First Time Home Buyer Programs in North Carolina offer many options. Most First Time Home Buyers want to know how much it will cost to buy a house, how much their monthly mortgage payment will be, and if they qualify. This is a Google Hangout Session we presented to cover closing costs for First Time Home Buyers in NC, minimum credit score requirements for a home loan in NC and First Time Home Buyer Programs that have down payment assistance. We covered USDA Home Loans NC and the USDA Eligible Area Maps that are changing. USDA Home Loans in NC have a minimum credit score requirement of 640, if you are also applying for First Time Home Buyer Tax Credits - however, USDA Loans have no down payment requirement. If you are not applying for First Time Home Buyer Mortgage Tax Credits in 2013, the minimum credit score for a USDA Home Loan NC is 620. The NCHFA offers North Carolina First Time Home Buyers the ability to buy a home, and receive a 3% grant. The program has a minimum credit score requirement, and the statewide income limit is $85,000 in 2013, and the Minimum Credit score for the program is 660. The NCHFA Program also offers Mortgage Tax Credits (MCC) which are in place as long as the borrower owns the home - and increases the purchasing power for First Time Home Buyers in NC. FHA Home Loans in NC require a 3.5% Down payment, but that money can come from a gift, or the NCHFA Grant program. The FHA PMI rates, the USDA PMI rates and the VA Loan mortgage insurance premiums are detailed for 2013 in the closing cost breakdown. Sellers are allowed to pay for a Home Buyers closing cost, but First Time Home Buyersin NC should be aware of what costs are "typically" covered by Sellers - sometimes a contract is written to say the Seller will ONLY cover Closing Costs "UP TO" and a dollar figure. This could mean that the Seller is unwilling for any of the Seller Paid Closing Costs to cover the First Time Home Buyer "soft costs" including a home inspection, taxes and homeowners insurance. One closing cost example shows how a first time home buyer could buy a house in North Carolina with total cost out of pocket less than $1200. No down payment and Seller paid closing costs options should be negotiated in the contract and we strongly suggest that First Time Home Buyers in NC get the best deal by using a Real Estate Professional. Although not in the slides, we also discussed the ways a First Time Home Buyer in NC can get the best mortgage rates by working with a Bank that offers all of the First Time Home Buyer Programs available - not all North Carolina banks offer Single Parent Grants to buy a home, or the Mortgage Tax Credit for First Time Home Buyers. Steve Thorne NMLS #60596 help First Time Home Buyers NC by offering Hangouts on Google Call them 919 649 5058 for update DISCLAIMER: The views expressed on this post are mine and do not necessarily reflect the views of River Community Bank, NA. Not all programs fit all clients

1. Welcome to our HangOut!!
Questions and
Answers for
First Time Home Buyers
Information provided by
Eleanor and Steve Thorne
Mortgage Lenders NMLS #60596
Vanessa Mouton
Go Realty
October 29, 2013
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

2. We encourage you to ask questions. There
are likely several other people who want to
know the very same things you do.
If you have specific questions that we need
to answer in a one on one session - we are
glad to do that, and there’s NO FEE for
seeking our advice.
We want to help you make an informed
decision - not do a “sales job” on you.
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

3. Most Buyers Have
3 Questions
● How Much Will It Cost To Buy A
House?
● What Will My Payments Be?
● Can I Qualify?
What Are YOUR Questions???
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

4. Closing Cost Estimate for
$250,000 Sales Price USDA Loan
Description / $ Range
Sales Price
Example
250000
Downpayment
USDA and VA Loans have NO Down Payment, FHA requires 3.5%,
Conventional Loans require 5%
Loan Amount
Sales Price minus Down Payment
Upfront Mortgage Insurance (PMI) Fees
Varies by Loan Type - any loan with less than 20% down will have
some type of PMI. All Government Backed Loans have Upfront PMI
Fees / USDA Fees are 2%, FHA are 2.75%, VA Fees for 1st Use are
1.5%
5000
Origination fees, Daily Interest, Title Insurance are all based upon this
amount
255000
Total Loan Payments Are Based On
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney
steveATSteveThorneOnlineDOTcom
0
250000

5. Closing Costs
Example Cost Estimate
Origination Fee
Typically 0 Could be as high as 1%
0
Discount Points
Typically 0 Could be as high as 1%
0
Appraisal Fee
Typically $400
400
Credit Report Fee
Typically $20 to $35
20
Bank Fees / Commitment Fee
Typically $800 to $1400
795
Tax Service Fee
Typically around $80
80
Attorney Fees
Typically no more than $575
550
Recording Fees
Varies by Area Typically between $120 and $175
150
Title Insurance
Varies by Loan size, a $170K loan is $300
405
Flood Certification
Usually under $25
20
Total Closing Costs
2420

6. Closing Costs are generally broken into 3 parts… Closing Costs, which are “hard fees” paid to Service
Providers, Prepaid Items that cover your Escrow account and “Other Charges.” Many times a Seller will
not cover the Prepaid or “other items” if not written correctly in the offer.
PrePaid Items
Example Cost Estimate
Property Taxes
Normally 6 Months Collected
Daily Interest Charges / Per Diem Interest
Loan Amount X Interest Rate divided by 365 multiplied by number of
days from closing to end of the month / Closing on 10/30 at 4.25% =
29.69 a day
60
Hazard Insurance Premium
Banks Collect 1 full year of premium plus 3 months reserves
781
Home Owner Association Dues
Banks Collect 3 months
0
PMI Reserves
Banks Collect 3 months of the "annual" or monthly PMI charges if there
are any / USDA Monthly Charges are .4%, VA doesn't charge monthly,
FHA charges 1.35% and Conventional PMI averages .85% if you are
putting 5% down (but varies based upon credit score)
0
Total PrePaid Items
1400
2241
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

7. Example Estimate
of Costs
Other Charges
Home Inspection
Typically between $350 and $425
375
Termite Report
Typically $75
75
Well Inspection
Water test runs $125
0
Survey
Banks don't require a Survey- but they run
between $300 to $450
0
Total Other Charges
450
Attorneys will occasionally order an appraisal as a
routine part of doing a closing - always ask the
Attorney, because the Lender is usually not
including those costs in the closing estimate they
prepare for you.
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

8. How Much It Might Cost To Buy
a $250,000 House with a USDA Loan
Total Cost Of ALL Closing Costs
Closing Cost + Prepaid Items + Other Charges
Plus Down Payment
5111
0
Minus Costs Paid TO THE Seller /
Earnest $$ and Due Diligence $$
This can vary widely - but usually you will need at least
$500 to $750
$750
Minus Costs Paid BY THE SELLER
This is a negotiated amount. The Appraisal will need to
support the closing costs
4000
How Much Cash You Need At Closing
TOTAL COST OF BUYING THE HOUSE
$361
Due Diligence Dollars / Earnest Money PLUS what you
pay at closing
Steve Thorne #NMLS 60596 River Community Bank, NA
919 649 5058 SThorne@mortgages.rcbna.com
$1111

9. First Time Home Buyer MCC in NC
Income Limits Wake, Johnston, Franklin County
● 1 - 2 People in Household $75,000
● 3 or more in Household
$85,000
Income Limits Durham, Orange, Chatham County
● 1 - 2 People in Household $81,000
● 3 or more in Household
$85,000
Income Limits Harnett County
● 1 - 2 People in Household $56,000
● 3 or more in Household
$64,000
MCC is a Mortgage Tax Credit
Available to First Time Home
Buyers in NC - Gives you more
Purchasing Power. Must be
under the maximum income
limits for the county and it
requires a 640 middle credit
score to qualify.
Steve Thorne #NMLS 60596 River Community Bank, NA
919 649 5058
NC Mortgage Experts SThorne@mortgages.rcbna.com

10. Qualified Income Sources:
●
Gross Income Before Taxes
●
Part Time Gross Income If There’s an 2
year Record of working the same P/T
job
●
Income Reported on Tax Returns 2
years
●
Child Support / Alimony Received 12
months
●
Bonus, Shift Differential, Overtime,
Commissions received for at least 2
years will be averaged
What Is “Household “Income??
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney
steveATSteveThorneOnlineDOTcom

11. Low Down Payment Mortgage Options
for First Time Home Buyers in NC
FHA Loans: 3.5% down payment, no income limits,
600 to 620 credit scores, down payment can be a gift.
Monthly “PMI” rate is higher.
VA Loans: No down payment, no income limits, 620
credit scores, no monthly “PMI”
USDA Loans: No Down Payment, House must be
within USDA Eligible Area, Maximum Income Limits per
County, LOW monthly “PMI” rates, 640 Credit Scores
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

12. Credit Tips
Minimum Credit Score Details You Should Know:
● Minimum Credit Score means 2 scores over the number
● 640 is minimum for MCC, USDA and Conventional Loans
● 660 is the minimum for the 3% Grant Program
● 620 is generally the minimum for VA and FHA, although in CERTAIN
CASES (read few) we can go down to 600 on FHA
● A Co-Borrower will NOT help you qualify if you have bad credit
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney
steveATSteveThorneOnlineDOTcom

13. Credit Tips
●
●
●
●
●
●
Look at Credit Karma (we make nothing on this - we’ve just found
them to be pretty accurate)
Pay Down the Balance on Credit Cards so that the balance is no more
than ⅓ of the credit limit.
Use Your Credit Cards at least once every 3 months, do NOT pay
them all the way to Zero - “carry” $20 dollars of interest from month to
month.
Have at least 3 Credit Cards open - look at a Secured Card from
WalMart, or your Bank - be careful with Credit Unions
Don’t let any more BAD credit hit your report. If someone NEW
threatens collection, set up a payment plan and pay them $7 a
month.
DON’T pay off collections until you speak with a loan officer
Steve and Eleanor Thorne NMLS # 60596 919 694 5058 NC Mortgage Experts @isellmoney steveATSteveThorneOnlineDOTcom

14. Credit Tips
●
Have at least 3 Credit Cards open look at a Secured Card from WalMart,
or your Bank - be careful with Credit
Unions
●
Don’t let any more BAD credit hit
your report. If someone NEW
threatens collection, set up a
payment plan and pay them $7 a
month.
●
DON’T pay off collections until you
speak with a loan officer

15. First Time Home Buyer Resources
Eleanor and Steve Thorne
River Community Bank
NMLS # 60596
919 649 5058
@isellmoney
@SteveThorneNC
eleaVor@gmail.com
sthorne@rcbna.mortgages.com

16. First Time Home Buyer NC Presentation Description
First Time Home Buyer, NC Mortgage Questions Answered
A Google Hangout: First Time Home Buyer Programs in North Carolina offer many options. Most First Time Home Buyers want to know how much it will cost to buy a house, how much their monthly mortgage payment will be, and if they
qualify. This is a Google Hangout Session we presented to cover closing costs for First Time Home Buyers in NC, minimum credit score requirements for a home loan in NC and First Time Home Buyer Programs that have down payment
assistance.
Reference: http://ncfhaexpert.com/first-time-homebuyer/first-time-home-buyer-programs-nc/
We covered USDA Home Loans NC and the USDA Eligible Area Maps that are changing. USDA Home Loans in NC have a minimum credit score requirement of 640, if you are also applying for First Time Home Buyer Tax Credits - however,
USDA Loans have no down payment requirement.
Reference: http://ncfhaexpert.com/usda-loans/whats-deal-nc-usda-eligible-area-map-changes/
If you are not applying for First Time Home Buyer Mortgage Tax Credits in 2013, the minimum credit score for a USDA Home Loan NC is 620. The NCHFA offers North Carolina First Time Home Buyers the ability to buy a home, and receive a
3% grant. The program has a minimum credit score requirement, and the statewide income limit is $85,000 in 2013, and the Minimum Credit score for the program is 660.
Reference: http://ncfhaexpert.com/first-time-homebuyer/tax-credit-for-first-time-homebuyers-in-nc/
The NCHFA Program also offers Mortgage Tax Credits (MCC) which are in place as long as the borrower owns the home - and increases the purchasing power for First Time Home Buyers in NC. The minimum credit score for the MCC for First
Time Home Buyers in NC is 640.
Reference: http://ncfhaexpert.com/fha/how-the-mortgage-tax-credit-2013-works/
VA Loans have minimum credit scores of 620, and there's no down payment requirements. FHA Home Loans in NC require a 3.5% Down payment, but that money can come from a gift, or the NCHFA Grant program. The FHA PMI rates, the
USDA PMI rates and the VA Loan mortgage insurance premiums are detailed for 2013 in the closing cost breakdown.
Sellers are allowed to pay for a Home Buyers closing cost, but First Time Home Buyers should be aware of what costs are "typically" covered by Sellers - sometimes a contract is written to say the Seller will ONLY cover Closing Costs "UP TO"
and a dollar figure. This could mean that the Seller is unwilling for any of the Seller Paid Closing Costs to cover the First Time Home Buyer "soft costs" including a home inspection, taxes and homeowners insurance.
Reference: http://ncfhaexpert.com/first-time-homebuyer/sales-concessions/
One closing cost example shows how a first time home buyer could buy a house in North Carolina with total cost out of pocket less than $1200. No down payment and Seller paid closing costs options should be negotiated in the contract and we
strongly suggest that First Time Home Buyers in NC get the best deal by using a Real Estate Professional.
Reference: http://ncfhaexpert.com/first-time-homebuyer/first-time-home-buyer-purchasing-plan/
Although not in the slides, we also discussed the ways a First Time Home Buyer in NC can get the best mortgage rates by working with a Bank that offers all of the First Time Home Buyer Programs available - not all North Carolina banks offer
Single Parent Grants to buy a home, or the Mortgage Tax Credit for First Time Home Buyers. Steve and Eleanor Thorne NMLS #60596 help First Time Home Buyers NC by offering Hangouts on Google Call them 919 649 5058 for updates
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