Entries by SEO Team

Here’s How to Buy a House in Utah Even With Bad Credit!

Do you intend to buy a house in Utah but you have a poor credit score? While it is easy to get rid of a couple of blemishes on your credit report, the dream of buying a house is one you should never give up on. For first time homebuyers with a bad credit score, how long it will take to buy a house in Utah is one of the questions to seek answers on. Well, the time it will take to purchase a home if you have a poor credit score depends on the strategies you put in place.

In this post, I present some important tips to help shorten the amount of time it takes to purchase a home even when you have a poor credit score.

1. Consider the Mortgage Options For Borrowers With Low Credit Score

For the borrowers with a low credit score, the dream of owning a home remains a valid one! This is through the mortgage options for borrowers with a low credit score. The federal government has put in place multiple loan options for the borrowers who end up with a low credit score. Thus, if you cannot qualify for a conventional mortgage, you may approach your mortgage lender and negotiate for either of the following mortgage options:

  • The FHA Home Loan:

The FHA home loan was established under the National Housing Act, with the aim of stimulating the housing market. This is through enabling citizens who cannot afford a huge down payment and have a lower credit score. As of 2020, new homebuyers qualify for up to 96.5% of the property value, under the FHA home loan so long as the credit score is at least 580. Thus, if you cannot qualify for a conventional home loan since your credit score is below 620, you may try the FHA home loan.

  • The VA Home Loan

For the veterans, active-duty military, and the National Guard members, the VA home loan is a viable mortgage option. The VA home loan sets no minimum credit score requirement, enabling the qualifying first-time homebuyers to apply for the mortgage.

  • The USDA Home Loan

The United States Department of Agriculture designed this product for homebuyers who cannot afford a traditional home mortgage. However, the USDA will only provide the mortgage to the borrowers looking to purchase a home outside the already crowded metropolitan areas. Some mortgage lenders will go as low as 580 for USDA home loans.

Have applied for a conventional home mortgage but you got a negative response because of your current credit score? Choose either of the above options to fast track your journey of homeownership.

2. Be Willing To Accept A High-Interest Rate

Waiting for your credit score to improve may mean that you will not be able to purchase a home anytime soon. If you do not want to wait for a longer period, you may have to contend with the requirement of paying higher interest rates compared to the amount charged for a conventional home loan. In some instances, those with a poor credit score will pay double the rates that a consumer with a high credit score pays. To cater to the difference in credit score, you may have to settle for a less expensive property.

3. Make a Huge Mortgage Down payment

Another option for mortgage borrowers with a poor credit score is paying a huge mortgage down payment. Talk to your mortgage lender and let them know that you are willing to deposit a huge amount in the form of down payment. The mortgage lender will calculate the minimum down payment amount based on your credit score. While this may be a viable option, you may have to pay a high-interest rate on the mortgage. Choosing to pay a huge down payment along with a high-interest rate is a common approach for the mortgage lenders with a poor credit score.

4. Work on your Credit Score

If neither of the above options seems to work for you, it is time you consider working on your credit score. Getting out of the blacklist requires strict financial discipline. In that regard, you need to work on a plan of repaying outstanding debts. Upon clearing the debts, you can then start rebuilding your credit score to the acceptable limits.

A poor credit score can be a huge setback when it comes to buying a house in Utah. However, with the assistance of a reputable loan officer, you can quickly find a mortgage option that can help you purchase a home sooner. Options like the FHA home loan. VA home loan and the USDA home loan have helped borrowers with a poor credit score attain the dream of homeownership within a short period. Talk to a mortgage lender today!

Essential Tips on Buying a House with a Low Down Payment in St. George Utah

Are you considering buying a house in St. George Utah but you do not have enough savings to clear the 20% down payment? Do not be stressed because there are options you can pursue and buy a home with a low down payment or better still, no down payment.

Today, with the high cost of living and left with fewer income streams, raising the 20% down payment can be hectic. In this post, we evaluate the no down payment options and the zero down payment options available to first-time homebuyers.    

No Down Payment Mortgage Options for First-Time Buyers

Mortgage options that require zero down payment enable first time home buyers to achieve their dream of owning a home. Thus, you can use your savings to clear the closing cost or other expenses involved in the home buying process. Here are a couple of no down payment mortgage options available in the market today.

  • The VA Home Loans

Insured by the Department of Veteran Affairs, the VA home loans provide lenient requirements to borrowers. However, the VA home loan is available to the eligible active duty service members, the veterans, and their qualifying spouses. Ideally, the VA home loan is available through private mortgage lenders. However, the US Department of Veteran Affairs guarantees the VA home loan.

The VA Home loan can be used to fund the purchase of a primary residence. The borrowers can be allowed to purchase a home within a multiunit structure of up to four units. To qualify, the applicant must be willing to live in the home, which may be occupied by a spouse if the active member is currently deployed.

The VA home loan also allows the homebuyers to save on mortgage insurance. (The mortgage insurance is often a requirement for conventional mortgages).  However, the applicant has to pay a funding fee, which is usually an onetime fee. Apart from being a no down payment mortgage, the VA home loan has no limits on the amount you can borrow.

  • The USDA Home Loan

Guaranteed by the US Department of Agriculture, the USA home loan is another no down payment home mortgage. The USDA home mortgage was established to enable new homebuyers willing to purchase a property within the listed rural and suburban areas.

Just like the VA home loan, the USDA home loan is available through different private lenders. However, eligibility for the USDA home loan is based on the location of the house you intend to purchase, and not on the occupation. Moreover, to qualify for the USDA home loan, you must meet certain income requirements, and the household income should not exceed 115% of the median household income within a particular area.  

The Mortgage Options with Low Down Payment

Having looked at the different mortgage options requiring zero down payment, let us now turn to the mortgage options that require a low down payment.

  • The FHA Home Loan

Guaranteed by the Federal Housing Administration, the FHA home loan requires only a 3.5% down payment. The low down payment requirement makes the FHA home loan appealing to the first time homebuyers with very little savings. Moreover, compared to the conventional home loan, the FHA home loans have a lower credit score requirement.  The FHA home loan is available to qualifying buyers through the private mortgage lenders. However, the FHA home loan comes with an annual mortgage insurance premium. The amount paid as the annual insurance premium is also dependent on the insurance rates as set by the federal government and depends on the term of the loan and the amount borrowed. However, mortgage borrowers have the option of paying up to 20% down payment for the annual insurance premium to be waved away.

  • Conventional Home Mortgage by Fannie Mae and Freddie Mac

 Unlike all other options we have looked under mortgage loans with low down payment and mortgage options with zero down payment, the conventional home mortgage is not government-insured. Instead, the loan type conforms to the guidelines as defined by Fannie Mae and Freddie Mac. For instance, with a fixed mortgage, first-time borrowers can get a loan with as little down payment as 3%. The borrower is also expected to pay annual mortgage insurance on this type of mortgage.

Conclusion

When it comes to borrowing home mortgage, it is advisable that you evaluate all available options before choosing one. One of the different constraints that many first time home buyers are facing is the ability to raise down payment. However, the low down payment and the zero own payment home mortgages provide an alternative to the mortgage borrowers. To determine the best home mortgage option, talk to a reputable mortgage broker. An experienced mortgage broker shall help you to evaluate the different options.

Stop! Are you making one of these 10 mistakes while applying for a USDA Home Loan in Utah?

If you are planning to purchase a new home in the surrounding St. George area, chances are that you are looking for the best mortgage. While there are different St. George area home loan lenders, it is not obvious that they all provide best home mortgage in St George.

I am going to take you through some of the proven techniques to get the best home mortgage in St. George quickly. Keep reading to find out the tricks.

1. Work on getting the credit score in shape

In the first place, what really matters when applying for different St. George mortgages is the credit score. Before you can even start evaluating the lenders when you need a mortgage for building a home, evaluating your credit score is critical. Consider that lenders of St. George mortgage will check your credit score before issuing the pre-approval letter. Therefore, if you do not meet the minimum credit score to assure the mortgage lenders you can repay the loan, they will not consider your home mortgage application. You can get the credit score report from the major credit bureaus in St George. 

2. Understand what various mortgage lenders are offering

To get the best St. George mortgage for building a home, you need to understand the lending landscape. So, what are the various mortgage lenders offering you? This information is meant to help you as the lender, in  navigating the already overcrowded lending field. To find out this information, begin with an online search. In your search, you will be evaluating what the registered mortgage lenders in St. George, offer

 

The different home mortgage programs available in St. George include:

The home mortgage programs feature different requirements that you have to meet in order to be pre-approved.

3. Get your home mortgage pre approval

This is another important stage when applying for a home mortgage! The mortgage pre-approval letter is important before you start looking at the different houses available for sale. 

In fact, with a mortgage pre approval letter, you gain a competitive edge when bidding for the property of your dreams. The home sellers acknowledge that buyers who already have a preapproval are serious buyers. This is because it is already evident that a home mortgage lender has already looked at your finances and felt that you can afford repaying the home loan. Therefore, getting preapproved is a huge step and one that helps in saving time. 

For preapproval application, the mortgage lender requires particular financial information. This includes:

  • Your social security number
  • The bank account statements
  • Outstanding debt obligations if any
  • Your current payslip if employed
  • Tax return slips if in business
  • Employers letter to prove you are indeed in their payroll

You can seek pre approval from more than one home mortgage lender. This also lets you compare the different loan estimates from each one of the lenders.

4. Compare the lending rates offered by different mortgage lenders

The mortgage lenders will compete to attract borrowers. Therefore, not all of them charge the same interest rates! Note that some will have a high interest rate, but overall the home mortgage is cheaper, compared to what others are charging. Therefore, it is good that you shop around inquiring for the best rates they can afford you as the borrower. Find out the total cost of the loan and the lender fee that you need to pay at the time of closing. Do not forget to go through the lenders terms and conditions regarding the repayments. The objective is to go for a loan with attractive interest rates.

5. Ask around to find out others' experiences dealing with different lenders

You will be surprised with the amount of resourceful information you get from friends and relatives. Unfortunately, new homebuyers want to treat home loan shopping as a private affair. Therefore, they keep the loan application to themselves. Find three to five trusted colleagues of friends and inquire about their experiences. This is particularly if they ever applied for a mortgage for building a home. Take note of how they were treated while applying for a home mortgage, and throughout the repayment period. This gives you an idea of what to expect. The tricks covered here will help you get the best home mortgage in St George Quickly. This is whether you are applying for the mortgage loans with low down payment or the conventional loan. 

With your credit score in a good rating and a clear understanding of what different lenders offer, you can qualify for a mortgage loan. At Sun American Mortgage Company, we provide different home mortgage programs. Therefore, if you need a mortgage for building a home, give us a call today to find out how much you qualify to apply.

The Beginner’s Guide to Have USDA Home Mortgage:

USDA Home Mortgage is a zero down payment loan for rural areas and residential home buyers. It is issued through the USDA loan program, famously known as USDA Rural Development Guaranteed Housing Loan Program. This program was implemented by the US Department of Agriculture, and till now it has helped about 130,000 families to buy their own home. The major goal of USDA Rural housing loan Utah is to ‘improve the economy and quality of life in Rural America’. The residence finds this USDA loan Utah accessible because the low-interest rates and no down payments are involved in it.

Now the question comes, is the USDA loan is right for you or not? So here is how this program works and who is qualified for it:

How does the USDA home loan program work?

There are three major types of USDA home loan programs from which you can choose:

Loan Guarantees: Loan Guarantees USDA home mortgage is issued by a participating local leader who allows you to get a loan at a low-interest rate and no down payment.

Direct Loans: Direct Loan is issued by the USDA and are applicable for someone with low income. This income thresholds vary from region to region. As subsidies are involved in it, the interest rates go as low as 1%.

Home Improvement loans and grants: Home improvement loans and grants permit homeowners to complete the repair work or upgrade their existing home. Its packages are a combination of loans and grant.

Why Choose USDA Rural Home loan?

The major reasons to choose this home loan are:

  • To buy your home in a rural area.
  • Zero down payment is involved in it.
  • The low monthly mortgage insurance is involved in it.
  • It has low closing costs.
  • It is associated with properties in specific rural areas.
  • Flexible qualification guidelines.
  • Up to 103.5% appraisal value.
  • Low rate monthly MI is involved with up-front guarantee premium.
  • Maximum income requirement depends on the country you live in.

How to qualify USDA Mortgage requirements?

When someone wants to qualify the USDA mortgage requirements, it becomes quite important to know the loan guarantee income limit. The Limit of qualification varies by location and household size.

USDA rural housing loan in Utah depends on the owner-occupied primary residences. Here some other eligibility requirements that one should know:

  • It’s compulsory to own a permanent residency or US citizenship.
  • The monthly payment, including taxes, principal, insurance, and interest, should be 29% less of your income. Additionally, you can’t exceed your monthly debt payments more than 41% of your monthly income.
  • It’s necessary to have a dependable income.
  • Appropriate credit history is necessary, where the credit score requirement is 640 or more.

How does USDA Home mortgage works?

To fulfil the requirements of a needy, the USDA is only issued to the applicant who has greater needs. It means that he should belong to a decent, safe, and clean housing; he unable to secure a home loan from the saved money or sources; and he should have an adjusted income, i.e. below the low-income limit of Utah.

What is the USDA home mortgage process?

The USDA home mortgage involves different processes, and it has different requirements for every home buyer. However, a general flow that it follows involves:

  1. Prequalifying with an approved lender to become sure about him and his deeds.
  2. Submitting all the required documents and give it further for pre-approval.
  3. Finding a USDA-approved home that falls in that respected area, as all homes don’t eligible for this loan.
  4. When you are done with the above steps, you can sign the purchase agreement and wait for the appraisal.
  5. It’s necessary to stay calm during the loan processing and underwriting process. Once it is done, then only close the deal.

Difference between USDA Guaranteed and Direct USDA loans:

USDA offers three types of loans, but two different loans that give permission to rural families to buy their dream home are USDA Guaranteed loan and the USDA Direct loan. These two are different from each other in the context of funds and who lend it. In Guaranteed loan, the lender issuing the loan, whereas in Direct loan, the USDA issue the loan and provide a subsidy.

The purpose of both USDA loan programs is to allow people to buy homes in rural areas. Also, they both have the same purpose, but they behave differently in financial situations.

Bottom Line:

USDA Rural Home Mortgage program is specially designed for the rural area population to buy their own home and get better deals, terms and options. And if you want to avail USDA rural housing in Utah, then Sun America Mortgage can be your one-stop solution. If you live in a rural area and you meet the income requirements, then you are eligible for USDA loan in Utah.

So are you not sure from where you can get the USDA Rural housing loan or USDA home mortgage? Simply call us and we’ll look for the best offer for you.

The Unspoken Truth they never tell you about First time Home Buyers:

A lot of first time home buyers have no idea what they’re doing when they stumble across this unfamiliar terrain and have been known to make some regrettable decisions in the process. Sure, some can get some good advice from family & friends that have been through the process before. It just might not always be the most accurate or up to date advice. In this post, we’ll go over some common mistakes a lot of first time home buyers make, and hopefully, by going over them, you’ll be able to avoid them too.

avoid these common mistakes

Looking for a home before getting pre-approved: I know, I know. It’s so exciting to start house hunting. Seeing all the pretty homes out there gets you excited to move in and start your life. Doing that might be a very bad idea though. If you’re looking for homes way out of your price range, you could get attached & set yourself up for some emotional disappointment. Do yourself a favor and go get pre-approved from a Mortgage Lender so you know what your price range is, then go shopping!

Not checking the first time homebuyer programs: Contrary to popular belief, you don’t have to save a ton of money when you’re buying your first home. Many Utah housing down payment assistance programs will help you to make a better choice and save more. Just ask your mortgage lender and they will guide you in the right direction of which ones are going to be most beneficial for you.Buying a more expensive home than you can afford: We easily fall in love with beautiful homes that always makes us want to stretch our budget. But that stretch can lead to tough financial times. I know a bigger, nicer home is more enticing, but try to be responsible and do what’s going to be best for your family. I promise it’s not worth the risk. You may even find a smaller similar version to what you’re wanting if you keep the search up!

Rushing into a Home: A lot of young couples are eager to buy a home shortly after they get married, and I can’t say I blame them. It’s an exciting time for sure. Usually, young couples aren’t always financially prepared for the burden of home ownership though. Even though many great programs offer zero percent down options, I’d still recommend taking some time to save up enough to put down at least a small down payment, or to cover closing costs.

Being Careless with Credit: The first thing your Mortgage lender will check is your Credit Report. If you’ve ever gotten any kind of loan before, you should know this. You don’t have to go overboard and count every dollar. Just try to do your best & pay your credit card bills from time to time.

Overlooking USDA, VA, and FHA loans: Being a first-time buyer can be complicated, and choosing the right loan can be difficult. Each type follows a different set of qualifications to get, so it can be really hard to narrow down what the best option for your family is going to be. To help you be sure, there are about three major types of loan programs, specifically designed with first-time home buyers in mind, that’ll make your life a little easier:

      • FHA Loans: Backed by the Federal Housing Administration, this loan allows home buyers to own a property with as little as 3.5% as the down payment. The loan is an excellent choice for people with a high debt to income ratio, or with a credit score that’s less than perfect.
      • VA Loans: VA loans are eligible for active-duty and retired veteran military members and their surviving spouses. This loan offers a low down payment and lenient credit scores.
      • USDA Loans: The USDA home loan is also referred to as the Rural Housing Loan. As the name depicts, the USDA home loan is available to those willing to purchase a property in suburban neighborhoods. 

The objective of the USDA home loan is to reach the low to moderate-income homebuyers by providing a mortgage at 0% down.

Draining Your Savings: Probably one of the worst things you can do is saving all your money to put 20% down and being left with nothing when it comes time to buy. I understand wanting to avoid mortgage insurance seems like a priority, but you’re doing yourself no favors if you end up needing that money later on down the road. Ask your Loan officer what they would advise you to do with how much you have saved up. They see this kind of scenario all the time and should be able to give you sound advice.

Missing the First Mortgage Payment: Some homeowners skip their first monthly payment trying to play catch up from just buying their house. Some thought that it will auto-deducted but it doesn’t always deduct automatically. That small mistake can lead to bigger problems later on in the future & might get you in this never-ending cycle of playing catch up. Be sure about the payment and understand your mortgage lender when it comes time to close your loan. They wouldn’t let you get yourself into a loan you could afford to pay, so have trust & make sure you put aside the right amount.

I hope you can learn from the mistakes of others, so you can avoid some of the heartbreak others have had to endure. Remember, the first step is finding a good Lender to help you figure out your price range so you can get to house hunting! Sun American Mortgage has you covered no matter what your financial standing may be. Our friendly loan officer would be happy to answer any questions you might have and run through scenarios with you to make sure you get into your dream home without breaking your wallet!

Best Mortgage lenders in Utah for first time home buyers:

Mortgage Lenders

Mortgage Lenders in Utah allows you to take home loans using the institution’s funds. They can be banks or credit unions, who land you the money to fulfil your dream of buying a new home. Your home is likely to be the largest purchase you make in your lifetime and that’s why selecting the right mortgage loan as per your needs become quite important. However, most of the people make a wrong move and choose the wrong lender for themselves. So research well and choose the best mortgage lenders in Utah for yourself.

Benefits of Choosing the Best Mortgage Lenders in Utah:

The Best Mortgage Lenders in Utah will always offer the best deals, negotiates, and processes the selected loan for the first time home buyers. Here are six services that a qualified and experienced mortgage broker offers:

  • Offers access to Hundreds of Loan Services: A professional mortgage lender will offer a wide range of mortgage loans with low down payments. The greater lender’s experience and network you choose, the better opportunities they will provide you on loans.
  • Suggest the Most Advantageous Deals: Mortgage lenders makes decisions as per your requirements, rather than offering a deal that will benefit their institution. They work as the problem solver and knowledgeable consultant. And as they have access to a wide range of mortgage products, you are promised with the greatest value in terms of interest rate, repayment amounts, and services. A professional will always interview first, identify your requirements, your goals, and then decide the best Mortgage deal for you. Therefore, this is not wrong to say that, innovative mortgage strategies and its genuine services will be provided by an experienced lender.
  • Experience and Flexibility to fulfil your needs: The Best Mortgage lender in Utah will navigate the client through any problem and smoothly handle the whole loan process. Suppose, if a client has some credit issues, the lender will come out with the best services to meet their need without costing you more. The client who needs a larger home loan and if their bank is not offering the same, then the lender’s knowledge and ability will also help them financially.
  • Saves Time: With Mortgage Lender, you simply have to fill one application and you will get the best services. They will provide you with a formal comparison of all loans, guide you with the accurate information, portray the real cost with current interest rates, and reflect the closing costs of the selected loan.
  • Saves you Money: Mortgage Lender will offer the best available rates on a loan, which will lower down the client’s total cost. They will try to offer the best services in the budget and make things smoother.
  • Delivers Personalized Services: Every mortgage lender provides different services for the same loan, and you should select expect from them to help you, be available for you, and advise you all over the process. Also, they should offer some personalized services that will benefit you in a long time.

How to Pick a Mortgage Lender?

While buying a new house, the best thing you can do is to find the prominent Mortgage lender. For most of the buyers, getting a beneficial mortgage is necessary. And not only for home buyers, but it’s also very important to get a mortgage for building a home. And luckily, a specialized mortgage lender will fill the gap between how much money you have and how much money you will need to buy a new home.

They are better in terms of business and that’s why they offer you with the appropriate deal. However, comparing and selecting the right mortgage lender becomes more important as you don’t want to spend more while investing in a new home. And if you will initially invest your time in this process, it will help you save money and decrease all the further hassles.

By doing your homework, you will be able to save your time, efforts, and money during the processing stage. Here are some tips that will help you to pick the right mortgage lender:

  1. Work on your Credit Score: The better credit score will help you to get an amazing mortgage. And it’s not necessary to have a perfect score, just make sure to have a higher score. The better score will help you to find a better mortgage lender who will offer brilliant deals.
  2. Get a recommendation from someone trustworthy: If someone has bought a home recently, then they will be able to share their experience and help you in finding a better lender. Their experience will help you to be a smart buyer and protect you from common mortgage mistakes.
  3. Check Online Reviews: The past online reviews help in understanding the working of the Mortgage lender. Spend a few days to check it and attain the useful knowledge. Try to feel like a borrower at the time of reading reviews.
  4. Understand the charges: Every lender charges different interest rate, which is the major factor to concern while taking a loan. Also, some lenders fees over-processing, origination, underwriting, rate lock, appraisal, application, and private mortgage insurance. So make sure to understand all the expenses carefully and then be sure about it.
  5. Understand the Qualification letter provided by the lender: When you are taking a loan for your new home, you have to understand pre-approved and pre-qualified mortgage. Pre-approval is harder to get. Here, the lender checks the credit score and confirm your current income. Whereas, the pre-qualification mortgage can get on the phone and no special documents are verified. As a borrower, you need to understand the terms of both mortgages and define the best for you.

Now, the question comes, which is the best mortgage lenders in Utah for the first home buyers. So always check the interest rate, terms of costs, services, and transparency in mind. Talk to the home mortgage experts at Sun American Mortgage. You can choose from Conventional home mortgage, FHA home mortgage, Reverse Home mortgage, USDA Rural Loan, VA home mortgage, and Jumbo Loans. We assist the Utah and neighbouring places in getting home loans. Even first time home buyers can take advantage of it. So for more details, contact us.