Occupancy

There are three types of ways you can utilize a property you are financing.  They are a primary residence, second home, or investment property.

A primary residence is a home in which you live in as your principal residence, and typically occupy at least a majority of the year.  In order to be eligible for financing a primary residence, at least one applicant must be occupying the property.

There are two other circumstances in which you may qualify for a primary residence loan even if you will not live in the property, and they are (this is quoted from…

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Inquiries

Our credit report provider, United One Resources, has answered some common questions about credit inquiries:

 

Will my FICO score drop if I apply for new credit?

If it does, it probably won’t drop much. If you apply for several credit cards within a short period of time, multiple inquiries will appear on your report. Looking for new credit can equate with higher risk, but most credit scores are not affected by multiple inquiries from auto, mortgage or student loan lenders within a short period of time. Typically, these are treated as a single inquiry and will have little impact on…

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DC Grant

DC Open Doors offers an additional $1,500 closing cost grant available for closings through the end of the year (Dec 31).

This is in addition to the already available 3% down payment assistance which is forgiven if you live in the property for five years.

The grant program is available to clients utilizing Fannie Mae HFA Preferred Conventional DC Open Doors financing and with income under 80% of the area median income, which is $88,240.

So on a $300,000 purchase, a home buyer may be eligible for $9,000 in down payment assistance and also $1,500 in a closing cost grant.

Questions, or ready…

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Termite Inspections

Termite inspections are typically not required.  But, let’s learn about when we do need to review the report.

The VA loan is the only product which requires a termite report to be completed and reviewed by us.  The only exception is if the buyer is using VA financing to purchase a condo that does not touch the ground.

On any loan product, if we or the title company are made aware that a termite inspection exists, then we are required to review it.  On rare occasions where damage is obvious, the appraiser may report that there is termite…

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FHA Condo Approval

We process FHA submissions in house and submit them to the Department of Housing and Urban Development (HUD).  Their review will likely take 30 to 45 days.

FHA condominium approvals are valid for the entire project for two years.  Prior to December 2009, once approved a condo was always approved, but that is no longer the case.  VA approvals are still permanent approvals.

There are three types of FHA approvals:

  1. If a condo is already FHA approved, then we simply need to have the management company complete a condominium questionnaire and document the condo master insurance policy.  No other documents are…
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Alex Jaffe Alex Jaffe