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Case Studies -->>
First Time Home Buyers with under $7,000 cash to purchase a home.
Programs
- Seller assist (also known as seller concession) - the seller agrees to pay a portion
or percentage towards closing costs for the transaction.
- Waive escrow - The escrow account set-up with your loan are funds paid
towards real estate taxes and home owner's insurance. Waving the account will reduce
upfront closing costs.
Documentation
- W-2's for the last two years
- Two consecutive pay stubs showing consistency of income.
- Computer print out of the last 12 months of rent from an apartment complex or
12 cancelled checks (front and back) if paid directly to a private party.
- Agreement of Sale signed by all parties to show seller assist if applicable.
- Proof of liquid assets if applicable. ( Ex. Savings/checking, retirement
account, stocks/bonds, CD, money market).
Employment Qualification
- Two consecutive years employed as a wage earner with no employment gaps
- The profession must be in the same line of business but not necessarily with
the same company.
- College education and employment within two years is acceptable if the
profession is the same.
- Self employment for two consecutive years in the same line of business.
- Employment gaps within two years must be explained.
Fixed Income
- Fixed income collecting permanent disability - case by case.
- Fixed income collecting social security income and/or retirement and/or annuities.
- Fixed income collecting permanent disability income - case by case.
Example:
- Financing at 97% of the purchase price with only $7,000 available cash, and waiving escrow
- Purchase price is $200,000
- Real estate taxes and insurance not included in the monthly payment
1st mortgage
Private Mortgage Insurance (PMI)
(When financing under 20% down payment)
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$194,000 x 6.25% =
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$1,194.49
$130.95 (estimate)
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$1,325.44
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Total monthly payment
(principal and interest)
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Example:
- Financing at 97% of the purchase price with only $7,000 available cash with escrow
- Purchase price is $200,000
- Real estate taxes of $2,800 and homeowner's insurance annual
premium of $650 included in the monthly payment
1st mortgage
Private Mortgage Insurance (PMI)
(PMI is required for loans financing over 80% of the property value)
Monthly real estate taxes
Monthly homeowner's insurance
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$194,000 x 6.25% =
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$1,194.49
$130.95
$233.33
$54.17
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$1,612.94
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Total monthly payment
including principal,
interest, taxes
and insurance (PITI)
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The term or length of loan for both mortgages are for 30 years calculated at a
fixed rate. The interest rate, private mortgage insurance, taxes and home owner's insurance
are subject to change daily.
Estimated closing cost without points
Transfer tax @ 1% of purchase price
Title fees (title insurance, recording, notary, endorsements)
Appraisal fee
Lender fees
Home owner's insurance paid for 12 months
Miscellaneous fees (w/s and taxes through the quarter)
Seller assist towards closing cost (up to 3%)
Buyer's total closing cost (remaining due)
Plus 3% down payment of $200,000
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$2,000.00
$2,100.00
$300.00
$700.00
$650.00
$1,000.00
($6,000.00)
$750.00
$6,000.00
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$6,750
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Total cash needed to close
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