Rachel Donovan, Legacy Mortgage

Rachel Donovan has been a mortgage lender for 22 years. She has successfully completed many industry courses and is now one of only a few lenders in the state having received the designation of, “Certified Housing Specialist.” She has gained the product knowledge to ensure her recommendations of programs that will best fit your short and long term needs. Legacy Mortgage, LLC is now one of a few lenders offering the "Legacy Rehab Express" (which is the 203K purchase/rehab " all in one" loan ) . In addition, both Rachel and Legacy promise a smooth process start to finish for any Conventional, FHA, VA, Jumbo, First Time Buyer , Second Home, or Investment Property loans.

***Rachel Donovan
Legacy Mortage
License # 368845
Certified USA Cares Military Housing Specialist
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

MFA…. A 1st time home buyer program

February 1, 2012 By Leave a Comment
MFA NM Mortgage Finance Authority

 

Are there still 1st time home buyer programs?…… YES!

Can you really buy a home with only $500.00 down?……..YES!!

Sounds like a car dealer add doesn’t it?… Its not

There is an agency in Albuquerque called MFA or Mortgage Finance Authority. They offer a few different programs but one of them loans you an amount up to $8000.00 that can be used for both down payment and closing costs and you pay that loan back over the term of 30 years as with your primary mortgage. You can prepay both loans if you like with no penalty.  Gone are the times that the seller could pay your down payment for you but this program is helping a lot of people become homeowners when they wouldn’t be able to be otherwise. With this program you can buy a home for $500.00 of your own money when being the loan you qualify for is one offered by FHA that allows a government agency to help you with the down payment and closing costs.

Legacy Mortgage has been the top MFA lender for 4 consecutive years and is happy to help you with yours!!

Request for more info

If you would like more info please fill out this form and we will get in touch with you shortly. Thanks for your time!

 

 

Filed Under: 1st Time Buyer Programs, Rachel Donovan, Legacy Mortgage

LTV & DTI

August 25, 2011 By Leave a Comment
letters

 

 

 

 

 

 

 

I often get the question of what DTI and LTV are so here it is:

DTI- means Debt to Income and is used by lenders to determine whether you make enough money to be able to make your mortgage and other debt obligations on a monthly basis.  A lot of details go into the calculations of debt to income. Debt is defined as any revolving and installment debt you have as well as any other obligations you may be required to pay on a monthly basis.  Things like utilities and insurance payments for cars or life insurance are not counted as monthly debt.  Calculating income can be tricky when income comes from being self employed or commission, or from part-time income.

LTV- stands for Loan to Value and is used by a lender to determine the equity in a property.  On a purchase, the value is always the sales price, unless the appraisal comes in lower than the value of the accepted contract.  On a refinance, the appraisal determines the market value of a home and then the current balance on the mortgage loan is divided by the value to determine how much equity is in the home.  Whether you buy or sell, the loan to value is used to determine what type of loan programs are available for you.

 

 

 

Filed Under: Buyer FAQs, Rachel Donovan, Legacy Mortgage

What is PMI??

August 13, 2011 By Leave a Comment
PMI

 

 

 

 

 

PMI is private mortgage insurance and all loans that don’t have at least 20% down are required to carry PMI.  PMI is insurance that a lender puts in place to reduce the risk of the loan going into foreclosure.  There is a monthly premium that is paid just like your homeowners insurance.  The good news is that PMI allows many borrowers to qualify for a loan when they don’t have 20% to put down.  In today’s economy it is hard to save that much money for many people.   Each loan type, FHA, conventional and VA have some type of fee that is used to help lenders lend money without too much risk.  The good news is that now PMI may be able to be deducted on your income taxes.  Talk to a tax preparation specialist to find out if your PMI is deductible and stay tuned to this station for more information on loan types.  Stay tuned to this station for more information on the best programs to use to purchase a home.

 

Filed Under: Buyer FAQs, Rachel Donovan, Legacy Mortgage

What is a 1st time home buyer??

July 18, 2011 By Leave a Comment
1st time buyer

 

 

 

The answer to this question is not the obvious answer that one would think. There is a lot of talk about first time buyers and the many programs that are available to them.  The definition of a first time buyer is someone who has not owned a home for the last 3 years.  They may have owned homes in the past, but haven’t within the last 3 years.  There are many programs available for first time buyers that allow them to purchase homes sometimes with as little down as $500.00.  The mortgage industry is always looking for ways to make it easier for people to buy a home and one of the ways is allowing them to have little or no money down.  In the past in order to own a home you had to have 20% down.  The most common first time buyer loan is with the Federal Housing Administration, but, there are also first time buyer loans in conventional and VA.  Stay tuned to this station for information on the different FTB loans and how you can purchase a home using them.

 

Rachel Donovan

Legacy Mortage

License # 368845
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

 

Filed Under: 1st Time Buyer Programs, Buyer FAQs, Rachel Donovan, Legacy Mortgage

Parents for kids OR kids for parents!!

June 23, 2011 By Leave a Comment
Chicks

 

 

 

 

 

 

 

  • FHA has a loan program that the financial industry has lovingly labeled: The “Kiddie-Condo” Loan (although, they are not limited to the purchase of a condominium … it can be a standard single-family home, duplex, etc.)
  • Essentially, here are the highlights:
    1. The maximum FHA loan for Sandoval, Bernalillo, and Valencia Counties for a single family dwelling is $271,050.00. (Higher loan amounts are available for 2, 3, and 4 unit dwellings.)
    2. The min. down payment on 1 unit dwellings is approximately 3.50% of the purchase price. (You may be able to qualify & the funds are available, for the MFA program which includes 3.0% grant money in combination with this FHA loan, your actual down payment could be .50%.
    3. Parents can purchase the home and place their son or daughter in it. (The reverse can happen too. Let’s say the children have some elderly parents with a fixed income, they … the children … can qualify for the home … adding whatever income and debt that the parents have … and qualify based upon the combination thereof.)
    4. They all will be on title for FHA purposes. Different for FHA/MFA.
    5. Qualifying is based on the strength of the buyers’ and parents’ credit scores, debt to income ratios, etc.
    6. New:  The child is not required to have taxable income, however, credit must be acceptable with at least 1 credit score.  If the child is a student with no income, non traditional credit is NOT allowed.   FHA will no longer allow alternative sources of credit for borrower’s who have no credit or taxable income at all.
    7. Borrower’s must have 2 months cash reserves for total PITI monthly payment of their own funds.  No gift of reserves is allowed.
    8. This program is used many times by families who choose, while their child goes to college, to have them in a house … rather than in a dorm. Sometimes the program is used to help a young family get a head-start.
    9. During that time, everyone in the family is benefiting from home ownership and the appreciation associated with it, while not wasting money for housing for the student (if applicable).
    10. The child also benefits, as he or she is establishing a credit rating of their own.
    11. The parent benefits in as much as the normal down payment on “investment” property can be as much as 30% and the interest rate would be higher as well. This would be considered “owner-occupied” as the son or daughter is living in the home.

Please call Rachel for the details. Rules and guidelines are subject to change at all times. Be sure to follow-up with Rachel Donovan with Legacy Loan Officer for any updates.

***Rachel Donovan
Legacy Mortage
License # 368845
505-328-4792
rdonovan@legacymortgagenm.com

http://legacymortgagenm.com/RDonovan/


 

Filed Under: 1st Time Buyer Programs, Buyer FAQs, Rachel Donovan, Legacy Mortgage, Rental Homes

Is a 2/1 Buy Down Your Solution to Your Next Mortgage?

June 16, 2011 By Leave a Comment
BUYDOWN

Make your home ownership experience more comfortable with a 2-1 Buy Down from Legacy Mortgage.  The loan is a FIXED 30 year loan with a reduced interest rate for the first 2 years.  This program allows you a lower payment those first years leaving more cash each month for the little extras.

How the loan works.  The first year rate is 2% points below the market rate, the 2nd year rate is 1% point below, and years 3 – 30 are at the market rate from when you closed.

  • This loan starts with a lower interest rate for the first 2 years and is FIXED for the next 27 years.
  • An example is, year 1 rate would be 3.0%
  • Year 2 would be 4.0%
  • Years 3 – 30 would be 5.0%
  • The cost is 2.5% of your mortgage amount.  A $100,000.00 mortgage would cost $2500.00.
  • Buyer or seller can pay this.
  • The principle and interest payment on a $100,000 30 year fixed at 5% is $536.82.
  • The principle and interest payment on the 2-1 Buy down $100,000 loan first year at 3% is $421.60 a difference of $115.22 per month.
  • The principle and interest payment for the 2nd year at 4% is $477.42 a difference of $59.40 per month.
  • The principle and interest payment for years 3-30 is $536.82.

This loan allows you to have a reduced payment during those first few years of homeownership making the transition much more comfortable for buyers.

Call Legacy Mortgage and Rachel Donovan to get all the details on this loan as well as all other mortgage loan options.

Rachel Donovan
Legacy Mortgage
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

Filed Under: 1st Time Buyer Programs, Buyer FAQs, Rachel Donovan, Legacy Mortgage, Rental Homes, Seller FAQs

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Coldwell Banker Legacy Realtors (505) 292-8900 8200 Carmel NE Ste. 103A Albuquerque, NM 87122