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.
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