Monthly Archives: March 2016

//March
24 03, 2016

VA Mortgage Loans

March 24th, 2016|Blog, Buying a home|

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In 1944, as part of the G.I. Bill, the Department of Veterans Affairs launched a mortgage program to help returning service members purchase a home. The VA loan program is still available and remains an important part of the benefits package for veterans and active members. The VA Loan is a mortgage loan issued by approved lenders, like First Ohio Home Finance, then guaranteed by the federal government. Since the program began, it has helped more than 20 million veterans and their families into affordable financing situations.

The VA Loan is designed specifically for those who have served, which means there are a handful of requirements. You may be eligible for a VA Home Loan if you meet one or more of the following conditions:

  • You have served 90 consecutive days of active service during wartime
  • You have served 181 days of active service during peacetime
  • You have more than 6 years of service in the National Guard or Reserves
  • You are the spouse of a service member who has died in the line of duty or as a result of a service-related disability.

If you are eligible and have completed the requirements above, you then apply to receive your Certificate of Eligibility. While you don’t need your COE in order to start the loan process, it is a very important part of your loan application. Those interested in the VA Loan aren’t required to reach any kind of certain income to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.

One thing that is interesting about this loan is that the VA requires that borrowers maintain an amount of income left over each month after all major expenses are paid. The excess […]

18 03, 2016

What is an FHA loan?

March 18th, 2016|Uncategorized|

house and key with Calculator on wooden background

FHA Loans have been helping people become homeowners since 1934. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties. Borrowers with these loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher.

The FHA program was created in response to the rash of foreclosures and defaults that happened in 1930s; to provide mortgage lenders with adequate insurance; and to help stimulate the housing market by making loans accessible and affordable for people with less than stellar credit or a low down payment.

Who are these loans ideal for?

  • First time home buyers: FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price. Available on 1-4 unit properties.
  • Financial help for seniors: Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
  • Energy efficiency: You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
  • Manufactured housing and mobile homes: FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.

Some of the FHA Loan Requirements:

  • Must have a steady employment […]
11 03, 2016

Topics to Discuss with your Loan Officer

March 11th, 2016|Uncategorized|

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In order to have the most successful and efficient loan approval process, communication with your loan officer is crucial. The Loan Officers here at First Ohio Home Finance go above and beyond to create lasting relationships with their customers. Before the process begins, here are a few things you might want to discuss with your loan officer.

Communication – Everyone has their go to form of communication. Depending on the person, they may choose email, phone calls or texting. During the loan process, some issues will need to be dealt with quicker than others so it is important that your loan officer knows the best way to get ahold of you in those situations.

Goals – Do you plan on living in this house from 3-5 years or a couple decades? Do you plan to pay off your mortgage quickly? Is this house going to become a rental property soon? All of these answers can help the loan officer present the best possible loan programs for your situation. Our loan officers here at First Ohio Home Finance care about choosing the loan programs that best fit your financial goals and want to help you achieve those goals as quickly as possible.

Be Upfront – You don’t want to take the risk of not getting a loan because you were not upfront with your loan officer. We are here to help, we do this every day, and most importantly we have heard it all. Some examples of what to be upfront about would be: other rental properties, income restraints, a short sale, foreclosure or bankruptcy or anything unique. It will help both parties in the long run to be upfront from the beginning.

Timeline – If you have a strict timeline for the […]

4 03, 2016

What tax Season means for Homeowners

March 4th, 2016|Home Finances, Mortgage 101, Tips & Advice|

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Tax season is upon us! Whether you already own a home or are looking to buy in the near future this is important information. For being a homeowner, there are many deductions you could receive when filing your taxes. Let’s check out a few:

  1. Mortgage Interest. When buying a home the interest payments can be pretty expensive but there is a silver lining to the situation. Interest that you pay on your mortgage is tax deductible, within limits. If you are married and filing jointly, you can deduct all your interest payments on a maximum of $1 million in mortgage debt secured by a first or second home.
  2. Points. There will be various fees when you first buy your home, one of which is called, “points.” One point is equal to 1% of the loan principal. One to three points are common on home loans, which can easily add up to thousands of dollars. You can fully deduct points associated with a home purchase mortgage. Refinanced mortgage points are also deductible, but only over the life of the loan, not all at once. Homeowners who refinance can immediately write off the balance of the old points and begin to amortize the new.
  3. Equity Loan Interest. You may be able to deduct some of the interest you pay on a home equity loan or a line of credit. However, the IRS places a limit on the amount of debt you can treat as “home equity” for this deduction. Your total is limited to the smaller of:
  • $100,000 (or $50,00 for each member of a married couple if they file separately), or
  • The total of your home’s fair market value – this is, what you’d get for your house on the open market – minus certain other outstanding debts against […]
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