Your Questions About Check My Mortgage Loan

Ken asks…

Questions about capital gain and the USDA Rural Development Loan…?

My husband and I have had our house since June of 2008. We need to relocate and worry about selling our first house.

Question #1—How do capital gains work? Our purchase price was $80,000. Which, was a seemed like a steal (2 acres, 3 outbuildings, 3-4 bedroom farmhouse). Since we’ve bought it we’ve put $20,000-$25,000 in it. I’ve figured I need about $115,000 to break even (home equity loan, pay off original mortgage, and home improvements). I won’t be upset if I make a profit, but will try to make one none the less. I plan to list at $135,000. If I make a profit how much am I looking at in taxes? Is this going to be a big hit?

Question #2—Everyone tells us we should check out the USDA Rural Development Loan. I’ve been on the government website and my husband and I qualify financially. Also, according to the map it looks like the area qualifies too. Is it that easy? Is this only for first time home buyers? We had help purchasing our first home from some inheritance. I worry that the money won’t be there this time; especially since there’s no telling when we’ll sell our first house. What are the benefits to this USDA loan? Their website won’t tell me anything! Anyone have any personal insight?

Thanks!

admin answers:

I can’t answer your question about capital gains but I can answer your question about the USDA loan.

While you do need to qualify under the income limits and location there is a little more to it.
The one thing with USDA is their debt to income ratio guidelines. They cap you at 41% but they will go higher with compensating factors.

Now on to the benefits.

1) The USDA loan is not just for 1st timer buyers.
2) The USDA loan does not require money down
3) There is no monthly mortgage insurance.
4) Lenient credit/credit score requirements.
5) Really low interest rates.

John asks…

Info on a USDA loan…?

I’m currently starting an FHA loan but they obviously don’t want my money because its gifted money that was being saved by my parents from home so there’s no paper trail. I told them the situation and they said that with cash gifts there’s no way to know that it wasn’t borrowed. Well in my opinion there’s never really a way to know if it was borrowed if I go borrow the money, pay it off and leave in my account for a few months then they wont know where it came from…idiots. lol. I checked with another mortgage company and they said they can do a USDA loan where its 100% financing. I haven’t read anything bad about this loan and I’ve asked around. No one seems to know very much, except for one person saying that their Aunt tried to sell her house while still paying on a USDA loan and couldn’t keep the profits like it went back to the government or mortgage company. No idea. That sounds odd to me. I asked the lady at the mortgage company and she said she’d never heard of that and I don’t trust her so I’m asking you guys if you’ve heard any thing like this or anything negative that I need to watch out for. There has to be a catch. Why finance through a bank of even do FHA if your payments will be lower and not have to pay PMI as you would with FHA and still put money down for higher payments? Doesn’t make sense to me…this is getting out of hand and is quite stressful. Any info would be helpful. Thanks!

admin answers:

There are 2 types of USDA loans, the Direct and the Guaranteed. Your aunt likely had the Direct loan. USDA Direct loans (or section 502) are for very low income buyers and are subsidized; meaning that the USDA actually covers a portion of the mortgage payment each month and you pay it back when you sell or refi. Which is why your aunt would have owed some of her equity back. The Direct loan can only be received from a USDA office.

The Guaranteed loan is different. Banks, brokers and credit unions can offer this product. It’s lent on their money and just “guaranteed” by the USDA. The USDA does have final underwriting approval on these loans. They are for low-moderate income families and are only available in rural – semi-rural areas (generally under 20k people). There are income and geographic restrictions. Here is a link to tell you if you are eligible:

http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&NavKey=income@11

This is a fantastic loan product if you qualify. The benefits include:

*100% financing
*Will finance up to Appraised value – so if it appraises higher than sales price you can finance repairs, appliances, closing costs, or more
*No monthly mortgage insurance
*No subsidy to pay back
*Low fixed rates on 30 year terms (comparable to FHA rates)
*Easier credit qualifications – no seasoning on bankruptcies and no minimum credit score requirement

Good luck!

Chris asks…

Did you hear about Nancy Pelosi trying to push another stimulus check bill through Congress?

OH MY GOSH!!! ARE YOU KIDDING ME??? She actually THINKS that this would help solve our economic downfall of America??? The one truth behind her stupidity is that this is an obvious political stunt to be able to try to shame Bush into appearing that he doesn’t care about the American people when he VETOS this idiotic idea!!!! Where would THAT money come from anyway??? OH, let’s add on to the billions of debt the government just used to bail out these mortgage loan companies!!! Good one, Nancy! Do you agree with me?

admin answers:

She did not seem to think it was a good idea when Bush wanted to do it, but now she had “come up” with the idea she thinks it’s great. A few measly $ is not going to fix the economy at this point, and all it is going to do is cause more taxes in the long run to make up for it.

Ruth asks…

Paying off mortgage faster without higher payments?

I have heard about this but haven’t checked it out yet. I am hearing there are a few different ways to pay off my mortgage faster.

I read a good summary of it here:

http://www.tomvoli.com/pay-off-mortgage-early/

I am new to this so I was wondering if anyone else has checked this out. I found out that GMAC does offer an acceleration loan but not directly. Seems like an awesome idea.

admin answers:

On the average if you send in 1 extra payment per year you will save by paying the loan of early which saves you intrest. For example a 30yr mtg will be paid off in about 20 yrs. Saving intrest save you on your total cost of the home. You do not have to sign up to do this ( some charge a fee) you can do this on your own.

Joseph asks…

Should I consider Charles Schwab for my home mortgage?

I’m looking for the best rates and they seem to be very competitive. I’ve had checking account with them for 6 months or so and have been pleased with their service so far. Has anyone taken out a home loan with them yet? Was it a good or bad experience?
Answers from Schwab customers would be appreciated. I’m only interested in answers pertaining to this company.

admin answers:

As long as your mortgage terms are fair and not expensive.
1- like low -fixed interest rate,
2-low closing cost
3-no penalty if you pay off or refinance your loan.
After the they give the faith estimate , take it and ask 2 other banks if they could give you lower rat, cost….or terms. And if they could not do it ,you know that you get your self a great deal.

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Your Questions About Check My Mortgage Loan

Lizzie asks…

Why do I have an agricultural loan?

Bought house I live in 4 years ago. Recently went to refinance to the bank which holds my Mortgage. The mortgage originated through a morgage broker, as a “first time buyer, no closing costs (costs rolled into the mortgage)” loan. So now this banker told me he could not refinance me because it was not residential! He told me it was down as an “agricultural loan and what was I farming?” I do not have a farm! I wish I had a farm though, but the house is only on 3.5 acres! Shortly after, I ran a yearly credit check and paid attention to the details of my mortgage, and sure enough My credit report has this house’s mortgage down as “AGRICULTURAL!” Did I get scammed by the mortgage broker? All I remember him saying about anything was , asking if the house was in a rural area, and me saying yes, that it had a low population density and that I am surrounded by 100’s of acres of cornfields. He told me he was doing a “rural zoned” loan for rural areas. Should I do anything? I also remember him saying it was a “rural development” loan but I did not think this meant “developing a farm”, I just thought it was for living in rural areas, keeping the residences developed.

admin answers:

What you have is a USDA Rural Development loan, designed for homes in rural areas. You got it because it allows for zero down and the closing costs rolled into the loan or paid for by the seller. There is no reason that it cannot be refinanced as a conventional loan at this point. Find a different lender or someone smarter at your current lender.

Laura asks…

Which mortgage company is best for someone with a “550” credit score?

I know the score is not good. However over the past year I have paid over 30,000 on past due debts and have very little of them left; just one college loan. My income far outceeds my remaining debt. There is a house that I can get for an unbelievable deal and I don’t want to miss out on it. I don’t want to waste my time or further hurt my credit by having a lot of brokers checking it.

admin answers:

You need to find a broker that does FHA loans…..if you cant do it FHA then you options are LIMITED.

Fha lenders can give you a rate of 7.25% or lower…for a 30yr fixed.

Ken asks…

What does this mean on my credit score?

I’m 20 and I decided to look up my credit score. I recently got a credit card to start building credit. I went to the annual credit report site and filled out my information and it said that “It appears you have a loan mortgage taken out in or around September 2009.” It made me check boxes of different banks and towns if you lived there and none of them were correct. Do they do this for security or is there something wrong with my credit????

admin answers:

These are random questions asked to everyone.

* Forget about your score for now.
What you want to see is the information on your 3 credit reports.
The score costs money and it’s useless.
The 3 reports are free once a year at annual credit report.com

With that credit card, pay it in full each month.
If you carry balances you could be causing serious damage to your credit.
Keep usage small and pay in full when the bill comes in the mail.

Sharon asks…

CATCH 22! If you’re permanently disabled and can not work, how can you get a loan to purchase a home?

I’ve been disabled since 1997 and can never work again; I do, however, have income from worker’s comp. My checks have always been consistent, never late on rent or credit problems. Yet mortgage company’s prequalifications include a job – but I have steady income. Are there programs or alternatives for someone in my position? The disabled want to be homeowners too… Im’ only 33. There has to be a way around this catch 22.

admin answers:

If you have excellent credit you can apply for a “stated” mortgage. That is where you “state” your income but don’t need to document it. It will cost you another .25-.50% on your interest rate but you will be able to buy a home.

Good Luck

Mary asks…

When will my earnest check be cashed?

Today making an offer to buy a new construction condo. I have a pre-approved loan through 5th 3rd bank but I’m going to apply for a ctx mortgage. Ctx is the builder lender and if I use them I get additional incentives. On average how soon will they cash my earnest money check. I’m in the state of Tennessee. In my offer I will have the closing date as 11-13-2009. Also has anyone worked with ctx mortgage, any good or bad experiences to share?
Thanks everyone

admin answers:

Once the builder accepts your offer (signs the contract) they will deposit the check the same day or next.

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