The Low-Down on the Low-Down! by Barry O'Meara • barryo@stearns.com


SANTA ROSA, CA. ~ Fall is here and win- ter is just around the corner. T e grapes have been harvested and the trees begin carpeting our land- scapes, clogging our gutters with their leaves,


bare their branches. T is is the cycle we know and love.


part of the beauty of Sonoma County. Home ownership is the


fabric that binds our commu- nities, is the foundation for families to grow, and is a base to accumulate wealth. Most fi rst-time homebuyers have limited re- sources and are dependent on low-down-pay-


ment programs. When buying a home with less


20% down the buyer will be re- quired to have Mortgage Insur- ance. T e Mortgage Insurance is for the benefi t of the lender and the borrower is obligated to pay the premiums. FHA has for years been the


go-to loan for low down-pay- ment options. FHA has a lot of advantages for individuals with challenging credit issues.


will allow for a low credit score and as short as one year out of a bankruptcy,


short sale. You only need 3.5% down payment and funds can come from a giſt . FHA has an Upfront Mortgage Insurance Premium of 1.75% of the loan amount but this premium can be fi nanced. T is makes your loan amount larger and in-


foreclosure or It than It is while trees


your monthly would be $209. T e monthly MI is for the life of the loan. FHA can help you if you have limited options. However, it is an expensive loan. Conventional


fi nanc-


(PMI). Fannie Mae and Fred- die Mac are conventional lend- ing resources. Both have come out with low down-programs intended to compete with FHA. Freddie and Fannie allow for a low-down payment as low as 3% with no upfront mortgage insurance premium, but the buyer will still have a monthly premium. T ese programs have a reduced monthly PMI, which goes away once equity has been established. A buyer can either pay down the prin- cipal balance or have the home re-appraised aſt er two years. T ese programs are intended for low-to-moderate incomes so there are


However some areas have no income limits at all. To check income limits you must visit their web site and input the ad-


Advertise in the Upbeat Times and Receive Complimentary Bowling tickets for Four people at Double Decker Lanes in Rohnert Park! (Includes 2 games each and shoe rentals!! A $60 Value)


Positive Papers in the world!


Plus You get to advertise in one of the most


Santa Rosa, CA. ~ As Department 56 celebrates forty years of wintry American decor, their ever-popular Dickens Village, Alpine Village, and other hits have made their re- turn to Corrick’s in Santa Rosa. Fans of these Americana clas- sics will love browsing the snowy shelves downtown, the only source for Dept 56 in Sonoma County! Corrick’s Stationery & Gifts and The Gallery at Corrick’s ~ 637 Fourth Street, Santa Rosa, CA 707.546.2424 -www.corricks.com


“Every moment is the paradox of now or never.” ~ Simon Van Booy UPBEAT TIMES, INC. • November 2016 • 27 income limits. Mortgage Insurance has Private ing


creases the APR above your actual note rate. Besides the upfront MI, the homeowner is also saddled with a monthly MI of .85% of your loan amount. On a $300k loan amount, your upfront would be $5066 and


dress:


or freddiemac.com/homepos- sible/eligibility.html Both Freddie and Fannie


fanniemae.com/homeready/ homeready-eligibility.


programs allow for a credit score as low as 620 with a cap on the pricing. T is allows the buyer to acquire a lower interest rate. When lenders price out an interest rate, they use a matrix with Loan Level Pricing Adjustments (LLPA). T is is a risk-based pricing adjustment that lenders use to jus- tify charging one borrower a high- er interest rate based on loan-


score.


A man had an ice delivery business. Most of his cus- tomers were bar owners. One day, he had two more stops to make. One at Barb’s Place and one at Sue’s Stop. Barb had forgotten to order ice this week and asked if he had any extra.


The man said, “No, I only have ice for Sue.”


UPBEAT TIMES, INC. • November 2016 • 27 Weird Facts & Fun Trivia - 6


The world’s harvester ants are believed to consume more small seeds than all mammals and birds put together.


While on a 4th of July picnic in 1956, Milton Levine had an inspiration and created the Ant Farm, which went on sale in January 1958.


a cap on lender adjustments. T e program allows a borrow- er with a 620-credit score to get the same rate as a borrower with a 700-credit score. As we wrap up the 2016 elec-


to-value and credit Both programs have


starting at


$1849.00 including


tion and life settles back to normal, we can still plan for our future. If owning a home is part of your future, I encourage you to explore all your options and pick the program that best suits your purpose and needs. T e lower your down


payment helps you to leverage your options.


Dickens Villages Return to Corrick’s!


FREE Vent kit


($390.00 value!)


THE MORTGAGE COACH


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