Mortgage Help For Seniors

September 8, 2010 by Ryan Davison · Leave a Comment

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There is a relatively new, little known mortgage program called. Purchase Reverse Mortgage.

Most people have heard of the Reverse Mortgage which allows someone over 62 years old to stay in there home without a mortgage payment. Upon death of the longest living borrower, permanent move out, or sale of the home, the borrowed money plus interest will need to be satisfied. Because there are no payments, lenders don’t look at credit, income, or assets. The money they get is based on their age and the value of there current residence.

The Purchase Reverse Program is very much the same. The only difference is you can actually purchase a home, without verifying income, assets, or credit. Depending on the age and the purchase price of the home a lender can lend up to 50% of the purchase price. Same with the Reverse Mortgage, after death or permanent move out the mortgage and interest will be do.

HUD will also guarantee that the property will never be less then what it was originally purchased for. This is great for the heir’s as they wont suddenly acquire a property that is up side down.

Now Seniors can get out of a property that no longer fits their needs and move on to the next stage of their lives WITHOUT needing to liquidate their retirement accounts and be victimized by the equity they have lost in their current home.

Know More About Reverse Mortgage Types (imbrandon.com)
The Essential Reverse Mortgage Factsheet (mint.com)
Home Loans In A Bad Economy (slideshare.net)

Filed under Blog · Tagged with Financial Services, Home, Loan, Mortgage, Reverse Mortgage

Piggyback Loan

September 2, 2010 by Ryan Davison · Leave a Comment

The Piggyback Loan is another loan that offers a low down payment as well as a way to avoid PMI (private mortgage insurance). It and can be used to finance 80% of the home’s purchase price. For instance, if a home buyer only has enough cash for a 5% down payment it would look like this. 80/15/5. The “80″ refers to 80% of the purchase price. The “15″ is the second mortgage which finances 15% of the purchase price. The “5″ is the down payment. Another one you could do would be 80/10/10. Some lenders will allow 80/20 where the second mortgage covers the rest of the purchase price with no down payment needed.

Cons

The second mortgage is usually financed at a higher rate than the first. Second mortgages have a shorter term then firsts and are usually confined to primary residences and they are also limited to amounts no higher than $100,000. However some lenders will allow more.

Pros

This is another loan option available if you dont have the 20% down for a conventional loan and want to avoid PMI.

Sometimes, the second loan can be structured in a way that gives the homeowner practical use. For instance, if the second loan is a home equity line of credit, the homeowner may draw money from the loan to use for anything they wish.

They may also be structured to allow interest-only payments. This means that for a specified period of time, you only have to pay the interest, though you can add as much principal on top of that as you wish. It gives homeowners the added flexibility to do what they want with there money.

There are so many loan options available right now. A few i have blogged about. Make sure you find a knowledgeable lender that can educate you and find the best one to suite your needs.

Avoid Private Mortgage Insurance on Loans & Mortgage Refinancing (home-mortgages.suite101.com)
Shopping Around for a Lower PMI, Can You? (brighthub.com)

Filed under Blog · Tagged with 80/20, Financial Services, Lenders mortgage insurance, Loan, low downpayment, low downpayment loan, Mortgage, Mortgage insurance, piggyback, piggyback loan

VA Loan For Veterans

May 17, 2010 by Ryan Davison · Leave a Comment

Here is another loan available just for veterans. Some highlights include:

100% financing.

Easier to get a loan because of more liberal VA Underwriters that are more understanding of credit challenges.

No Reserve Requirements, meaning you don’t need to have any savings to buy a home.

The seller can pay closing costs so you don’t have to come up with that money either.

There is no VA Funding fee required in certain circumstances (mortgage insurance.)

The VA is devoted to making sure the veteran isn’t overpaying through their strict valuation process and checking the condition on the property.

The VA also offers Residual Income. Basically it is a budget for the Veteran adding up all of their expenses such as heat, income taxes, food, clothes, and electricity. They also do adjustments based on the number of kids for food cost.

As long as the Vet has $1 in Residual Income, the VA underwriter can approve the loan!

Some Ways To Refinance Your VA Loan (imbrandon.com)
Discover Secrets About Mortgage Loans (badcreditdebtmanagement.com)
Qualifying For VA Jumbo Loans (prweb.com)
Extra Mortgage Costs (homeloans.org)

Filed under Blog · Tagged with Business, Financial Services, Loan, Mortgage, Mortgage insurance, VA loan

Loan Program For School Emplyees

May 11, 2010 by Ryan Davison · 3 Comments

Whether you are thinking about buying a new home, lowering your existing payments, or taking cash out, the CalSTRS Home Loan Program can help by offering competitive rates with a variety of mortgage loan programs:

Conventional 15 or 30 year Fixed Rate Program — Competitive rates in the mid 5 to mid 6 ranges are available for buying a new home or refinancing to meet your individual needs. Mortgage loan amounts are available up to $834,000. This loan requires a down payment of 10 to 20% depending on lender requirements.
80/17 Program — Qualifying for a larger home mortgage is now available because there is no payment required on the second loan for 5 years. Mortgage loan amounts are available up to $650,000.
Reverse Mortgages — A Reverse mortgage allows homeowners 62 years or older to stop making monthly mortgage payments for as long as they or someone over 62 years old lives in the home as there primary residence. They will only be responsible for property taxes, insurance and home repairs. And through your homes equity you can receive your reverse mortgage funds in monthly payments, lump sum, or as a line of credit.

This loan is available to any employee of a Unified School District.

Reverse Mortgages for Seniors (consumereducation.suite101.com)
3 Things You Need to Know to Qualify for a Mortgage (businesspundit.com)
How Much Home Can I Afford? (hsh.com)
Fannie Mae Tightens Lending Requirements for IO Loans and ARMs (home-mortgages.suite101.com)

Filed under Blog, OC Market Report · Tagged with Calstrs, Down payment, Loan, Mortgage, Mortgage loan, Reverse Mortgage, school loan, teacher loan

Home Affordable Foreclosure Alternatives Program: HAFA

April 22, 2010 by Ryan Davison · Leave a Comment

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HAFA is a program that took affect April 5, 2010. This program provides additional options to avoid foreclosure by offering incentives to homeowners, lenders and investors who utilize a Short Sale or Deed in Lieu (Deed in Lieu is where the homeowner willfully gives the home to the bank instead of the bank taking it) The HAFA program is offered to all HAMP eligible borrowers who do not qualify for a

Trial Period Plan,

Do not successfully complete a Trial Period Plan,

Miss at least 2 consecutive payments during a HAMP modification,

Or request a short sale or deed in lieu.

In a Short Sale the lender agrees to sell the home for less then the property is worth.

When the homeowner makes a strong effort to sell the home but is unsuccessful the lender will also consider a deed in lieu, provided title is free and clear of any mortgages, liens and encumbrances. Before HAFA was put into affect the lender could go after you for the difference between what you owe and what the home sold for. Now you are safe if your home is HAMP eligible.

HAFA simplifies and streamlines the Short Sale and Deed in Lieu process by providing a standard flow, minimum performance time frames and standard documentation.

Gov’t Aims to Help More “Underwater” Homeowners (abcnews.go.com)
Mortgages: Another Foreclosure Alternative (nytimes.com)
Government urges short sales, but experts unsure it will help (seattletimes.nwsource.com)
Short Sales | Short Sale | Don’t Lose Your Home! (realestateradiousa.com)

Filed under Blog · Tagged with Deed in lieu of foreclosure, Foreclosure, Lien, Loan, Mortgage, Real estate, Short Sale

Home Affordable Modification Program: HAMP

April 21, 2010 by Ryan Davison · Leave a Comment

The Home Affordable Modification Program is designed to help about 3 to 4 million financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now, and sustainable over the long term. The program provides clear and consistent loan modification guidelines that the entire mortgage industry can use.

Borrowers eligibility is based on meeting specific criteria including:
1) Borrower is delinquent on their mortgage or faces imminent risk of default
2) Property is occupied as borrower’s primary residence
3) Mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties.

After determining a borrower’s eligibility, the lender will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower’s total pretax monthly income:

First, reduce the interest rate to as low as 2%,

Next, if necessary, extend the loan term to 40 years,

Finally, if necessary, defer a portion of the principal until the loan is paid off and waive interest on the deferred amount.

If you have gone through the HAMP process or are HAMP eligible and can’t afford to stay in your home then stay tuned for tomorrows blog, I will go over the Home Affordable Foreclosure Alternatives Program. This program provide additional options to help avoid foreclosure by offering incentives to borrowers, lenders and investors who utilize a Short Sale or Deed in Lieu. Deed in Lieu is where the homeowner willfully gives the home to the bank instead of the bank taking it. This option has almost the same credit consequences as a short sale.

Mortgage modification assistance (money.cnn.com)
How Obama’s new mortgage-aid plan works (seattletimes.nwsource.com)
Answers to questions about new mortgage aid plan (sfgate.com)

Filed under Blog · Tagged with Deed in lieu of foreclosure, Financial Services, Foreclosure, Loan, Mortgage, Mortgage modification

New FHA Requirements

March 24, 2010 by Ryan Davison · Leave a Comment

Recently new FHA requirements were released. And for some it makes it a little harder to get a loan.

New requirements:

If you have less then a 580 fico score your down payment goes up to 10% instead of 3.5%

Sellers can now only put 3% towards closing costs instead of the old 6%

Higher insurance premiums of 2.25% Which is moot because that amount can be rolled into the loan causing minimal impact to borrowers.

Since FHA now backs 3 in every 10 mortgages and the agency’s funds deteriorating, FHA Commissioner David Stevens was forced to tighten up lending requirements to keep borderline credits off the books.

FHA official warns of trouble if down-payment requirements are hiked (seattletimes.nwsource.com)
Top Five Benefits of FHA Mortgages in Phoenix AZ (azmortgageguru.com)
Can Borrowers Save the System? (hsh.com)

Filed under Blog · Tagged with Closing cost, Down payment, Federal Housing Administration, Financial Services, Loan, Mortgage

FHA Loan

January 27, 2010 by Ryan Davison · Leave a Comment

Everybody is talking about FHA loans and if you thought you couldn’t buy a home then using this loan may be an option for you.

The FHA loan program was created to help increase home ownership by making it easier and less expensive than other types of real estate mortgage home loan programs. This loan offers low down payments of 3.5% or less, FHA regulated closing costs and this is really cool, you can gift or be gifted money for the down payment and closing costs. This loan is much easier to qualify for as well with a minimum FICO score of 620. Also FHA will allow you to purchase 2 years after a bankruptcy and 3 years after a foreclosure. This loan is great if you have a high Debt to income ratio and if you are self employed.

These advantages of the FHA loan program has made it one of the best options for most first time home buyers as well as move-up home buyers.

Please keep in mind that regulations change often.

FHA to raise standards for mortgage insurance (seattletimes.nwsource.com)
FHA Announces Important Policy Changes (zillow.com)
How to Get a Low Down Payment Mortgage (homeloans.org)

Filed under Blog · Tagged with FHA loan, Loan, Mortgage, Real estate

USDA Loan Program

January 5, 2010 by Ryan Davison · Leave a Comment

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A USDA Guaranteed loan is government insured up to 100% of the appraised value of the home. These loans are only offered in rural areas and serviced by direct lenders that meet federal guidelines. This loan has a $290.000 loan limit.

To be eligible for this loan you must have an adequate and dependable income, be a U.S. citizen, qualified alien, or be legally admitted to the U.S.

This loan will cover new and existing homes however the existing home must be in good form.

This loan can’t be used for income producing property.

A rural area is defined by an area with a population of 10,000 or less and under certain conditions town and cites with between 10,000 and 25,000 residents. No down payment required, loans are offered for 30 year fixed rate at market interest rates.