Posts Tagged ‘New Construction Loan’
Debt to Income Mortgage Qualifications
What is Debt-to-Income Ratio? If you decided to buy one of the Florida homes for sale you’ll need to know your debt-to-income ratio (DTI). Simply put, it is the calculation of how much of your monthly income goes to debt payments. Mortgage lenders look at the debt to income ratio to see how much they…
Read MoreUnderstanding Construction Loans
What is a Construction Loan? Construction loans are temporary loans used to pay for the building cost of a home. They are relatively short term, and a lender usually takes an ownership interest in the building. It is designed for construction and has features such as interest reserves, where repayment capacity is based on something…
Read MoreCalculating You Monthly Payments
Calculating your monthly payments Even when you find the perfect home builder, One of the most important factors to consider when building a new home is affordability. As a general rule, mortgage payments should not exceed 30-40 percent of your monthly take-home pay. When calculating affordability for FHA loans you can use 45% of your…
Read MoreUnderstanding Mortgage Rates For New Construction
Mortgage Rates; How & why do they change. Mortgage rates are mostly defined by the secondary market, where they are bought and sold. The two government agencies whose job is to keep the secondary market stable are Fannie Mae and Freddie Mac. These two government agencies not only help to establish the current mortgage rates…
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