captainsensible

Hi,

Not sure if this is in the right place, but anyway

I have recently been attempting to get a mortgage with my USC wife and running into the usual difficulties with lack of credit history (having only been here for a month or so), so we were resigned pretty much to only having the mortgage in her name, which limited our 'buying power'.

However, I put feelers out to a guy that had previously helped her with a mortgage, who I assumed was just a broker - he had claimed that he could help US get a mortgage, even with my immigration status.

As it turns out, the company he works for, Mortgage Master, are a privately owned mortgage company who underwrite and fund their own lending.

So, I supplied my visa details, my letter of employment, my SSN and a copy of my UK Credit Report and we are now pre-approved for a mortgage double the amount we thought we would be limited to. And it took 2 days to pre-approve! The rate is 3.25% as well, so we are not getting shafted for the privilege either.

Of course, the homebuying process is only now beginning in earnest, but having got the pre-approval I am quite confident it will all be ok but I will report back on progress.

Hopefully, this might be useful to some other ex-pats in the same position!

PS - this isn't an advert, I have no affiliation with this company at all!

NatashaB

Good luck with the rest of the process! We got our mortgage sorted OK (FHA loan with 3.5% down, Bank of America used a company called Landsafe to build a credit file based on our UK payment history), jumped through many hoops but we got there in the end. From threads i have read, it sounds like lots of others on here weren't so lucky and hit brick walls at every turn.

captainsensible

The difference with this is that we have been offered a conventional loan, not FHA, which means quite a difference in the amount of Mortgage Insurance that is payable (as in, a lot less!).

Mortgage Insurance on a FHA loan is a double hit thing, with a large amount up front, plus larger monthly payments too.

I am trying to remain quite sceptical about it though, until I see the readies!!

Brat1

We used them to get our mortgage, but it was an FHA loan we got, and yes, you're right, the mortgage insurance is awful $285 a month!!!

captainsensible

Was it quite straightforward? Or as straightforward as I am being led to believe it will be?

Bob

That's almost half of a cousins mortgage payment and they got a 5 bed on 5 acres, up in Maine

NatashaB

Weeeeelllll. I don't want to be the voice of doom, but we got pre-approved and still had more hoops to jump through (mainly just supplying the right paperwork, but we also got pre-approved before we had our landsafe credit report done, so that could have come back with anything).

Bink

Congrats! That's good advice as I think many on here have struggled with mortgages.

I did something similar and have an FHA loan. I think I'm way up on my property value so may refinance next year to a regular loan and see if I can drop the insurance payments - it will depend on the rates offered etc though...

We pay about $250/month I think on the mortgage insurance.

The other downside to an FHA loan is the upper limit (I maxed it out) though it varies state-to-state.

captainsensible

Sorry, I meant did Brat1 find it quite straightforward as she used the same company we are using (or at least, I read that into her response!). I should have quoted her .

Any mortgage with a big bank that is establishing UK credit history in the UK such as BOA and Wells Fargo is bound to have loads of hoops to jump through, based upon my previous reading on here.

Mortgage Master seem 'different' somehow - the guy I am dealing with seems to think he has all he will need for it to complete, once we find a house.

captainsensible

Not sure that you even have to refi if you have reached 80%LTV. Should just be able to end the PMI (this is something I have been told, it could be balls though! )

Bink

Hmmm, I didn't think of that! I need to get it appraised - I think I'm at about 80% LTV based on comparables (I got a good deal). I could also put in more cash if I wanted to, too.

You're right though, once it hits 80% LTV you stop paying the insurance but I don't know if that's based on the orginal purchase price or if you can get it reappraised etc etc...

Charma1ne

Quick question if I go for a mortgage or FHA loan (depending on what I could get) and only got it for 75% or 80% of the property value does that mean I wouldnt have to pay any mortgage insurance? I might be getting this totally wrong I'm just trying to understand it

Many Thanks,

Cx

sir_eccles

I may be wrong but my understanding was that FHA loans have PMI by definition.

Bink

Now that i come to think of it I think there's a minimum time period you have to pay premiums for regardless (5 years?!)

Charma1ne

I just did a little research and found this:

Also known as "Primary Mortgage Insurance," PMI is the lenders (banks) protection in the event that you default on your primary mortgage and no longer make payments and the home ends up going into foreclosure. When applying for a home loan, lenders typically require that a borrower provides a 20% down payment on the home. If the borrower is unable to put down 20% or more, or does not have the required funds to do so, then lenders will typically look at the loan as a riskier investment for their balance sheet and will require a PMI payment from the borrower.

Read more: http://www.investopedia.com/ask/answ...#ixzz28TCuCTMv

So maybe if someone puts down 20% they automatically dont have to pay PMI?

Very interesting. I am researching it further right now.

EDIT

Everything I have found states that under 80% LTV you dont have to pay it even if you're a first time buyer. It also states if you think you shouldnt be paying it you can get your house re-appraised and get the PMI taken off

Cx