. You can also refinance 100% of the appraised value of your home and pay off debt!

FHA Loans

These loans are for the people that have a 620-700 credit score and don't qualify for USDA/RD loans. FHA required 3.5% down payment and can be a gift from a relative. PMI is required on these loans and in most cases will stay on for 30 years unless you put down 10% of the purchase price. The PMI on a 30 year mortgage is around 71.00 per each 100,000.

Conventional Loans

A great loan for people with a credit score that exceeds 700. You will be required to put down 5% of the purchase price. You can avoid PMI by putting down 20%. The loan has to be under $453,100 or it will be considered a JUMBO loan and those types of loans offer a little higher interest rate. The PMI is based on the amount you put down and your credit score.

USDA/Rural Development

There are two qualifications for this loan. There is a maximum household income level depending on how many live in the home and the county you reside in. If one person is on the loan they will look at the spouse's income to ensure the household income is under the county's threshold. The other qualification is the property must be in a qualified USAD area. You cannot get a USDA in downtown Columbus, you have to be outside city limits, hence "rural" development. These loans require ZERO money down.

Buckeye State Bank offer CONSTRUCTION, JUMBO, VA, FHA, USDA/RURAL DEVELOPMENT, CONVENTIONAL, PORTFOLIO, COMMERCIAL Loans and HELOCS. We will give you all of your options and let you make the decisions. We offer incredible service throughout the entire process. We work with experienced real estate agents that offer exceptional service and are very accessible to help you needs.

Frequently Asked Questions

What is PMI?

PMI or Private Mortgage Insurance is inrance for the lender in the event that you don't make your payment and go into foreclosure. To avoid PMI you would have to put down 20% in most cases.

I filed bankruptcy, can I buy a home?

Yes, once you have been discharged for 2 years you are eligible to get an FHA loan. It is 3 years after discharge for a Rural Development loan and conventional loan.

Improving your credit

Your credit score is a snapshot of how well you have paid your creditors the last 1-2 years. You always want to avoid falling behind  30 days on any bills. If you pay 29 days late it will not affect your credit score. The key to helping your credit score is paying your accounts on time and keeping your credit cards under 30% usage of the limit. You will maximize your points for that trade line on your report by doing this. If you file bankruptcy you need to re-establish your credit. Lenders want 3 open and active accounts. If you have a 30 day after bankruptcy it will be tough for you to get a loan.

Do's and Don'ts Prior to Getting a Mortgage

Do's

Stay current on all accounts, continue working on your current jobs, keep making your rent payment by check or a way you can show a paper trail.

Don'ts

Open up new credit car accounts, Transfer any balances, make any major purchases...car, boat, furniture, close any credit cards, max out credit card debt, pay off collections.

Ohio Facts

Did you know 1/2 of the U.S. population is within a 500 mile radius of Columbus, Ohio? The first hot dog was created in Ohio in 1900. W.F. Semple from Mt. Vernon patented chewing gum in 1869.

Home Staging Helps Buyers Fall in Love

One of the biggest mistakes homeowners make when selling a vacant home is thinking it will look bigger without furniture. In fact, the opposite is true.

 Before: Cold and empty won’t see your biggest commodity

Before: Cold and empty won’t see your biggest commodity

 After: A warm and inviting environment

After: A warm and inviting environment

Ninety percent of buyers have a hard time imagining the size of a room without furniture. There is no frame of reference and buyers can’t visualize how big a room is or what the rooms are used for. Ask any one to describe a vacant home, and the first words are usually “cold” and “empty”. Cold and empty won’t help you sell your biggest commodity.

Can you imagine a new Mercedes without paint? Do you think people would notice the car or the missing paint? It’s so much easier to notice a crack in the wall, or a chip in the tile when there is nothing else to look at.

after2.jpg

Home staging prior to listing will capitalize on the positive aspects of your home, while de-emphasizing the negative aspects. It creates a warm, inviting environment that appeals to the broadest range of potential buyers. No matter where your home is located, or the style, creating emotional connection points throughout the home will help buyers fall in love and see it as their home.

For more information about home staging or Element One please visit: http://www.elementonehomestaging.com