95% Jumbo Home Loans St. Louis Missouri

95 percent jumbo st louis

 

95% Jumbo Home Loans St. Louis Missouri:

There aren’t’ many mortgage lenders that offer 95% Jumbo loans in St. Louis for the purchase a house. However, 95% jumbo loans are slowly coming back to the market, but here are certain conditions that the borrower must meet in order to get approved. The amount of risk associated with the 5% down jumbo loans pretty high for lenders and banks,  so proper documentation is key to loan approval.  Five Stars is pleased to offer 95% Jumbo financing to all eligible buyers throughout the nation, including Missouri. Let’s take a look at some of the Jumbo loan guidelines buyers will need to meet in order to get approved.

If you are thinking about applying for the 95% Jumbo home loan in St. Louis, Missouri, there are a few requirements that you need to consider before applying.

  • Applicants need to have funding for at least 5 percent of the total price of the home, at the time of applying for this type of mortgage. You can even have 5 percent available in your refinance equity.
  • You must document your income and assets via W2’s and tax returns.  Debt to income ratios are generally limited to 35-40%. .
  • Buyers will need a strong 700+ credit score with no recent bankruptcy or foreclosure in the last 5 years.
  • 95% jumbo financing is limited to $1,000,000. Much higher loan amount are available for buyers that have 10% or more down payment.
  • 95% financing is only available on primary homes – single Family, town homes and select condominiums.  Second homes, vacation homes and investment homes are permitted but will require a higher down payment.
  • 95% Jumbo home loans are available in both adjustable rates and fixed rates.

Please learn more about Jumbo Home Loans here.  Five Stars also offers a veritiy of other home financing options like Coventional, FHA, VA, USDA. Buyers across the nation can contact Five Stars 7 days a week at ph: 800-871-2636 or visit www.FiveStarsMortgage.com

Texas Jumbo Loan 95%

Texas 95% Jumbo

Five Stars is happy to offer jumbo mortgages for Texas home buyers with loan-to-value ratios up to 95%. The Texas Jumbo Loan 95% offer both fixed interest rates and ARM’s with no private mortgage insurance. The new jumbo loan program is targeted to creditworthy buyers who want to limit their down payment to 5% of the purchase price. The minimum loan amount on the new program is $417,000  and maximum is $1,000,0000. The program is available to applicants in all states nationwide with a credit score of at least 700. The buyers must also have some saving reserves and manageable debt-to-income ratios per the latest Jumbo guidelines.

  • No PMI mortgage insurance (can save you up to $400 a month PMI) on loans up to 95% of the value of your home.
  • Great for refinancing existing high cost loans and getting rid of your current mortgage insurance
  • Purchase with only 5% down payment – great for doctors, physicians, attorneys and other professionals that have the income but lack of savings.
  • 95% financing to $1,000,000 with no PMI with scores of 700+.  Choose from 1 single loan, or a 80/15/5 combo mortgage. Great for higher cost areas like Dallas, Houston, Fort Worth, San Antonio, Austin, etc.
  • Interest rates as low as conventional loan products
  • Zero Closing Costs option available
  • Loans can still be offered up to $417,000 with a minimum score 620
  • This new Jumbo Loan is for owner occupied, purchase and rate term transactions. Financing is available for 1 Unit Single Family Residence, Attached or Detached Housing and warrantable condominiums.

Please also note the following options for buyers that have 10% + down payment

  • 90% LTV:  Up to $1,500,000 with 720+ credit score.
  • 85% LTV: Up to $3,000,000 with 740+ credit score.

Why the 95% Jumbo Loan? There are a few reasons why a home buyer may want to only put down 5%  – even if they have more money saved:

  • Updates and Home Remodeling – Some houses need updating; by only putting down 5%, you can save the rest of your money for needed remodeling. Or maybe use the money for new furniture or other improvements.
  • Lack of down payment due to sale of current residence – while the real estate market has seen a marked improvement, home values in some markets are still well below their all-time highs; so if you are making a lot less on the sale of your current residence, this program helps you get into a new home now to take advantage of low interest rates and home prices that are still below their all-time highs set years ago.
  • Keeping savings in higher yield investments – check with you financial advisor, but sometimes it makes sense to put less down and keep your money working for you.

Five Stars Mortgage is the nations leader in 5% Down Jumbo loans, serving home buyers 7 days week.  If you have questions, or want to learn more about the latest 95% Jumbo lender requirements, please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636

Serving buyers in all 50 states including Texas:  Houston, San Antonio, Dallas, Austin, Fort Worth, El Paso, Arlington, Corpus Christi, Plano, Laredo, Lubbock, Garland, Irving, Amarillo, Brownsville, Grand Prairie TX

Chicago 5% Down Jumbo Loan

Chicago 5% Down Jumbo Loan

A Chicago 5% down jumbo loan is a mortgage amount over the conforming loan limit (set by the Federal Housing Finance Agency), which is currently set at $417,000 for a one unit property in most of the U.S.  If a home buyers mortgage amount is $417,001 or higher, the loan is considered jumbo.  The good news is 95% Jumbo mortgage financing is back in Chicago.  Home buyers with little down payment now have some great financing options with as little as 5% down payment.

Below we have listed our current Jumbo loan to value credit requirements for primary homes loans in 2016:

  • 95% Loan to value: Up to $1,000,000 with 680+ credit score. Buyers can choose 1 loan up to $850,000. Or a 1st and 2nd mortgage combo up to 1 million.  Both Jumbo options have no monthly PMI
  • 90% Loan to value:  Up to $1,500,000 with 720+ credit score.
  • 85% Loan to value: Up to $3,000,000 with 740+ credit score.

The same factors examined when applying for any home loan are looked at when applying for a jumbo loan. However, qualifying for a jumbo loan often requires higher FICO credit scores, lower debt-to-income ratios, higher savings reserves than qualifying for a standard conforming home loan.

Current Jumbo Mortgage Requirements For Chicago home buyers:

  • Income must be documentable with W2 and pay stubs.  Self employed borrowers will need to provide two years of tax returns.
  • Assets must be documented – two months of savings, retirement accounts, etc.
  • Your credit history (this is important, but Jumbo’s credit standards are flexible). A FICO score of 680 or above is needed to obtain  loan approval.
  • Single family homes and condos eligible.
  • Primary Residence, Second homes and investment properties eligible.  Down payment requirements will increase when the property is not a primary residence.

Jumbo Loan Benefits:  There are many benefits jumbo loans offer when compared to other methods for financing more expensive homes.

  • Financing available up to $3+ million
  • The convenience of one loan for the entire loan amount instead of having multiple mortgages
  • No monthly PMI option
  • As little as 5% down payment
  • Fixed and adjustable rate mortgage (ARM) options available
  • Same day pre approvals, with in-house underwriting

To ask questions or apply for a Jumbo loan in Chicago please submit the “Request Information” form at the top right side of your screen. Mobile users can find the short Request Info Form here.  Please also feel free to call us 7 days a week at ph: 800-871-2636

Serving all of Illinois :  Chicago, Aurora, Rockford, Joliet, Naperville, Springfield, Peoria, Elgin, Waukegan, Cicero, Champaign, Bloomington, Decatur, Arlington Heights, Evanston, Schaumburg IL.

Tennessee VA Refinance Options

Tennessee VA Loan Refinance

It’s no doubt that VA is one of the best home purchase loan programs available in Tennessee, primarily because of a Veterans ability to purchase a home with no down payment. But what many Tennessee Veterans don’t realize is that VA also allows for cash out refinance up to 100% Loan to value. Let’s look closer at the Tennessee VA refinance options available today.

VA Refinancing Types 2016:

There are three basic VA refinance scenarios available in Tennessee. First, there is the IRRRL, or Interest Rate Reduction Refinance Loan. This streamline refinance is specifically for those who already have a VA loan and are just looking to lower their interest rate. This is a “rate and term” refinance, meaning no cash is going back to the borrower. This is a great program because there is no appraisal and easy qualifying. The second type of VA refinance is someone who has a non-VA loan and is looking to refinance into a VA loan. This has been popular for those who wanted to refinance out of either an FHA loan or a Conventional loan with mortgage insurance. VA does not have monthly mortgage insurance (PMI) and allows refinancing to 100% LTV. The third type of refinance is where the Veteran wants to pull some equity from their home. They may or may not already have a VA loan.

With interest rates so low and home values going up around Nashville, Memphis, etc, many Veterans are taking advantage and pulling cash out for making those home improvements they have wanted to make. Other reasons for pulling cash out include debt consolidation (credit cards) education costs, investments, etc.  Many Tenn VA lenders have their own “overlay” on top of the published VA loan guidelines, and as a result many lenders put a cap on the loan to value for cash out at 90 percent of the appraised value. But there are a few VA lenders offering cash out refinancing to 100% loan to value.

Things to consider with a VA Cash out Refinance

First, just because you have equity it doesn’t mean a VA cash out refinance is the right thing to do. Unlike the VA Interest Rate Reduction Refinance Loan, which comes with a low VA Funding Fee equal to .5%, a VA cash out refinance comes with a full 2.15% Funding Fee for first time use, or 3.3% Funding Fee for any subsequent use of eligibility. 3.3% is a big amount that is added onto the back end of the loan, so it’s important to have the VA mortgage specialist working with you prepare a breakdown of the new loan amount, including the funding Fee, payment including taxes and insurance, closing costs and prepaid expenses, and an estimate of the amount of “cash” going to the vet after the closing of the refinance. For those Veterans who qualify for the Funding Fee waiver, a cash out refinance can look a lot more attractive.

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

We serve new home buyers and existing home owner throughout the nation, including Tenn: Memphis, Clarksville, Murfreesboro, Jackson, Franklin, Johnson City, Bartlett, Hendersonville, Kingsport, Collierville, Cleveland, Smyrna, Germantown, , Nashville, Knoxville, Chattanooga. Tennessee VA 100% Cash Out – IRRRL

Atlanta 95% Jumbo Home Loan

95% Jumbo Loan Georgia

Home buyers in Georgia can now obtain Jumbo financing up to 95%. Jumbo home loan guidelines have continued to relax in 2016, as a result eligible home buyers can secure a Jumbo mortgage with as little as 5% down payment.  This is great for buyers in the higher costs locations around metro Atlanta – Marietta, Alpharetta, Buckhead, etc.  Let’s talk about the Atlanta 95% Jumbo home loan below:

First, A jumbo loan is one where the loan amount is over the conforming limit often set my Fannie Mae. Because such a large amount is being borrowed lenders may charge slightly higher interest rates for these loans. The conforming loan limit varies based on your state and county, and is higher in areas of the country with higher housing prices like Florida or California.

Here are some of the highlights of our Georgia Jumbo Programs:

  • Jumbo loans up to 95% financing  – Up to $1,000,000 loan amount!
  • Loan amounts up to $4.0M with higher down payment
  • Adjustable and fix interest rate terms available
  • 1-4 family residences
  • Primary or vacation homes (2nd home) properties only
  • Adjustable or Fix rate terms with NO PMI
  • U.S. properties only
  • Cash out on refinances
  • Low rise and high rise condos
  • Full income and asset documentation required – except to Non-Conventional loan options below.

Current Jumbo mortgage loan-to-value limits and credit standards for 2016.

  • Up to 95% LTV to $1,000,000 with  680+ credit score. Only 5% down payment with no monthly PMI.
  • Up to 90% LTV to $1,500,000 with 700+ credit score
  • Up to 85% LTV to $2,000,000 with 720+ credit score

If you are a self employed borrower that has trouble documenting income – be sure to click the blue link and look at our Non Conventional Loan Options.  Some of these Non Conventional mortgages allow loan amounts up to $2,000,000 with income verification via bank statements, not traditional tax returns, P&L, etc.  They can be used to purchase both owner occupied and vacation homes.

Five Stars offers jumbo financing for a number of different scenarios:

  • Purchase Loans
  • Refinancing existing home
  • Jumbo mortgages for second homes or vacation properties
  • Investment property financing
  • Mortgages for single family homes, condos, townhomes, and two to four unit properties (Properties with five or more units generally require commercial financing.)

Please see the video below for more helpful information on the 95% Jumbo Mortgage.

Five Stars has underwriters who understand complex financial situations like self-employed borrowers, etc. We also pride ourselves in quick decision-making with a dedicated Jumbo Team assigned to all transactions. Our familiarity with local luxury markets is what sets us apart.  Please contact us today, we are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Serving all 50 states including Georgia: Atlanta, Marietta, Macon, Valdosta, Lake Park, Tifton, Sylvester, Adel, Moultrie, Albany, Augusta, Hahira, Columbus, Savannah, Alpharetta, Buckhead, Cumming, Duluth, Johns Creek, Kennesaw, Norcross, Smyrna, Suwanee, Canton,

Naples USDA Home Loan Breakdown

Naples Collier USDA Home Loan

USDA offer a great option for first time home owners in Naples Collier County seeking 100% financing. Buyers just don’t have many options today to purchase a home with NO money down.  In fact VA and USDA are the only government loan options that still allow Naples buyers to purchase a home with $0 cash required.

USDA mortgages offer a great benefit for families in Collier County looking to purchase a home. The USDA home loan program offers many advantages that you won’t find in an FHA loan or conventional mortgage program. A few of these advantages include low monthly mortgage insurance, 100% financing, no asset or reserve requirement, and absolutely no money down. That’s right, the USDA mortgage is one of the only remaining mortgage programs in the country that require absolutely no down payment for the purchase of a home. In addition, the USDA home loan program allows for closing costs to be either paid by the seller in full, or permitted to be accumulated or “rolled into” the total amount of the loan if home appraisal is high enough. This allows buyers to need very little money upfront to buy your home.

The USDA 502 Guaranteed loan is available to all home buyers purchasing in eligible locations. The program is not reserved exclusively for first time home buyers. Even better, buyers are not required to take any special class to get approved. Complete a loan application and search for a home all in the same day!

In order to qualify for a USDA Rural Mortgage, buyers must meet the basic USDA lender standards below. 

  • The property must be located in an area that is designated as”rural” by the USDA. Collier country is still 100% eligible today.
  • Program is available for purchase transaction only (no investment properties or second homes)
  • Available for First Time Buyers or Move Up Buyer (Buyer cannot own another home at time of purchase)
  • 620 credit score required to get approved
  • Buyer income is limited to a maximum of 115% of the median income. Please see the latest USDA household income limits for Florida below.
  • W2 income or self-employed is allowed (income and employment must be fully documented)
  • Gifts for closing costs or down payment (if desired) is permitted
  • The home purchase price (including upfront USDA Guarantee Fee) can be financed (100% financing, no down payment required)
  • Seller or lender can contribute up to 6% of the sales price toward the home buyers USDA closing costs
  • Single family homes only (no mobile or manufactured housing)
  • Term: 30 year fixed-rate

 

Collier County USDA Income

Five Stars serves all buyers across the U.S.  – including Florida Collier County – Maria, Everglades City, Golden Gate, Immokalee, Marco Island, Naples, Ochopee, Palm River Estates

Questions? We are available to assist you 7 days a week.  For quick service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.  Please also be sure to call ph: 800-871-2636 and visit www.FiveStarsMortgage.com for the latest mortgage info.

Maryland First Time Home Buyers

Maryland first time buyer

Maryland First Time Home Buyers have some wonderful choices for mortgage financing in 2016. The most popular home loans for first time buyers is the Government backed programs like FHA, USDA and VA loans. Below we will discuss each program, and the talk about the benefits to help you choose the right option.

FHA Mortgage Loans:

This great choice for many Maryland first time due to the low 3.5% down payment. The FHA mortgage provides several benefits, keeping in mind the budget difficulties of many homeowners who are considering purchasing their first home. Compared to most traditional mortgage loans, the FHA mortgage loan facilitates the process for the applicant. Besides that the FHA home loan consists of a very low down payment, which makes it a lot easier for homeowners that may have problems saving for the large down payment necessary by more common conventional loans. What are the most important advantages to choosing an FHA loans in Maryland?

  • Secure fixed loan interest rates – One of the big advantages of your Maryland FHA loan is the benefit of having a fixed 15 or 30 year interest rate. In comparison to other regular loans in which the loan interest rates can change, the rate remains the same for the total length of the loan. Because of this requirement  the borrower can budget their predetermined monthly installment ahead of time.
  • Low down payment – The Federal government insures FHA loans, therefore the borrower has very minimal charges in the process. FHA mortgages require a minimum 3.5% financial commitment from the applicant. The loan does allow for the home seller to pay for all closing costs, up to 6% which is frequently enough to take care of almost any property sale.
  • Easy to Qualify – Pre- qualifying for a Maryland FHA home loan is rather straightforward. Because it’s the FHA that insures your home loan, the creditors and lending institutions make it feasible for anybody to qualify when they meet the base requirements. The primary components of qualifying are history of credit, earnings and employment history.
  • Adjustable Rate Option – The FHA mortgage loan started due to the stretched budget constraints of first time buyers. That’s the reason the FHA features an adjustable rate option for home buyers, which calls for a relatively low payment and interest rate.
  • NO cash reserves required – In contrast to most conventional home loan programs, Maryland’s FHA home loan is a very tempting option for first-time home owners which have a little revenue saved.
  • Maryland first time buyers should find out what to expect before starting the FHA mortgage loan application process. Being prepared will always boost your opportunities in successfully getting your loan mortgage approved. Here we list a few steps and some things to consider.

FHA Loan Application Factors:

  • Debt-to-income ratio: Careful study needs to be done at this point. Mortgage lenders differ on precise amounts, but a financial debt load that is greater than 41 to 48% is high risk for an FHA loan. You will need 2 years of continual employment with no unexplained breaks in job history.
  • Credit History: It is generally the small issues which may damage your consumer credit. Check your income source, credit worthiness, together with rent history which may show up on a credit score. Get everything taken care of and work towards a spotless record.
  • Credit ratings: In 2016, a FICO score of 620 or better is required for the FHA loan for most lenders and banks. If you have had a bankruptcy or foreclosure, you will have to have maintained a perfect credit score since then (4 years and 5 years respectively) regardless of recent credit worthiness.

To Begin FHA Application:

  • Fill out the “Request Information” form at the top of this page and let us know what you need. It will allow the FHA mortgage professional to call you to discuss your primary goal. Subsequently a full mortgage application will need to be completed that details everything about you, the borrower, which is used for determining whether you are qualified for a mortgage loan or otherwise. The interest rate and terms of the loan will also be identified largely by the data in your loan application form, credit scores, etc.
  • In the event the application is pre-approved, you will get the disclosure records that are essentially initial loan documents which have all the details in connection with terms and conditions, loan rates, cost and mortgage payments of the loan.
  • This has to be agreed upon and returned along with documents such as your bank account statements, IDs, personal references, etc., for validation purposes. Usually these documents are prepped and readied before the loan application is submitted to the mortgage underwriter.
  • The processor double checks all validating papers and may request absent documentation from the borrower if needed.
  • When completed, the documents are sent to the underwriter.
  • The underwriter will be sending a “conditions list” of any missing documents to the purchaser.
  • After the buyer completes the requested items on the list, it is returned to the mortgage lender for final authorization. A closing date is then scheduled.
  • Notice: When you are in contract on a residence, the entire loan closing process takes roughly three weeks to a month.

 

USDA mortgage

 

USDA Rural Housing Mortgage:

Many locations in Maryland are still considered “rural” – you may be surprised.  If you do choose to live in a less populated area, the 100% USDA home loan might be a great choice for you. The USDA Rural Development loan is the last remaining no down payment government insured mortgage program for Maryland civilians. The USDA mortgage program is designed to help promote homeownership less populated locations around Maryland.  Many people assume the USDA loan program is only for farmers or ranchers, not true. Many major metropolitan areas have outlining areas that still qualify as USDA approved zone. The USDA loan program will allow home buyers to borrow up to 102.75% of the home’s appraised value. Additionally, borrowers can include closing costs into their loan assuming their appraised value is sufficient.

Some benefits of the Maryland USDA Home Mortgage:

  • 102% Financing,  No money down.
  • Low monthly mortgage insurance (PMI) almost half as much as FHA loans.
  • One-time USDA funding fee that is included into your loan ( just like FHA, VA)
  • No loan amount limits.
  • No cash savings requirements.
  • Up to 6% seller contribution for closing costs allowed.
  • 100% gifted closing costs allowed
  • 30 year low fixed rate loan
  • No Prepayment Penalty
  • Primary residents only (no rentals/investments or vacation homes permitted)
  • 620 min credit score required for USDA home loans.

To qualify for the USDA loan program, there are two main eligibility requirements that differ from the other government loan programs mentioned here.

Property Location- The home must be located in a USDA eligible designated rural area. Keep in mind, the seller of the property is not important, just where the property is physically located.See the USDA approved housing map here.

Household income- Each county has different USDA income restrictions. The income limit is based on many different variables, like the number of household members, number of children, etc. Read more about USDA loan income limits here.

 

2016 VA Loans

 

VA Mortgage Loan:

The VA mortgage is the #1 choice for military service members and Vets that have VA loan benefits. The greatest advantage is the VA loan is 100% financing with no monthly mortgage insurance costs (PMI) Eligible VA borrowers who meet all of the VA loan requirements can get a mortgage with very little to NO money out of pocket. This accounts for the program’s popularity among those serving in the military. Generally speaking, it is easier for borrowers to qualify for a VA loan compared to a conventional mortgage (one that is not backed or ensured by the government). VA allows for lower credit standards and more flexibility overall. According to the Department of Veterans Affairs, the “VA guarantees a portion of the loan, and this backing allows the approved lender to provide you with more favorable terms.”

But not everyone can qualify for this type of financing. Like any other mortgage product, this program has certain qualification requirements and standards associated with it. Let’s talk discuss the latest VA loan requirements for 2016.

VA Eligibility Requirements:

You can think of VA home loan qualification as a two step process. You must meet two sets of requirements, in order to qualify for such a loan. First, we have the basic eligibility requirements set forth by the U.S. Department of Veterans Affairs (VA). This is the department of the federal government manages the program and establishes the approval requirements for lenders must follow.

Generally speaking, you are eligible for the program if you meet any of the following criteria listed below:  If you are a Maryland home buyer and have questions, please contact us below.

  • You are a veteran who served 181 days during peacetime (active duty).
  • You are a veteran who served 90 days during war time (active duty).
  • You served at least 6 years in the National Guard or Reserves.
  • You are currently on active duty and have served at least 90 continuous days.
  • You were discharged from the military due to hardship.
  • You are the un-remarried spouse of a veteran who died while in service or from a “service connected disability.”

Service members who have received a dishonorable discharge are generally not eligible for the program. The eligibility requirements for VA loans in 2016 are fairly broad in range. They are meant to include most service members who have served in the military for a certain length of time. Just remember the two step system mentioned earlier. These are the minimum requirements established by the government. But the government does not actually originate VA loans. Like most government home loans, VA loans are originated by approved lenders. The government simply guarantees a portion of the amount being borrowed. So, in addition to meeting the basic eligibility guidelines above, you must also meet whatever VA loan requirements are imposed by the lender. Please read the VA lender requirements below.

Additional VA Loan Requirements:

The Department of Veterans Affairs establishes clear and specific guidelines when it comes to length and type of service. But the information they offer about other VA loan requirements is somewhat vague.

For instance, the Department says “you must have suitable credit, sufficient income, and a valid Certificate of Eligibility (COE) to be eligible for a VA-guaranteed home loan.” But they offer no specific definition of suitable credit or sufficient income. This leaves borrowers wondering exactly what is required: What credit score is needed to qualify for a VA loan? How much can I borrow based on my income? What about my other debts, do they play a role?

These are the most important factors when it comes to qualifying for a VA loan.

VA Credit scores: As mentioned earlier, the Department of Veterans Affairs does not have any specific requirements for credit scores. But you can bet the mortgage lender does, and this can vary from one lender to the next. Most lenders, banks and brokers are looking for a credit score of 620. This credit score does not guarantee loan approval as there will be additional requirements for any borrowers that have experienced and recent financial hardship (bankruptcy, foreclosure, short sale, etc)

VA Debt ratios: The VA debt-to-income ratio, or DTI, is another important VA loan requirement. This is a comparison between the amount of money you earn (gross monthly income) and the amount that goes toward your fixed monthly expenses (recurring debts). Generally speaking, your total DTI ratio — including the house payment — should not exceed 48%. This requirement is imposed by the lender, not by the VA. So again, it can slightly varies from one mortgage company to the next, but Five Stars VA qualifying requirements are some of the most generous today. DTI exceptions are often made for borrowers with excellent credit, significant savings in the bank, etc. Lender and brokers call this “strong compensating factors of the loan”  Income may come from a variety of sources including but not limited to: base military pay, non-military employment, commissions, self-employed income (min 2 year history) retirement income, spouse’s income, and alimony.

VA Mortgage Documents: When it comes to VA home loan, documentation is key. The banks and lenders will request a wide variety of documents to verify your income and assets, as well as your current debt situation. They also need to verify and document your ability to repay the loan, in keeping with new lending requirements. Documents needed for VA financing typically include the Certificate of Eligibility (COE), the Uniform Residential Loan Application (URLA), bank statements, tax returns and W-2 forms, the DD Form 214 for veterans who have left the military, and a variety of standard VA documents. If you need assistance obtaining these documents, we can help.  Just call ph: ph: 800-871-2636 –  7 days a week.

VA Occupancy: The VA also has specific requirements for occupancy status. Simply put, you must use the home as your primary residence. You cannot use this program to finance the purchase of an investment or vacation property.

VA Loan Appraisal: Just like any other home loan program, the Department of Veterans Affairs requires all homes being purchased with a VA loan to undergo a property appraisal. This is when a licensed appraiser evaluates the home to determine how much it is worth in the current market. Generally speaking, the house must be worth the amount you have agreed to pay for it, and it cannot exceed the VA loan limit for the county in which it is located. The house “must be adequate collateral for the requested loan,” according to the Department. Contact us to discuss the VA loan amount limits in your county.

Certificate of Eligibility or COE:  Borrowers who wish to use a VA loan to buy a house must first obtain a Certificate of Eligibility (COE). This document is issued by the Department of Veterans Affairs. The borrower must then present the COE to the lender when applying for the loan. The COE essentially says that the individual meets the Department’s minimum eligibility requirements.

To obtain a COE, vets must provide evidence of their eligibility. This can be done in several ways:

  • Veterans who have separated from the military can provide a DD Form 214. It must show the character of service and the reason for separation.
  • Active-duty military personnel, National Guard members, and reservists can provide a statement of service signed by the personnel office (typically) or the unit commander.
  • Discharged members of the National Guard who have never been on active service can provide NGB Form 22 or 23.
  • Discharged members of the Selected Reserve who have never been on active service can provide a copy of the latest annual retirement points statement and evidence of honorable service.
  • Call us at ph: 800-871-2636 – we can help.

This is a basic overview of COE documentation requirements. For more detailed information, visit the home loans section of the Department of Veterans Affairs website www.benefits.va.gov/homeloans

We serve home buyers in all 50 states across the U.S.  Applicants that have questions about any of the programs mentioned are encouraged to contact us today. Please call ph: 800-871-2636 or visit www.FiveStarsMortgage.com for more info.

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5% Down Payment Florida Jumbo Loans

5% down jumbo loan florida

5% down payment Florida jumbo loans are back. These new 95% jumbo loan programs allow home buyers to obtain mortgage financing that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. With interest rates so low some home buyers would like to consider a jumbo loan to get more house for their money. Even better is the 5% Florida jumbo loan does not require monthly mortgage insurance like many other loans with a low down payment. Below we take a brief look at the jumbo loan basics and discuss all the things you need to know.

First, a jumbo mortgage is a home loan that exceeds the typical lending limits of the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), the Federal Housing Administration (FHA) or the Veterans Administration. Loans sold to either Fannie or Freddie are called conventional loans or conforming loans because the mortgage amount “conforms” to the underwriting guidelines and lending limit of these companies. Loans above the following limits are called jumbo loans ( there are expectations in higher cost locations)

  • 1-unit home – $417,000
  • 2-units (duplex) – $533,850
  • 3-units – $645,300
  • 4-units – $801,950

Until recently, jumbo home buyers had to put 10-20% down if they wanted to purchase a home and borrow over the conventional loan limit of $417k.  Our new 5% down Jumbo mortgage with no monthly PMI is a great financing option for Florida borrowers who want to purchase a home or refinance. This program will allow Florida buyers to purchase a home up to $850k with only 5% down, and have the option of No monthly PMI. There are not many banks, lenders or mortgage companies offer this program today. This is especially good for borrowers in higher priced luxury location like Miami, West Palm Beach, Naples, Coral Gables, Jupiter, Sarasota, Boca Raton, Cape Coral, St. Petersburg, Tampa, Orlando, etc.

A few notes for the 5% down payment Jumbo loans:

  • 95% loan to value financing is only available for borrower that can fully document income, assets, etc.
  • For borrowers that cannot do full documentation, please check into our non-conventional loan programs here.
  • To obtain the max 95% financing, borrowers will need a 680+ credit score.
  • The program can be used to purchase a single family home, townhome or condo.
  • Jumbo interest rates can vary based on the term and credit score. Borrowers will choose between secure fixed rate options or adjustable rate terms (ARM)
  • Applicants can choose an interest rate buy down, or reduced closing costs options.
  • Second homes, vacations home and investment property purchases are permitted, but will require a slightly higher down payment of 10% down or more.
  • Jumbo rate-term, plus cash out refinance options are available for home owners that already have a high cost mortgage.
  • Higher loan amounts available. Up to 90% LTV financing to $1,500,000 with 700+ credit score. Up to 85% LTV financing to $2,000,000 with 720+ credit score. Please contact us if you are financing over 2 mil.

Update March 2016 – please note buyers can now financing up to 95% to $1,000,000 !  1st and 2nd mortgage combo up to 95% CLTV.

Five Stars is Florida’s Jumbo loan leader. We have specialist standing by 7 days a week to serve you . Please call ph: 800-871-2636, or just submit the “Request Information” form located at the top of this page.

USDA Closing Cost Fees

USDA closing costs

We often received many questions about USDA closing cost fees and financing charges. Generally speaking, for a new home purchase the buyer can expect to pay 3 -6% ( based on purchase price) for closing costs and pre -paid escrow requirements.  The exact amount can vary greatly depending on the home purchase price and state. The home seller will have “customary” closing costs that they are responsible for, and the buyer will have the same. Again, these closing costs are “customary” and not set in stone and can vary based on the state.  But in the end, everything is negotiable.

One of the great benefits of a USDA rural loans is not only is the program 100% financing, but it allows added flexibly in regards to closing costs. First, the sellers is permitted to give concessions (pay for) the buyers closing costs. There is no limit on this. These closing costs and escrows can be negotiated into your purchase contract and paid by the seller as part of the deal terms. In some cases this option may not be feasible with the seller.  When this option is not possible, there is a second option as well.

The second option for closing costs involves including the costs, or rolling in the cost into your new loan. This option has nothing to do with the home seller.  USDA will permit any pre approved buyer to roll in their closing costs if the homes appraised value supports the increase. Your new home must appraise high enough for this option to be used.

Example –

Home purchase price – $150,000

Closing costs and escrows to be paid by home buyer – $5,200

Appraised value –  $156,000

In this example it would be ok to roll in all of your closing costs into the new loan, the home appraisal supports it. Your total loan amount would be $155,200 plus the 2.75% USDA guarantee fee.

Now you have your USDA contract fully approved and closing costs are taken care of as well. What else can the home buyer expect to pay?  Generally you will be required to pay an escrow or earnest money deposit when your purchase contract is accepted by the home seller.  This amount is usually around $500- $1,500 depending on the sales price. It’s best to refer to your realtor for the proper good faith deposit amount.  This deposit money will be placed into a separate escrow account by the closing agent and applied in the end. Appraisal and home inspection fees will also be paid in advance by the buyer – these costs are generally $400.00 – $650.00 together. Depending on the sellers concessions you negotiate, or the appraisal value, you can often receive the advance money you paid (deposit on contract, appraisal fee, home inspection fee) back at closing! So in the end the home buyers can end up investing little to no money in the transaction. Again, proper contract negations is the key.

If you have questions about USDA closing cost fees or interest rates, please contact Five Stars at ph: 800-871-2636 or just submit the Request Information form on this page. We are available to serve you 7 days a week.

2016 Jumbo Loan Guidelines

2016 Jumbo Loan

Jumbo loans are designed for Florida buyers who are purchasing or refinancing a home that is priced higher than the conforming loan limit set by Fannie Mae and Freddie Mac. Five Stars is a leader in financing Jumbo loans up to $8 million. We offer the best terms and lowest interest rates for owner occupied and second home Jumbo mortgages in Florida.  Five Stars is one of the few lenders that still offers Jumbo financing up to 95%.

Below we will take a look at the latest 2016 Jumbo Loan Guidelines.  Before we start, let’s review exactly that a Jumbo loan is.  A jumbo mortgage is any single loan amount over the conforming loan limit of $417,000 throughout most of the United States. When Fannie Mae and Freddie Mac limits do not cover the full loan amount on high valued homes, the loan is referred to as a “Jumbo Loan” While jumbo loan guidelines may change from year to year, these loans are currently reserved for those who need to borrow anywhere from $417,000 to $8,000,000. In parts of the United States where housing is high cost (parts of California, New York, Florida) the bottom end is set at $625,500.  In addition, FHA even still offers 3.5% and 5% down payment in high costs location with loan amount of over $729,000. Contact us to learn more about FHA high costs loans.

2016 Jumbo Loan Guidelines:

  • 95% Jumbo financing up to $1,000,000 – primary home, full documentation, 680+ credit score
  • 90% LTV to $1.5 million on condos
  • 90% LTV to $1.5 million on primary homes
  • Eligible loan terms include fixed rate terms  in 10, 15, 20, 25 and 30. In addition to adjustable rates (ARM) 5/1, 7/1, 10/1
  • Up to $8 million loan amounts
  • No mortgage insurance
  • Higher DTI allowed with higher credit scores
  • Self-employment with 2 years tax returns okay
  • Income sources include W2, self-employed and liquid assets
  • No seasoning requirements for cash out refinance
  • No Prepayment Penalty

Some notes: Borrowers will want to insure they have a 680+ credit score to take advantage of the lowest interest rates.  Higher down payments will likely be required for home buyers that have credit scores below 680.  Home owners that already have a conventional loan or jumbo can contact us below to learn about Jumbo Cash Out refinance options. Interest rates are still low as we start 2016, and a cash out refinance / debt consolidation could save you hundreds each month.

Home buyers can contact us by calling ph: 800-871-2636  (7 days a week) to start the pre approval process or to learn more about the latest lender and bank Jumbo loan requirements.  For fast service please submit the “Request Information” form at the top right side of your screen.  Mobile users can find the short Request Info Form here.

Be sure view the helpful video below that recaps all the latest 2016 Jumbo and non conventional loan guidelines:

Serving all of Jumbo Home Buyers Nationally including Florida –  Boca Raton , Bradenton , Brandon , Cape Coral , Clearwater , Clermont , Cocoa Beach , Coral Gables , Crestview , Crystal River , Daytona Beach , DeLand , Deltona , Delray Beach , Destin , Dunedin , Englewood , Fernandina , Flagler Beach , Fort Lauderdale , Fort Myers , Fort Pierce , Fort Walton Beach , Gainesville , Green Cove Springs , Hallandale , Hobe Sound , Hollywood , Homestead , Inverness , Jacksonville , Lakeland , Lake City , Lake Mary , Live Oak , MacClenny , Melbourne , Miami , Milton , Mount Dora , Naples , Ocala , Ocoee , Orange Park , Orlando FL , Ormond Beach , Palm Bay , Panama City , Pensacola , Pompano Beach , Port Charlotte , Port St. Lucie , Punta Gorda , Santa Rosa , Sarasota , Siesta Key , Springhill , St. Augustine , St. Petersburg , Sunny Isles , Tallahassee , Tampa , Titusville , Venice , Vero Beach , Wesley Chapel , West Palm Beach , Winter Garden , Winter Haven , Winter Park , Winter Springs , Zephyrhills 2016