Welcome to Mortgages with Melinda! Today, we're unraveling the complexities of Fannie Mae, Freddie Mac, conventional loans, and FHA loans. Confused about these terms? You're not alone.

Let's start with conventional loans. Think of them like hamburgers — whether it's Burger King, McDonald's, or Wendy's, they're all burgers. Similarly, Fannie Mae and Freddie Mac are both types of conventional loans overseen by the Federal Housing Finance Agency, not the government directly, but with government-guided guidelines.

Now, MLS listings often mention conventional financing, meaning they accept Fannie Mae or Freddie Mac loans. The slight differences lie in how they handle specifics like student loans or condos, details your loan officer can help navigate.

Moving on to FHA loans—they're not just for first-time buyers. FHA stands for Federal Housing Administration, backed by HUD. Unlike conventional loans, FHA loans are insured by the government, offering lower rates and more flexibility, but with specific eligibility criteria tied to government obligations.

Understanding these distinctions helps you choose the right path—whether FHA for lower rates or conventional for different qualifying factors. Stay tuned as we delve deeper into mortgage insights to empower your decisions as a homeowner or future buyer.

Keep up with the latest Florida real estate market news by joining us weekly!

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Welcome everyone to this week's Mortgages with Melinda! Today, we're delving into a detailed analysis of how interest rates impact the housing market. As we enter the summer of 2024, interest rates have slightly declined, and there's anticipation they may continue to drop further as indicators of controlled inflation emerge, potentially prompting the Federal Reserve to lower rates

The expectation of lower rates has already spurred a decrease from previous highs in the fall and spring. So, what does this mean for the housing market? Many prospective buyers have been waiting on the sidelines for rates to improve before entering the market. When these buyers return in anticipation of lower rates, combined with the current shortage of housing inventory, we anticipate significant demand surges.

As a result, home values in Florida could rise another 5% to 10% due to this pent-up demand. However, increased demand also means heightened competition among buyers. Negotiating power, such as asking for seller-paid closing costs or favorable terms, may diminish as more buyers compete for limited inventory.

If you're considering buying a home, now may be an opportune time to act. Even with recent modest rate decreases, the market is already seeing increased activity. Once rates potentially drop into the low fives or even lower, activity could intensify further.

Remember, while interest rates are temporary, locking in a home at a price you're comfortable with now can provide long-term benefits. You can always refinance if rates continue to decrease in the future. Don't miss the opportunity to negotiate favorable terms or incentives like seller-paid closing costs while they're still available.

Whether rates go down further or stabilize, securing a home now ensures you're making a sound investment in today's market conditions.

Keep up with the latest Florida real estate market news by joining us weekly!

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Welcome to this week's Mortgages with Melinda!

This week, we're diving into strategies for buying a house with minimal out-of-pocket expenses. There's a common misconception that you need a hefty 20% down payment to qualify, whether you're a first-time buyer or seasoned homeowner.

Did you know you can secure an FHA loan with a low down payment, regardless of whether you currently own a home? We're here at The Truth About Lending to guide you through various options that can minimize your upfront costs.

For first-time buyers, there are numerous programs offering grants or zero-interest loans for down payment assistance, and some programs allow a low down payment. Even if you're not a first-time buyer, FHA loans require only 3.5% down, while conventional loans can be secured with as little as 5%. Freddie Mac loans, a type of conventional loan, also offer options that are low down payments.

It's crucial to speak with one of our loan officers who can walk you through every step, discussing all your options. Sellers can also contribute significantly to closing costs—up to 3% or 6% of the sales price—depending on your down payment and chosen program. This negotiation can drastically reduce your upfront expenses.

For example, if you're eyeing a $400,000 property, offering slightly above market value and negotiating for the seller to cover $10,000 in closing costs can effectively lower your cash-to-close amount.

Additionally, we offer various lender credits to further reduce closing costs, though in Florida, high insurance premiums can contribute significantly to these expenses.

Keep up with the latest Florida real estate market news by joining us weekly!

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Welcome to this week's Mortgages with Melinda!

This episode, we're delving into the top mistakes borrowers make when applying for a mortgage. Whether you're gearing up to buy a home or in the midst of refinancing, these pitfalls are crucial to avoid.

Keep up with the latest Florida real estate market news by joining us weekly!

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Welcome to this week's Mortgages with Melinda!

Today, we're diving into a candid discussion about VA loans and the unfortunate discrimination many veterans face when using VA financing to put in an offer. It's widely known how challenging it can be for veterans to get their VA loan offers accepted, but why does this discrimination persist?

There's a misconception that VA financing poses higher risks compared to conventional or FHA financing because it often requires no down payment. However, many veterans do choose to put money down and still opt for VA loans because they offer the lowest interest rates available, even lower than conventional or FHA loans.

It's crucial to understand that veterans have earned the right to utilize VA loans, regardless of whether they put down a payment. They've sacrificed for our country, and their choice of financing should not be a barrier to homeownership.

In my opinion, there needs to be better education among real estate professionals, facilitated by organizations like the National Association of Realtors (NAR), to dispel these myths and combat discrimination. Sellers should focus on whether a buyer is financed, not the type of financing used, which I believe is irrelevant and potentially discriminatory.

Contrary to popular belief, buying a home with a VA loan isn't more complicated, especially when it comes to the appraisal process—it can actually be smoother. Join us as we explore these issues further and advocate for fair treatment of our veterans in the housing market.

Keep up with the latest Florida real estate market news by joining us weekly!

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This week with Mortgages with Melinda, we're diving into how to get mortgage ready. What can you do to improve your chances of getting the best possible rate and making the underwriting process smoother?

First and foremost, you want to present your credit in the best light. Aim to pay down any credit card debt at least 45 days before applying for a mortgage. If that's not possible, our loan officers can help you evaluate your credit and suggest improvements, including the option for a rapid rescore (note: this involves a fee).

Focus on your revolving debt—credit cards, not installment loans like car or student loans. Ideally, your balance should be about 30% of your available credit limit. For instance, if you have a $200 credit limit, keep your balance below $60 to maintain a good credit rating.

Stay tuned to Mortgages with Melinda for more insights on making the best mortgage decisions!

Keep up with the latest Florida real estate market news by joining us weekly!

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In this session of Mortgages with Melinda, we're diving into essential mortgage terms every homeowner should know. Whether you're new to owning a home or looking to refresh your knowledge, this episode has you covered.

Today, we're starting with the term "escrow." Escrow serves two main purposes in the homebuying process. Initially, it involves placing funds in escrow when you enter into a contract, much like a security deposit for an apartment. This money ensures the commitment to purchase the home is genuine and is typically held by a title company, real estate office, or attorney until closing.

It's important not to confuse this with escrowing for taxes and insurance. In this scenario, a portion of your monthly mortgage payment is set aside to cover annual expenses, ensuring you're prepared when these bills come due.

Find out more about appraisals, surveys and inspections as we cover all of the terms you need to know as you purchase your next home.

Keep up with the latest Florida real estate market news by joining us weekly!

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This week on Mortgages with Melinda, we're diving into the exciting return of the Hometown Heroes program this July. It's great news as the state has committed full funding once again.

Previously, the program faced funding shortages but is now set to provide substantial support. To qualify, you must be a first-time homebuyer in Florida, meaning you haven't owned a home in the last three years—no exceptions for partial ownership.

At The Truth About Lending, our loan officers can clarify if you qualify as a first-time buyer under these criteria. Now, let's break down how Hometown Heroes works — it's a down payment assistance program, not a grant, meaning the assistance provided is repayable.

The assistance amount equals 5% of your loan amount, starting at a minimum of $10,000. For instance, even if your loan amount calculates to less than $10,000 at 5%, you'll still receive $10,000. The assistance scales up with your loan amount: a $400,000 loan could yield $20,000, and up to $35,000 for loans of $700,000 or more.

Income limits apply based on county, so it's essential to verify if you qualify based on your total income. Reach out to us to explore how Hometown Heroes can help make your home buying dreams a reality!

Keep up with the latest Florida real estate market news by joining us weekly!

NMLS #1054357 | FL License: #MBR1395