Today Lending Blog

What is a FHA Loan?

FHA loans are loans guaranteed by the FHA. This means even if the burrower (you) default, the lender gets their money. This means more lenders will approve new loans.

Who qualifies for FHA loans?

Almost everybody will qualify for a FHA loan.

FHA loans have a no income limits. This means anyone with decent credit can get a FHA loan. Those with bad credit won’t be approved but you don’t need perfect credit either.

The debt to credit ratio also needs to be reasonable.

Why get a FHA loan?

For some homebuyers, the upfront costs of buying a home can be too much to handle. FHA loans allow potential homebuyers a small 3% down payment. This is lower than what most other loans will allow.

What are the problems with FHA loans in Tulsa OK?

FHA limits loans

Since FHA limits the amount it will loan, you may not be able to borrow enough for the house. The amount available for FHA homes changes on a regular basis. Check with a reputable lender to determine the amount available for Tulsa, OK.

FHA loans require a credit history

No matter how great your lender is, if you don’t have any credit you won’t qualify for a FHA loan. Your credit score doesn’t have to be great but you have to have some credit history to qualify.

Where to go next

If you are interested in a FHA loan, contact a qualified lender. They will help you determine if a FHA loan is right for you.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com)

Everyone looking to buy a home wants a good deal and USDA loans in Tulsa, OK may be exactly what you are looking for. Before you decide, you need to know a few things.

What is a USDA home loan?

These loans are 100% guaranteed by the federal government. The catch: USDA loans are only available in rural areas.

Are there loan limits?

Yes. The USDA limits how much someone can borrow for the home. This differs according to the area. In Tulsa, OK, the loan limit effective 3/1/09 is $144,500. That does not mean you can borrow that much towards any house. That is only the maximum borrowing amount allowable.

What about income limits?

Along with loan limits, the USDA limits the amount of income a family can receive and still qualify for the loan. Families up to 4 members can make $73,600. Families from 5 to 8 are allotted a maximum income of $97,150.

How much will the USDA loan finance?

USDA loans finance up to 102% of the appraised value of the house. This means it will finance 100% of the value along with the 2% USDA loan guarantee fee.

Who is eligible for USDA loans?

Like most loans, your income must be sufficient to pay the mortgage, interest, property taxes and insurance. Generally, mortgage companies expect payments to be less than 29% of the gross monthly income.

Credit score is also considered. In most cases, a FICO credit score of 620 is needed to qualify for a USDA loan.

The other factor involves your debt ratio. 41% debt is generally accepted as acceptable. The 41% includes all current debts plus the estimated amount to pay the housing costs.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa,

Recently, VA loans have been extended to include active duty and reservist along with veterans. This is good new for anyone in the Army, Navy, Marines, Air Force, and National Guard.

VA loans offer no down payment

With no money down, who can resist that? No money is required for loans up to $417,000. As long as the seller agrees to pay the closing cost, you can buy a home with no money out of pocket. Be sure to ask your lender about the 100% loan option.

No Insurance Fees

Most mortgages require the buyer to pay an insurance fee. However, the VA uses a Funding Fee. This fee takes the place of the traditional insurance fee and can be included in the loan. In addition, disabled veterans can get this fee waived altogether. If you are disabled don’t forget to ask the lender if you qualify for the waiver.

Bad credit not always a problem

VA loans don’t look solely at credit scores. People with bad credit that have a recent good payment history may qualify. This means that if you are paying your bills on time and have been for the last year, you may qualify for a VA loan. VA loans tend to offer a better rate than traditional loans. If you have bad credit, ask about a VA loan anyway. You just may qualify.

Finding a lender who deals with VA loans

The best option when buying a house is to find a lender who deals with multiple types of loans. A good lender should offer VA, USDA, HUD, and FHA loans along with the standard mortgage loans.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

Bad credit makes it difficult to obtain an Oklahoma home loan. However, just because you have bad credit doesn’t mean you can’t buy a home. With a few simple tips, you may be able to qualify for a home loan.

Everyone says, “Check your credit report” but no one ever tells you what to do with that information. Here you will learn three simple things to increase your credit rating.

#1 Check your bad credit

Look over your credit report to make sure all the bad credit really belongs to you. Sometimes bad credit is applied to the wrong person. Someone with a similar name or social security number may have done something that got put on your credit report. If you see anything that does not belong to you, write the credit companies. You can find ready to use forms on the Internet telling you exactly what to say.

#2 Fix some of the bad credit

Look at your bad credit and see if you can fix any of it. Maybe you owe $35 dollars to some company. Paying that off would improve your rating.

If you have broken a lease on an apartment, you may owe them money. Many times, you can negotiate a lower amount to settle the debt. This payoff can drastically increase your credit score.

Basically, scour your credit report and see what can be paid off. Anything paid off will improve your credit rating. Try your best to pay off as much as possible. This can end up saving you thousands of dollars in fees later.

After doing these two things, contact a lender who specializes in a variety of loans. You will be surprised at what is available to people with bad credit.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

Oklahoma mortgages are similar to other mortgages throughout the United States. However, there are some differences. When looking for an Oklahoma mortgage, you will want to deal locally as they will be more likely to understand what is available in your area.

USDA Loans

USDA loans are loans guaranteed by the government. The big catch is that the house must be in a rural area. Local lenders will know which houses in the area qualify.

The other big difference with USDA loans is the limits. Income limits along with loan limits vary from one location to another. For example in Tulsa, OK, the maximum allowable income for a family of four is $73,600. Other areas have a different maximum income.

Native American Loan Programs

Did you know that the section 184 loan guarantee program was created for Native Americans? This allows Native Americans to attain a mortgage on tribal land. Of course, the Bureau of Indian Affairs is required. It creates leasehold that allows the house to be foreclosed on while the tribe maintains the land rights. Contact a local lender to learn more about Native American Mortgage Loans.

These are just two reasons that local lending is best. However, there are many more reasons to go local. For example, you can go to a local place in person and a local person understands the needs of the area.

Locally based and locally established lenders make better mortgage matches. Essentially, they offer more convenience for the potential homebuyer.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

A few years back, a couple wanted to buy a home so they looked into Tulsa home loans. They were excited because the wife just finished college and received a teaching position in Tulsa. The husband had his own business so they were ready to move.

As first time homebuyers, they were not sure where to start. However, they started by looking for a home they liked. After looking at dozens of houses, they finally found the perfect house.

It had everything. It had a living room with a den, a very large kitchen and a big backyard. The backyard was perfect too. It had a greenhouse for the wife’s roses and a workshop for the husband’s projects. What really sold the house was the swing. It had a bench swing in the middle of the yard just as the wife had always wanted. Now all they needed was a loan.

As it turns out, the couple didn’t make enough money yet for the house. The wife hadn’t actually started teaching yet. However, the lender was smart. She knew the wife would be teaching in a few months and had an idea. The couple would apply for an interest only loan. This was perfect!

The couple applied for the interest only loan and got it! They paid on the interest only loan for a few months until the wife started getting paid. Then with first paycheck in hand, they went and reapplied for a new loan. This time they qualified for a regular mortgage.

The couple got their dream home all thanks to an understanding lender.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

Look up “Tulsa mortgages” in Google and you will find over a million results. All these pages can be quite daunting for homebuyers. So where does one start? How does someone go about getting a loan? What do you even need for a loan?

The First Steps in Getting a Loan

Tulsa mortgages are generally the same as mortgages from elsewhere in the United States. There are a few differences but when you are first starting to look the differences don’t really matter.

Right now, focus on yourself and finding a good lender. You will be able to contact a good lender easily. After all, if you can’t contact the lender, then the lender won’t do you any good.

Getting a Loan

Whether you are a first time homebuyer or not you will need some essentials. All borrowers need to gather financial documents. You will need to know how much you make and how much you owe. This means paychecks, bank statements, bills and credit cards. Gather it all together to determine how much you can afford to pay on your mortgage.

Check your credit score

Your credit score will be vitally important for most Tulsa mortgages. While there are a few exceptions, a good credit score means lower payments.

Before you buy a home, check your credit score first. Then request a copy of your credit history. Once you get your credit history, check it over for mistakes. If there are any mistakes, write to the credit agencies. Then check your credit history for easy fixes. If there is anything you can easily pay off; do it. This could save you thousands of dollars in interest later on.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

When looking into a Tulsa mortgage, potential homebuyers need to know two things. They need to know what the types of mortgages are available and what that means to their bottom line. If they are not sure of either, then homebuyers can potentially lose money.

Types of Mortgages

Despite all the complexity of different types, all mortgages come down to two options. Either the homebuyer is paying off the house with the mortgage or they are paying off the interest for the house on the mortgage. Both of these options have their benefits and drawbacks. Only the homebuyer can decide what is best for them.

It is important to know which one you are getting. Unfortunately, unscrupulous lenders have lent money to homebuyers on interest only loans that they could not otherwise afford. This unscrupulous lending led to the housing crisis that remains today. This does not mean all interest loans are bad. On the contrary, they serve a specific purpose and are great for that purpose.

How the mortgage affects you

This is where things get more complicated. Some loans allow for no money down. Other loans have lower interest rates. While yet other loans are assumable. These are all important things to know about the type of loan you are getting. It is important to discuss with your lender what the loan means to you before agreeing.

Don’t be afraid to ask the lender questions. Ask them if you can transfer the loan. Ask the lender if there are penalties for paying off early. Ask them if the home will be paid off at the end of the loan.

You have a right to know all the terms of your mortgage. A good lender will readily answer your questions.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

Due to the recent economy dip, many homeowners have trouble making mortgage payments. In the past, the only option would be refinancing. While refinancing a loan can get you a lower interest rate, it only works for those with good credit.

The loan modification program allows homebuyers to modify their current loan even if they have missed some payments. Banks are encouraged to modify home loans with federal incentive programs. Homeowners can expect to decrease their interest rate up to 2%.

In addition, late payments and missed payments are added to the loan modification. This is not an option for refinancing. Homeowners who have missed payments generally won’t qualify for refinancing. The loan modification program considers the current economy and does not hold missed payments against the homeowner.

The best part about loan modification is it can stop foreclosure. Many homeowners, who would otherwise face foreclosure, can apply for loan modification.  Many times, the very people who need refinancing because of financial hardship are turned down. This is the exact opposite for loan modifications. People struggling to make mortgage payments can file a hardship request. This is the first step in securing a loan modification.

A refinance loan is still a good option for many homeowners. Not everyone qualifies for a loan modification. In this case, refinancing your mortgage with a better interest rate may be right for you. The only way to know is to contact a local lender and talk it over. They should give you all the information you need to make the right decision.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.

Many potential homebuyers will qualify for a FHA loan in Tulsa, OK. However, it is still up to the homebuyers to search around and get the best deal for themselves. A little knowledge goes a long way when buying a home.

First, you need to determine how much you can afford to pay each month. You don’t want to get into a situation where you can’t afford to make the payments.

While there are guidelines in determining how much you can afford, only you know your circumstances. For example, a couple may qualify for a home loan with payments of $1,000 a month. This couple may also know that they won’t be able to afford anything over $900. It is in the best interest of the couple to find a house that they can get for $900 a month instead of stretching it to the $1,000 limit.

Next, you need to find a qualified lender. The FHA doesn’t loan anyone money. They insure loans through qualified lenders. This means you need to find a lender that can do FHA loans. Otherwise, you won’t be able to get a FHA loan no matter how much you make.

Finally, find out the limits to the FHA loan in your area. The loan limits change periodically so it is best to check with your lender to determine what the current limit is. Once you know the loan limit, you can begin searching for a house that meets your needs.

With all the information in hand, you should be able to find your perfect house along with the perfect loan.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa, Oklahoma and own The Davenport Company (www.DavenportCompany.com) which services home buyers and sellers in the Greater Tulsa region. Contact Chris anytime at (918) 340.0010 for more information.