Thanks to my client's referrals in the past two weeks, I am donating five turkeys to a local food shelter today. Thanks so much for helping us make some families in Connecticut's Thanksgiving that much better!
HAPPY THANKSGIVING!
Wednesday, November 26, 2008
Allied First National Lender to Address Homebuyer Issues With New Program
November 25, 2008
Allied To Offer FHA Homebuyers
New Rainy Day Foundation HELP Program
First-time Buyers Receive Counseling, Support To Make Payments
(Houston, TX.) – Allied Home Mortgage Capital Corporation, the Houston Based nationwide lender, today announced it is the first nationwide lender to partner with the Rainy Day Foundation, a national non-profit organization to offer educational tools and mortgage loan protections services through their new Homeowner Education and Loan Protection program (H.E.L.P.)
“The Rainy Day Foundation, headquartered in Washington, D.C., encourages responsible home ownership. Through its HELP program it teaches home buyers how to position themselves for success with their new mortgage. It educates them about home ownership and teaches them how to resolve problems that may arise,” said Jim Hodge, chief executive officer of Allied Mortgage.
Participation in the Rainy Day HELP program is made available to all FHA borrowers who finance their homes through Allied, at no cost to the borrower. “We feel that it is essential that we do our part to provide financial stability to our borrowers,” added Allied.
The program provides:
* Monthly communication and newsletters that focus on budgeting and offers solutions to home ownership challenges for a period of two years.
* Direct communication between the non-profit and borrower for a period of twelve months after the loan closes to reinforce standards, answer questions and gauge financial challenges.
* A job loss insurance policy that is in effect for the first year of the home loan. Depending on circumstances, the policy will pay up to six months of a borrower’s mortgage, up to a maximum of $1,800 (principal, interest, taxes and insurance).
* The ability for the homeowner to apply for an emergency grant to resolve short term financial challenges. These grants are specific for mortgage assistance.
“We know that many borrowers today don’t have the ability to navigate through real life issues. These are trying economic times and we believe that we want to give our customers every chance at successful homeownership”, said Hodge. “No one, including banks and lenders, wants a homeowner to default on a loan. We feel the Rainy Day program will proactively address problems that our borrowers might encounter”
This year alone it is anticipated that the Foundation will enrolled more than 20,000 homeowners, a figure that is projected to double in 2009.
“What happens when homeowners suddenly are scheduled for less hours at work, or they encounter unexpected medical expenses?” asks Rick Del Sontro, chief executive officer of the Rainy Day Foundation. “Life happens and there is no way to underwrite a loan to life. Our goal is to help families achieve and maintain the American Dream. We applaud Allied for taking this significant step and proving that not only do they care about making a loan, but those they want to create successful homeowners”
Allied To Offer FHA Homebuyers
New Rainy Day Foundation HELP Program
First-time Buyers Receive Counseling, Support To Make Payments
(Houston, TX.) – Allied Home Mortgage Capital Corporation, the Houston Based nationwide lender, today announced it is the first nationwide lender to partner with the Rainy Day Foundation, a national non-profit organization to offer educational tools and mortgage loan protections services through their new Homeowner Education and Loan Protection program (H.E.L.P.)
“The Rainy Day Foundation, headquartered in Washington, D.C., encourages responsible home ownership. Through its HELP program it teaches home buyers how to position themselves for success with their new mortgage. It educates them about home ownership and teaches them how to resolve problems that may arise,” said Jim Hodge, chief executive officer of Allied Mortgage.
Participation in the Rainy Day HELP program is made available to all FHA borrowers who finance their homes through Allied, at no cost to the borrower. “We feel that it is essential that we do our part to provide financial stability to our borrowers,” added Allied.
The program provides:
* Monthly communication and newsletters that focus on budgeting and offers solutions to home ownership challenges for a period of two years.
* Direct communication between the non-profit and borrower for a period of twelve months after the loan closes to reinforce standards, answer questions and gauge financial challenges.
* A job loss insurance policy that is in effect for the first year of the home loan. Depending on circumstances, the policy will pay up to six months of a borrower’s mortgage, up to a maximum of $1,800 (principal, interest, taxes and insurance).
* The ability for the homeowner to apply for an emergency grant to resolve short term financial challenges. These grants are specific for mortgage assistance.
“We know that many borrowers today don’t have the ability to navigate through real life issues. These are trying economic times and we believe that we want to give our customers every chance at successful homeownership”, said Hodge. “No one, including banks and lenders, wants a homeowner to default on a loan. We feel the Rainy Day program will proactively address problems that our borrowers might encounter”
This year alone it is anticipated that the Foundation will enrolled more than 20,000 homeowners, a figure that is projected to double in 2009.
“What happens when homeowners suddenly are scheduled for less hours at work, or they encounter unexpected medical expenses?” asks Rick Del Sontro, chief executive officer of the Rainy Day Foundation. “Life happens and there is no way to underwrite a loan to life. Our goal is to help families achieve and maintain the American Dream. We applaud Allied for taking this significant step and proving that not only do they care about making a loan, but those they want to create successful homeowners”
Tuesday, November 18, 2008
Buy a Fixer-Upper with FHA
Buy a Fixer-Upper with an FHA loan
Buying a home in today's market is a great idea especially if you are able to build equity by purchasing at below market value or by increasing the property's value through some remodeling. There are plenty of properties that may be purchased through foreclosure or short sales. By buying a property such as this you may be buying for less than what the property is worth. What we generally find is these properties are in need of cosmetic freshening up. If you are looking at using an FHA mortgage because you have limited funds for down payment, then remodeling a property may not be something you can afford unless you take advantage of the FHA rehabilitation loan.Known as the 203(k), FHA offers people that are buying homes as their principle residence the ability to include rehabilitation funds within the first mortgage. There are two 203(k) type loans - the full 203(k) and the new streamlined version referred to as the "baby k".Both require the same down payment (3.5% as of January 1, 2009) based upon the sales price plus the rehabilitation costs. The difference between the two programs is the amount of paperwork required to underwrite each loan.The full 203(k) requires an FHA approved consultant prepare a cost estimate based on the area's averages for the work be requested by the home buyer. This report, once signed off by the buyer, is forwarded to the FHA approved appraiser which prepares a residential appraisal of the property including the work involved in the cost analysis.The "baby k" allows for streamlined documentation of repairs. This loan only requires a single bid for the repairs to be made to the property. This bid (made by a licensed contractor) is forwarded for use in the appraisal. Both as-is and as-completed values are determined in the appraisal.The "baby k" only allows for up to $35,000 in repairs to the property while it's big brother does not set a limit on repairs. The streamlined version also only allows for cosmetic work, appliances and energy efficient upgrades. Any structural, landscaping, additions or other items not allowed under the "baby k" can be allowed under the full version.Many lenders do not originate these type of FHA mortgages. Make sure that you deal with someone that has experience preparing these mortgages for underwriting.If you would like more information regarding the 203(k) options you can view the HUD website.
Buying a home in today's market is a great idea especially if you are able to build equity by purchasing at below market value or by increasing the property's value through some remodeling. There are plenty of properties that may be purchased through foreclosure or short sales. By buying a property such as this you may be buying for less than what the property is worth. What we generally find is these properties are in need of cosmetic freshening up. If you are looking at using an FHA mortgage because you have limited funds for down payment, then remodeling a property may not be something you can afford unless you take advantage of the FHA rehabilitation loan.Known as the 203(k), FHA offers people that are buying homes as their principle residence the ability to include rehabilitation funds within the first mortgage. There are two 203(k) type loans - the full 203(k) and the new streamlined version referred to as the "baby k".Both require the same down payment (3.5% as of January 1, 2009) based upon the sales price plus the rehabilitation costs. The difference between the two programs is the amount of paperwork required to underwrite each loan.The full 203(k) requires an FHA approved consultant prepare a cost estimate based on the area's averages for the work be requested by the home buyer. This report, once signed off by the buyer, is forwarded to the FHA approved appraiser which prepares a residential appraisal of the property including the work involved in the cost analysis.The "baby k" allows for streamlined documentation of repairs. This loan only requires a single bid for the repairs to be made to the property. This bid (made by a licensed contractor) is forwarded for use in the appraisal. Both as-is and as-completed values are determined in the appraisal.The "baby k" only allows for up to $35,000 in repairs to the property while it's big brother does not set a limit on repairs. The streamlined version also only allows for cosmetic work, appliances and energy efficient upgrades. Any structural, landscaping, additions or other items not allowed under the "baby k" can be allowed under the full version.Many lenders do not originate these type of FHA mortgages. Make sure that you deal with someone that has experience preparing these mortgages for underwriting.If you would like more information regarding the 203(k) options you can view the HUD website.
Monday, October 20, 2008
Need 100% financing? Don't forget to ask about VA and USDA!
VA Mortgage
If you have military experience and have earned your home loan benefit from the military, you need to talk with us. VA still allows for 100% financing for owner-occupied properties. Structured properly, you can purchase a home with no down payment and no funds out of pocket with a seller contribution towards closing costs. VA loan have no monthly mortgage insurance, which lowers your monthly payment.
How do you qualify for a VA mortgage? Call one of our VA specialist 860 829-9600 x101 or email vin@alliedhomenet.com.
USDA Home Loans
100% financing exists if the property you are looking to purchase and occupy falls within an approved location by the United States Department of Agriculture. This financing product allows for you to finance up to 100% of the appraised value. This means you can roll your closing costs into your mortgage if the home appraises for more than you are purchasing the home for. There are also income restrictions based upon family size, child care expenses and other considerations.
This loan, much like the VA mortgage, does not have monthly mortgage insurance, keeping your payments lower.
What's the next step? Check to see if you fit within the income restrictions and if the area you are looking in is eligible. Call me 860 829-9600 x101 or email vin@alliedhomenet.com
COMING SOON - My newly created FHA product website!
If you have military experience and have earned your home loan benefit from the military, you need to talk with us. VA still allows for 100% financing for owner-occupied properties. Structured properly, you can purchase a home with no down payment and no funds out of pocket with a seller contribution towards closing costs. VA loan have no monthly mortgage insurance, which lowers your monthly payment.
How do you qualify for a VA mortgage? Call one of our VA specialist 860 829-9600 x101 or email vin@alliedhomenet.com.
USDA Home Loans
100% financing exists if the property you are looking to purchase and occupy falls within an approved location by the United States Department of Agriculture. This financing product allows for you to finance up to 100% of the appraised value. This means you can roll your closing costs into your mortgage if the home appraises for more than you are purchasing the home for. There are also income restrictions based upon family size, child care expenses and other considerations.
This loan, much like the VA mortgage, does not have monthly mortgage insurance, keeping your payments lower.
What's the next step? Check to see if you fit within the income restrictions and if the area you are looking in is eligible. Call me 860 829-9600 x101 or email vin@alliedhomenet.com
COMING SOON - My newly created FHA product website!
Sunday, March 23, 2008
Bye bye 100% financing
Announced today, fannie mae and freddie mac, the largest buyer/servicer of mortgage loans announced the discontinuation of 100% financing options through conforming products. This move will require home buyers to put a minimum of 3% down payment into a new home purchase. From my last post, you must have a 680 fico to be able to get into the 97% conventional loan.
100% fianancing is still available for all credit scores using one of the government insured program - VA, USDA Rural Development and FHA with use of a non profit gift. Need more info on these great programs, contact me for free information and reports.
In today's mortgage world you must speak with a lender that offers all of the programs available to the market.
I was told twice just this week from potential clients that going for an FHA loan had too many property restrictions. When asked where they heard that from the answer was other brokers. Turns out these brokers do not offer FHA financing and instead of being upfront, they made up rules that are just not accurate. FHA uses the same exact appraisal as conventional financing these days. When you hear a negative about FHA, VA, state bond programs or Rural Development loans, ask them if they offer them. If they say no, talk to another professional. If you are from out of state and would like some guidance, call me. I would rather help someone analyze their options then see them put into the wrong product even if there is no compensation to me. I am trying to do my part to clean up our industry. Happy Easter!
100% fianancing is still available for all credit scores using one of the government insured program - VA, USDA Rural Development and FHA with use of a non profit gift. Need more info on these great programs, contact me for free information and reports.
In today's mortgage world you must speak with a lender that offers all of the programs available to the market.
I was told twice just this week from potential clients that going for an FHA loan had too many property restrictions. When asked where they heard that from the answer was other brokers. Turns out these brokers do not offer FHA financing and instead of being upfront, they made up rules that are just not accurate. FHA uses the same exact appraisal as conventional financing these days. When you hear a negative about FHA, VA, state bond programs or Rural Development loans, ask them if they offer them. If they say no, talk to another professional. If you are from out of state and would like some guidance, call me. I would rather help someone analyze their options then see them put into the wrong product even if there is no compensation to me. I am trying to do my part to clean up our industry. Happy Easter!
Sunday, March 9, 2008
Mortgage Insurance companies make it harder to finance with less than 5% down
Starting in the next couple of weeks the private mortgage insurance companies will be rolling out new guidelines for the mortgage industry to follow. Those being effected will be borrowers looking to put less than 5% down with lower than 680 credit scores, stated income with less than 10% down and I would imagine there will be PMI rate adjustments to follow as well.
What can you do if you are looking to buy a home and have less than 5% down and credit scores below the 680?
Two things - 1 -Make sure you do talk with a lender that can originate not only conventional loans, but FHA/VA or USDA Rural Development packages. These all require less than 5% down payment and currently have no price hits for credit score unless the lender themselves have imposed a price hit. 2 - Speak with a lender today and figure out where your credit score is. If it below 680 request a detailed plan of action to help increase your credit score. This should be done for anyone with less than 30% down payment because the credit score adjustments as of June 1, 2008 are going to be excessive and cost borrowers thousands of extra dollars PER YEAR!!!
I have been in the mortgage industry for the past 15 years. We distribute the products mentioned in this blog. If you would like some free information, please email requests to vin@alliedhomenet.com. We are licensed in all 50 states aa a lender and broker.
What ever info I can help you with please ask. I like helping people save money and buy homes.
What can you do if you are looking to buy a home and have less than 5% down and credit scores below the 680?
Two things - 1 -Make sure you do talk with a lender that can originate not only conventional loans, but FHA/VA or USDA Rural Development packages. These all require less than 5% down payment and currently have no price hits for credit score unless the lender themselves have imposed a price hit. 2 - Speak with a lender today and figure out where your credit score is. If it below 680 request a detailed plan of action to help increase your credit score. This should be done for anyone with less than 30% down payment because the credit score adjustments as of June 1, 2008 are going to be excessive and cost borrowers thousands of extra dollars PER YEAR!!!
I have been in the mortgage industry for the past 15 years. We distribute the products mentioned in this blog. If you would like some free information, please email requests to vin@alliedhomenet.com. We are licensed in all 50 states aa a lender and broker.
What ever info I can help you with please ask. I like helping people save money and buy homes.
Subscribe to:
Posts (Atom)