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How does your credit score measure up to these new standards? May 15, 2014

The Higher Standards of Credit Scores

According to Fannie Mae and Freddie Mac, the average FICO score for a conventional mortgage was 755 this past February. However, the average FICO score for FHA loans which are backed by the government and attract buyers with lower credit in part because FHA loans require down payment as low as 3% was 686. While mortgage credit continues to loosen up, obtaining a loan to buy a house is still proving difficult for the 'average' American.

The Wall Street Journal, provided the accompanying chart from CoreLogic, explained, "the chart shows the historical credit score distribution of purchase mortgages. As you can see, the largest losses have been among buyers in the lowest two tiers, and they aren't budging much."

The article continued, "borrowers with FICO scores below 620 accounted for 0.35% or mortgages in January, down from about 13% in February 2003 and a peak of 17% during the frothiest peaks of the housing bubble. The best borrowers, with scores above 780, have taken their place, swelling from about 13% or originations in 2003 to a little less than 30% today. But, as the chart shows, the share mid-range borrowers -- those with scores of 640 to 779 -- are in line with their historic norms."

The nation's largest residential mortgage lender lowered its minimum credit score for loans to be sold to Fannie Mae and Freddie Mac to 620 from 660. Even with banks and mortgage lenders trying to help the average American finance their home it is important to understand and stay on top of your credit score! Before you start working on your credit, make sure you speak to a professional and implement a strategy that will help you succeed in your financial goals while building positive credit.

You can trust Fairway Independent Mortgage of the Carolinas to make your home loan as stress-free as possible. Call me today to get started or schedule an appointment to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. Call me anytime or simply fill out my online application to get started

Original Article here


How to Buy a home with a VA Loan May 27, 2014

At Fairway, we strive to show our appreciation to the Veterans who serve this country. It is our opportunity to thank them for providing security for our country and for risking their lives in the name of freedom. One of the core beliefs of our company is supporting the troops once they return home and helping them in any way we can to find an affordable home loan.

If you are a Veteran, we understand that buying your first home is thrilling, but it can also seem daunting. However, as a veteran or current military member, you will begin to realize how little "red tape" there is in being able to receive a VA home mortgage loan.

The application process is not very different from other types of mortgage loans, but the VA loan helps you buy a house with no down payment. Plus, the interest rate may be lower than other loan programs.

Before you start the VA home mortgage loan process, you will need to have specific information at hand. The easiest way to make sure you are getting the full benefit of the program and applying correctly is to talk to a VA loan expert like me!

I will figure out the best solution for your situation. My military and VA loan experience can help you determine if this is the best loan for you. I know how to navigate the red tape that exists with all government programs to make getting a VA loan a hassle free process for you. I work with Military Home Specialists, so I am equipped to help you.

While Fairway Independent Mortgage of the Carolinas is well known for our Charlotte VA home mortgage loan programs, we can offer VA home mortgage loans throughout North and South Carolina.

Call me today before you find the house of your dreams to talk about what you can afford, where your life might take you and make a solid plan for you financial future. I am are dedicated to all veterans.

There is no better time than now to learn the available home buying options. I can even help you look at your financial picture and put you on the path and make make your home loan as stress-free as possible. Call me today to get started or schedule an appointment to really look at your financial plans and help you make the best home loan decision or show you how the path toward ownership. Call me anytime or simply fill out our online application to get started.

Original Article here