Today there are many homeowners who could benefit from the great low rates but feel they can not because of a lack of equity. Homeowners should know there are many options available to them for refinancing without equity. Depending on the type of the loan you have there are options to look at.
Homeowners with FHA and VA loans.
FHA and VA offer refinancing options for homeowners without having to go through the whole loan process. FHA offers the FHA Streamline Refinance. The streamline lets the homeowner refinance the balance of their current FHA loan into a lower rate loan without an appraisal, without proof of income or employment. Current Home Values do not matter!! Customer who can drop their rate by .5% or more should look into this option. Most lenders do not charge any origination fees and most times cover other closing cost. FHA borrowers will receive a refund of the previous up front mortgage insurance and on the new loan normal up front mortgage insurance will be charged. VA offers the Interest Rate Reduction Refinance Loan (IRRRL). This is very similar to the FHA streamline. The main difference is the VA IRRRL only charges a .5% funding fee.
Homeowners with 80/20 combo loans
Again we will take advantage of a FHA loan to refinance the 1st mortgage and leave the 2nd mortgage where it is. Many homeowners purchased homes in the past with the 80/20 combo loan to avoid mortgage insurance. Many of these 80/20 combo loans had adjustable 1st mortgages and a fixed rate 2nd mortgage. Since FHA allows for you to refinance the 1st mortgage up to 97% Loan to Value and still have a 2nd mortgage, this is a wonderful solution for homeowners. Your home does not need to appraise high enough to cover the 2nd mortgage. Here is a common example.
Homeowner has an 80/20 combo loan. They purchased the home for $100,000. Their 1st mortgage is for $80,000 and the 2nd for $20,000. Their rate for the 1st mortgage was 7.00% adjustable and the 2nd was 8% fixed. Today their home will only appraise for $90,000. We would refinance the 1st mortgage balance into a fixed rate at 5.125% today and ask the 2nd mortgage to subordinate their 2nd mortgage. In simple terms allow us to redo the 1st mortgage with out paying off the 2nd mortgage. If the 2nd mortgage company will allow this, it will be the best solution to having a high rate adjustable 1St mortgage. Since the 2nd Mortgage is a fixed rate and there is no equity in the property to pay off the 2nd mortgage, it is not important to refinance the 2nd mortgage as it is the 1st mortgage.
Before you give up on refinancing because you don’t think you have equity, call your loan officer and ask them about these options and other options that may be available to you. It may save you thousands of dollars in interest.
Monday, January 26, 2009
Tuesday, January 20, 2009
Helping your college student buy a home? FHA is your lender
With current house prices being at 10 years lows, many parents are finding it cheaper to buy their college student a home while they are in college. Formally know as the “Kiddy Condo” loan FHA allows for a minimum of 3.5% down payments for these loans. The Parent and Student are both on the loan and have title to the home. They Student must have sufficient credit and must be enrolled in school in the area of where the home is being purchased. The parents must also qualify for the loans and prove they can afford the new payments for the home.
FHA rates are currently in the low 5’s for fixed rate mortgages. The low rate in combination with the minimum down payments makes the FHA loan very attractive to buyers. I recently financed a home for a college student and parents who were paying rent for a house. They purchased a $160,000 home near the University of Arizona campus. Their total payments were under $1100.00. This was very attractive because next year their other child is going to the University of Arizona and will be living in the home.
Buying a home right now is a great investment in college student’s futures as home owners. After the school year many home around the University area will go on sale. It is smart to be pre approved for this loan before you go shopping. FHA has changed their guidelines for these “Kiddy Condo” type loans last years and you should work with a loan officer who is experienced in these transactions. While you can not count income from roommates to qualify for these loans, many clients rent out a room to off set the cost of home ownership. These loans are not for investments properties, the student must live in the property.
With FHA rates under 6% and currently near 5% parents who have these types of loans or any FHA loan should take advantage of the FHA Streamline refinance which allows the borrowers to refinance the balance of their loan to a lower rate without a new appraisal or going through the whole underwriting process. Take advantage of these great rates on FHA loans today.
FHA rates are currently in the low 5’s for fixed rate mortgages. The low rate in combination with the minimum down payments makes the FHA loan very attractive to buyers. I recently financed a home for a college student and parents who were paying rent for a house. They purchased a $160,000 home near the University of Arizona campus. Their total payments were under $1100.00. This was very attractive because next year their other child is going to the University of Arizona and will be living in the home.
Buying a home right now is a great investment in college student’s futures as home owners. After the school year many home around the University area will go on sale. It is smart to be pre approved for this loan before you go shopping. FHA has changed their guidelines for these “Kiddy Condo” type loans last years and you should work with a loan officer who is experienced in these transactions. While you can not count income from roommates to qualify for these loans, many clients rent out a room to off set the cost of home ownership. These loans are not for investments properties, the student must live in the property.
With FHA rates under 6% and currently near 5% parents who have these types of loans or any FHA loan should take advantage of the FHA Streamline refinance which allows the borrowers to refinance the balance of their loan to a lower rate without a new appraisal or going through the whole underwriting process. Take advantage of these great rates on FHA loans today.
Friday, January 16, 2009
FHA now requires 2 appraisals on some “Cash Out” Loans.
In the last year, the FHA loan became the leading loan in “Cash Out” refinances for home owner’s. FHA allows borrowers to refinance and take cash out up to 95% LTV (Loan to Value of the Home). Conventional loans from Fannie Mae and Freddie Mac have been limited to 80% in Arizona because Private Mortgage Insurance Companies had tightened there guidelines. Now FHA requires 2 appraisals for any cash out loan over 85% LTV. The 1st appraisal will require the appraiser to actually come into the home and inspect it( Full Appraisal). The 2nd appraisal can be a “Drive By” appraisal. This is done by the appraiser going to the property and taking pictures from the out side of the property. Homeowners are not required to be home when this is done. The 2nd appraisal will be ordered after the 1st appraisal is completed. The 2nd appraisal is done to support the value of the 1st appraisal. Closing time may be slightly affected by the need for an 2nd appraisal.
You loan officer should do more upfront research to prevent any problems with the 2nd appraisal supporting the value. Homeowners should tell the loan officer everything about the home. Loan officers should know of any improvements made to the home and all amenities the home has. One item FHA looks at is lead based paints. If the home was built prior to 1978, lead based paint may have been used. FHA requires that all painted areas be free from chips. If any painted areas are chipping you will be required to repaint those areas. There can also not be any paint chips in the ground around the property.
Requiring 2 appraisals for a FHA Cash Our Loan may increase the costs of the home loan. The 2nd appraisal will cost between $250-$300. Homeowners should not let this cost prevent them from taking advantage of the only loan product that allows homeowners from using up to 95% of their homes equity. With the current economic situation homeowners in Arizona are in I am paying for the 2nd appraisal for the homeowners at the closing of their loan*. FHA Cash Out Rates are in the low 5%. Arizona Homeowners should take advantage of this loan when ever they need to consolidate debt, take cash out for home improvements, cash for a vacation, money for school, or anything else.
You loan officer should do more upfront research to prevent any problems with the 2nd appraisal supporting the value. Homeowners should tell the loan officer everything about the home. Loan officers should know of any improvements made to the home and all amenities the home has. One item FHA looks at is lead based paints. If the home was built prior to 1978, lead based paint may have been used. FHA requires that all painted areas be free from chips. If any painted areas are chipping you will be required to repaint those areas. There can also not be any paint chips in the ground around the property.
Requiring 2 appraisals for a FHA Cash Our Loan may increase the costs of the home loan. The 2nd appraisal will cost between $250-$300. Homeowners should not let this cost prevent them from taking advantage of the only loan product that allows homeowners from using up to 95% of their homes equity. With the current economic situation homeowners in Arizona are in I am paying for the 2nd appraisal for the homeowners at the closing of their loan*. FHA Cash Out Rates are in the low 5%. Arizona Homeowners should take advantage of this loan when ever they need to consolidate debt, take cash out for home improvements, cash for a vacation, money for school, or anything else.
Thursday, January 15, 2009
JP Morgan Chase exits the Wholesale Mortgage Business
Last week JP Morgan closed its Wholesale Mortgage Division. There Wholesale Division worked with Mortgage Brokers to fund home loans for borrowers. Chase said that one of the major reasons for this move was because of the under performing loans Mortgage Brokers sent to Chase. Because Chase underwrote the loans they received from the Mortgage Brokers it is more likely Chase’s guidelines along with a drop in Mortgage Broker business lead to the closing of their wholesale division.
Today Wholesale Lenders face many problems from the Mortgage Broker Business. Mortgage Brokers are normally not as financial sound as Mortgage Banks and Mortgage Companies. Wholesale lenders do not have the same buy back policies for Mortgage Brokers as they do for other types of mortgage companies. Because the Mortgage Brokers are sending Wholesale Lenders loans one at a time, Mortgage Brokers are offered slightly higher rates than Mortgage Bankers and Mortgage Companies are offered. In this competitive market borrowers are shopping for the lowest rates and many times Mortgage Brokers and not compete with larger Mortgage Bankers or Mortgage Companies for these customers.
Another factor that causes problems for Wholesale Lenders and Mortgage Brokers is the increase need of FHA and VA financing and the lack of Convention Lending. Some lenders are reporting 300% increase in FHA and VA business. FHA and VA require Mortgage Brokers to have stronger financials than non FHA/VA approved Mortgage Brokers. Mortgage Brokers who are not approved for FHA and VA lending are limited to only a few convention loan products.
With the lack of volume from Mortgage Brokers, coupled with the current mortgage slow down, and lack of Brokers who are FHA and VA approved, JP Morgan Chase’s decision may be the beginning of the end of the Wholesale Business. If other Lenders like Countrywide decide to follow Chase’s lead closing their Wholesale Divisions it will be very difficult for Mortgage Brokers to have sources to fund their borrower’s loans. If there is more slow downs, this may cause the rest of the Wholesale Companies to stop this business channel.
Today Wholesale Lenders face many problems from the Mortgage Broker Business. Mortgage Brokers are normally not as financial sound as Mortgage Banks and Mortgage Companies. Wholesale lenders do not have the same buy back policies for Mortgage Brokers as they do for other types of mortgage companies. Because the Mortgage Brokers are sending Wholesale Lenders loans one at a time, Mortgage Brokers are offered slightly higher rates than Mortgage Bankers and Mortgage Companies are offered. In this competitive market borrowers are shopping for the lowest rates and many times Mortgage Brokers and not compete with larger Mortgage Bankers or Mortgage Companies for these customers.
Another factor that causes problems for Wholesale Lenders and Mortgage Brokers is the increase need of FHA and VA financing and the lack of Convention Lending. Some lenders are reporting 300% increase in FHA and VA business. FHA and VA require Mortgage Brokers to have stronger financials than non FHA/VA approved Mortgage Brokers. Mortgage Brokers who are not approved for FHA and VA lending are limited to only a few convention loan products.
With the lack of volume from Mortgage Brokers, coupled with the current mortgage slow down, and lack of Brokers who are FHA and VA approved, JP Morgan Chase’s decision may be the beginning of the end of the Wholesale Business. If other Lenders like Countrywide decide to follow Chase’s lead closing their Wholesale Divisions it will be very difficult for Mortgage Brokers to have sources to fund their borrower’s loans. If there is more slow downs, this may cause the rest of the Wholesale Companies to stop this business channel.
Wednesday, January 14, 2009
2009 A good year to start saving money with your home loan.
Here are some money saving tips so you can start saving money in 2009.
As simple as it might sound, pay your mortgage payment on time before the bank charges you a late fee. Most home loans have a late fees after the 14th or 15th day your late. These late fees are up to 5% of your mortgage payments. For a $1000 mortgage payment that is $50.00. Being last every month for a year is going to cost you $600 for a year.
Make sure you have the best rate and mortgage you can. Many home owners think they can't qualify for a better loan/rate because of the current economic mess we are in. That is not true. It will only take 20 minutes of your time to call a experience loan officer to take a quick look at your current mortgage. You might be impressed with what they might find to save you money.
Talk to your home owners insurance agent about your coverage and what your current deductables are. Having a $500 deductable will cause your insurance to be higher than having a $1000 deductable. Discuss this with your agent, they may be able to save you some money.
Look at your credit report and make sure everything is correct. Having the best credit rating will save you money on your mortgage rate and mortgage insurance if your required to have it. Take a few hours to review your credit report and fix any problems. You can request a report once a year for free from www.annualcreditreport.com If you need help understanding the credit report call me. I will help you understand all those numbers and terms.
Pay a little more on you mortgage every month. Paying more on your mortgage today will lower your balance today and you will pay less interest next month. For a $200,000 loan at 5.5% interest over 30 years your monthly principal and interest payments are $1135.58. If you could make a extra payment a year on your mortgage you would pay off your mortgage 5 years sooner, saving $68,134.80!!!
Don't pay for an appraisal. Save up to $400 on a appraisal when you apply online for a home loan with me. I will give you a coupon for a free appraisal you can use at closing.
Don not close a FHA stream line loan before the end of the month. When you pay off your FHA loan, your pay off is the same balance if you pay it of on the 5th or the 30th of the money. If you close on a FHA streamline loan before the end of the money you will be paying double interest. The new loan will collect interest from the new closing date to the end of the month. You have already paid interest to the end of the month on your FHA loan. So you are actually pay double the interest.
As simple as it might sound, pay your mortgage payment on time before the bank charges you a late fee. Most home loans have a late fees after the 14th or 15th day your late. These late fees are up to 5% of your mortgage payments. For a $1000 mortgage payment that is $50.00. Being last every month for a year is going to cost you $600 for a year.
Make sure you have the best rate and mortgage you can. Many home owners think they can't qualify for a better loan/rate because of the current economic mess we are in. That is not true. It will only take 20 minutes of your time to call a experience loan officer to take a quick look at your current mortgage. You might be impressed with what they might find to save you money.
Talk to your home owners insurance agent about your coverage and what your current deductables are. Having a $500 deductable will cause your insurance to be higher than having a $1000 deductable. Discuss this with your agent, they may be able to save you some money.
Look at your credit report and make sure everything is correct. Having the best credit rating will save you money on your mortgage rate and mortgage insurance if your required to have it. Take a few hours to review your credit report and fix any problems. You can request a report once a year for free from www.annualcreditreport.com If you need help understanding the credit report call me. I will help you understand all those numbers and terms.
Pay a little more on you mortgage every month. Paying more on your mortgage today will lower your balance today and you will pay less interest next month. For a $200,000 loan at 5.5% interest over 30 years your monthly principal and interest payments are $1135.58. If you could make a extra payment a year on your mortgage you would pay off your mortgage 5 years sooner, saving $68,134.80!!!
Don't pay for an appraisal. Save up to $400 on a appraisal when you apply online for a home loan with me. I will give you a coupon for a free appraisal you can use at closing.
Don not close a FHA stream line loan before the end of the month. When you pay off your FHA loan, your pay off is the same balance if you pay it of on the 5th or the 30th of the money. If you close on a FHA streamline loan before the end of the money you will be paying double interest. The new loan will collect interest from the new closing date to the end of the month. You have already paid interest to the end of the month on your FHA loan. So you are actually pay double the interest.
Values
Buying a home today may be your best financial move. With Mortgage rates at all time lows and prices of homes a 10 year lows, buyers have the advantage of finding the right home for them and a price and payments they can afford. I was reading a blog today form Mike Oliver’s web site www.sellingtucsonrealestate.com about a Foreclosure home that is for sale. Mike is a Real Estate Agent from Tierra Antigua Realty. This home is listed for $161,500 and is almost 1900 square feet in NorthWest Tucson. From the pictures it looks like a nice home. His article states it needs some landscape but other than that it is ready to move into. I am seeing more and more home that are ready to move in. Currently an approved buyer could purchase this home for monthly mortgage payments under $1100 with a 5% 30 Year FHA Mortgage with as little as 3.5% down payment. This would be a wonderful home for a first time home buyer.
There are many of these “deals” out there for buyers to take advantage of. There is great value in looking at home that has been foreclosed on. The banks are not in the business of owning homes and the longer the foreclosed home is “on their books” the more money they loose. Banks loose a tremendous amount in a foreclosured home . They want to sell that home as quickly as they can to move it off their inventory. Some banks are offering to pay buyers closing cost to purchase these foreclosed homes. The most popular financing that we are seeing right now for these foreclosed homes is the FHA loan. FHA allows the seller to pay up to 6% of the buyers closing costs and buyers are only required to put a down payment of 3.5%. For buyers who don’t have the 3.5% down payment, FHA will even allows the down payment to come from a family member/close friend, a church, employer or other agencies.
In Pima County the 2008 Pima County Bond Money Loan has been extended to April 2009 for buyer’s to take advantage of 100%, NO MONEY DOWN LOANS. The Rate for the Pima County Bond Money 1st Mortgage is 5.99% fixed for 30 years. There is no discount fees charged and all lenders fees have to meet the guidelines of the Pima County Bond Loan Program. The Pima County Bond Money Loan will even finance the buyers closing costs is needed. It is one of the BEST LOANS in Pima County for buyers with little or no down payments.
Another great place to look for value is propertied that have been foreclosed on buy HUD. HUD repos are the fasted moving properties for 3 reasons. First, HUD Repo’s have been priced to be sold ASAP. HUD can not allow properties to be up for sale too long. By the nature of the HUD Repos, there is normally great value in these properties. 2nd Financing terms offered by FHA for HUD home require buyers to come in with ONLY $100 down for a FHA loan with current rates in the 5% range for a 30 Year Fixed Rate Mortgage. 3rd HUD sometimes offers these homes under their “ Good Neighbor Next Door” Program. This allows Police, Firefighters, Teachers and some Medical professionals to purchase these propertied at ½ of the listing price and on top of that they give these buyers the $100 Down HUD Reop FHA financing. (best deal in the world to buy a home)
If you are interested in buying any type of Foreclosed or HUD Repo it is very important to be PRE QUALIIED by an FHA approved lender and in Tucson/Pima County and Loan officer who is approved to offer you the Pima County Bond Money Loan. HUD Repos properties do not last more that a few days on the market. You need to be able to move quickly to buy these homes. Work with a proven Agent like Mike Oliver who know the market in Pima County and can find value in homes for buyers.
There are many of these “deals” out there for buyers to take advantage of. There is great value in looking at home that has been foreclosed on. The banks are not in the business of owning homes and the longer the foreclosed home is “on their books” the more money they loose. Banks loose a tremendous amount in a foreclosured home . They want to sell that home as quickly as they can to move it off their inventory. Some banks are offering to pay buyers closing cost to purchase these foreclosed homes. The most popular financing that we are seeing right now for these foreclosed homes is the FHA loan. FHA allows the seller to pay up to 6% of the buyers closing costs and buyers are only required to put a down payment of 3.5%. For buyers who don’t have the 3.5% down payment, FHA will even allows the down payment to come from a family member/close friend, a church, employer or other agencies.
In Pima County the 2008 Pima County Bond Money Loan has been extended to April 2009 for buyer’s to take advantage of 100%, NO MONEY DOWN LOANS. The Rate for the Pima County Bond Money 1st Mortgage is 5.99% fixed for 30 years. There is no discount fees charged and all lenders fees have to meet the guidelines of the Pima County Bond Loan Program. The Pima County Bond Money Loan will even finance the buyers closing costs is needed. It is one of the BEST LOANS in Pima County for buyers with little or no down payments.
Another great place to look for value is propertied that have been foreclosed on buy HUD. HUD repos are the fasted moving properties for 3 reasons. First, HUD Repo’s have been priced to be sold ASAP. HUD can not allow properties to be up for sale too long. By the nature of the HUD Repos, there is normally great value in these properties. 2nd Financing terms offered by FHA for HUD home require buyers to come in with ONLY $100 down for a FHA loan with current rates in the 5% range for a 30 Year Fixed Rate Mortgage. 3rd HUD sometimes offers these homes under their “ Good Neighbor Next Door” Program. This allows Police, Firefighters, Teachers and some Medical professionals to purchase these propertied at ½ of the listing price and on top of that they give these buyers the $100 Down HUD Reop FHA financing. (best deal in the world to buy a home)
If you are interested in buying any type of Foreclosed or HUD Repo it is very important to be PRE QUALIIED by an FHA approved lender and in Tucson/Pima County and Loan officer who is approved to offer you the Pima County Bond Money Loan. HUD Repos properties do not last more that a few days on the market. You need to be able to move quickly to buy these homes. Work with a proven Agent like Mike Oliver who know the market in Pima County and can find value in homes for buyers.
Values
Buying a home today may be your best financial move. With Mortgage rates at all time lows and prices of homes a 10 year lows, buyers have the advantage of finding the right home for them and a price and payments they can afford. I was reading a blog today form Mike Oliver’s web site www.sellingtucsonrealestate.com about a Foreclosure home that is for sale. Mike is a Real Estate Agent from Tierra Antigua Realty. This home is listed for $161,500 and is almost 1900 square feet in NorthWest Tucson. From the pictures it looks like a nice home. His article states it needs some landscape but other than that it is ready to move into. I am seeing more and more home that are ready to move in. Currently an approved buyer could purchase this home for monthly mortgage payments under $1100 with a 5% 30 Year FHA Mortgage with as little as 3.5% down payment. This would be a wonderful home for a first time home buyer.
There are many of these “deals” out there for buyers to take advantage of. There is great value in looking at home that has been foreclosed on. The banks are not in the business of owning homes and the longer the foreclosed home is “on their books” the more money they loose. Banks loose a tremendous amount in a foreclosured home . They want to sell that home as quickly as they can to move it off their inventory. Some banks are offering to pay buyers closing cost to purchase these foreclosed homes. The most popular financing that we are seeing right now for these foreclosed homes is the FHA loan. FHA allows the seller to pay up to 6% of the buyers closing costs and buyers are only required to put a down payment of 3.5%. For buyers who don’t have the 3.5% down payment, FHA will even allows the down payment to come from a family member/close friend, a church, employer or other agencies.
In Pima County the 2008 Pima County Bond Money Loan has been extended to April 2009 for buyer’s to take advantage of 100%, NO MONEY DOWN LOANS. The Rate for the Pima County Bond Money 1st Mortgage is 5.99% fixed for 30 years. There is no discount fees charged and all lenders fees have to meet the guidelines of the Pima County Bond Loan Program. The Pima County Bond Money Loan will even finance the buyers closing costs is needed. It is one of the BEST LOANS in Pima County for buyers with little or no down payments.
Another great place to look for value is propertied that have been foreclosed on buy HUD. HUD repos are the fasted moving properties for 3 reasons. First, HUD Repo’s have been priced to be sold ASAP. HUD can not allow properties to be up for sale too long. By the nature of the HUD Repos, there is normally great value in these properties. 2nd Financing terms offered by FHA for HUD home require buyers to come in with ONLY $100 down for a FHA loan with current rates in the 5% range for a 30 Year Fixed Rate Mortgage. 3rd HUD sometimes offers these homes under their “ Good Neighbor Next Door” Program. This allows Police, Firefighters, Teachers and some Medical professionals to purchase these propertied at ½ of the listing price and on top of that they give these buyers the $100 Down HUD Reop FHA financing. (best deal in the world to buy a home)
If you are interested in buying any type of Foreclosed or HUD Repo it is very important to be PRE QUALIIED by an FHA approved lender and in Tucson/Pima County and Loan officer who is approved to offer you the Pima County Bond Money Loan. HUD Repos properties do not last more that a few days on the market. You need to be able to move quickly to buy these homes. Work with a proven Agent like Mike Oliver who know the market in Pima County and can find value in homes for buyers.
There are many of these “deals” out there for buyers to take advantage of. There is great value in looking at home that has been foreclosed on. The banks are not in the business of owning homes and the longer the foreclosed home is “on their books” the more money they loose. Banks loose a tremendous amount in a foreclosured home . They want to sell that home as quickly as they can to move it off their inventory. Some banks are offering to pay buyers closing cost to purchase these foreclosed homes. The most popular financing that we are seeing right now for these foreclosed homes is the FHA loan. FHA allows the seller to pay up to 6% of the buyers closing costs and buyers are only required to put a down payment of 3.5%. For buyers who don’t have the 3.5% down payment, FHA will even allows the down payment to come from a family member/close friend, a church, employer or other agencies.
In Pima County the 2008 Pima County Bond Money Loan has been extended to April 2009 for buyer’s to take advantage of 100%, NO MONEY DOWN LOANS. The Rate for the Pima County Bond Money 1st Mortgage is 5.99% fixed for 30 years. There is no discount fees charged and all lenders fees have to meet the guidelines of the Pima County Bond Loan Program. The Pima County Bond Money Loan will even finance the buyers closing costs is needed. It is one of the BEST LOANS in Pima County for buyers with little or no down payments.
Another great place to look for value is propertied that have been foreclosed on buy HUD. HUD repos are the fasted moving properties for 3 reasons. First, HUD Repo’s have been priced to be sold ASAP. HUD can not allow properties to be up for sale too long. By the nature of the HUD Repos, there is normally great value in these properties. 2nd Financing terms offered by FHA for HUD home require buyers to come in with ONLY $100 down for a FHA loan with current rates in the 5% range for a 30 Year Fixed Rate Mortgage. 3rd HUD sometimes offers these homes under their “ Good Neighbor Next Door” Program. This allows Police, Firefighters, Teachers and some Medical professionals to purchase these propertied at ½ of the listing price and on top of that they give these buyers the $100 Down HUD Reop FHA financing. (best deal in the world to buy a home)
If you are interested in buying any type of Foreclosed or HUD Repo it is very important to be PRE QUALIIED by an FHA approved lender and in Tucson/Pima County and Loan officer who is approved to offer you the Pima County Bond Money Loan. HUD Repos properties do not last more that a few days on the market. You need to be able to move quickly to buy these homes. Work with a proven Agent like Mike Oliver who know the market in Pima County and can find value in homes for buyers.
Saturday, January 10, 2009
No Equity, Bad Credit Scores...No Problems
VA (Veteran Administration) and FHA(Federal Housing Administration) both have loans that do not require equity or credit scores to refinance into a lower interest rate for existing VA and FHA borrowers. If you are currently paying over 5.5% on your VA or FHA loan then you need to call me. With fixed mortgage rates for FHA and VA loans at or under 5.5% and getting close to the 4’s, right now it is a great time to refinance. VA and FHA have made it simple for home owners who have this type of loans to take advantage of low rates. VA loans the IRRRL (interest rate reduction refinance loan) and FHA the Streamlined Refinance are the best loans to lower mortgage rates today. All VA and FHA require is that you have made your mortgage payment on time over the last 12 months and in some cased they just want to see you have made 11 of the last 12 mortgage payments made. If you recently closed on a FHA or VA loan we just need to see you made your payments on time since you closed. By on time we mean your mortgage was not more than 30 days past due. They do require the mortgage to be current at time of closing. No need to provide income and asset documentation. No appraisals to worry about, it not required. No need to worry if you spent too much over the holiday season and your credit card payments have gone up since you last refinance, they don’t even look and debt ratios. It is truly a worry free refinance that will save you money monthly on your mortgage payment and lower your interest rate.
Low credit scores is NOT A PROBLEM. FHA and VA do not require credit score to qualify for the FHA Streamlined Refinance or the VA IRRRL. Some lenders will offer better interest rates for loans with higher credit scores. I strongly recommend taking a look at customer credit scores to see if the customer can benefit from having higher credit scores. If you currently have a FHA or VA loan and you don’t think you can refinance because of no equity you need to contact me or apply on line for one of these great loan products that will lower your interest rate.
In the last two years FHA and VA rate have been up to 7%. Many customers did a FHA Streamlined or a VA IRRRL to drop their rate into the 6’s within the last year. There is no limit on doing these types of loan so these clients are dropping their rates again into the 5’s for 30 Year Fixed Rate Mortgage with another FHA Streamlined or VA IRRRL. Many people believe that if you can not save a full 1% on your interest rate it is not worth doing. Since I do not charge an origination, discount fee, or appraisal fee for these loans and in most loans the lender pays for your other closing costs it is actually financial smart to do and FHA Streamlined or VA IRRRL as soon as you can save a ½% or more from your current rate.
Low credit scores is NOT A PROBLEM. FHA and VA do not require credit score to qualify for the FHA Streamlined Refinance or the VA IRRRL. Some lenders will offer better interest rates for loans with higher credit scores. I strongly recommend taking a look at customer credit scores to see if the customer can benefit from having higher credit scores. If you currently have a FHA or VA loan and you don’t think you can refinance because of no equity you need to contact me or apply on line for one of these great loan products that will lower your interest rate.
In the last two years FHA and VA rate have been up to 7%. Many customers did a FHA Streamlined or a VA IRRRL to drop their rate into the 6’s within the last year. There is no limit on doing these types of loan so these clients are dropping their rates again into the 5’s for 30 Year Fixed Rate Mortgage with another FHA Streamlined or VA IRRRL. Many people believe that if you can not save a full 1% on your interest rate it is not worth doing. Since I do not charge an origination, discount fee, or appraisal fee for these loans and in most loans the lender pays for your other closing costs it is actually financial smart to do and FHA Streamlined or VA IRRRL as soon as you can save a ½% or more from your current rate.
Monday, January 5, 2009
Refinancing your JUMBO loan? Yes you can
Refinancing your JUMBO loan? Yes you can
Having Problems Refinancing your JUMBO loan?
Many JUMBO customers are having problems refinancing to get lower interest rates or refinancing to secure a fixed rate mortgage on their current ARM loan. For some JUMBO customers it is not as hard as you might have heard. Currently in Arizona, a JUMBO loan is defined as a loan amount over $417,000. For those JUMBO customers with some equity, there is a solution to their problem. Many of my clients are refinancing to the Conforming loan limit of $417,000 on a first mortgage (rates around 5% 30 year fixed) and using a 2nd mortgage for the remainder balance. A 2 loan "combo" is a great solution. There are a few lenders that still do 2nd mortgages. It is not as easy as it was 2 years ago, but it can still be done and can save a customer thousands of dollars in interest.
Current 2nd mortgage products that are still available are fixed rate loans with terms up to 30 years. Current rates 7%-8%+ and Lines of Credits that are as low a 3.5%.
These types of transactions can also be used to purchase a home. Lenders that we work with allow these "combo" loans to finance up to 90% of the appraised value or purchase price. You will need to have a minimum of 10% down payment.
Talk to an experienced loan officer who knows how to structure this type of transaction. Not every lender can offer these loans, so please make sure your loan officer knows this process. It is a confusing one and can take a few extra weeks to close.
If you have a JUMBO loan and the interest rate is above 6% ask your loan officer to look into this for you. You might be happy you made the call.
Having Problems Refinancing your JUMBO loan?
Many JUMBO customers are having problems refinancing to get lower interest rates or refinancing to secure a fixed rate mortgage on their current ARM loan. For some JUMBO customers it is not as hard as you might have heard. Currently in Arizona, a JUMBO loan is defined as a loan amount over $417,000. For those JUMBO customers with some equity, there is a solution to their problem. Many of my clients are refinancing to the Conforming loan limit of $417,000 on a first mortgage (rates around 5% 30 year fixed) and using a 2nd mortgage for the remainder balance. A 2 loan "combo" is a great solution. There are a few lenders that still do 2nd mortgages. It is not as easy as it was 2 years ago, but it can still be done and can save a customer thousands of dollars in interest.
Current 2nd mortgage products that are still available are fixed rate loans with terms up to 30 years. Current rates 7%-8%+ and Lines of Credits that are as low a 3.5%.
These types of transactions can also be used to purchase a home. Lenders that we work with allow these "combo" loans to finance up to 90% of the appraised value or purchase price. You will need to have a minimum of 10% down payment.
Talk to an experienced loan officer who knows how to structure this type of transaction. Not every lender can offer these loans, so please make sure your loan officer knows this process. It is a confusing one and can take a few extra weeks to close.
If you have a JUMBO loan and the interest rate is above 6% ask your loan officer to look into this for you. You might be happy you made the call.
Friday, January 2, 2009
FHA Now requires 3.5% Down Payment.
Starting today FHA will require a minimum down payment of 3.5% This is up from 3%. FHA has taken many losses from home loans with buyers having little or no money down . Up until October of 2008 buyers could have the sellers pay their closing costs and gift the buyers the down payment. Buyers could actually buy a house with less money out of their pocket then they could moving into an apartment. FHA felt that this was a major problem and stopped sellers from funding the buyers down payments and now FHA has increased the down payment requirement to 3.5%.
Many in the mortgage and real estate business thought this might limit the ability for new home buyers to qualify for a home. In my experience this is not the case. I have seen many first time home buyers who do not have the 3% or 3.5% down payment to use other resources to get into homes. FHA allows buyers to receive a gift form a family member or close friend, their church, or employer. In Pima county we have the Pima County Bond Loan that is 100% financing. See 100% Financing for more details. Nova Home Loans also has the Arizona Home Buyers Solutions for home buyers in Arizona. See 100% Financing.
Most buyers who do not have the down payment saved have been receiving gifts from family members. FHA feels this is a better than the seller giving the down payment because buyers will feel more responsible for the home when they know a family has invested in the home for them. When home buyers used the sellers money form down payment there was less of a feeling of responsibility for the property was easier to walk away from the property if there was trouble making the mortgage payments.
There are many ways for home buyers to get loans with little or no money down. There are HUD Repo programs that allow for buyers to only put down $100. USDA 102% home loans and VA do not require a down payment. Please talk to an experienced loan officer if you do not have the money saved for a down payment or you don't think you will qualify for a home loans. There are many solutions for you.
Many in the mortgage and real estate business thought this might limit the ability for new home buyers to qualify for a home. In my experience this is not the case. I have seen many first time home buyers who do not have the 3% or 3.5% down payment to use other resources to get into homes. FHA allows buyers to receive a gift form a family member or close friend, their church, or employer. In Pima county we have the Pima County Bond Loan that is 100% financing. See 100% Financing for more details. Nova Home Loans also has the Arizona Home Buyers Solutions for home buyers in Arizona. See 100% Financing.
Most buyers who do not have the down payment saved have been receiving gifts from family members. FHA feels this is a better than the seller giving the down payment because buyers will feel more responsible for the home when they know a family has invested in the home for them. When home buyers used the sellers money form down payment there was less of a feeling of responsibility for the property was easier to walk away from the property if there was trouble making the mortgage payments.
There are many ways for home buyers to get loans with little or no money down. There are HUD Repo programs that allow for buyers to only put down $100. USDA 102% home loans and VA do not require a down payment. Please talk to an experienced loan officer if you do not have the money saved for a down payment or you don't think you will qualify for a home loans. There are many solutions for you.
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