“Here to help you
in anyway that we can!”

Janette Rodríguez Office Manager

Bad credit repair

No doubt about it, having good credit keeps more money in your pocket and gives less to banks, credit card firms and
other creditors. Having good credit means enjoying the following seven personal financial benefits :

You’ll get speedier loan approvals.
It’s easier to purchase a new home.
You can rent the house you want.
You can land your dream job.
You can get an auto loan.
Get a credit card.
More negotiating leverage.

We work with the credit bureaus and your creditors to challenge the unfair or inaccurate negative report items that affect your credit score. We’ll ensure your credit history is up-to-date, accurate, and reflects you honestly. This can all help to fix your credit and put you in the best possible position to qualify for the home of your dreams. Call and let us help you get back on track. Click on this link to learn more about how we can help with your credit repair.

1st time buyer programs

Buying a home is one of the biggest financial decisions you’ll make in your life — and one of the largest sources of stress for many first-time buyers is the financing process. Unless you’ve done a ton of research, getting a mortgage can feel confusing or even a bit overwhelming. The good news is you can have a smoother and less stressful experience by avoiding these 6 common mistakes:

Not understanding the full cost of homeownership
– As a first-time home buyer, you’re probably accustomed to the monthly cost of renting, which usually includes your rent payment, some of the utilities, and your internet and cable bills. As a homeowner, you’ll be
responsible for additional monthly costs that may have been covered by your landlord.
Assuming you won’t qualify
– Many renters think they can’t afford to buy a house because they haven’t saved enough to pay a 20 percent down payment. But you might be surprised to see what kind of house you could potentially buy based on the
amount you spend every month on rent.
Getting pre-qualified at the last minute
– Many first-time buyers wait until they’ve found a home they want to buy before talking to a lender, but there are many benefits to getting pre-qualified early. Pre-qualification can help you shop in your price range, act fast when you find a house you want to make an offer on, and catch — and correct — any errors on your credit report before they cause a problem with your loan.
Only talking to one lender
– Most home shoppers use a lender who was recommended by a friend, family member or real estate agent, and they don’t bother shopping around. But that doesn’t guarantee you’ll get the best rate, or even get a lender who is experienced with loans for your particular situation.
Spending your entire budget
– When a lender provides a pre-approval or pre-qualification letter, they’ll typically include the maximum amount they will lend you. But just because a lender will let you borrow a certain amount doesn’t mean you should spend it. There are rules lenders follow to determine what you can borrow, such as the 28/36 rule, which says that a homeowner should spend no more than 28 percent of their gross monthly income on housing expenses, and no more than 36 percent on overall debt.
Not researching down payment assistance programs
– Saving for a down payment is often cited as the biggest hurdle to homeownership for first-time buyers. But did you know there are thousands of down payment assistance programs in the U.S.? These programs typically offer “soft” second or third mortgages or grants which allow for zero percent interest rates and deferred payments. Ask your
real estate agent or lender if there are programs in your area that you may qualify for.

Click on this link to view the 11 must-do’s for 1st time buyers.

11 must-do’s for 1st time buyers

1. Check the selling prices of comparable homes in your area

Do a quick search of actual multiple listing service, or MLS, listings in your area on a number of websites, including the National Association of Realtors.

Use Bankrate’s mortgage calculator to get an idea of what your monthly mortgage payments would be if you bought today.

2. Find out what your total monthly housing cost would be

Include taxes and home insurance in your cost. In some areas, what you’ll pay for your taxes and insurance escrow can almost double your mortgage payment.

Compare mortgage rates now to find the right loan for you.

To get an idea of what insurance will cost you, pick a property in the area where you want to live and make a call to an insurance agent for an estimate. You won’t be obligated to buy the policy, but you’ll have a good idea of what you’ll pay if you decide to buy. To estimate what you’ll pay in taxes, check your property appraiser’s website. Just remember that exemptions and the intricacies of local tax law can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

3. Find out how much you’ll likely pay in closing costs

The upfront cost of settling on your home shouldn’t be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners association fees. Check out Bankrate.com’s annual closing cost survey to see what closing costs average in your state.

4. Look at your budget and determine how a house fits into it

Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing. Push past 30 percent and you risk becoming house-poor.

5. Talk to reputable Realtors in your area about the real estate climate

Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?

6. Look at the big picture

While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there’s no landlord to turn to, and these costs can quickly drain your bank account.

7. Prepare for the hunt

If the numbers make sense for you, making these additional moves at the very beginning of the purchase process can save you time, money and aggravation.

8. Examine your credit

Blemished credit or the inability to make a substantial down payment can put the kibosh on your homeownership plans. That’s why it pays to look at your creditworthiness early in the homebuying process. Get your free annual credit report and examine it for errors and unresolved issues. If you find mistakes, contact the credit reporting bureau to make sure they are corrected. It’s also a good idea to get your FICO credit score, which will cost you a small fee.

Get your credit report and score today for free and with no obligation at myBankrate.

9. Get your docs in a row

Collect pay stubs, bank account statements, W-2s, tax returns for the past two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years. Have all of that paperwork ready for the lender. It may seem like a lot, but don’t be surprised if your lender wants a lot of documentation.

10. Find lenders and get preapproved

Getting preapproved for a mortgage helps you bargain from a position of strength when you are house hunting. The institution where you bank and a local credit union are good places to start your search. Use Bankrate’s mortgage rates tool to find lenders offering the best rates in your area. Applying to multiple lenders in the same month helps increase your chances of getting a loan approved at the best rate possible without dinging your credit score too much.

11. If at first you don’t succeed, try, try … the government?

If you can’t find a bank willing to lend to you, consider getting an FHA loan. The Federal Housing Administration has a program that insures the mortgages of many first-time homebuyers. As a result of this guarantee, lenders who might otherwise feel queasy about your qualifications will be more inclined to lend to you. As a bonus, the FHA requires a down payment of only 3.5 percent from first-time homebuyers.

Tenant based vouchers

Tenant-based vouchers increase affordable housing choices for very low-income families. Families with a tenant-based voucher choose and lease safe, decent, and affordable privately-owned rental housing. Click on this link to learn more about the process and qualifications.

Grant programs

The government has many available options for free money designed to help teachers, veterans, seniors, single mothers and low income families to achieve the dream of home ownership. Grant options and qualifications often change and vary from state-to-state, so let Rental Shop help to fully explain the process and walk you through the application procedure to increase your odds of a successful outcome.

What organizations are eligible to apply for tenant-based voucher funding from HUD?

PHAs authorized under State law to develop or operate housing assistance programs may apply for funding.

How do PHAs apply for tenant-based voucher funding?

PHAs respond to notices of funding availability (NOFAs) published in the Federal Register. Each NOFA identifies allocation areas, amount of funds available per area, and the selection criteria for rating and ranking applications.

What families are eligible to apply for tenant-based vouchers?

Very low-income families (i.e families with incomes below 50% of area median income) and a few specific categories of families with incomes up to 80% of the area median income. These include families that are already assisted under the 1937 U.S. Housing Act, such as families physically displaced by public housing demolition, and owners opting out of project-based section 8 housing assistance payments (HAP) contracts. (HUD determines median income levels for each area annually.)

How does a PHA determine if a family is income eligible?

The PHA compares the family’s annual income (gross income) with the HUD-established very low-income limit or low-income limit for the area. The family’s gross income cannot exceed this limit.

How do families obtain tenant-based vouchers?

Families apply to a local public housing agency (PHA) that administers this program. When an eligible family comes to the top of the PHA’s housing choice voucher waiting list, the PHA issues a housing choice voucher to the family.

How does a family obtain an apartment once they have a voucher?

It is the responsibility of a family to find a unit that meets their needs. If the family finds a unit that meets the housing quality standards, the rent is reasonable, and the unit meets other program requirements, the PHA executes a HAP contract with the property owner. This contract authorizes the PHA to make subsidy payments on behalf of the family. If the family moves out of the unit, the contract with the owner ends and the family can move with continued assistance to another unit.

How much rent do vouchers cover?

The PHA pays the owner the difference between 30 percent of adjusted family income and a PHA determined payment standard or the gross rent for the unit, whichever is lower. The family may choose a unit with a higher rent than the payment standard and pay the owner the difference.

Do families have to lease a unit in the jurisdiction where the PHA issued the voucher?

No. A family may choose a unit anywhere in the United States where there is a PHA that administers a tenant-based housing choice voucher program. However, the family may only use the voucher to lease a unit in an area where the family is income eligible at admission to the program.

Program Description

The Rural Housing Repair Loans and Grants program provides loans and grants to very low-income homeowners to repair, improve, modernize, or to remove health and safety hazards in their rural dwellings. Loans are arranged for up to 20 years at 1 percent interest. Grants may be arranged for recipients who are 62 years of age or older and can be used only to pay for repairs and improvements to remove health and safety hazards. Loan/grant combinations may be arranged for applicants who can repay part of the cost. Very low-income for this program is defined as below 50 percent of the area median income.

General Program Requirements

In order to be eligible for the loan program, you must be a homeowner who has very low income, and you must be a U.S. citizen or permanent resident who lives in a rural area. In order to be eligible for the grant program, you must meet the above requirements, and also be aged 62 years or older.

Loan Terms

Loans of up to $20,000 and grants of up to $7,500 are available. Loans are for up to 20 years at 1 percent interest. A real estate mortgage is required for loans of $7,500 or more. Full title services are required for loans of $7,500 or more. Grants may be recaptured if the property is sold in less than three years. Loans and grants can be combined for up to $27,500 in assistance.

Websites for grant applications:

https://www.usafundingapplications.org/v3/1a.php

https://www.newusafunding.com/

What you may not realize is that many first-time homebuyer programs and grants offer financial help, and you may be eligible for various types of assistance.

Here are nine first-time homebuyer programs and grants designed to help you land a great mortgage and get a place of your own.

1. FHA loan

In an FHA loan, the Federal Housing Administration insures the mortgage. The FHA is an agency within the U.S. Department of Housing and Urban Development (HUD).

The FHA’s backing offers lenders a layer of protection, meaning that your lender won’t experience a loss if you default on the mortgage.

FHA loans typically come with competitive interest rates, smaller down payments and lower closing costs than conventional loans.

If you have a credit score of 580 or higher, you could be eligible for a mortgage with a down payment as low as 3.5 percent of the purchase price. If your credit score is lower than 580, you still might qualify for an FHA mortgage, but the down payment would be at least 10 percent of the purchase amount.

2. USDA loan

While not well known, the U.S. Department of Agriculture (USDA) has a homebuyer assistance program.

While the program focuses on homes in certain rural areas, you don’t need to buy or run a farm to be eligible.

The USDA guarantees the home loan. There may be no down payment required, and the loan payments are fixed.

Applicants with a credit score of 640 or higher typically get streamlined processing. With a credit score below 640, you still can qualify for a USDA loan, but the lender will ask for extra documentation about your payment history.

Keep in mind that there are income limitations, which can vary by region.

3. VA loan

The U.S. Department of Veterans Affairs (VA) helps active-duty military members, veterans and surviving spouses buy homes.

The VA guarantees part of the loan, making it possible for lenders to offer some special features. VA loans come with competitive interest rates and require no down payment. You aren’t required to pay for private mortgage insurance (PMI), and a minimum credit score isn’t needed for eligibility.

If it becomes difficult to make payments on the mortgage, the VA can negotiate with the lender on your behalf.

4. Good Neighbor Next Door

The Good Neighbor Next Door program, sponsored by HUD, provides housing aid for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers.

Through this program, you can receive a discount of 50 percent on a home’s listed price in regions known as “revitalization areas.”

Using the program’s website, you can search for properties available in your state. You must commit to living in the home for at least 36 months.

5. Fannie Mae or Freddie Mac

Fannie Mae and Freddie Mac are government-sponsored entities. They work with local lenders to offer mortgage options that benefit low- and moderate-income families.

With the backing of Fannie Mae and Freddie Mac, lenders can offer competitive interest rates and accept down payments as low as 3 percent of the purchase price.

Fannie Mae also provides homeownership education for first-time homebuyers through its “HomePath Ready Buyer” program.

6. Energy-efficient mortgage (EEM)

An energy-efficient, or “green,” mortgage is designed to help you add improvements to your home to make it more environmentally friendly. The federal government supports EEM loans by insuring them through the FHA or VA programs.

The key advantage of this mortgage is that it lets you create an energy-efficient home without having to make a larger down payment. The extra cost is rolled into your primary loan.

Some improvements you can make include installing double-paned windows, new insulation or a modern heating-and-cooling system.

7. FHA Section 203(k)

If you’ve run the numbers to see how much house you can afford and have determined a fixer-upper is best for your budget, the Section 203(k) rehabilitation program may be a good fit.

This type of loan, backed by the FHA, takes into consideration the value of the residence after improvements have been made. It then lets you borrow the funds you’ll need to carry out the project and includes them in your main mortgage.

The down payment for a 203(k) loan can be as low as 3 percent.

8. Native American Direct Loan

Since 1992, the Native American Veteran Direct Loan program has helped Native American veterans and their spouses buy homes on federal trust lands. The VA serves as the lender.

If you’re eligible, you won’t be required to make a down payment or pay for private mortgage insurance (PMI).

This first-time homebuyer loan also offers low closing costs and a 30-year fixed-rate mortgage.

9. Local grants and programs

In addition to the various programs provided by the federal government, many states and cities offer help to first-time homebuyers.