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.
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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
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FHA 203K Home Improvement Loan
May 24, 2010 by Ryan Davison · Leave a Comment
In today’s economy many people are losing their job or are afraid of losing their job. As a result many home upgrades and repairs are being neglected, or a homeowner is forced out of their home through short sale or foreclosure, they trash it and take valuable items inside the home before they leave. The FHA 203K program allows you to finance the home and the cost of improvements all in one. This loan is like the regular FHA loan, it only requires 3.5% down.
Since a regular FHA loan has so many requirements and restrictions this is a great option if the home you want to purchase needs some TLC.
Below is a list of things the 203K program will allot money for.
¨ Minor Repairs: Paint, Carpet, Flooring, Appliances (Including Washers, Dryers & Refrigerators)
¨ Major Repairs: Heating, Electrical, Air Conditioning, Plumbing Systems. New Roof, New Window, Doors, Foundation.
¨ Remodels: Kitchen Remodel, Bathroom Remodel
¨ Add-On’s: Bedrooms, Bathrooms, Family Rooms, Dining Rooms, New Garage. Extra Units.
¨ Landscaping: New Fencing, Driveways, Walkways, Irrigation Systems (sprinklers), Repair of existing Swimming Pool.
¨ Certifications: Termite Clearance, Well & Septic Certifications, Roof Certifications
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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!
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Tax Credit For Veterans.
May 14, 2010 by Ryan Davison · Leave a Comment
Remember the old tax credit that expired a few weeks ago? If you are a Veteran who has served overseas in the last 12 months or a Federal Government employee, the $8000 first time home buyer and the repeat home buyer credit of $6500 has been extended for another year and will end April 30Th 2011. Just another way the government is saying “THANK YOU” to our wonderful troops that keep this country great! Come back Monday when I talk about the VA mortgage thats also available to Veterans.
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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.
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Real Estate Market In Orange County
April 29, 2010 by Ryan Davison · Leave a Comment
The real estate market in Orange County was looking very strong for the month of March. From February to March, for sale, sold and pended are all up! (Pended is property that actually sold in that month) As you can see by the graph at the bottom of the page, across the board both sold and pended are up. Days on market is sitting right at 77 which is the average going back 15 months. Homeowners are getting about 93% of the homes original list price and the average price per Sq.Ft is $307. The average sold price is $544,000. As you can see this is still a strong market.
Below I have listed some things to keep an eye on if your thinking about buying or selling in the near future.
The Fed has been out of the mortgage market for about 2 weeks now and rates have already gone up 1/4 of a percent.
It’s very important to keep an eye on what the rates do, both for buying and selling purposes. A 1% increase in rates can reduce buying power by 10%!
Sellers: You may have to come down 10% in your pricing to bring buyers back.
Buyers: If interest rates do go up, and your buying power is cut by 10% you will have to look at a lesser property in a lesser neighborhood. With dozens of loan types and down payments as low as 3.5% this could the best time for you to buy a home.
| 1 month | 1 year | 15 months | |||||||
| Feb 10 | Mar 10 | % Change | Mar 09 | Mar 10 | % Change | Jan 09 | Mar 10 | % Change | |
| For Sale | 8310 | 8963 | 7.9%  |
11910 | 8963 | -24.7%  |
13175 | 8963 | -32% |
| Sold | 1812 | 2398 | 32.3% |
2226 | 2398 | 7.7% |
1678 | 2398 | 42.9% |
| Pended | 2834 | 4016 | 41.7% |
2795 | 4016 | 43.7% |
2132 | 4016 | 88.4% |
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Home Affordable Foreclosure Alternatives Program: HAFA
April 22, 2010 by Ryan Davison · Leave a Comment
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.
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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.
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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.
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