Teacher and First Responder

 

Mary Beth H.:

           Hi, this is Mary Beth Harrison with Dallas Native Voice and today I’m sitting with Dekoven Wesley with Movement Mortgage and I want to talk about different loan programs. My clients are under the impression there’s only one way to buy a house and if you haven’t got a house for a really long time, you think you have to put so much money down and there’s only one-size-fits-all loans. I want to talk about that today. Give me some alternatives for say a first-time home buyer that doesn’t have a lot of cash for upfront money but they’ve got long-term payments aren’t their problem. Let’s talk about that.

Dekoven W.:

   Yeah for sure so a lot of individuals, folks that we talk to, do have that question. They want to know, “Exactly what does it take to get to be able to get into a home?” We do have a lot of different options out there so FHA for one requires a 3.5% down payment. A lot of people think you have to put down 20% in order to be able to get into a home but that’s just not true, so FHA for one is 3.5%. Another great option is a conventional loan so again a lot of folks think 20% but on a conventional loan it’s 5% as a minimum, even all the way down to 3% depending on their income level and how much income they generate.

Mary Beth H.:

  Wow. You know what makes a conventional loan appealing and correct me if I’m wrong, both of them have private mortgage insurance on them. One is called MIP, PMI, but at the end of the day it’s a mortgage insurance premium and on an FHA loan you can never get rid of that.

Dekoven W.:

  That’s very true, it does stay on it for the life of the loan.

Mary Beth H.:

 It rides for the life of the loan, whereas on a conventional loan, if once you have invested enough money to have 20% invested in the property, or maybe your house is appraised. Maybe you’ve only put in this much money but the appraised value has gone up so high, which in this market we’ve seen that happen. You can then apply to remove the PMI, the private mortgage insurance, thereby lowering your payment just by that.

Dekoven W.:

      Yeah, very true.

Mary Beth H.:

     It’s not like you can write off private mortgage insurance or get any tax advantage from it, so that makes a conventional loan very appealing if you can qualify for it.

Dekoven W.:

    It’s very true.

Mary Beth H.:

  There’s reasons for both but the appealing reason is to get rid of that so that’s good. What other programs are there because I understand, I think one of my teachers got a special loan from you guys?

Dekoven W.:

    Yeah, yeah.

Mary Beth H.:

   Talk to me about that.

Dekoven W.:

   You have programs for first responders, fire fighters and teachers and the good thing about those is they come with down payment assistance so that really helps out. If an individual doesn’t have the funds right away to be able to take care of that down payment, then these programs will help them to have the money that they need to be able to get into the home.

Mary Beth H.:

  Wow that’s interesting, okay. Is there any other program that I should know about or our listeners should know about?

Dekoven W.:

    Even the counties and the cities that surround Dallas, have programs that are available. Dallas itself has a MAP Program, which is a program that allows again, individuals to get the money that they need, to help them out with their down payment and also their closing funds.

Mary Beth H.:

     Do they have to repay that money back?

Dekoven W.:

    No they don’t, they don’t have to repay that money back.

Mary Beth H.:

     It’s just a grant program. Wow so there’s a lot of different ways to get into a home. Another thing I want to mention is it’s not always about the price that you bought the home for, so sometimes getting the seller to help pay for the closing cost, allows you get into a house. In this instance say for 3% down, 5% down, for very little upfront money and let the sellers help you finance the rest of it.

Mary Beth H.:

      There’s just a lot of ways to get into a house now, without having to come up with a lot of out-of-pocket money, so buying a home is not out of reach as you may think it is. You can find all this information on our website at DallasNative.com, all of the social media platforms, we go where you are and thanks for listening.

 

 

 

Information Courtesy of Dallas Native 

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