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Down payment gifts can make it much easier to purchase a home, and mortgage lenders are generally happy to accept them.   We allow cash gifts for down payments on a huge array of loan programs including FHA loans, VA loans, USDA loans, conventional loans, and even jumbo loans. However, if you’re getting a cash gift for down payment, you’ll want to be sure you document the gift properly. Should you receive your gift improperly, your lender is likely to reject your home loan application.  For more information about gift funds contact me today.

Mortgage insurance helps protect a lender if a borrower forecloses on their property. Borrowers pay for the mortgage insurance, allowing lenders to grant loans they might not have otherwise. Mortgage insurance may be required on some loans when a down payment is less than 20 %.

Mortgage interest, insurance paid, and property taxes are normally tax deductible for your principal residence. As confirmed by TurboTax, buying a house is an investment, but the tax deductions may be large enough to lower your tax bill “substantially.” Interest/insurance payments on a residential mortgage (as well as mortgage interest/insurance on a second home) may be fully deductible.

Also called discount points, mortgage points work as a one-time fee you can opt to pay if you’d like to get a lower interest rate.

One mortgage point equals one percent of your total loan amount and may drop your interest rate one-eighth to one-quarter percent lower.

Closing costs are fees and expenses you pay when you close on your house, beyond the down payment. These costs can run 2% to 5% percent of the loan amount and may include title insurance, attorney fees, appraisals, taxes and more.

Most loan programs are looking for a two-year job history in the same field — though changing jobs to move to a better position could be seen as favorable.

For recent college grads, you may still be able to get a home loan without a two-year work history.