Monthly Archives: December 2019

//December
18 12, 2019

Down Payments as Gifts

December 18th, 2019|Blog, Buying a home, Home Finances, Tips & Advice|

Most home buyers say the hardest part of buying a home is saving for the down payment. As we approach the holidays, you may be in luck for getting closer to that down payment. If your parents or a relative have offered you help with this big task, there are a few things to remember about using gift money for a down payment.

Gift Amount

The amount that can be gifted from your family members usually depends on the type of loan involved. If you have a credit score of 580 or above, you can get an FHA loan with a 3.5% down payment. However, your score will determine how much you must put down and how much has to be from your own income.

If your credit score falls below 580, you may need to make a larger down payment. If your score is between 580 and 619 then 3.5% of your down payment must be from your own income. If you choose to put down 20% or more on an FHA loan, the entire down payment can be a gift. FHA loans allow gift funds to be used on primary residences only.

If you’re obtaining a Conventional Fannie Mae or Freddie Mac loan and you’re putting down 20% or less of the purchase price, the entire down payment can be a gift.  However, there are some nuances when purchasing a two-unit or more property.   Your loan officer at First Ohio Home Finance would be happy to help you navigate through this process.

Gift Letter

Most important in the process is the gift letter. A gift letter is required by the lender (typically a form-letter) when part or all, of your down payment is a gift. There’s a specific process for writing the letter and documenting the gift. Your loan officer at First Ohio Home […]

16 12, 2019

FHA Loan Increases 2020

December 16th, 2019|Blog, Buying a home, Home Finances, Latest News, Loan Products, Mortgage 101|

A loan from the Federal Housing Administration (FHA) is one of the most popular types of loans for homebuyers. Borrowers of 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.

With the increase in home prices and the popularity of FHA loans, the FHA has raised the loan limits for 2020. The base loan limit is $331,760 for lower cost areas and a limit of $765,600 in high cost areas. That loan limit applies to much of the country and is determined as a percentage of the national conforming loan limit for Fannie Mae and Freddie Mac, which is also seeing an increase in 2020 to $510,400.

Due to the nature of the housing market, there are a few counties seeing a decrease in their FHA loan limits and some areas of the country that are getting more of an increased due to their higher construction costs.

If you’re wondering how this change may affect your home buying process in 2020, contact us and let one of our professionals walk you through the different loan types.

11 12, 2019

Loan Officer Spotlight: Hayden Mosley

December 11th, 2019|Blog|

At First Ohio Home Finance, we know that choosing a lender is an important, personal decision. Our team of loan officers are skilled in providing personalized mortgage solutions while providing the best service to our customers. We want to give you the opportunity to get to know our amazing team!

We’re featuring Hayden Mosley in this Loan Officer Spotlight. Hayden has been a loan officer for four years and is the son of Buck and Beth Mosley who are both part of the First Ohio team! Here’s a little snapshot from our interview with Hayden for this Loan Officer Spotlight.

Q: What inspired you to become a mortgage loan officer?

A: My parents.

Q: What is your favorite part about being a loan officer?

A: Bringing integrity to an industry that often lacks it.

Q: What interests you about the mortgage business/industry?

A: The opportunity to assist clients with the biggest purchase of their lives.

Q: How do you ensure excellent customer service for your clients?

A: Being honest & managing expectations

Q: Tell about a success story when working with a past client

A: I convinced a customer’s current lender to forgive a significant amount of negative equity to save her home.

Q: What is your advice to first time homebuyers?

A: Reach out to me for a free, no obligation consultation. First Ohio Home Finance offers a wide variety of first time home buyer loans including but not limited to the OHFA program.

Q: How would people describe you?

A: Honest, caring and hard working

Q: What’s your favorite quote?

A: “The harder I work the luckier I get.”

Q: What do you like to do when you’re not working?

A: Workout & spend time with family

Q: What are your hobbies?

A: Golf.

If you’re ready to buy a home or refinance, contact Hayden or any of our amazing loan […]

6 12, 2019

Refinancing: Pros and Cons

December 6th, 2019|Blog, Refinance, Tips & Advice|

Financial goals and plans often change. When this happens, you can refinance. Refinancing is paying off the balance of an old loan with a new loan that has better terms. Refinancing should only be done if it puts you in a better place financially or accomplishes a goal.

Pros

  • Saving Money with a Lower Interest Rate
    • The main reason people refinance is to get a better interest rate. By getting a lower interest rate, you save money immediately and in the long run. The most savings can be seen in long-term loans or loans with a high dollar amount attached to them.
  • Lower Payments
    • A lower monthly payment can be a result of refinancing. You often extend the amount of time you’ll take to repay a loan. Since your balance is most likely smaller than your original balance, you have more time to repay which means the new monthly payment should decrease.
  • Shorten the Loan Term
    • On the other hand, you can also refinance into a shorter-term loan. For example, you might have a 30-year home loan that can be refinanced into a 15-year home loan which can result in a lower interest rate. You can also choose to make extra payments instead of refinancing to avoid paying closing costs and keep the flexibility of not being required to make larger payments.
  • Consolidate Debts
    • If you have multiple loans, refinancing into one may be a good option for a lower interest rate and also to only keep track of one payment.
  • Change the Type of Loan
    • If you have a variable-rate loan, you might want to switch to a fixed rate. A fixed interest rate offers protection if rates are currently low, but expected to rise.

Cons

  • Transaction Costs
    • Home loans come with closing costs. You’ll want to make sure that […]
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