Best Area in Which to Purchase

Best Area in Which to Purchase

Excellent buyer video explains how to choose a great place to live.

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Four Easy Steps To Save For A Down Payment

With interest rates down and inventory up, many savvy consumers are taking a good, long look at investing in a home of their own. The benefits are big and the rewards buying a home long-reaching. For some consumers – a down payment is the only thing standing between them and the dream of home ownership. In today’s economy,
it’s not always easy to save the necessary funds to not just get into a house of your own, but get a decent interest rate as well. Here are some four simple things you can put into your personal or family action plan for saving that down payment money in less time. Saving for a home of your own can be challenging, but it can be exciting too. The
feeling of reward and accomplishment is extraordinary. Start with these four steps and very soon you too can enjoy the long-term benefits of setting down roots and investing in your future.

1. Get in the know. Like any good budget or savings plan, the first place to start is to decide where you are NOW with your credit score, your monthly bills and assets. Contact me or a trusted mortgage professional to see how much home you qualify for and how much you’ll need to save to buy your home. We can help you take a look at things like credit scores, loan requirements and interest rates now so you can be simultaneously doing ALL the things right during this savings period to make sure the most favorable rate and terms.

2. Set a deadline. I know deadlines seem ominous to some, but they can be powerful motivators to carry out great goals. (And buying a home is a pretty big goal!) Again, once you know where you are – it will make setting a timeline easier. For some, step one of the savings plan may be paying down or even off some past debt with high interest – which could back up your time-table. Together, we can help you figure out which direction is best for you.
3. Create a “Down Payment” account. Ever see those little ceramic pots with “House Fund” or “Vacation Fund” on them – or the piggy banks with the “do not open ‘till holiday shopping time” labels? By opening a savings account just for your future home buy, you help lessen the likelihood of tapping into that money for other things. Check with your bank, or even local credit unions to see if they offer any special interest rates or programs for first time home owners looking to buy.
4. Take a good, long look at your monthly bills. Do you have credit cards or revolving credit with high interest rates and high monthly payments? That’s doing two things to hurt your cause. First – those interest rates are costing you big and just money out the door. Secondly, those high payments are bad news for your debt-to-income ratio. You may have to tackle those bills first and get them behind you. Make a list of your creditors, how much you owe, the interest rate and the monthly payments.

“Know that I’m always here to help. As a Real Estate Professional and Neighborhood Specialist, I can help you customize a savings plan all your own so that you can be sure your family is heading in the right direction every step of the way! Call or email me today.”

Why Could a Home Short Sale Take Long to Be Approved?

There are a number of decision makers involved in a short sale. And it’s a fact – the more parties involved, the more complex the decision process becomes because all parties must be in alignment before a home can be sold. Image

  • Ultimately, the decision rests with the investor, who is the owner of the loan. For instance, most large bank own  a very low percentage of the loans they service. The higher percentage is owned by investors (Fannie, Freddie, FHA, private investors, etc.). Most of the time, banks are under contract to handle the servicing for those investors., so in those cases they are acting not as the owner but as the investor’s agent with their fiduciary interest in mind. Each of these investors will try to decrease their losses and their unique contractor guidelines must be followed.
  • In addition to the investors, there are other interested parties, too – such as mortgage insurance companies and second lien mortgages holders.

Who Can Buy a HUD Home?

Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

What About Financing?

HUD does not give direct financing to buyers of HUD Homes. Buyers must get financing through either their own cash reserves or a mortgage lender. If you have the necessary available cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. While HUD does not give direct financing for the purchase of a HUD Home, it may be possible for you to qualify for an FHA-INSURED MORTGAGE to finance the purchase.

Time Frame For Getting A New Mortgage After A Short Sale

  • Mortgage program lending guidelines after a short sale depend on the lender. For loans that are federally backed, such as those from the Federal Housing Administration (FHA), you’ll have to wait at least two years from the short sale before you regain eligibility. That’s as long as you were current on your old home loan. If you weren’t, eligibility could take as long as three years. Private lenders, of course, are free to set their own time requirements. 

Of course I am NOT a mortgage professional. This information is based on my research. 

Own For Less Than $325 Per Month

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Any investors out there? Bank has directed me to cut substantially the price of this SHORT SALE LISTING. This is a HAFA pre-approved SHORT SALE. BANK will give final approval within 10 days of receiving agreement to buy property. Searching for a “ready and willing buyer” ASAP. I just update the listing price few minutes ago and you are among the first ones to be notified. If you are paying cash, make sure to have proof of funds. If you are financing, make sure to have a pre-approval letter, not pre-qualify letter. Pre-approval means only contingency is appraisal 🙂 IT IS ONLY $72,600. Click on mortgage calculator to see for yourself how little will it take to own this property. Current interest rates are hovering at 4%

Avoiding Foreclosure

ImageThe Obama Administration has implemented a number of programs to help homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to decide which program can best help you.

Distressed homeowners are encouraged to contact their lenders and loan servicers directly to ask about foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, click here for information about organizations that can help contact lenders and servicers on your behalf.

Making Home Affordable

The Making Home Affordable © (MHA) Program is a critical part of the Obama Administration’s broad strategy to help homeowners avoid foreclosure, stabilize the country’s housing market, and improve the nation’s economy.

Homeowners can lower their monthly mortgage payments and get into more stable loans at today’s low rates. And for those homeowners for whom homeownership is no longer affordable or desirable, the program can give a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth. Please read the following program summaries to find which program options may be best suited for your particular circumstances.

Modify or Refinance Your Loan for Lower Payments

  • Home Affordable Modification Program (HAMP): HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners cut their payments by $1,000 or more.Click Here for more information.
  • Principal Reduction Alternative (PRA): PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to cut the amount you owe on your home. Click Here for more information.
  • Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program. Click Here for more information.
  • Home Affordable Refinance Program (HARP): If you are current on your mortgage and have been unable to get a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. Click Here for more information.

“Underwater” Mortgages

In today’s housing market, many homeowners have experienced a decrease in their home’s value. Learn about these MHA programs to address this concern for homeowners.

  • Home Affordable Refinance Program (HARP)If you are current on your mortgage and have been unable to get a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. Click Here for more information.
  • Principal Reduction Alternative: PRA was designed to help homeowners whose homes are worth much less than they owe by encouraging servicers and investors to cut the amount you owe on your home. Click Here for more information.
  • Treasury/FHA Second Lien Program (FHA2LP): If you have a second mortgage and the mortgage servicer of your first mortgage agrees to take part in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to take part, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value. Click Here for more information.

Assistance for Unemployed Homeowners

  • Home Affordable Unemployment Program (UP): If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least twelve months while you seek re-employment. Click Here for more information.
  • Emergency Homeowners’ Loan Program (EHLP), Substantially Similar States: If you live inConnecticut, Delaware, Idaho, Maryland, or PennsylvaniaClick Here for more information about EHLP assistance provided in your state.
  • FHA Forbearance for Unemployed Homeowners: Federal Housing Administration (FHA) requirements now require servicers to extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA’s Special Forbearance Program announced in July 2011 require servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to 12 months and remove upfront hurdles to make it easier for unemployed borrowers to qualify. Click Here for more information.

Managed Exit for Borrowers

  • Home Affordable Foreclosure Alternatives (HAFA): If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA SM. Click Here for more information.
  • “Redemption”is a period after your home has already been sold at a foreclosure sale when you can still reclaim your home. You will need to pay the outstanding mortgage balance and all costs incurred during the foreclosure process. Click Here for more information.

FHA-Insured Mortgages

The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA offers a number of various loss mitigation programs and informational resources to assist FHA-insured homeowners and home equity conversion mortgage (HECM) borrowersfacing financial hardship or unemployment and whose mortgage is either in default or at risk of default.

  • Click Here to log onto the NSC Loss Mitigation Programs home page.
  • Click Here for answers to Frequently Asked Questions about FHA’s loss mitigation programs.

CONTACT FHA

FHA staff are available to help answer your questions and help you to better understand your options as an FHA borrower under these loss mitigation programs. There are several ways you can contact FHA for more information, including:

  • Call the NSC at (877) 622-8525
  • Call the FHA Outreach Center at 1-800-CALL FHA (800-225-5342)
  • Persons with hearing or speech impairments may access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339.
  • Email the FHA Resource Center
  • The Online FHA Resource Center