My First Boise Idaho Home Loan – Boise Mortgage Loans

It is pretty exciting news for first time home buyers when your loan officer calls to say, YOU ARE APPROVED!  That is great news!  Hold on, not so fast!  Maybe not?

  If a home buyer is applying for a conventional loan with less than 20% down, private mortgage insurance approval is necessary.     Potential home buyers and Realtors, need to know that just because the lender has issued a loan approval, it doesn’t mean the deal is done.   

PMI companies have really cracked down on guidelines recently.  In the “good old days”, 6 months ago, we could obtain PMI approval, in house, instantly.  Now a COMPLETE loan package must be submitted to a PMI underwriter.  Until PMI issues an approval, home buyers and all parties involved are at their mercy.  Appraisals can be cut, incomes can be reduced (especially self employed) for example.  Credit scores HAVE TO be above 700 and total debt to income ratio can’t go over 41%-period.  

Not trying to ruin your day, but this stuff can’t be sugar coated.  Industry professionals have to, once again, reset expectations with home buyers. 

  PMI companies are now “calling the shots” because they are taking the risk.  

A couple of years ago, the 80/20 loan was the hot item and PMI companies we begging for business.  That has now all changed.

I am not trying to bash conventional loans. Just raise awareness.  There are many great home buyer programs available.   Lenders just need to make a double effort to make sure that home buyers COMPLETELY understand the PMI approval process.  It is as critical as the actual  home loan itself

Guild Mortgage – Boise Home loans – Craig Ballhagen             208-713-3309           

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

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Monthly private mortgage insurance really stinks! Or does it?  If you are a highly qualified home buyer, you may be able to take advantage of private mortgage insurance.  That ability will save you an additional 10 to15% less for the down payment, of the normally required 20%.

With the end of purchase money seconds, 80-10-10 and 80-20, the private mortgage insurance companies are now “calling the shots” when is comes to home loans.   If a Boise home buyer is putting less than 20% down on a conventional loan, they must have great scores (700+) and total debt ratios less than 41%.  And the PMI guidelines are changing on weekly bases. 

If a Boise home buyer is lucky enough to qualify for private mortgage insurance, it is actually a good deal.  Let’s do some math….  

To use a purchase price of $250,000 as an example, the home buyer would put 10% down instead of 20%, saving $25,000.   The monthly PMI payment would be approx $140 per month.  After 7 years of regular P and I payments, the mortgage insurance would automatically drop off.  Seven years of PMI payments would total approx $12,000.  That is a $13,000 savings and if the 25k is invested for those seven years, the savings are even greater.  Ask your financial planner for a 7 year proposal option for $25,000. 

If the property happens to appreciate, the PMI could drop off even sooner. That would be great!

There are many PMI examples that can be tested.  Depending on a person credit scores, debt-to-income ratios, and amount of down payment, the cost and time lines will all be different.  Contact your local loan consultant for specific questions and time line analysis.

Go to www.micanews.com for more details regarding private mortgage insurance and how to qualify for cancellation. Good information for Boise Idaho home owners and consumers.

There are still many options for home loans in Boise.  Please take the time to check it out.

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Guild Mortgage – Home loans Boise – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

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Mortgage Insurance is required when a home is purchased with less then 20% down payment.  There is a monthly portion for all FHA loans which is based on .55% and an upfront premium of 2.25% which is financed into the loan amount.

Boise First Time Home Buyers can print out a sample good faith estimate and see the exact numbers for a $100,000 purchase price scenario.

The reason for MI is cover a lender in the event of forclosure, to offset the losses.

Other post like this one-

• The “New” Home Buyer Tax credit For Boise Idaho
• Boise Idaho First Time Home Buyers Mortgage Loan Application
• No HVCC for Boise Idaho First Time Home Buyers
• Boise First Time Home Buyers Leverage Tax Credit
• Boise Idaho Home Buyers Free Credit Report
• Private Mortgage Insurance Really Stinks!

Guild Mortgage – Boise Home loans – Craig Ballhagen 208-713-3309

Idaho First Time Home Buyer Instant Gratification

Request for No Obligation Boise Home loan Analysis

To learn more about Guild Mortgage and myself please visit my other site.

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