Author: Todd Kurio

The Two Types Of Private Mortgage Insurance (PMI)

When looking into financing, most borrowers want to avoid paying private mortgage insurance.  Private Mortgage Insurance(PMI) is generally required on conventional loans when the loan amount is greater than 80% loan to value (meaning you have less than 20% equity in the house). The two types of mortgage insurance are Borrower Paid (BPMI) and Lender Paid (LPMI).  Lets take a look at each.

Borrower Paid or BPMI

The lender charges a yearly premium paid out in your monthly payments.  The average BPMI is .21 and 1.15%, depending on how much you put down and what your credit score is.  BPMI can be cancelled by law.  Once the balance reaches 78%, the lender is required to cancel BPMI.  There are other options to cancel the the PMI at 80% loan to value.

Lender Paid or LPMI

Includes the cost of the insurance in the form of a higher rate. In exchange for covering the PMI, the lender charges you a slightly higher rate for the life of loan. It normally results in a lower monthly mortgage payment than BPMI. This type of mortgage insurance can’t be cancelled.   The LPMI is usually an attractive option if you are likely to move or refinance within 7-10 years. LPMI may have tax benefits compared to borrower paid monthly which is no longer tax deductible(for tax advice, please consult a tax professional). Borrowers can generally purchase 5% more house with LPMI than with BPMI for the same monthly payment.

Keep in mind, these types of insurance should not be confused with insurance that pays off your mortgage upon death, or homeowners insurance, which protects you from losses due to such events as wind, fire, damage,etc.  This type of mortgage insurance only protects the lender in case of default (non payment of the loan).  Even though the borrower/buyer pays for this type of mortgage insurance- it does not protect the borrower- it protects the lender.

However,there are ways to avoid the monthly mortgage insurance cost. In addition to doing a “piggyback” loan where you get a first and second loan to avoid the mortgage insurance, you can also avoid monthly mortgage insurance costs by obtaining Lender Paid Mortgage Insurance, one of the two types of mortgage insurance we discussed above.

For more information on ways to avoid mortgage insurance and lower your monthly mortgage payment- please contact Todd Kurio, Residential Mortgage Loan Originator, todd.kurio@capstarlending.com, 512 459 2405 NMLS#216616

The 5 Types Of People Who Qualify For FHA Loans in Texas

Are you one of the lucky 5 types of people who will qualify for an FHA loan? Keep reading to see if you may qualify for an FHA Loan in Texas.

FHA stands for the “Federal Housing Administration” and is a part of HUD, the Federal Government’s “Housing and Urban Development” department. This branch of government insures loans so lenders can offer better rates on mortgage financing. It also comes with some great options for those who need some extra financial help like a low down payment, lower closing costs and easier credit qualifications.

1. First Time Home Buyers

First Time Home buyers love the FHA loan because it allows them to put down a smaller down payment, as little as 3.5% and the seller can pay your closing costs and prepaid fees. Let’s face it, most young people today are struggling with student loan debt and a sluggish economy. Any opportunity to part with less cash is one to be considered! If you already have a property in mind, you should check with your loan officer to see if your desired property would qualify under the program, but typically the maximum number of units the property can have is 4(fourplex).

2. The “Do It Yourself-er”

Do you like to work on home repairs and remodeling?Think you can handle a fixer-upper? If you want to completely customize a home, then an FHA Loan can help you by rolling the total cost of the remodel or repairs into one loan. You can also refinance the cost of the repairs or remodel into a new FHA loan. This type of loan is called a “203k.”

3. The Senior Citizen

There has been a lot of  talk about reverse mortgages lately. The FHA website has a great fact sheet for further reading on requirements here. The basic qualifications are that you must be at least 62 years old, own your home outright or have a very low balance. If this sounds like you, follow the link above to learn more about qualifying and turning your home equity into cash you can use to meet monthly expenses.

4. The Eco-Conscious

Are you worried about wasting energy and would like to make energy improvements?There’s an FHA mortgage for that! Check out the FHA Energy-Efficient Mortgage. This relatively recent (1995) program helps homeowners by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage. For more information go to the energy efficient mortgage description on the HUD website.

5. The Mobile Home Owner

There are two types of loans for those who wish to purchase a mobile home or a factory built house. There is one type of loan for people who already own the land that the home is on and another for mobile homes that are or will be located in a mobile home park. You can read HUD’s most recent newsletter titled: The FACTs: HUD’s ManuFACTured Housing Newsletter here.

 

I hope this cleared up questions about qualifying for an FHA loan. If you feel like you may be one of the lucky types of people who will qualify for an FHA Loan in Texas. Don’t wait call or email today!

Capstar Lending does not currently offer all of the loan programs described above but please contact Todd.Kurio@capstarlending.com or call 512-459-2405 for more details. NMLS#216616 Residential Mortgage Loan Originator

Citation: http://portal.hud.gov/hudportal/HUD?src=/buying/loans

 

VA Home Loans : A Slideshare Presentation

I recently shared on social media that the VA Home Loans program is hugely underused. This is partially because the program, which was created in 1944, isn’t promoted as much as it should be. Out of the 16.4 million active service members and military veterans with mortgages, only 12% have a loan guaranteed by the Department of Veterans Affairs. Many Vets simply don’t know about the program and many loan officers don’t think to ask their clients if they’re service members!

I would like to help Vets, and especially Texas Vets, to better understand what they need to know to qualify for VA home loans Texas, as well as their eligibility requirements, limits and the advantages of the program. Take a minute to check out the Slideshare presentation I created that address all these things as well as provide you some resources to start the application process.

 

I hope you enjoyed the presentation and would trust me to serve your VA loan. Please contact me at (512) 459 -2405 or at Todd.Kurio@capstarlending.com today so I can answer your questions and get started.

Home Loans For Teachers: Texas Heros and Home Sweet Texas Home Loan Programs

Capstar Lending participates in the Texas State Affordable Housing Corporation’s Homes for Texas Heroes and Home Sweet Texas Home Loan Programs. Capstar Lending is one of the program’s approved lenders and we’d like to help even more families achieve their dream of homeownership this year.

Who Is Eligible For The Program:

“Texas heros” are great people like teachers, correction officers, EMS workers and firefighters. For the full list of who is eligible, see here. We have received a lot of questions as to what kind of “teachers” are eligible for the program.  The answers may surprise you since the program is very inclusive to those working in Education. You will qualify for the program if you are a “Professional Educator.” This means a full-time, public classroom teacher, teacher aide, school librarian, school counselor certified under Subchapter B, Chapter 21, Education Code, or school nurse. “ (source: http://www.tsahc.org/) If you are uncertain about your eligibility the TSAHC website has an “Official Records” search, where you can look up an educators status by typing in their name which will bring up certification records, if any. You can find that search form here. There are other eligibility requirements and many of your questions can be answered on the TSAHC website. If anything remains unclear feel free to contact Todd Kurio directly at 512-459-2405 or by email.

What The Program Has To Offer

The benefits of the program are as follows: -A 30-year fixed interest rate FHA, VA or USDA mortgage loan -Down payment and closing cost assistance of up to 5% of the loan amount -Down payment assistance is a grant and never needs to be repaid -Available for the purchase of a home or refinance of an existing loan -You do not need to be a first-time homebuyer – See more at: http://www.tsahc.org/homeownership/loans-down-payment-assistance

Where Do I Have To Live To Participate and What Do I Need To Apply?

To participate in the program, you can be located anywhere in Texas, although the income limits will vary by county. Here is a list of income and purchase price limits by county. Beyond these limits the program does not limit you to certain areas or to TSAHC-specific homes. You may choose where you would like to live and the home you would like to purchase. In order to apply, you will first need to attend a homebuyer education course which will teach you about the process of buying a home. It will arm you with knowledge and help you avoid any potential pitfalls. After you attend an education course, you should contact an approved lender to get the process started. Remember Todd Kurio at Capstar Lending is an approved lender. Upon contacting him, you will be guided through the process of eligibility, requirements and necessary paperwork.  You will not need to submit an application through TSAHC, Todd and his team will take care of that for you. Don’t hesitate to call with questions if you are unsure.

Don’t waste another dollar on rent! Take the first step in making your dreams come true by contacting Todd today!  Residential Mortgage Loan Originator NMLS #216616/214411

The 4 Best Mortgage Assistance Programs Available in Texas

Getting approved for a mortgage loan is one of the first steps in buying a home. But for people with past credit problems, income limitations, or other economic hardships, getting a mortgage through traditional routes can be difficult or impossible. This is where mortgage assistance programs can help.

You may have noticed that I have been promoting our mortgage assistance programs more than ever. There are a number of programs available to help everyday people obtain mortgages – programs like Zero Down VA Loans, Zero Down USDA Loans, programs through the Texas Veterans Housing Assistance Program, bond programs such as SETH, and programs through the Texas Department of Housing and Community Affairs. It’s just a matter of figuring out which ones you qualify for and letting us help you get the process started.

Below are the some of the best mortgage assistance programs available for home buyers in Texas.

VA Loans

Most veterans are eligible for a VA assistance, which provides low cost financing and other programs to help veterans build or purchase a home with little to no down payment. VA loans are offered by private lenders but a portion of the loan is guaranteed by the Veterans Administration. This means the lender can offer better terms on the mortgage note, and veterans who otherwise wouldn’t have had enough cash to purchase a home can now obtain financing.

The types of VA assistance available include:

  • Purchase Loan – for building or purchasing a home. No down payment or private mortgage insurance is required.
  • Interest Rate Reduction Refinance Loan (IRRRL) – to refinance an existing VA home loan.

Eligibility for VA assistance depends on your military service, credit score, income, and possession of a valid Certificate of Eligibility (COE). Please call me at 512-459-2405 to learn more.

FHA Home Loans

The FHA home loan program is administered by the U.S. Department of Housing and Urban Development. This program has more flexible debt to income ratios and lower minimum credit scores. It is a perfect resource for first time home buyers who have very little savings, who have had credit problems in the past, or who want to save the extra cash to fix up the home they are purchasing.

FHA loans are offered by private lenders but are insured by the Federal Housing Administration, enabling the lender to offer a better deal that includes:

Low down payments – as low as 3.5% of the purchase price.
Little to no closing costs with seller paid closing costs or lender paid options

There is also additional assistance for first time home buyers available through SETH. Read on to learn more.

Mortgage Grants – Southeast Texas Housing Bond (SETH)

The SETH Single Family Bond Program offers down payment assistance, closing cost assistance, grants, and fixed-rate mortgage financing for buyers in select Texas counties who have a maximum household income of $88,205 (although this amount varies by location).

SETH Program works as follows to help first-time homebuyers purchase a home:

SETH 5 Star Texas Advantage Program – provides a grant of up to 5% of the cost of the home. Repayment of the grant money is not required. Applicants do not need to be a first time home buyer, and the funds may be used for mortgages with fixed 30 year rates. The program is available everywhere in Texas except for El Paso, Grand Prairie, and McKinney.

MCC Program – Texas Mortgage Credit Certificate Program

This program allows buyers to claim a tax credit of up to $2000 for a portion of their mortgage interest payments. The credit can be claimed every year for the life of the loan and helps reduce overall federal tax liability.

To qualify for this program, buyers must:

  • Qualify for a mortgage loan through a lender
  • Have not owned a home in the past three years
  • Meet certain income requirements
  • Agree to make the home their primary residence

All types of mortgages (including VA, FHA, and conventional loans) are eligible for the program. It can be used for new construction or existing dwellings, including single family homes, townhomes and condominiums.. Buyers utilizing this program must complete a pre-purchase homebuyer education course and pay an issuance fee at closing.

If you think you might qualify for one of these programs, don’t hesitate, call me today!
I have a 5-star google rating in customer satisfaction and have the experience servicing all these types of loans . I would like to help you achieve your dream of homeownership.

Please contact Todd Kurio, Residential Mortgage Loan Originator at 512-459-2405 to get started today!

VA Loans Texas: What You Need To Know Now

va loans
The Veterans Administration provides low cost financing options for veterans looking to buy or build a home. If you are looking to better understand VA loans Texas, how they work, and who is eligible, read on to learn more about this special mortgage program for veterans.

What is a VA Loan?

A VA loan is a special home loan for military service members and military veterans. Veterans must secure a VA loan through a traditional lender, however a portion of the VA loan is guaranteed by the Veterans Administration. So these loans are different from typical mortgage notes.

VA loans can be used to:

  • Buy a home
  • Build a home
  • Refinance an existing VA mortgage

VA loans used to build or buy a home are called Purchase Loans. Veterans who already have a VA loan on an existing home and wish to refinance can apply for an Interest Rate Reduction Refinance Loan (IRRRL). A Purchase Loan is generally intended to be used once, however some veterans who do not use the full amount they were eligible for can put the remaining amount towards the purchase of a future home.

What are the advantages of a VA loan?

Because the Veterans Administration guarantees a portion of the loan, the lender can offer better loan terms to the customer. These loans allows families to purchase a home:

  • With little or no down payment
  • Without having to purchase private mortgage insurance
  • With a competitive interest rate and favorable loan terms

The VA loan allows veterans to shorten the time of paying costly rent since they don’t have to save for the  down payment (traditionally 20 percent of the purchase price, although sometimes as low as 3 to 5 percent), and therefore cannot qualify or delays the ability to qualify for a traditional mortgage.

Who is eligible for a VA loan?

Most veterans (and some surviving spouses) are eligible for a VA loan. Veterans must meet one of the following criteria for military service, or they must be a surviving spouse of a service member killed in the line of duty:

  • 181 days of peacetime active duty service
  • 91 days of wartime active duty service
  • 6 years of reserves or national guard service

VA loan applicants must also provide evidence of a good credit score, sufficient income for the purchase price of the home, and a valid Certificate of Eligibility (COE) showing their qualifying military service. We obtain this certificate for you during the application process. We now have even more information regarding VA loan eligibility on our website.

Are there any limits on the VA loan amount?

Yes, and these limits are based on median home values as estimated by the Federal Housing Administration.

In Texas, a veteran with full entitlement may borrow up to $417,000 without a down payment. To increase this amount, the veteran would need to pay a percentage (25%) of the difference between the sales price and $417,000. This amount would be considered a down payment on the home, and is usually significantly smaller than a traditional down payment.

I can help you through the entire process.  Contact me today at todd.kurio@capstarlending.com or call me directly at 512-459-2405.  NMLS#216616

I look forward to assisting you purchase or refinance your home!

Downpayment Assistance Texas – Grant Program

If you have been waiting to buy a house because you needed to save more for the down payment- Capstar Lending can help.  Capstar Lending thru the Southeast Texas Finance Corp (SETH) is offering Down Payment Assistance (Grant Money) up to 5% of the loan amount.  This grant may be used to fund up to 100% of the borrowers cash to close, including the down payment, closing costs, prepaids, and other related mortgage loan fees and expenses.   This program is for primary residence, owner occupied properties.  Income limit for the borrower on the loan(not family income) is $86,710 for Austin-Round Rock- San Marcos MSA.  This program is based on FHA loan parameters. Maximum purchase price is $250,200.   There is NO first time homebuyer requirement. No federal recapture tax. Find out more information about all our mortgage assistance programs.

NMLS# 216616
Direct Line: (512) 459-2405
E-mail: todd.kurio@capstarlending.com

Capstar Offers “Home Possible” Mortgage

Capstar Lending is pleased to announce they have expanded their mortgage offerings to include the “Home Possible” Mortgage.

Home Possible Mortgages are a responsible, low down payment mortgage option that will help more borrowers realize their dream of homeownership.

Home Possible is a loan option for first-time homebuyers and low- to moderate-income borrowers.

Key Features

  • Stable monthly payments with our fixed-rate mortgages
  • Reduced mortgage insurance coverage levels
  • Flexible closing cost funding options
  • No cash-out refinancing
  • Additional flexibilities for teachers, firefighters, law enforcement officers, healthcare workers, and members of the United States Armed Forces

Source: Freddiemac.com