I am a first time home buyer. Does anyone know info. on the House America loan Countrywide offers?

Question

Also does anyone know the pros and cons of a conventional loan. How do you tell if the loan is secured? I really need help I don't know anything about home loans. Thanks

Answer 1

To answer your first question, straight from Countrywide's website (www.countrywide.com):

Countrywide's House America program is a versatile home loan designed to address a variety of financial situations, whether it's lack of cash for a down payment, lack of traditional credit history, or non-traditional sources of income.

For instance, the Countrywide House America loan program includes many flexible and innovative "Special Features" desiged to allow borrowers to1:

Use cash gifts from family or cash held outside a traditional savings institution to help with the down payment
Use other sources of income to help you qualify, like income from other family members or earnings from employment that may be hard to verify
Use alternative payment records like rent or utility bills to help you establish a favorable credit history

* * *

I'm not sure how you are defining "conventional loan," but in my mind, conventional loans are secured by government sponsored entities or GSEs such as Fannie Mae and Freddie Mac.
Conventional loans can be made to purchase or refinance homes with first and second mortgages on single family to four family homes. Check out www.mortgage101.com for a simple overview on loans.

There are many first time home buyer programs out there. My suggestion is to start with a face-to-face meeting with a good lender. If you have a bank account (checking or savings) make an appointment with your bank's loan officer. They will take you by the hand and walk you through your options.

Or, ask your friends and family members, or your realtor, for a recommendation on a lender. That includes mortgage brokers, who can frequently offer more options than a bank.

It seems overwhelming and scary - but it's really just unfamiliar to you. That's why it's good to see a professional you trust - and don't be afraid to talk to more than one. People "shop" loans all the time. Talking to a loan officer does not commit you to using him/her.

Good luck and best wishes!

Answer 2

All home loans are secured. That's what the Mortgage does.

When you close, you will sign a Note, which is a personal promise to pay, and a Mortgage which basically says that if you don't pay, they take your house. That's what "security" means, there is specific property they can take if you default.

I don't know this specific program, but here's what you want to think about:

Is the interest fixed or does it change? If it changes, when does it change, what is the MAXIMUM you might have to pay. Do not be suckered into one where you PAY less interest than they CHARGE, at least not without having a VERY good reason why that's a good idea for you; it means you owe more each month than you did the month before.

What's the total payment? If there is PMI, does it make sense to pay that for a lower interest rate, or would it be better to get a loan program that waives the PMI? Compare total payments.

You should do some research, and understand financing well enough that you aren't taking anyone's word for things.

Answer 3

I am a Certified Mortgage Planner.

First thing before you pick out programs is knowing yourself.

Capacity - what you can truly afford for a mortgage. Take your debt (all of it - account for utilities, gas, groceries, childcare, etc) anything that goes out should be calculated. And then add in 10% for just spending. What is left is what you can realistically afford. A lender will tell you differently.

Credit - what does your credit look like (do you know)? Do you have any current tradelines (credit cards, auto loans). Do you have derogatory credit (bankruptcy, collections, etc).

Collateral - have you found any interesting properties? An area where you would really like to be, what are the homes selling for in that area (actual sales, not marketing).

Then do you have any money to cover closing costs, expect at least 3-6% of the purchase price depending on where you are. Also remember that closing costs may include your escrow accounts to pay taxes and insurance (it is a large portion and why I average between 3-6 just to keep you from having a coronary at the closing table LOL).

To answer your questions specifically, I am not familiar with that program specifically. I do like their Fast & Easy program for higher credit people. There are other lenders out there with better rates though.

Pros and cons depend on some of the answers to the questions above. A conventional mortgage offers the best rates, but often has the most requirements to get. High credit, good looking bureau, responsible borrowing, sometimes money down.

All mortgages are secured by collateral. A secured loan simply denotes that you borrowed money on something the lender can take if you default.

You are welcome to contact me anytime with questions. Being a CMP means being a resource for someone who needs our expertise. [e-mail]

Answer 4

HOUSE AMERICA with Countrywide is "primarily an affordable program directed toward creditworthy borrowers having little or no funds for down payment, higher than average debt ratios or other special circumstances that make obtaining traditional credit challenging. First-Time homebuyers and move-up borrowers with excellent credit and incomes may also meet the program requirements."

As a first time homebuyer, your best bet is to talk to a mortgage broker, who will have many more options than a direct lender will. Look for someone who will sit with you, and go over every question you have until you understand what they are telling you, and you feel comfortable. A broker's job is not just to 1) sell you a loan, but to 2) educate you about your options. If you get the sense they want to rush to 1) without spending time on 2), get up and leave!!

A book I recommend to my clients is "Mortgage 101". It explains all the terms you're likely to encounter during the homebuying process, and explains them in laymans' terms.

Buying your first home is a thrilling, terrifying and satisfying experience. Best of luck to you!
Tiffany

Answer 5

save around. national will possibly no longer be responsible. loan officers do it each and every of the time. They permit you already know the cost has been locked and look ahead to the fees to drop and sometime, like this occasion, it is going up. Dont sign the papers because of the fact the cost enormous difference is basically too intense. in case you tell me your scenario, i will permit you already know in case you may get 6.5 with national or no longer. i will even run the pricing engine and recommend you suitable lenders to approach for a extra advantageous cost.

Answer 6

Yes. Please be careful with termanology. Every lender in the world has a "1st time home buyer" program. It is really just a catch phrase to get your business.

If your credit is good, even with little or no money down, you will qualify for the best rates out there.


Good luck!!