While our traditional down payment assistance programs come with certain qualifications—such as income limits or the requirement of being a first-time homebuyer—this new 100% FHA financing program breaks from that mold. The most significant difference? No income limits.

This makes it an ideal solution for buyers who might earn slightly more than the maximum income allowed in typical down payment assistance programs but still need that 100% financing option. For those who are eager to stop renting and start owning, this new program could be your key to homeownership without having to wait for market changes.

This program is perfect for:

• Buyers who exceed the income limits of down payment assistance programs
• Buyers ready to stop renting and purchase a home now
• Anyone looking for a flexible, no-down-payment option

This addition to our suite of offerings gives Realtors, builders, and homebuyers more flexibility and tools to find the perfect financing option. So, if you or your clients are considering homeownership, this could be the loan that makes it possible!

Contact us today and see if 100% FHA financing is the right fit for you. Whether you’re a prospective homeowner or a real estate professional, this is a new tool that could help make your dream home a reality.

Lowering the credit score requirement to 550 allows more consumers to qualify for FHA loans. This change is especially beneficial for those who may have faced financial hardships in the past but are now ready to move forward with buying a home. However, it’s important to note that, per FHA guidelines, buyers with a credit score under 580 will need to put down at least 10% of the purchase price. This is a requirement set by FHA, not Service First Mortgage, but it ensures that buyers can still get a loan with a lower credit score.

At the Johnston Team, we’re committed to not just qualifying more buyers but also helping them improve their credit. Our credit maximization efforts focus on moving buyers from a 550 credit score to 580, or even higher, to unlock better loan terms. By improving their credit score, borrowers can often reduce the amount they need to put down or qualify for more favorable rates. We offer personalized advice to help borrowers improve their financial profile, potentially saving them thousands of dollars over the life of the loan.

These expanded FHA loan options provide real estate professionals and lenders with a broader pool of potential buyers. We hope that these changes will benefit your business by allowing you to assist more clients in achieving homeownership. If you need marketing materials or additional information, we are here to support you.

At The Johnston Team, our goal is to make homeownership accessible to as many people as possible. If you have any questions, feel free to reach out to me, Stephanie, for more information on how we can help you and your clients succeed.

Let’s start by exploring conventional financing, backed by Fannie Mae or Freddie Mac. Most lending falls under this category, including the typical 30-year fixed mortgage. Knowing this limit is important because exceeding it puts you into what’s termed a jumbo mortgage category. These often come with higher down payment requirements and stricter qualification criteria.

However, the good news is that for 2024, the conventional loan limits have risen to $766,550, providing more opportunities and affordability within this segment.

Surprisingly, there are strategies to purchase properties beyond these limits. Combining first and second mortgages or making substantial down payments could help you explore properties exceeding the specified loan limits.

FHA loans, often considered for first-time homebuyers but accessible to many, present an alternative. With the 2024 loan limits increasing to $498,250, and even higher in specific counties (e.g., Dallas Fort Worth Metro at $563,500), FHA loans offer a pathway towards affordable homeownership.

A lesser-known fact about VA loans is their lack of a loan limit, often reaching up to $1.5 million with 100% financing, a gesture of gratitude and support to our veterans.

Understanding these loan limits, their variations across different programs, and the potential strategies available can be a game-changer in navigating the real estate market.

Feel free to reach out with any questions. My team and I are always here to help!

Check out my video for a deeper dive into what you need to know when it comes to Bridge Financing!

Bridge financing is essentially a financial tool that bridges the gap between selling your existing home and buying a new one. Traditionally, the sequence involves selling your house, getting the funds, and then purchasing a new property. But what if you want to switch the order or need a backup plan? This is where bridge financing comes into play.

1. Advancing equity to purchase the new property: When your house hasn’t sold yet, bridge financing allows you to access a percentage of the equity, enabling you to proceed with the purchase of a new property. This advance can sometimes be arranged with minimal to no additional fees or closing costs, making it a viable and cost-effective option. Once your current home sells, additional proceeds can be used to readjust the loan balance, resulting in the same mortgage terms and costs as if you had followed the traditional route.

2. Temporary mortgage solution for two home payments: For those concerned about qualifying for two mortgage payments, bridge financing ranges from options at the same rate and cost as a traditional loan to other loans that facilitate a temporary mortgage on the new property. This allows you to transition smoothly while waiting for your current home to sell. After the sale, a refinancing process helps adjust the mortgage at the prevailing rates.

The beauty of bridge financing is that, when executed strategically, it can match the financial terms, rates, and costs of a traditional mortgage. It provides flexibility, allowing homeowners to pursue their dream property without the constraints of sequential buying and selling. Bridge can still be a viable solution, especially when considering potential benefits like maximizing profits on the sale of your current home or securing a better deal on your new property due to a quicker closing.

Contact us today to explore bridge financing and create a customized plan to seamlessly transition into your new home!

Check out my video for where I break down the 2023 property tax changes affecting Texas and beyond.

While property values keep rising, most Texas counties dropped their tax rates for 2023 thanks to an expanded tax base! This helped offset higher home values. An even bigger savings comes from the state’s homestead exemption increasing from $40,000 to $100,000 in guaranteed deductions for school taxes. With these two changes many homeowners had a property tax decrease from 2022 to 2023!

First, verify you’re receiving all eligible exemptions like homestead, senior, disability, and veteran discounts. Check your tax bill or county appraisal website. If not shown, apply and request refunds from prior years if qualified.

Next, compare your new property tax amount to last year’s bill to see if you’ll owe more or less. If you do have a large difference, proactively reach out to see if action is needed via an escrow analysis. This can help prevent a large shortages or overages down the road.

Navigating changes to tax bills, escrow accounts, and mortgage payments can be confusing. If you have any questions or need assistance, don’t hesitate to reach out. I’m happy to provide guidance tailored to your unique situation. My goal is ensuring you maximize savings and keep financial peace of mind.

My team and I are always here to help, so feel free to reach out if you have any questions!