Sometimes I wonder how we got into this mess we are in as a country. I guess in some ways I understand it, and then sometimes I don’t. We are all guilty.
I think back to a few years ago, rather 2006 when this all happened. Why? Could it have been prevented? Yes, it could have been prevented, but we just tried to turn a blind eye to it. We think everything is okay, but it isn’t. We spend, and we don’t consider what could happen. We buy without really thinking about it. Worst of all, when we outspent ourselves, we decided to just keep on spending. A lot of us think that way.
Eating at home with our family is no longer an option; we are always just running around doing whatever we want. Why are we like this? We just have to have what we want, when we want it. There is no more anticipation, no more surprise, it’s just all for the moment.
Don’t think for a second that I have a day of complete rest in my mind. I have people come to me every day that don’t get approved. I also have people come to me that I can get approved, but it is never that simple. My mom always told me that, “If it sounds too good to be true, then it probably isn’t true.”
Today, I just want you to think about what happens; “sometimes”.
-Mayer Dallal
Friday, May 28, 2010
FHA Loan Limits
Someone asked me the other day what the limits were on FHA lending. FHA loan limits are actually specific to every state, and they are broken down by property. In addition, you can certainly seek out what that looks like in your county as well.
FHA loan limits in California, in Los Angeles County, are $729,750 for your primary residence. The FHA loan limits for a two family are $934,200. You get the idea; the higher the level of units the higher the loan amount, but its capped. The reason for the cap is because FHA isn’t the lender, but they do insure the loan for the lender if the borrower defaults. As you can see, that is a risk so naturally this is why they set forth their lending limits.
FHA loan limits are different in Riverside County; so be sure that you are looking for the county you want to live in. Riverside county limits are $500,000 for a one family, and $640,100 for a two family. So, the same thing here; with a larger building you have a larger loan limit. Not every county is the same, so make sure that you are looking at the correct information.
For more information on FHA loan limits, you can visit, www.fhaloansnow.net.
-Mayer Dallal
FHA loan limits in California, in Los Angeles County, are $729,750 for your primary residence. The FHA loan limits for a two family are $934,200. You get the idea; the higher the level of units the higher the loan amount, but its capped. The reason for the cap is because FHA isn’t the lender, but they do insure the loan for the lender if the borrower defaults. As you can see, that is a risk so naturally this is why they set forth their lending limits.
FHA loan limits are different in Riverside County; so be sure that you are looking for the county you want to live in. Riverside county limits are $500,000 for a one family, and $640,100 for a two family. So, the same thing here; with a larger building you have a larger loan limit. Not every county is the same, so make sure that you are looking at the correct information.
For more information on FHA loan limits, you can visit, www.fhaloansnow.net.
-Mayer Dallal
FHA Loan Calculator
With rates being at an all time low, it is amazing how low they really are. Every day, I have families coming to me that are looking to buy a home. There are some that qualify, and there are also a large number of people that don’t qualify.
FHA loan rates are at their best, and so it encourages you to start looking for a home. If you are searching for a home, look at your income and the level of obligations you have. Just because the rates are low, that doesn’t mean that you will pre-approved to buy a home. FHA rates don’t make you qualify, because there are many other determining factors.
It used to be that your credit was the standard for most lenders on what rate you would qualify for. Borrowers were having to look at how they fit “into the box”, and how high their scores were, or how low they were. With FHA rates, that is not the case. FHA utilizes common sense underwriting, so that you don’t have to sit and think about it. If you don’t qualify for a loan, then I will tell you why.
FHA rates are at an all time low, so to get more information on the programs and rates, be sure to visit. www.fhaloansnow.net.
-Mayer Dallal
FHA loan rates are at their best, and so it encourages you to start looking for a home. If you are searching for a home, look at your income and the level of obligations you have. Just because the rates are low, that doesn’t mean that you will pre-approved to buy a home. FHA rates don’t make you qualify, because there are many other determining factors.
It used to be that your credit was the standard for most lenders on what rate you would qualify for. Borrowers were having to look at how they fit “into the box”, and how high their scores were, or how low they were. With FHA rates, that is not the case. FHA utilizes common sense underwriting, so that you don’t have to sit and think about it. If you don’t qualify for a loan, then I will tell you why.
FHA rates are at an all time low, so to get more information on the programs and rates, be sure to visit. www.fhaloansnow.net.
-Mayer Dallal
FHA Rates
With rates being at an all time low, it is amazing how low they really are. Every day, I have families coming to me that are looking to buy a home. There are some that qualify, and there are also a large number of people that don’t qualify.
FHA loan rates are at their best, and so it encourages you to start looking for a home. If you are searching for a home, look at your income and the level of obligations you have. Just because the rates are low, that doesn’t mean that you will pre-approved to buy a home. FHA rates don’t make you qualify, because there are many other determining factors.
It used to be that your credit was the standard for most lenders on what rate you would qualify for. Borrowers were having to look at how they fit “into the box”, and how high their scores were, or how low they were. With FHA rates, that is not the case. FHA utilizes common sense underwriting, so that you don’t have to sit and think about it. If you don’t qualify for a loan, then I will tell you why.
FHA rates are at an all time low, so to get more information on the programs and rates, be sure to visit. www.fhaloansnow.net.
-Mayer Dallal
FHA loan rates are at their best, and so it encourages you to start looking for a home. If you are searching for a home, look at your income and the level of obligations you have. Just because the rates are low, that doesn’t mean that you will pre-approved to buy a home. FHA rates don’t make you qualify, because there are many other determining factors.
It used to be that your credit was the standard for most lenders on what rate you would qualify for. Borrowers were having to look at how they fit “into the box”, and how high their scores were, or how low they were. With FHA rates, that is not the case. FHA utilizes common sense underwriting, so that you don’t have to sit and think about it. If you don’t qualify for a loan, then I will tell you why.
FHA rates are at an all time low, so to get more information on the programs and rates, be sure to visit. www.fhaloansnow.net.
-Mayer Dallal
Thursday, May 27, 2010
FHA Approved Condos
Buying an FHA approved condo means one important thing; it has to be on the list. Before you get too far into the process, make sure that the condos you are looking at are FHA approved condos. They have to be on the list, and if they are not, they would have to be reviewed and approved by the lender. What this means for you is a lengthy process so depending on how quickly you need or want to move this could be a pain.
Last year, if a condo wasn’t FHA approved, then it could have a spot check, but that is no longer the case. Your realtor should know what you’re looking for, so just make sure that you give them this information up front. That way, they can pull the correct listings on what you are looking for.
Buying an FHA approved condo doesn’t have to be hard, but they do have requirements. In addition to making sure it’s on the list, there have to be at least two or more units. You won’t find a standalone condo that is FHA approved.
Be sure that the condo isn’t in a develop that is partially commercial, as FHA requires that there be no more than 25% units being used for commercial purposes. Also, no more than 10% of the condos can be owned by the same investor. As you can imagine having that much ownership in most condo developments would make for a large portfolio.
There are many more requirements you’ll need to know about before shopping for an FHA approved condo. For more information, you can visit www.fhaloansnow.net. This is a great resource for all of your FHA needs.
-Mayer Dallal
Last year, if a condo wasn’t FHA approved, then it could have a spot check, but that is no longer the case. Your realtor should know what you’re looking for, so just make sure that you give them this information up front. That way, they can pull the correct listings on what you are looking for.
Buying an FHA approved condo doesn’t have to be hard, but they do have requirements. In addition to making sure it’s on the list, there have to be at least two or more units. You won’t find a standalone condo that is FHA approved.
Be sure that the condo isn’t in a develop that is partially commercial, as FHA requires that there be no more than 25% units being used for commercial purposes. Also, no more than 10% of the condos can be owned by the same investor. As you can imagine having that much ownership in most condo developments would make for a large portfolio.
There are many more requirements you’ll need to know about before shopping for an FHA approved condo. For more information, you can visit www.fhaloansnow.net. This is a great resource for all of your FHA needs.
-Mayer Dallal
FHA Requirements
FHA is a great loan for anyone, whether they are buying or refinancing. FHA does have requirements though, and I actually wrote about those today in my article.
It’s just simple stuff, and it’s easy to understand. The great thing about buying with an FHA loan is they only require 3.5% down! A conventional loan is going to require a down payment of anywhere from 5% to 30%, and not a lot of families have that kind of money just lying around.
The other great thing about the FHA requirements is they don’t expect you to be perfect. While they don’t want to see a current bankruptcy or large amounts of delinquent debt, they are more lenient on old derogatory credit. So, don’t let another slow pay sneak up on you if you have had them in the past. Just be sure that you have made notes on why you had them, and we can move on.
FHA requirements aren’t hard, but it’s just commonsense. This is what makes doing an FHA loan so great. I do them every day, and I get to help families do things that otherwise they couldn’t do because they weren’t working with the right professional.
Knowing FHA requirements means that you need someone who knows the industry thoroughly, and pays attention to the details. You don’t want to commit to thousands of dollars and have everything mishandled. This is your money, your life and your family.
FHA requirements take a professional like me to help you. This is important. For more information, visit my website at www.fhaloansnow.net, or email me at mdallal@fhaloansnow.net.
-Mayer Dallal
It’s just simple stuff, and it’s easy to understand. The great thing about buying with an FHA loan is they only require 3.5% down! A conventional loan is going to require a down payment of anywhere from 5% to 30%, and not a lot of families have that kind of money just lying around.
The other great thing about the FHA requirements is they don’t expect you to be perfect. While they don’t want to see a current bankruptcy or large amounts of delinquent debt, they are more lenient on old derogatory credit. So, don’t let another slow pay sneak up on you if you have had them in the past. Just be sure that you have made notes on why you had them, and we can move on.
FHA requirements aren’t hard, but it’s just commonsense. This is what makes doing an FHA loan so great. I do them every day, and I get to help families do things that otherwise they couldn’t do because they weren’t working with the right professional.
Knowing FHA requirements means that you need someone who knows the industry thoroughly, and pays attention to the details. You don’t want to commit to thousands of dollars and have everything mishandled. This is your money, your life and your family.
FHA requirements take a professional like me to help you. This is important. For more information, visit my website at www.fhaloansnow.net, or email me at mdallal@fhaloansnow.net.
-Mayer Dallal
Wednesday, May 26, 2010
FHA is All the Rage!
FHA is talked about so much that people aren’t sure what to believe. We hear about great low rates, easy processes and it’s all hard to believe because of where we are today. So, what does this all mean? Do consumers even care?
Being comfortable with the process has a lot to do with what choices we make. If you aren’t comfortable with the process, then don’t make a move. However, it is your responsibility to become informed before choosing FHA, or any loan for that matter. Without information, what do we have? Knowledge is power, and without that, we are lost.
Becoming educated is half the battle. Once you have the information on FHA, you can make a decision. Once you make a decision you need to act on it. Knowing what FHA does is helpful, because you don’t want to be misled. FHA is the Federal Housing Administration, and they insure loans for private lenders. This may include some banks, and some credit unions, but make sure before you get into the process.
FHA does not loan money, but they insure the loan; so, they guarantee the lender that if you default on the loan that they will pick it up. This all sounds so great, but so many people didn’t get this loan because they didn’t know anything about it. Everyone runs around screaming conventional, and they don’t know what it means.
Check out my website, www.fhaloansnow.net for more information, or email me directly at mdallal@fhaloansnow.net.
-Mayer Dallal
Being comfortable with the process has a lot to do with what choices we make. If you aren’t comfortable with the process, then don’t make a move. However, it is your responsibility to become informed before choosing FHA, or any loan for that matter. Without information, what do we have? Knowledge is power, and without that, we are lost.
Becoming educated is half the battle. Once you have the information on FHA, you can make a decision. Once you make a decision you need to act on it. Knowing what FHA does is helpful, because you don’t want to be misled. FHA is the Federal Housing Administration, and they insure loans for private lenders. This may include some banks, and some credit unions, but make sure before you get into the process.
FHA does not loan money, but they insure the loan; so, they guarantee the lender that if you default on the loan that they will pick it up. This all sounds so great, but so many people didn’t get this loan because they didn’t know anything about it. Everyone runs around screaming conventional, and they don’t know what it means.
Check out my website, www.fhaloansnow.net for more information, or email me directly at mdallal@fhaloansnow.net.
-Mayer Dallal
Tuesday, May 25, 2010
The Beginning of an FHA Home Purchase
When shopping for a home, make sure that you get your FHA prequalification before hiring a real estate agent. The real estate agent needs to know that you are equipped to buy the home, before they spend time doing the shopping on your behalf. They too spend a lot of time to help you find your new home. Using a real estate agent that is familiar with the FHA guidelines and qualifications will save you a lot of time and money in the process of buying your new home.
Once you find a home that you like, you will submit an offer through your real estate agent. If the seller counters your offer, you will want to try and negotiate until you can all come to an agreement. Once the seller accepts the offer it will become a legally binding contract. You will need to make sure that everyone is aware of any contingencies in the contract, and that any seller concessions have been accounted for.
Make sure that any offer is contigent upon getting a home inspection. Your home inspection will give you more information on the details of this property. For example, if the heating system is 25 years old, that is something you will want to know. That way if any changes need to be made to the contract they can be, as well as any repairs that you would like to have done.
-Mayer Dallal
Once you find a home that you like, you will submit an offer through your real estate agent. If the seller counters your offer, you will want to try and negotiate until you can all come to an agreement. Once the seller accepts the offer it will become a legally binding contract. You will need to make sure that everyone is aware of any contingencies in the contract, and that any seller concessions have been accounted for.
Make sure that any offer is contigent upon getting a home inspection. Your home inspection will give you more information on the details of this property. For example, if the heating system is 25 years old, that is something you will want to know. That way if any changes need to be made to the contract they can be, as well as any repairs that you would like to have done.
-Mayer Dallal
FHA vs. Conventional
FHA is now on the rise with more families looking into buying a home. With the housing market holding at low prices and a homebuyer tax credit, it is incentive for families to want to jump into the homeownership pool. There are some differences between FHA and other conventional programs with lenders.
FHA purchases are the most common FHA loans, and their credit restrictions are a little less stringent. What does this mean to you? In reality, it means that while FHA is not a license to go out and ruin your credit rating, it does overlook some collections and past derogatory credit. However, it does look very closely at your rent history over the past 12 to 18 months, as well as your installment debt, such as your car loan. Conventional loans are very stringent, considering your history on all credit over the past two years.
The other main difference is that FHA only requires that you have at least 3.5% down, while many conventional loans require 20% down. These are the two main differences between FHA and conventional loans. Look to the experts in FHA loans, by visiting, www.fhaloansnow.net.
-Mayer Dallal
FHA purchases are the most common FHA loans, and their credit restrictions are a little less stringent. What does this mean to you? In reality, it means that while FHA is not a license to go out and ruin your credit rating, it does overlook some collections and past derogatory credit. However, it does look very closely at your rent history over the past 12 to 18 months, as well as your installment debt, such as your car loan. Conventional loans are very stringent, considering your history on all credit over the past two years.
The other main difference is that FHA only requires that you have at least 3.5% down, while many conventional loans require 20% down. These are the two main differences between FHA and conventional loans. Look to the experts in FHA loans, by visiting, www.fhaloansnow.net.
-Mayer Dallal
Mortgage Modification Scams
You are probably now familiar with Mortgage Modification programs. These are designed to assist homeowners modify their loans when they are unable to meet their mortgage payments, the lender can meet with them in order to assist them in modifying the mortgage loan, whether to either reduce the principal balance or interest rate. But, when you are approached by someone who promises to help and asks for money up front, you should really run as fast as you can.
Keep in mind that only a few select people are going to be able to qualify for this plan, and the reason for this is because you need to be able to come very close to a payment that is not too far off from what you are paying now. Modifying your mortage payment can only be done by the lender, but finding a professional to help you negotiate this modification isn't easy. So, beware of foreclosure rescue operations out there and what they offer.
I am a Certified Distressed Property Expert that can help. For more information on this process, please visit my website: http://www.inlandempireshortsaleresource.com/.
-Mayer Dallal
Keep in mind that only a few select people are going to be able to qualify for this plan, and the reason for this is because you need to be able to come very close to a payment that is not too far off from what you are paying now. Modifying your mortage payment can only be done by the lender, but finding a professional to help you negotiate this modification isn't easy. So, beware of foreclosure rescue operations out there and what they offer.
I am a Certified Distressed Property Expert that can help. For more information on this process, please visit my website: http://www.inlandempireshortsaleresource.com/.
-Mayer Dallal
What's Up With Short Sale Fraud?
It's simply criminal that second lien holders are asking for money outside of the closing in order to make up for some of the money they aren't getting. Second lien holders usually get a specified amount that is negotiated out of the proceeds with the first mortgage holder. However, the second lien holder is always last on the list to get the benefits of anything.
However, it doesn't mean that they should prompt actions that are illegal. RESPA says it's illegal and so do I. I know how hard I work for my clients, and this just outrages me to no end. The only thing we can do is work towards a better process and hold people accountable. I know I do!
-Mayer Dallal
However, it doesn't mean that they should prompt actions that are illegal. RESPA says it's illegal and so do I. I know how hard I work for my clients, and this just outrages me to no end. The only thing we can do is work towards a better process and hold people accountable. I know I do!
-Mayer Dallal
Monday, May 24, 2010
Is There Mortgage Modification Fraud?
Families across America are catching onto the mortgage modification programs that are available today, but with information overload it’s hard to know who to trust.
Last year, one in six families defaulted on their home loans and felt they had nowhere to turn. The truth is that there are options available today so that families don’t have to worry anymore. There are some things to look for when trying to find an expert that can walk you through the whole process.
The biggest concern that I have is that the consumer needs to know the truth. While everyone can seek out these options, the truth is that there are only a small percentage of people that qualify for a mortgage modification. The challenge when doing a modification is the debt to income ratio target, which is at 31%. While this would be ideal for everyone, the bank may not to be able to get every home owner qualified under those guidelines. So, keep your eyes open for predatory schemes and people that are enticing you to believe that there are no guidelines and they can help you.
Foreclosure operations are popping up across the country and make promises they can’t deliver on. Don’t believe that someone can save you from your troubles; there is a process for everything. If it sounds too good to be true than it probably isn’t true!
Call me for more details, or visit my website at www.inlandempireshortsaleresource.com, or call me directly at (310) 498-2700.
Last year, one in six families defaulted on their home loans and felt they had nowhere to turn. The truth is that there are options available today so that families don’t have to worry anymore. There are some things to look for when trying to find an expert that can walk you through the whole process.
The biggest concern that I have is that the consumer needs to know the truth. While everyone can seek out these options, the truth is that there are only a small percentage of people that qualify for a mortgage modification. The challenge when doing a modification is the debt to income ratio target, which is at 31%. While this would be ideal for everyone, the bank may not to be able to get every home owner qualified under those guidelines. So, keep your eyes open for predatory schemes and people that are enticing you to believe that there are no guidelines and they can help you.
Foreclosure operations are popping up across the country and make promises they can’t deliver on. Don’t believe that someone can save you from your troubles; there is a process for everything. If it sounds too good to be true than it probably isn’t true!
Call me for more details, or visit my website at www.inlandempireshortsaleresource.com, or call me directly at (310) 498-2700.
There is Life After a Short Sale !
There is life after a short sale, don’t think that your financial future is over once you negotiate a short sale.
A short sale is much different from a foreclosure, in that it is a negotiation with the lender to let the home sell for less than is owed on the home. The short sale prevents you from having a foreclosure on your credit, and it will also allow you to credit qualify for another loan within a few years time. Foreclosure will affect your credit rating for three years, but it will remain on your credit report for ten years. When doing a short sale, your credit will show that your mortgage loan is paid as agreed, or settled, but this will probably drop your score no more than 50 points, and the slow pay will drop off your report within 12 to 18 months.
With all of the media hype on short sales, it’s really tough to know what is right and what is wrong. You need an expert and the tools and resources to get this right. Foreclosure can be devastating so don’t let it happen to you. There are options, so we can discover what those are together. Call me at (310) 498-2700, or you can email me today at mdallal@fhaloansnow.net.
A short sale is much different from a foreclosure, in that it is a negotiation with the lender to let the home sell for less than is owed on the home. The short sale prevents you from having a foreclosure on your credit, and it will also allow you to credit qualify for another loan within a few years time. Foreclosure will affect your credit rating for three years, but it will remain on your credit report for ten years. When doing a short sale, your credit will show that your mortgage loan is paid as agreed, or settled, but this will probably drop your score no more than 50 points, and the slow pay will drop off your report within 12 to 18 months.
With all of the media hype on short sales, it’s really tough to know what is right and what is wrong. You need an expert and the tools and resources to get this right. Foreclosure can be devastating so don’t let it happen to you. There are options, so we can discover what those are together. Call me at (310) 498-2700, or you can email me today at mdallal@fhaloansnow.net.
What is a Strategic Default?
With all of the discouragement and financial hardship, it’s really easy to just throw in the towel. Walking away from your home isn’t the answer.
I have seen families walk away from their home thinking that would be so much easier, but it really just makes things worse. Walking from your home and moving out to let it sit will put you in a position of devastation and heart break. By planning what is called a “strategic default”, you could ruin your credit for years, and eliminate the possibility of homeownership.
A strategic default will have the same affect on you that a foreclosure will, but it happens a little bit differently. The strategic default is when someone is planning to just walk away and they allow this to happen. They knowingly move out and let everything go.
A foreclosure happens when someone has been struck by hardship whether it’s a job loss, high medical expenses, or even a divorce. No matter what has happened to you there are options.
For more information go to www.inlandempireshortsaleresource.com, or call me at (310) 498-2700.
I have seen families walk away from their home thinking that would be so much easier, but it really just makes things worse. Walking from your home and moving out to let it sit will put you in a position of devastation and heart break. By planning what is called a “strategic default”, you could ruin your credit for years, and eliminate the possibility of homeownership.
A strategic default will have the same affect on you that a foreclosure will, but it happens a little bit differently. The strategic default is when someone is planning to just walk away and they allow this to happen. They knowingly move out and let everything go.
A foreclosure happens when someone has been struck by hardship whether it’s a job loss, high medical expenses, or even a divorce. No matter what has happened to you there are options.
For more information go to www.inlandempireshortsaleresource.com, or call me at (310) 498-2700.
Friday, May 21, 2010
What is a Forbearance or Repayment Plan?
Getting a forbearance is a form of a repayment plan that a borrower can negotiate with the lender to allow them to pay back the loan over periods of time. The way the lender sets this up is to pay back parts of the arrears in addition to the current monthly payment.
The only benefit to this option is that it does allow the homeowner to make payments over time, however is it even possible? This is again a dilemma as many who would have the extra money simply would have already started paying the loan according to the original terms and agreements. Trying to play catch up on a large payment like this is not easy by any means. I guess what I am saying is this; if the homeowner is struggling to make the current payments, then how would they be able to pay anything additional? This seems like a catch 22 for the homeowner. Some lenders may require a new qualification process to get them into a forbearance. This is no easy task and be very frustrating for the homeowner.
For more information on your forbearance options, you can check with your current lender to see what they can offer you. Every lender will have different options.
The only benefit to this option is that it does allow the homeowner to make payments over time, however is it even possible? This is again a dilemma as many who would have the extra money simply would have already started paying the loan according to the original terms and agreements. Trying to play catch up on a large payment like this is not easy by any means. I guess what I am saying is this; if the homeowner is struggling to make the current payments, then how would they be able to pay anything additional? This seems like a catch 22 for the homeowner. Some lenders may require a new qualification process to get them into a forbearance. This is no easy task and be very frustrating for the homeowner.
For more information on your forbearance options, you can check with your current lender to see what they can offer you. Every lender will have different options.
Is a Reinstatement a Possibility?
Is Reinstatement a Possibility?
Foreclosure doesn’t have to happen to you and there are options available at your fingertips. Los Angeles area residents have some options that they can use, but many families don’t even know that they are available to them.
There is an option called a reinstatement. A reinstatement takes place when the homeowner asks what the total amount is due as of this date. Then, they pay the money to the lender in full. They don’t pay the full loan amount off, just what they owe up until this point. The reinstatement is the toughest way to go because many families don’t have that type of money sitting around. In my onion if they did they wouldn’t be facing the foreclosure. When people have money available trends show that they will access the money when they can see it coming. This could be anything from a savings account, to a 401 K. Many families have opted to cash out their 401k in hopes that it would save them from a dire situation.
The biggest challenge with doing a reinstatement is that the lender doesn’t have to approve it. They lender can say no way, and the timeframe to get all the money together could be tiring. Time spent signing off on papers and mailing them in is tedious, and this is why anyone who would have opted for this probably would have cashed out their funds months previous to this. Getting the funds released from your 401k may also bring about a tax liability, so sure to talk to a financial advisor or someone you trust before taking this step.
Foreclosure doesn’t have to happen to you and there are options available at your fingertips. Los Angeles area residents have some options that they can use, but many families don’t even know that they are available to them.
There is an option called a reinstatement. A reinstatement takes place when the homeowner asks what the total amount is due as of this date. Then, they pay the money to the lender in full. They don’t pay the full loan amount off, just what they owe up until this point. The reinstatement is the toughest way to go because many families don’t have that type of money sitting around. In my onion if they did they wouldn’t be facing the foreclosure. When people have money available trends show that they will access the money when they can see it coming. This could be anything from a savings account, to a 401 K. Many families have opted to cash out their 401k in hopes that it would save them from a dire situation.
The biggest challenge with doing a reinstatement is that the lender doesn’t have to approve it. They lender can say no way, and the timeframe to get all the money together could be tiring. Time spent signing off on papers and mailing them in is tedious, and this is why anyone who would have opted for this probably would have cashed out their funds months previous to this. Getting the funds released from your 401k may also bring about a tax liability, so sure to talk to a financial advisor or someone you trust before taking this step.
Mortgage Rates a Year Ago
A year ago on this very day, May 21, 2009 mortgage rates jumped. Isn’t it amazing that we are in such a different place than we were then? We have watched the rates go up and down and up and down with no clear picture as to how this thing was going to end up, and we still don’t really know what is going to happen.
The market has changed and times of change, it’s just a matter of figuring out how we are going to weather those storms. One day is better than the next, so how do we manage? We can’t just give up, we need to tap into resources that have been here for us all along, but that we just haven’t used. We need to make better choices with the understanding that it affects our family and our friends. It certainly affects our children the most, but we don’t think of it that way.
The market may continue to change, and your personal circumstances may change, but the one thing that remains the same is the decision that is left up to us. We can either forge ahead and look at our options and be responsible, or we can choose to not try and just bury our head in the sand and pretend that things will get better without our imitative. Forging ahead is the only option for me.
The market has changed and times of change, it’s just a matter of figuring out how we are going to weather those storms. One day is better than the next, so how do we manage? We can’t just give up, we need to tap into resources that have been here for us all along, but that we just haven’t used. We need to make better choices with the understanding that it affects our family and our friends. It certainly affects our children the most, but we don’t think of it that way.
The market may continue to change, and your personal circumstances may change, but the one thing that remains the same is the decision that is left up to us. We can either forge ahead and look at our options and be responsible, or we can choose to not try and just bury our head in the sand and pretend that things will get better without our imitative. Forging ahead is the only option for me.
Thursday, May 20, 2010
Rent Credits Toward Your New Home Purchase
Rent to own is a popular option these days, and they do work out well for some who are looking to buy a home in the future, but how does this work?
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
The rent credit is established when a renter takes on a lease agreement stating that a portion of this payment will go towards the down payment of the property. The lease agreement must clearly state and account for this being the case. There must be a clause within that agreement that states how much of the down payment will go toward the purchase of this home. In this case, it is the lender’s responsibility to show that the estimate is above FHA’s required fair market rent. If the amount is not above, then the amount will be deducted from the sale price of the home as seller concessions.
When buying a home, you will have your down payment to consider as well as your closing costs. To aid in limiting the amount of money that the seller needs to bring to closing, the realtor and seller can agree to pay all or most of the costs. Before finalizing anything, make sure that you understand what is required of you in terms of money, because you need to be financially prepared.
Get an FHA Approved Condo
If you are looking to buy a condo FHA you can, but there are some specific requirements that FHA has regarding condos. Typically in the past, it was not recommended to buy a condo because they were hard to resell. Families would opt for a house before a condo.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
There are a few guidelines with FHA when it comes to buying a condominium:
1) The condominium project must be complete. FHA will not lend on a development. At the time of the loan, there cannot be any ongoing additions to the condo.
2) The control of the common areas, such as walkways and spaces in between condos are considered common areas. Another area considered common area is any yard space or parking.
3) The condo association must have the proper coverage for flood and hazard insurance.
4) Individual units must be held in fee simple. This means that the units are free to be opened up for home ownership.
5) There can be no legal restrictions on conveyance of any titles.
6) At least 90% of the units must be sold.
7) At least 51% of the units must be owner occupied.
8) No individual can own more than 10% of the units in the development.
There are many more small things to look for when buying a condo through an FHA loan. For more information please visit my website, www.fhaloansnow.net, or call me at (310) 498-2700.
An FHA Checklist for You
When applying for an FHA loan, here are a few things you will need to bring with you to your appointment.
1) Make sure we have your residential address for the past two years.
2) We need your social security number in order to pull your credit report.
3) Names and addresses of your employers over the past two years as well.
4) We will need to know your gross monthly salary at your current job. If you work more than one job we will need that information too, so we can include that in your income.
5) We will need all pertinent information to your checking and savings accounts.
6) We need any pertinent information for any loan you are currently paying on; that includes any installment loans, mortgage loans, and credit cards.
7) All information pertaining to other real estate you might own; this would include rental property, commercial property etc.
8) An approximate of all personal property is helpful, because if you own anything of value, the lender will consider that as security for your loan.
9) If you are a veteran, we will need your certificate of eligibility. This form is also known as a DD-214.
10) Your two most recent paystubs and w2’s for the past two years. We need to make sure that we are looking at the correct year-to-date income for you.
11) Personal tax returns over the past two years are required if you are self-employed, and a business balance sheet is helpful.
This is the documentation that is necessary to help get your loan started. Over the process we may need more documentation as everyone’s needs are different.
1) Make sure we have your residential address for the past two years.
2) We need your social security number in order to pull your credit report.
3) Names and addresses of your employers over the past two years as well.
4) We will need to know your gross monthly salary at your current job. If you work more than one job we will need that information too, so we can include that in your income.
5) We will need all pertinent information to your checking and savings accounts.
6) We need any pertinent information for any loan you are currently paying on; that includes any installment loans, mortgage loans, and credit cards.
7) All information pertaining to other real estate you might own; this would include rental property, commercial property etc.
8) An approximate of all personal property is helpful, because if you own anything of value, the lender will consider that as security for your loan.
9) If you are a veteran, we will need your certificate of eligibility. This form is also known as a DD-214.
10) Your two most recent paystubs and w2’s for the past two years. We need to make sure that we are looking at the correct year-to-date income for you.
11) Personal tax returns over the past two years are required if you are self-employed, and a business balance sheet is helpful.
This is the documentation that is necessary to help get your loan started. Over the process we may need more documentation as everyone’s needs are different.
FHA Refinance buzz
FHA refinance and purchase is the way to go for any borrower. For many years it was misunderstood that FHA was for people that were bad credit, or had middle of the road credit but that just isn’t the case. FHA takes some time and patience, and I am here to help, but there are a few things you should know.
FHA refinance loans can either be done in what is called a streamline or a cash -out loan. The streamline FHA loan allows you to refinance just the loan, while the cash out loan is an option if you want to take up to 85% of the home’s value to do so. The refinance option will allow you to take up to 97.75%. These limits are just simply a guideline to prevent another economic crisis like what we are having now. These limits also will prevent you from going into a payment that is much larger than what you have right now.
Any loan that is not currently an FHA loan can certainly be refinanced to an FHA loan. In order to determine what your debt load is, they will look at what you owe on the home and your existing debts outside of that.
Consider that when your pay off from your current home loan comes in, it may include any unpaid interest calculated through the end of the month, and will include any late fees that were tacked onto your loan from the past. Escrow shortages can also account for this final payoff, so be prepared to consider how you want to refinance your loan before you start the process. If you aren’t sure what to do I can help. For more information, you can go to www.fhaloansnow.net. There is a lot of information and a place for you to fill out information to get a quote today.
FHA refinance loans can either be done in what is called a streamline or a cash -out loan. The streamline FHA loan allows you to refinance just the loan, while the cash out loan is an option if you want to take up to 85% of the home’s value to do so. The refinance option will allow you to take up to 97.75%. These limits are just simply a guideline to prevent another economic crisis like what we are having now. These limits also will prevent you from going into a payment that is much larger than what you have right now.
Any loan that is not currently an FHA loan can certainly be refinanced to an FHA loan. In order to determine what your debt load is, they will look at what you owe on the home and your existing debts outside of that.
Consider that when your pay off from your current home loan comes in, it may include any unpaid interest calculated through the end of the month, and will include any late fees that were tacked onto your loan from the past. Escrow shortages can also account for this final payoff, so be prepared to consider how you want to refinance your loan before you start the process. If you aren’t sure what to do I can help. For more information, you can go to www.fhaloansnow.net. There is a lot of information and a place for you to fill out information to get a quote today.
FHA Cash Out Rules
There are a few simple rules when talking about an FHA cash out loan, so be sure to become familiar with the guidelines. While I am here to help, it doesn’t hurt for you at have the information at your fingertips, and I make it available to you on my website.
FHA cash out loans are ideal for those who have some equity in their home, so not everyone will be able to get this. You will need to have been in your home for at least a year prior to the new loan application. If you haven’t been in the home for at least 12 months, then the new loan will be capped at 85% LTV. What this means, is that you cannot take a loan for more than 85% of the value of your home. In this case though, FHA will normally take the lower appraisal value, so keep that in mind.
One other important factor of the FHA cash out loan is that they will want to see a positive payment history on your record. They want to see payments no more than 30 days late, but naturally they really don’t want to see any late payments at all.
FHA Cash out loans are great for any borrower to choose, but they put guidelines in place to ensure that we don’t end up with another economic crisis.
FHA cash out loans are ideal for those who have some equity in their home, so not everyone will be able to get this. You will need to have been in your home for at least a year prior to the new loan application. If you haven’t been in the home for at least 12 months, then the new loan will be capped at 85% LTV. What this means, is that you cannot take a loan for more than 85% of the value of your home. In this case though, FHA will normally take the lower appraisal value, so keep that in mind.
One other important factor of the FHA cash out loan is that they will want to see a positive payment history on your record. They want to see payments no more than 30 days late, but naturally they really don’t want to see any late payments at all.
FHA Cash out loans are great for any borrower to choose, but they put guidelines in place to ensure that we don’t end up with another economic crisis.
Market Watch on Rates
When the market watch rolled out this morning, they were speaking of another volatile day in the market. Lenders ended up having to continue extending low rates due to the market conditions. This is not great for them, but good for buyers. Right now, rates are probably the most aggressive we have seen in a very long time.
Just the day before the lender s felt that they would be able to raise rates in confidence that the market would open up high, but even with all the momentum it received it fell just as fast. Is this crazy or what? They keep trying to predict the week ahead, but don’t really know as to whether or not they can whip out that crystal ball to see if they can tell us what is next?
Just the day before the lender s felt that they would be able to raise rates in confidence that the market would open up high, but even with all the momentum it received it fell just as fast. Is this crazy or what? They keep trying to predict the week ahead, but don’t really know as to whether or not they can whip out that crystal ball to see if they can tell us what is next?
Wednesday, May 19, 2010
What is the Alternative to a Foreclosure?
With so many foreclosures happening across the country, the government needed to come up with a solution to help homeowners. There is now hope with HAFA. HAFA is, Home Affordable Foreclosure Alternatives Program. This program is designed to help eligible homeowners by pre-approving short sales before listing and releasing them from future liability of their mortgage debt.
The HAFA program was finalized and made public on April 5th, 2010. The only mortgages that qualify are any first lien mortgages that are not backed by Freddie Mac or Fannie Mae. They may or may not come up with an initiative of their own, but that is not yet determined.
The HAFA program also bases modifications of home loans up on the financial information they receive about the homeowner. There is a waterfall process that they use to be sure that they reach the debt to income target ratio of 31%. These steps go in the following order: 1) Capital Arrears, 2) Reduce Interest Rate, 3) Extend Loan Term, 4) Forbear Principal.
Capital Arrears means that they are looking at the accrued interest and other eligible expenses used to modify the loan amount. The second step is taken because they are looking to reduce that interest rate to reach the debt to income ratio target of 31%, and that includes your mortgage payment. The third step is Extend Loan Term. This step is taken when they cannot reduce the rate enough to reach the target of 31% for the debt to income ratio. Once they know that they can’t reach the target, they will then extend your loan term to a 40 year loan. Lastly, the Forbear Principal means that the borrower can try to work out an agreement with the servicer. This is done by reducing the principal amount owed on the loan, but then it would be due later as a balloon payment.
The HAFA program was finalized and made public on April 5th, 2010. The only mortgages that qualify are any first lien mortgages that are not backed by Freddie Mac or Fannie Mae. They may or may not come up with an initiative of their own, but that is not yet determined.
The HAFA program also bases modifications of home loans up on the financial information they receive about the homeowner. There is a waterfall process that they use to be sure that they reach the debt to income target ratio of 31%. These steps go in the following order: 1) Capital Arrears, 2) Reduce Interest Rate, 3) Extend Loan Term, 4) Forbear Principal.
Capital Arrears means that they are looking at the accrued interest and other eligible expenses used to modify the loan amount. The second step is taken because they are looking to reduce that interest rate to reach the debt to income ratio target of 31%, and that includes your mortgage payment. The third step is Extend Loan Term. This step is taken when they cannot reduce the rate enough to reach the target of 31% for the debt to income ratio. Once they know that they can’t reach the target, they will then extend your loan term to a 40 year loan. Lastly, the Forbear Principal means that the borrower can try to work out an agreement with the servicer. This is done by reducing the principal amount owed on the loan, but then it would be due later as a balloon payment.
Freddie Mac Rates Drop More Than Expected
Rates dropped below 5% for the first time since March. Freddie Mac reports that the rates dipped to 4.93% which was 30 basis points the week ending May 13th. Adjustable rates ended up reporting even lower, and dropped all the way down to 3.95%. So, what does this mean?
It means that refinancing might take off, but as far as home purchase many sellers are still struggling to get out of their homes. This leaves many families considering listing their home as a short sale. A short sale is when the seller ends up selling the house for less than the homeowner owes on the home. This gives them an opportunity to get out of the home, while avoiding a foreclosure on their credit. This doesn’t feel good, but getting out from under an obligation that you can’t pay does a lot for the stressed out homeowner.
There are options out there, but it is a matter of finding the right professional to educate you on those options. I am a professional, and I can help you through every step of the home buying process, and I can help you get your home listed for short sale. I have the tools and the resources to help you get into a better position.
If you are in a good position to buy, I can help you with that as well. What I offer is a relationship, not a sale. When you don’t know where to go or who to trust, call me and I will show you the ropes. Buying a home doesn’t have to be a headache, and listing your home shouldn’t give you one either. I look forward to speaking with you today. Call me today at 310-498-2700.
It means that refinancing might take off, but as far as home purchase many sellers are still struggling to get out of their homes. This leaves many families considering listing their home as a short sale. A short sale is when the seller ends up selling the house for less than the homeowner owes on the home. This gives them an opportunity to get out of the home, while avoiding a foreclosure on their credit. This doesn’t feel good, but getting out from under an obligation that you can’t pay does a lot for the stressed out homeowner.
There are options out there, but it is a matter of finding the right professional to educate you on those options. I am a professional, and I can help you through every step of the home buying process, and I can help you get your home listed for short sale. I have the tools and the resources to help you get into a better position.
If you are in a good position to buy, I can help you with that as well. What I offer is a relationship, not a sale. When you don’t know where to go or who to trust, call me and I will show you the ropes. Buying a home doesn’t have to be a headache, and listing your home shouldn’t give you one either. I look forward to speaking with you today. Call me today at 310-498-2700.
Subscribe to:
Posts (Atom)
