3 Things You Need to Know About Receiving a Downpayment Gift

The standard downpayment for a house is 20%, but sometimes it's hard to come up with that amount of cash. While your parents may seem like a great way to get that cash, it could also complicate things for you. If you've read our blog, "5 Ways to Get Your Mortgage Unapproved," then you know that receiving a large amount of irregular income, such as a gift, could raise some red flags in the mortgage process. Your Lake of the Ozarks mortgage lender is here to help you understand how you can receive a "downpayment gift" without it negatively affecting your mortgage.

1. The Gift Giver.

A downpayment gift refers to money from a third party that has no involvement in the transaction and does not benefit from it. The giver of a downpayment gift must be a relative or have a family-like relationship with the receiver. The seller, real estate agent or lender is not allowed to provide a downpayment gift as it's considered an inducement for the receiver to make the purchase. Personal loans or funds derived by credit are not acceptable for a downpayment gift as they also require repayment. It is possible that a government agency, nonprofit organization or a charitable organization may provide a downpayment gift if they meet the lender's requirements.

2. Documenting the Gift.

Lenders will require documentation for any downpayment gift you receive. You need to provide a letter that includes the name of the donor, their relationship to you, the date and the amount of the gift and a statement to show that there is no expectation that the money will be paid back. The lender needs to know that this is truly a gift and not a personal loan. Both the giver and the receiver will need to sign the letter and additional documentation may be required. While there's no set time for when a gift can be received, the sooner, the better. When applying for a mortgage at the Lake of the Ozarks, lenders will want to see bank statements from the last 2-3 months. If the gift was added prior to that, you won't have to jump through as many hoops.

3. The Type of Loan.

The amount of money you are able to receive and use for a downpayment is dependent on the type of loan you're trying to acquire. Let's take a look at what's acceptable for conventional loans and for FHA or VA loans:

Conventional Loans

• As long as  your downpayment is 20% or more, the entire amount can be a gift. 
• If your downpayment is less than 20%, part of the amount must be your own money. The amount will vary from loan to loan, so talk to your lender about your unique situation.
• You can only use gift money on primary residences and second homes.

FHA or VA Loans

• All of your downpayment can be gift money. 
• If your credit score is between 580 and 619, at least 3.5% of the amount must be your own money. 
• You can only use gift money on primary residences. 

Keep in mind that these guidelines are subject to change, so be sure to check with your lender. 

If you have questions about receiving a gift for a downpayment during the process of home buying at the Lake of the Ozarks, give Lakelender Lasson a call at 573-746-7211. When it comes to your Lake of the Ozarks home financing needs, I'm here for you every step of the way, to answer any questions that you may have. I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve!

For Lake area news, resources and tips on financial services, please 

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Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

Celebrating Easter at the Lake of the Ozarks

When you think of Easter what comes to mind? Maybe you think of God, family, food or fun. For many people, especially children, Easter egg hunts are at the top of the list. A delicious meal, with good company, is probably at the top of the list for the adults. Your Lake of the Ozarks mortgage lender has put together a list of local events that offers both fun for the children and great food for the adults. Be sure to check out these Easter events happening at the beautiful Lake of the Ozarks this holiday weekend!

Easter Egg Hunts 

What's Easter without a few Easter egg hunts? Check out these great local events to take your children to this weekend! 

Easter Eggstravaganza

The First Assembly of God Church in Eldon will be hosting an Easter Eggstravaganza on Saturday, March 26 starting at 12:00 pm. This popular event will feature free food, inflatables, games, clowns, entertainment and egg hunts!

2nd Annual Osage Beach Easter Egg Hunt 
  
Join us at the Osage Beach City Park on Saturday, March 26 for the 2nd Annual Osage Beach Easter Egg Hunt. The egg hunts will be divided into 3 age divisions and will start at 1:00 pm. A hot dog lunch will be available before the hunt starting at 12:00 pm. The Easter Bunny will be present for photos, while bounce houses and face painting will also be available!

Easter Celebration 

Celebrate Easter at New Life Church of the Nazarene in Camdenton on Saturday, March 26 from 10:00 am to 12:00 pm. There will be food, crafts, face painting, a movie, resurrection egg story, pictures with the Easter Bunny and an egg hunt. The egg hunt, featuring over 3,000 eggs will start at 11:30 am and is open to children ages 2-12.

Easter Egg Hunt in the Park 

On Easter Sunday, the Laurie Easter egg hunt attracts children from tots to teens to find 14,000 eggs "hidden" throughout the fairgrounds. The hunt will take place from 2:00 pm to 3:00 pm. The Easter Bunny always makes an appearance to the delight of everyone!

Easter Brunches 

After hunting eggs all day Saturday, enjoy a delicious Easter brunch at one of these great local places. The best part about going out for Easter brunch is that you can still enjoy all your favorites without cooking all day and cleaning up a mess. 

Easter Brunch at Tan-Tar-A 

Head over to the Grand Ballroom at Tan-Tar-A for a fabulous Easter brunch on Sunday, March 27 from 11:00 am to 3:00 pm. Reservations are required - so please call 573-348-8619. Tickets are $28.95 for adults,$19.95 for seniors age 55 & above, $14.95 for children ages 4-12, and children ages 3 & under are complimentary. Ticket prices include tax and gratuity.

Easter Brunch at H. Toads

Join H. Toads for a delectable and relaxing Easter Brunch on Sunday, March 27 from 11:00 am to 3:00 pm! Their chef has put together an extremely vast and tasty custom menu just for the occasion. Live music from Scott Duncan will accompany you throughout your meal enhancing the experience. Bring your whole family! Prices for brunch are $28 for adults, $25 for seniors 55+, $12 for children 6-12, and children under 5 are free.

Easter Brunch at Inn at Grand Glaize 

Bring your family and friends, and head over to J D Waddles, located at the Inn at Grand Glaize, for a special brunch. Brunch will be served from 10:00 am to 2:00 pm on Sunday, March 27. Enjoy Baked Virginia Ham & Baron of Beef, plus all your favorite breakfast dishes and sides, for just $19.95 for adults, $16.95 for seniors and children 6 & under are free.

Happy Easter from your favorite mortgage lender at the Lake of the Ozarks! If you're in search for that dream home this spring, maybe one with the perfect yard for the children to hunt eggs in or a great dining room for cooking your own holiday meals, I can help with all your financing needs. I'm committed to be there every step of the way and make your Lake of the Ozarks home loan process a breeze. Give me a call at 573-746-7211 to get started today!

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

4 Facts About Mortgage Interest Tax Deductions

Tax time is upon us and you only have one month left to get them done! When preparing your taxes, be sure to look for any deductions that you may be able to take. As your Lake of the Ozarks mortgage lender, I want to make sure you're aware of the tax deductions related to your mortgage that you may be eligible for. Take a look at these 4 things you need to know about mortgage interest tax deductions.

1. Deducting Mortgage Interest is Not for Everyone. 

The majority of American taxpayers don't itemize their deductions. They just claim their standard allowance and move on. The numbers show that many, maybe even most, homeowners don't deduct their mortgage loan interest. While that may sound crazy to some, for those homeowners with lower to average incomes, it may actually make sense not to itemize. The advantages of itemizing seem to increase with wealth. Make sure that it makes sense for you to itemize your deductions before deciding to do so on your own taxes.

2. Deducting for Two Mortgages. 

That vacation home at the Lake you've been dreaming of may be more affordable than you think. You might be able to take deductions for two mortgage loans. You can still qualify even if it's a timeshare and/or you rent it out for most of the year.  There are some key rules when doing this though. First, for tax purposes, you're only allowed to designate one property as your main home and the other as your second home. If you rent out the second one, you must spend at least 10% of the rental days each year living in it yourself. If you don't rent it out however, you don't have to spend any time there. Talk to your mortgage lender at the Lake of the Ozarks to see if this is an option for you.

3. Deducting Your Mortgage Points. 

When obtaining a mortgage loan at the Lake of the Ozarks, you incur a few more costs than just the actual loan amount. Some of these extra costs are usually deductible as well. There are two categories: mortgage loan origination fees and maximum loan charges, and loan discount or discount points. Sometimes points can be deducted in full during the year you make your purchase. However, the IRS lists 9 rules to comply with in order for that to happen. If you can't meet those requirements, your points deductions will be spread out over the life of the loan. 

4. Deducting Mortgage Insurance Premiums. 

In some cases, you can even deduct your mortgage insurance premiums. The IRS regards qualified mortgage insurance premiums as home loan interest, making it typically deductible. This is provided that your mortgage insurance contract is dated after a certain date and your income is below a certain level. Check the IRS website for updated numbers on the tax year you're filing for. Funding fees on VA mortgages and guaranteed fees on Rural Housing Service loans also count as mortgage insurance premiums and can be taken into account for your deduction. 

If you're considering itemizing your taxes to take advantage of these homeowner deductions, give me a call at 573-746-7211 with any questions about your personal mortgage situation. When it comes to your home financing needs, I am committed to working with you every step of the way! 

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

The First State Bank Mortgage Checklist

Securing a mortgage at the Lake of the Ozarks requires some planning and organization. Use this checklist from First State Bank Mortgage to get started gathering information that will need to be provided to your Lake of the Ozarks mortgage lender during the home loan process.

Mortgage Checklist  

While some of these items may not apply to you, the following may be required to secure your home loan at the Lake of the Ozarks. To speed along your loan process, start collecting these items now.

• Current Driver's License or ID 
• Copy of the Trust Papers (if you want your property held in a trust) 
• Copy of Accepted Contract (signed by both the buyers and sellers)
• Copy of Earnest Money Check   
• Check for Application Fee (covers appraisal and credit report fees) 
• Present Employer's Name, Address & Phone Number as well as,
• Length of Employment, Position & Salary (if employed less than 2 years, please provide the previous employers' info for the past 2 years)
• Most Recent 2 Years' W-2 Forms
• Current Paycheck Stub (reflecting year-to-date income of 30 days or more)
• If you are self employed, have been paid any commission, or have received any business income, bring documentation: copies of your federal tax returns along with all schedules and W-2s for the past two years,  including corporate or partnership returns, if applicable, for your business.  Also include a year-to-date P & L statement.
• Verification of Other Income Needed to Qualify (such as retirement, rental, interest or dividend income, as well as social security or pension income)
• Last Two Months' Bank Statement for all accounts (provide explanations of any deposits larger than normal paycheck)

 

If Applicable: 

• Past Three Years' Federal Tax Returns (if applying for MHDC grant) 
• Accepted Offer to Purchase or Copy of Listing Contract (for any property you have for sale) 
• Address, Name of Mortgage Lender, Mortgage Statement and Lease Agreement (for any investment property you own)  
• Evidence of Child Support Payments (for the last 12 months, if applicable, along with divorce decree and court order)
• Divorce Decree Order (or any other financial obligation incurred through court order) 
• Copy of Judgement or Bankruptcy Discharge and Petition (with letter of explanation) 
• Certificate of Eligibility & Copy of DD 214 (for VA Loans) 

Talk to the best mortgage lender at the Lake of the Ozarks regarding any questions about documentation for your Lake of the Ozarks home loan. When it comes to your financing needs, I'm committed to working with you every step of the way. I'll discuss financing options, offer competitive interest rates and back it up with the first class service you deserve. Give me a call today at 573-746-7211. 

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

What is an Escrow Account?

You've probably heard the word escrow before, but if you're a first-time home buyer, you might not know what it means. Your Lake of the Ozarks mortgage lender is here to help you understand everything there is to know about the mortgage process, including the escrow account. Let's take a look at what an escrow account is and the benefits of having one.

What is Escrow? 

In some situations, a "close of escrow" can refer to the close of a real estate transaction. However, when it comes to mortgages, the word escrow means something different. In our case, escrow refers to the account that is used to pay a homeowner's property taxes and hazard insurance. Each month, you send your lender 1/12 of the annual amount due for your property tax and insurance along with your mortgage payments. This breaks those payments up so you don't have to come up with the entire amount at once. When the bill comes due, your mortgage lender will pay the amount for you.

Benefits of an Escrow Account 

There are many benefits to having an escrow account. In general, it makes everything easier on both the lender and the homeowner. Let's take a look at a few of the benefits:

1. Lower Mortgage Rate - By having an escrow account, it's less likely that your home's tax bill won't get paid and your insurance coverage lapse. The lender doesn't have to worry about a seizure on the property from tax authorities. In addition, they don't have to worry about losses due to property damage because of inadequate coverage. Due to the fact that the lender is able to assume less risk in this situation, you can often get a lower interest rate. 
2. One Less Bill You Pay - Having an escrow account makes your life simpler too. Instead of managing your real estate taxes  and hazard insurance bills on your own, your mortgage lender at Lake of the Ozarks will pay it for you on your behalf. You don't have to worry about keeping track of another bill or paying it on time. 
3. Easier to Budget - Escrow accounts can also make it easier to budget. Instead of making a large payment once a year, you are able to break the payments down into monthly segments. The money is then saved for you until the bill is due. It's a lot easier to create a budget when you have regular monthly payments without sporadic large payments.  
4. No Large Bills - Which is easier: paying a couple thousand dollars at once or splitting that cost up across 12 different months? You might say either way you are paying the same amount. While this is true, I think we could all agree that smaller more manageable payments is a good way to go (unless you're just super good at saving money on your own). If you wait until the end, you might have spent more throughout the other months that you could have saved to put towards your mortgage payments.

In many cases, an escrow account is required with your mortgage loan at the Lake of the Ozarks. Be sure to talk to your lender to determine if an escrow account is a requirement for you. I am here for all of your Lake of the Ozarks home financing needs - feel free to give me a call at 573-746-7211 with any questions you may have.

For Lake area news, resources and tips on financial services, please 

LIKE my Facebook Page, Follow me on Twitter or Connect on LinkedIn

Michael Lasson

Sr. Residential Mortgage Lender

NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B

PO Box 1449

Lake Ozark, MO 65049

Direct:  (573) 746-7211

Cell: (573) 216-7258

Fax:(573) 693-9141

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.