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How to Get a Mortgage with Student Loan Debt

On May 13, 2016, in charleston mortgages, by admin

You’re fresh out of college and ready to take on the world. First step, get a job. Second step, get a house. But wait, you look at your student loans and you have almost $130,000 weighing above your head and at any moment, specifically six months, it will drop upon you and you’re stuck paying […]

You’re fresh out of college and ready to take on the world. First step, get a job. Second step, get a house. But wait, you look at your student loans and you have almost $130,000 weighing above your head and at any moment, specifically six months, it will drop upon you and you’re stuck paying it for at least ten years. So, how can you get approved for a mortgage while paying your student debts?


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Set up your loan payments

During your six-month grace period it’s important to set up your loan payments. A nice trick that most post-grads are not aware of are income-driven payments. Sallie Mae takes a look at last year’s taxes and your current salary and bases your payments off of that. In some cases, your payments could be so low that it would not have that big of an impact on your qualifications for a mortgage.

Get a Co-Borrower

If your parents agree, have them cosign. This makes you look like a more attractive borrower with a backup plan. Plus, their income is included and therefore your debt to income will be much lower.

FHA Loan Program

FHA Loans

The FHA loan program has more lenient guidelines than conventional loans. When saddled with student loan debt and other bills the FHA loan program may be your best bet. Although FHA comes with PMI, it has a lower interest payment than conventional loans making it still affordable! Plus, you can eventually refinance and get rid of your PMI.

Coastlend’s 3% Down, No PMI Loan Program

Coastlend Mortgage offers a loan program where first time home buyers can put as low as 3% down and not pay the dreaded mortgage insurance. A small down payment opens up the door to home ownership for many 1st time buyers. Moreover, your payments will be much lower without PMI.

You may be saddled with debt and feel like you’re unable to purchase a home- but that is the farthest thing from the truth. There are a variety of options that will allow you to take the step to being a home owner. To see what your options are apply here or give us a call at 843-388-5763.

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An Easy Home Buying Process

On April 28, 2016, in Uncategorized, by admin

Even though mortgage regulations have changed it appears that the mortgage process has improved on the buyer’s end. A survey was recently conducted that showed 71% of recent home buyers rated their experience as either very good or excellent. This is a 10% increase over the last two years.  Many potential home buyers shy away […]

Even though mortgage regulations have changed it appears that the mortgage process has improved on the buyer’s end. A survey was recently conducted that showed 71% of recent home buyers rated their experience as either very good or excellent. This is a 10% increase over the last two years.  Many potential home buyers shy away from the idea of purchasing a home due to the daunting process. However, with buyers surveying that they believe the process has been getting easier, this could change the stigma surrounding home buying!

The view change of the buying process may be due in part to buyers being more reliant on their loan officers. According to Mortgage News Daily, “Twice as many consumers in 2015 said their Mortgage Loan Officer was their most valuable resource during the home-buying process.” Loan officers are a buyer’s best asset. A loan officer is a mortgage guru that can guide you through in the ins and outs of purchasing a home. If you work with a knowledgeable loan officer, you’ll have a much smoother loan process.

loan options

The great news is that loan programs are making it easier for low income and first time home buyers to purchase. Our 3% down NO PMI loan is one of the best around. No matter if you’re a first time home buyer or a seasoned one, on all primary homes you can put down as low as 3% and save with no mortgage insurance.

Coastlend’s Hometown Hero program gives back to the ones who help us! With low closings costs and your appraisal covered, it allows nurses, fire fighters, first responders, and military personnel to purchase a home without a problem.

Those are just a few of our loan options that have made getting a loan easier!  If you’d like more information on Coastlend’s loan programs, our amazing loan officers, or on the loan process, please give us a call at 843-388-5763 or apply now!

 

 

No PMI Can Save You Money in the Long Run

On April 21, 2016, in avoid PMI, by admin

If you’re purchasing a $250,000 home using our 5% down NO PMI loan you can save $65/month over the same conventional loan that has monthly PMI. The interest rate on the NO PMI loan is slightly higher but the payment is still less because you avoid paying expensive monthly PMI. In this case the PMI […]

no pmi

If you’re purchasing a $250,000 home using our 5% down NO PMI loan you can save $65/month over the same conventional loan that has monthly PMI. The interest rate on the NO PMI loan is slightly higher but the payment is still less because you avoid paying expensive monthly PMI. In this case the PMI would be $81/month.

With PMI:

250,000 purchase price with 5% down has a payment of $1181/month

NO PMI:

$250,000 purchase price with 5% down has a payment of only $1116/month

The PMI will go away on option one when you have 20% equity but that will take 8 years. After 8 years the monthly PMI goes away and option one’s payment will be $1400 or $53 less than option two however you must consider all the money you saved with the NO PMI loan over the first 8 years to find where the breakeven point is.

The NO PMI loan saved you $6240 over the first 8 years (65x12x8 = 6240). Divide that by the savings you’ll realize after year 8 ($53) to see how many months away the breakeven point is after year 8. 6240/53 = 117 months or 9.75 years. That means it will take a total of 17.75 years to breakeven. The initial 8 years of savings plus the 9.75 years to break even. Based on these figures the NO PMI loan is actually cheaper for the first 17.75 years.

That’s a long time to wait to realize savings. This is why the NO PMI option makes sense. Most people move or refinance within 7 years so chances are you won’t have the loan with PMI long enough to realize the savings. In addition saving $53 in 17.5 years isn’t going to be much when you factor in inflation.

no pmi

If you have additional questions on our NO PMI options let us know. You can also complete our easy loan application by clicking the link below.

Easy Loan Application