Cryptocurrency, like Bitcoin, CAN be used for funds for closing on a home as long as the cryptocurrency (i.e. virtual currency) meets certain criteria. Fannie Mae and Freddie Mac require that the funds be exchanged into U.S. dollars and that held in a U.S. regulated financial institution. In order to use conventional financing, there needs to be enough documentation to meet conventional guidelines, including: [Read more…]
Using Cryptocurrency for a Down Payment
June 7, 2022 by Leave a Comment
How Does Dave Ramsey’s Advice on Mortgages Pencil Out?
October 14, 2021 by Leave a Comment
Last month I wrote about advice I’ve been seeing popping up in my Facebook feed from Dave Ramsey on mortgages. There are several points that I just don’t find realistic for the average person who wants to buy a home, such as only using a 15 year amortized mortgage with 20% down payment and limiting your mortgage payment to 25% of your take home pay. I promised that I would share a follow up post where I review different scenarios comparing his advise to real life scenarios. [Read more…]
Should You Follow Dave Ramsey’s Advice on Mortgages?
September 29, 2021 by 2 Comments
Dave Ramsey is someone a lot of people follow for financial advise. Lately he’s been showing up A LOT in my Facebook stream pushing his thoughts on mortgages, home ownership and credit. Some of his ideas, I don’t totally disagree with. In fact, I shared a post that came from his group encouraging people to continue to pay rent and make their mortgage payments during the pandemic if at all possible (ie nothing is for free). However, I don’t support what he instructs his followers who are considering buying a home and I also have an issue with anyone who pushes their “team of vetted real estate agents”…I would be really surprised if there is not some sort of financial relationship associated with this referral arrangement.
Let’s take a look at what he encourages his followers to do with regards to buying a home or getting a mortgage. [Read more…]
The REAL Income Needed to Buy Median-Priced Home in Seattle
February 26, 2019 by Leave a Comment
KOMO News is reporting that it takes an income of $105K to buy a median-priced home in the Seattle area. This is based off a report from HSH.com. When you dig deeper into the report, here’s how HSH.com came up with their numbers: [Read more…]
High Balance Conforming Mortgages to Reduce Down Payment Requirements
October 16, 2015 by 2 Comments
Fannie Mae has announced that effective mid-December 2015, high-balance conforming mortgages will have lower down payment requirements. “high balance conforming” mortgages are loan amounts that are higher than “traditional” conforming loan limits ($417,000) and less than non-conforming mortgages and are available only in certain counties that are considered to be “higher cost”. In Washington State, currently (2015) King County, Snohomish County, Pierce County and San Juan County have “high balance conforming” loan limits. The high balance conforming loan limit for King, Snohomish and Pierce County is presently $517,500 for a single family dwelling.
Tips on how to save up for a down payment
December 19, 2014 by Leave a Comment
Get Rich Slowly recently posted How to Save Up for a Down Payment Fast. I’d like to respond to some of the ideas offered in GRS’s post from a Mortgage Professional’s viewpoint and offer my advice.
Here are some of the suggestions on How to Save Up for Down Payment Fast along with my 2 cents (in italics).
Reduced Down Payment Conventional Loans may require Compensating Factors
November 7, 2014 by 1 Comment
Mel Watt, Director of the FHFA, has released his prepared remarks for the National Association of Realtors Conference. In his remarks, he addresses the lower down payment options that should be available soon with conforming mortgages and that they will require compensating factors.
Why use an FHA Mortgage for your home loan?
November 2, 2014 by 3 Comments
EDITORS NOTE 2/3/2015: Since writing this post, HUD has reduced mortgage insurance premiums (yay!) and loan limits have changed. Part of the fun of writing (and reading) a mortgage blog is that guidelines and programs change constantly. Reader beware. 🙂
When Washington state home buyers and home owners request a mortgage rate quote from me, they have many options, including FHA or conventional financing. Over recent years, conventional financing has become a more popular mortgage than FHA, despite FHA’s lower down payment requirements.
What’s not so hot about FHA?
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