Steve and Eleanor Thorne, Johnston Co Mortgage Loan Officer, NC 919-649-5058

We've talked to several people in the last few weeks who are interested in new homes in Apex, NC. The Villages of Apex is located close to Historic Downtown Apex, and is conveniently located near Apex High School.

In addition to this, The Villages of Apex developers built the subdivision as a major positive feature for Apex, adding baseball fields, having Thales Private Elementary and Middle School located within the development. The parks, fishing pond, and Community Center with a swimming pool!

The Custom Builder Team for the custom new homes include homebuilders in Raleigh, Cary and Apex. These home builders offer single family homes, townhouses and properties well suited for Active 55+ housing with downtstairs master bedrooms, or mother in law suites. New Homes in Villages of Apex start in the mid $150,000 and there are several in the low $200,000 range!

Recently, new luxury apartments opened at The Villages of Apex, with incredible ammenities (Granite countertops in Apartments!)> Some of the buyers we''ve spoken with are living in the Apartments while their new homes are being built!

The Villages of Apex new homes do qualify for USDA 100% financing, however many of the homes are priced so that they would qualify for the NC Housing $8000 downpayment assistance program, and there are regular builder incentive packages available too!

If you are looking for a new home in Apex, near historic Downtown Apex (and all of the activities at the Community Center, the wonderful resturants, boutiques and activities at the Halle Cultural Arts Center) ask us for information about Villages of Apex!

Steve and Eleanor Thorne are considered top Mortgage Loan Officers with the best rates available call us at 919 649 5058

This home is located in our neighborhood - and so I looked up what the Adjustable Rate Mortgages are for houses over $300,000 today. I was pleased and surprised that a 5/1 ARM, with good credit and 10% downpayment is currently at 2.625% (apr of 2,9)! That's AMAZING! 7 year ARMs are equally at ALL TIME lows! WOW! What a great buy for a home in Cary, NC! Call us if you have mortgage financing questions for this MacArthur Park home (we love living here!) If you are looking for the lowest mortgage rates in Cary - call Steve Thorne 919-649-5057. If you want to see this home in Cary contact the Dukes at 919 380-1060

FHA has a unique qualification / underwriting guideline, that allows you to purchase a home, with a relative that does not live in the house... "The FHA Non-Occupying Co-Borrower Program" is sometimes, referred to in the Mortgage Industry as a “Kiddie Condo,” because frankly it’s perfect for purchasing a house for kids in college!

Instead of renting a dorm, many NC parents put the student on the mortgage loan and purchase a house, splitting the rent with others! We also use this program for 55+ adults who having aging parents who can not, for whatever reason, qualify to purchase a home – and the child helps the parent qualify for a mortgage loan.

Quite often First Time Homebuyers have a need for someone else to be on a mortgage with them in order to qualify to purchase a home. Additionally, we see situations where one spouse has a credit issue, and while the other spouse has great credit scores (maybe one had a foreclosure or short sale), they can’t qualify for the new house on their single income. In each of these cases, we refer clients to the FHA mortgage loan program, because of it’s common sense underwriting approach.

FHA sets loan limits for each county - so it's important to remember that in Wake County, NC (for instance) the maximum loan TODAY is $295,000. This is subject to change each October.

FHA Non-Occupying Co-Borrower Mortgages have a couple of options.

FHA Guidelines Section 606.02 Non-Occupying Owner Borrowers, states:

“When there are two or more borrowers, but one or more will not occupy the property as a principal residence, the maximum mortgage is limited to a 75% LTV. However, maximum financing (as described in sections 605 to 605.03) is available for borrowers related by blood, marriage or law (spouses, parent-child, siblings, stepchildren, aunts-uncles/nieces-nephews, etc.), or for unrelated individuals that can document evidence of the family-type longstanding and substantial relationship not arising out of the loan transaction.”

• A Non-Occupying Borrower who is not related to the Occupying Borrower, requires a 25% downpayment.
• If the Non-Occupying Borrower is related to the Occupying Borrower, then they only need to have a 3.5% downpayment.
• Both the Non-Occupying Borrower’s income & debts, and the Occupying Borrower’s income & debts are used in qualifying for the FHA Mortgage.

The occupying Borrower also needs to have a Credit Score – normally above 620. It is important to know that the co-signer’s credit cannot overcome credit problems with the primary “owner occupying” buyer- the lower of the all of the borrower’s credit scores will be used for qualifying.

Conventional loans also have a provision that allows for a Non-Occupying Co-Borrower, but there is no advantage to doing so. This is because when a Non-Occupying Co-Borrower is used in qualifying for a conventional mortgage, the Occupying Borrower still needs to be able to qualify for the mortgage solely based on his or her own income. There’s also a cap of 90% LTV (meaning you must make a 10% down payment and 5% of that money must come from the Occupying Borrower’s own funds). Additionally, if there are some qualifying issues – FHA uses Common Sense, Compensating Underwriting Guidelines for qualifying for a FHA Mortgage Loan in NC.

If you or someone you know is considering purchasing a home in Raleigh or Cary – please call Steve and Eleanor Thorne Government Loan Experts in Raleigh, NC 919-649-5058. We offer today’s lowest mortgage rates!

Rent-to-own agreements and or sales that take place between a tenant and landlord have special FHA Guidelines. Often times, when someone moves to our area with a short sale, or previous forced foreclosure in their past – they will rent a home here until their “waiting period” is over.

If you are in this situation, and plan on buying a home under a rent to own scenario, there are different rules for different types of loans. All Government loans are popular, because of their low downpayment requirements. VA has no “formal” guidelines for this scenario, and neither does USDA- however, most Underwriters follow the FHA Guidelines for all Government loans in a lease to own scenario.

The appraiser will determine the fair market rent for the property. Any money paid ABOVE the fair market rent will be used as a credit towards a future downpayment. So, if the appraiser says the fair value rent for the home is $1000, and you pay $1500 a month – $500 for each month you paid that could be paid by the Seller as Downpayment for you at closing!

The rent to own agreement must be approved by the lender. There also is a loan to value restriction (85% LTV) if the parties are related and they haven’t rented for a long enough period of time-usually at least 6 months. For NON related sales agreements, you can currently go up to 96.5% and not have to have a minimum rental period. Rules and underwriting are OF COURSE always subject to change at any time and any additional lender overlay.

If you are purchasing a home in NC, and want more information about FHA Guidelines and Rent to Own contracts – please call Steve and Eleanor Thorne, 919-649-5058 we are the NC FHA Experts! We also have the LOWEST mortgage interest rates!

There are many homes for sale in Knightdale and Raleigh that are in great shape - but they might not be EXACTLY what you are looking for. Maybe you'd like to spend a few dollars updating the appliances, or putting in hardwoods through out. Maybe you'd like to go ahead and purchase an Energy Saving Washer and Dryer. Great News! You can do these "updates" with FHA's 203K Streamline mortgage program!

With a 203K FHA loan you could purchase the home at 5605 Sandy Trail Drive in Knightdale, NC for the asking price of $138,900 - budget in $10,000 for improvements, and actually only need a 3.5% investment in the total amount of $148,900.

With very few exceptions, you will need a licensed Contractor to do the work for you. Although you can't change the foundation footprint of the home - any "cosmetic" changes you might want to do would be allowed under this FHA 203K program... making it perfect for forclosed property - or homes that had deferred maintenance, and need some updates.

Today's FHA Mortgage rates are actually below Conventional financing at 4.25% on a 30 year fixed rate loan (disclosure they are subject to change daily APR of 4.478). This is a great home, in a wonderful neighborhood - and we are only highlighting the opportunity to make these cosmetic changes because some buyers might want to... not because the home is in bad shape.

If you have questions about qualifying for a home loan in Knightdale, and using the FHA 203K program - please call Steve Thorne at 919-649-5058. If you want information about other mortgage programs available to help you buy foreclosed homes, or to purchase a HUD home in Raleigh for $100 down payment - we can help you with that too!