FHA Down Payment Gets Adjusted
In January, FHA made adjustments to the down payment requirements. This change in the FHA down payment requirements threw some borrowers for a loop, while others weren’t greatly affected by it. Let me explain.
The FHA down payment guidelines, allows home buyers to put as little as 3.5% down, and up to 3% in seller concessions. Prior to the changes the seller was able to contribute up to 6% in seller concessions, so for those who were planning to buy and hadn’t started the process yet, had to back off until they could come up with more money.
Fore more information, you can visit my website at http://www.fhaloansnow.net/. There you can find information on purchasing and refinancing too.
-Mayer Dallal
Thursday, July 22, 2010
Monday, July 19, 2010
What to Do When You Have No Credit
If you have no credit, and you aren’t sure where to start, you can become a co-applicant on an account, or in other words be added to someone’s account who has established credit. While I don’t encourage making a habit out of this, it can help you get something on your credit history. There is risk in this, as anything could happen at any time, an no one is exempt from job loss or hard times. Being a primary applicant you can’t remove yourself since you originally applied for the account in your name, but you can always be removed as a co-applicant or secondary borrower on a credit card. Remember, just paying your bills on time is not the only way to keep your credit healthy. You can also drive your credit score down by maxing out your lines of credit.
Once you are able to get some credit, you will able to move toward paving the way to your fulfillment of the FHA loan requirements. The guidelines are always subject to change, and they have become a little more stringent than they were a few years ago, so keeping up with the knowledge of the market is always essential as well. Avoid the mistakes that can affect your buying power for years to come. Making bad credit decisions can limit your options, so think of credit as a tool, not a joke.
Your credit score will also need to meet the FHA loan requirements if you want to buy a home. If you are a first-time homebuyer then you will need to plan on how you much money you can bring as a down payment. With a credit score of 620 or better, you can start with as little as 3.5% down, but if your score is 580 or better you will need to come up with at least 10% down. This was a fairly recent change, but rightfully so. The idea behind this change was to get the homeowner to invest more into the home upfront. Statistics show that those who put more down on the home are less likely to default on their loan.
For more information on credit repair, and steps to getting your FHA loan today, visit http://www.fhaloansnow.net/.
-Mayer Dallal
Once you are able to get some credit, you will able to move toward paving the way to your fulfillment of the FHA loan requirements. The guidelines are always subject to change, and they have become a little more stringent than they were a few years ago, so keeping up with the knowledge of the market is always essential as well. Avoid the mistakes that can affect your buying power for years to come. Making bad credit decisions can limit your options, so think of credit as a tool, not a joke.
Your credit score will also need to meet the FHA loan requirements if you want to buy a home. If you are a first-time homebuyer then you will need to plan on how you much money you can bring as a down payment. With a credit score of 620 or better, you can start with as little as 3.5% down, but if your score is 580 or better you will need to come up with at least 10% down. This was a fairly recent change, but rightfully so. The idea behind this change was to get the homeowner to invest more into the home upfront. Statistics show that those who put more down on the home are less likely to default on their loan.
For more information on credit repair, and steps to getting your FHA loan today, visit http://www.fhaloansnow.net/.
-Mayer Dallal
Saturday, July 17, 2010
Getting Help From the FHA Calculator
Determining how much you can afford is an important factor of taking a loan out of any size, no matter what it’s for. When using the FHA calculator to determine what you can afford, you can enter the monthly payment that you would like to be at, interest rate and term, and you will be able to calculate the maximum monthly payment that you can afford. Keep in mind that while using this tool is beneficial, it doesn’t include any other fees that may be associated with your loan.
Last but not least, you can take advantage of my prequalification FHA calculator. You can use the prequalification calculator to get an idea of how much you can borrow. This is not the same as finding out what your maximum payment can be, and it isn’t the same as a preapproval. The prequalification gives you an estimate of how much you may be able to borrow. A preapproval, shows that you have been approved for a particular loan amount prior to selecting a property. Remember, when buying a home it is the first step before speaking with a realtor.
For more information on how you can start the process for applying for an FHA loan, and to find out what your options are when buying a home, you can visit www.fhaloansnow.net. It is never too late to learn.
-Mayer Dallal
Last but not least, you can take advantage of my prequalification FHA calculator. You can use the prequalification calculator to get an idea of how much you can borrow. This is not the same as finding out what your maximum payment can be, and it isn’t the same as a preapproval. The prequalification gives you an estimate of how much you may be able to borrow. A preapproval, shows that you have been approved for a particular loan amount prior to selecting a property. Remember, when buying a home it is the first step before speaking with a realtor.
For more information on how you can start the process for applying for an FHA loan, and to find out what your options are when buying a home, you can visit www.fhaloansnow.net. It is never too late to learn.
-Mayer Dallal
Wednesday, July 14, 2010
The Bottom Line on Banks
I guess I am not sure why banks aren’t advertising their low rates either, but they aren’t. They aren’t encouraging people to refinance to minimize their debt. Why? They would love for people to stay in their mortgages forever, not paying stuff off. This leaves people in a bad situation, when everyone knows that we could all use a lower payment on everything right now. Isn’t that what stimulus really is?
I talk to families time and again that just simply want to throw their hands up in the air because they feel like they can’t find a viable option. This isn’t living, it’s financial prison. Money should breed options, not heartache, but this is so often the case. Helping each other has fallen by the wayside, and banks helping people has too. Being in a position to help others with their finances I should live in this mindset, which is why I chose to become an FHA specialist, not a salesman. If I wanted to do that, I would go back and continue to do things the way that they were being done before. I choose otherwise. Do you?
-Mayer Dallal
I talk to families time and again that just simply want to throw their hands up in the air because they feel like they can’t find a viable option. This isn’t living, it’s financial prison. Money should breed options, not heartache, but this is so often the case. Helping each other has fallen by the wayside, and banks helping people has too. Being in a position to help others with their finances I should live in this mindset, which is why I chose to become an FHA specialist, not a salesman. If I wanted to do that, I would go back and continue to do things the way that they were being done before. I choose otherwise. Do you?
-Mayer Dallal
FHA Mortgage Refinancing
You can refinance into an FHA loan whether you have one now or not. You can refinance to get cash out, use a streamline to pay off bills, or even just refinance to lower your monthly payments. Once those who have a conventional loan learn more about the details of FHA, they begin to see the difference in terms of the benefits that FHA has to offer. For example, there may be some borrowers who had perfect credit when they took out their conventional loan, but then along the way they had job loss, had medical collections, or may have had to file a bankruptcy as a result of these experiences. It’s easier to get qualified after a bankruptcy for an FHA loan, than it is for a conventional loan. FHA also offers more options to the borrower if they are having difficulties, because they back the loan for the lender to protect them if the borrower defaults.
If a borrower has a conventional loan, then the FHA mortgage refinancing guidelines will allow them to go up to 97.75% loan to value, so long as nothing is being paid off and no cash is coming back to the borrower at the closing. The only thing that can be included in the loan is the payoff of their current mortgage. FHA does allow cash-out loans on those properties that have been owned for one year prior to the FHA refinance, but it must be a primary residence. These loans do allow for the borrower to go up to the maximum of 85% loan to value, based upon the appraisal of the property.
An FHA refinance mortgage is when a borrower refinances their current mortgage for more than they currently owe in order to pull out the equity that they have built up that has accrued on their home. The amount that any homeowner can borrow is limited by the value of the property compared to the loan amount.
For more information on FHA, and the guidelines associated with FHA mortgage refinancing, please feel free to visit www.fhaloansnow.net. Here you will find valuable information and an FHA calculator where you can input information to help you find out how much you can afford.
If a borrower has a conventional loan, then the FHA mortgage refinancing guidelines will allow them to go up to 97.75% loan to value, so long as nothing is being paid off and no cash is coming back to the borrower at the closing. The only thing that can be included in the loan is the payoff of their current mortgage. FHA does allow cash-out loans on those properties that have been owned for one year prior to the FHA refinance, but it must be a primary residence. These loans do allow for the borrower to go up to the maximum of 85% loan to value, based upon the appraisal of the property.
An FHA refinance mortgage is when a borrower refinances their current mortgage for more than they currently owe in order to pull out the equity that they have built up that has accrued on their home. The amount that any homeowner can borrow is limited by the value of the property compared to the loan amount.
For more information on FHA, and the guidelines associated with FHA mortgage refinancing, please feel free to visit www.fhaloansnow.net. Here you will find valuable information and an FHA calculator where you can input information to help you find out how much you can afford.
Tuesday, July 13, 2010
The Basics on the FHA Streamline Refinance
Those who may have a non-FHA loan that is delinquent, and would like to refinance into an FHA secured mortgage, must fully qualify for the rate and term refinance. Once you go from and FHA loan to another FHA loan, you are then eligible to take advantage of the FHA streamline refinance program.
So, just to recap:
• The current mortgage must be FHA insured, and the mortgage must be current.
• The borrower must have a minimum fico score of 640.
• The refinance must lower your principal and interest payment.
• The borrower cannot receive cash out of more than $500.
• The borrower must bring one pay stub to show the ability to repay, but nothing is done with the paystub.
• Any second liens can remain in place, as long as they are still subordinate to the first.
• The term of the new loan must be the lesser of 30 years, or the unexpired term of the mortgage plus 12 years. You cannot go from a15 year loan to a 30 year loan.
• An appraisal is not required unless the closing costs are included into the loan, and the appraisal cannot put the borrower upside down. Those streamline refinances without an appraisal, are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium, plus the new upfront MIP if it is to be financed into the mortgage/
• No termite report is required.
• The borrower must have a minimum of 6 months of pay history.
• The borrower will need to provide one bank statement, and one mortgage payment to the closing table.
• Lastly, the borrower cannot be late or delinquent on any federal debt.
These are just the basic details, but with FHA the possibilities are endless, not to mention the rates are the lowest they have been in 50 years. The average FHA interest rate is 5.75, and can go as low as 4.5 if you qualify and the rates are available. The rates fluctuate daily with the market, but you can still look at the options with a 15 or a 30 year fixed rate. With as low as the rates are now, you will never need to refinance again. For more information on FHA, and how you can begin the process today, you can visit my website at www.fhaloansnow.net, or you can call me directly at (310) 498-2700.
So, just to recap:
• The current mortgage must be FHA insured, and the mortgage must be current.
• The borrower must have a minimum fico score of 640.
• The refinance must lower your principal and interest payment.
• The borrower cannot receive cash out of more than $500.
• The borrower must bring one pay stub to show the ability to repay, but nothing is done with the paystub.
• Any second liens can remain in place, as long as they are still subordinate to the first.
• The term of the new loan must be the lesser of 30 years, or the unexpired term of the mortgage plus 12 years. You cannot go from a15 year loan to a 30 year loan.
• An appraisal is not required unless the closing costs are included into the loan, and the appraisal cannot put the borrower upside down. Those streamline refinances without an appraisal, are limited to the unpaid principal balance, minus any refund credit of the mortgage insurance premium, plus the new upfront MIP if it is to be financed into the mortgage/
• No termite report is required.
• The borrower must have a minimum of 6 months of pay history.
• The borrower will need to provide one bank statement, and one mortgage payment to the closing table.
• Lastly, the borrower cannot be late or delinquent on any federal debt.
These are just the basic details, but with FHA the possibilities are endless, not to mention the rates are the lowest they have been in 50 years. The average FHA interest rate is 5.75, and can go as low as 4.5 if you qualify and the rates are available. The rates fluctuate daily with the market, but you can still look at the options with a 15 or a 30 year fixed rate. With as low as the rates are now, you will never need to refinance again. For more information on FHA, and how you can begin the process today, you can visit my website at www.fhaloansnow.net, or you can call me directly at (310) 498-2700.
Tuesday, July 6, 2010
The Salesperson's Responsibilities in a Short Sale
As a salesperson, I vow to carry myself as a professional. I can’t for one minute understand why any of us would choose otherwise. I try, and I hope that every day is another opportunity to share my expertise and knowledge with someone I can help. I just can’t get over some of the stuff I have heard lately.
I had a person come to me the other day and tell me how they were told by their salesperson that there are no tax consequences. That isn’t necessarily true; see, in 2007 the government directed the IRS to not count a forgiven debt as income. However, this only applies to a purchase money mortgage, not a refinance cash-out for a consolidation or home improvements. So, this does have limitations, and as salespeople, we need to know our market, our craft. We can’t mislead people and make them believe something that isn’t true.
Make sure that the person you are dealing with is a professional, and if you don’t feel you can trust them, then don’t do business with them. Ask those around you that you do trust if they know of someone or have worked with someone before. You won’t regret it, and you will feel better about it.
I am a person that you can trust, and I am professional. I am a Certified Distressed Property Expert, and I have over 19 years of experience. For more information you can go to www.inlandempireshortsaleresource.com. You can also call me directly at (310) 498-2700.
-Mayer Dallal
I had a person come to me the other day and tell me how they were told by their salesperson that there are no tax consequences. That isn’t necessarily true; see, in 2007 the government directed the IRS to not count a forgiven debt as income. However, this only applies to a purchase money mortgage, not a refinance cash-out for a consolidation or home improvements. So, this does have limitations, and as salespeople, we need to know our market, our craft. We can’t mislead people and make them believe something that isn’t true.
Make sure that the person you are dealing with is a professional, and if you don’t feel you can trust them, then don’t do business with them. Ask those around you that you do trust if they know of someone or have worked with someone before. You won’t regret it, and you will feel better about it.
I am a person that you can trust, and I am professional. I am a Certified Distressed Property Expert, and I have over 19 years of experience. For more information you can go to www.inlandempireshortsaleresource.com. You can also call me directly at (310) 498-2700.
-Mayer Dallal
Monday, July 5, 2010
The Truth About Refinancing Your Mortgage Now
Refinancing now is a great option for you if you need to lower your monthly payments, and part of that is getting a lower rate. This is important for you to know, because right now you are hearing a lot of advice on not making a rash decision about your home. Don’t listen to the nonsense, but do what is smart and beneficial for you and your family.
Banks don’t want you to refinance, and they would love for you to pay on your mortgage loan forever. Why? Because they see that it prevents foreclosures. By not making additional payments, you will have money to put back for yourself. That can be good for you, but refinancing now will give you a lower rate. Right now, if you don’t refinance, you will be stuck in a higher rate of interest which is more money for them. If you aren’t sure what portion of that payment you make is being allocated to interest just take a look at your statement, and if you can’t find it then call them.
Chances are, you are paying too much, and if you can get qualified, then move right along to a lower rate of interest. Rates are at all time low, with a 30 year mortgage as low as 4.75%, and a 15 year mortgage as low as 4.25%. Why wouldn’t you want to refinance now? Ask yourself that question. And, if you are looking to buy, there is no better time than now! Look at your credit report and be real with yourself about what is going on, and see what you need to do to make some changes. Put yourself in a position to move on with your life and build a future for yourself.
If you aren’t sure where to start, or what you need to do then contact me today; I can help. I can help consumers in all 50 states. You can find more information and get your application started by going to www.fhaloansnow.net, or you can call me directly at 310-498-2700.
-Mayer Dallal
Banks don’t want you to refinance, and they would love for you to pay on your mortgage loan forever. Why? Because they see that it prevents foreclosures. By not making additional payments, you will have money to put back for yourself. That can be good for you, but refinancing now will give you a lower rate. Right now, if you don’t refinance, you will be stuck in a higher rate of interest which is more money for them. If you aren’t sure what portion of that payment you make is being allocated to interest just take a look at your statement, and if you can’t find it then call them.
Chances are, you are paying too much, and if you can get qualified, then move right along to a lower rate of interest. Rates are at all time low, with a 30 year mortgage as low as 4.75%, and a 15 year mortgage as low as 4.25%. Why wouldn’t you want to refinance now? Ask yourself that question. And, if you are looking to buy, there is no better time than now! Look at your credit report and be real with yourself about what is going on, and see what you need to do to make some changes. Put yourself in a position to move on with your life and build a future for yourself.
If you aren’t sure where to start, or what you need to do then contact me today; I can help. I can help consumers in all 50 states. You can find more information and get your application started by going to www.fhaloansnow.net, or you can call me directly at 310-498-2700.
-Mayer Dallal
Friday, July 2, 2010
Steps to a Quick FHA Loan Process
Getting things done quickly is so important when you are in the process of buying and refinancing a home. You don’t want this to drag on forever, and neither does your mortgage professional. Believe me when I say that there is nothing worse than a loan that never ends. I push for things to get done, and there are days when it seems that I have those families that just don’t get the paper work I need. Having all this up front can give you a quick FHA loan process.
A quick FHA loan process makes for a happy mortgage professional, happy homeowner or buyer, and happy underwriters. Underwriter’s want to get loans approved too, but they have to be absolutely sure that they have everything they need in your file. Keep in mind, that no one gets paid until your loan closes, no matter what, so no one is out to get you. There is a process for everything, and it’s critical that you know and understand this.
In order to put yourself in a position to have a quick FHA loan process, it is best for you to follow my instructions during the loan application process. I can tell you what to prepare for, and what this all means, but I can’t force you to do it. Keep a folder with everything in it, that way you can remain organized and on top of your paperwork. Having everything in line is vital to the entire process, and we aren’t going to ask for things unless we need them.
For more information, you can go to www.fhaloansnow.net, and use our easy online form, and it only takes a few minutes. No matter what state you’re in, I can help you!
A quick FHA loan process makes for a happy mortgage professional, happy homeowner or buyer, and happy underwriters. Underwriter’s want to get loans approved too, but they have to be absolutely sure that they have everything they need in your file. Keep in mind, that no one gets paid until your loan closes, no matter what, so no one is out to get you. There is a process for everything, and it’s critical that you know and understand this.
In order to put yourself in a position to have a quick FHA loan process, it is best for you to follow my instructions during the loan application process. I can tell you what to prepare for, and what this all means, but I can’t force you to do it. Keep a folder with everything in it, that way you can remain organized and on top of your paperwork. Having everything in line is vital to the entire process, and we aren’t going to ask for things unless we need them.
For more information, you can go to www.fhaloansnow.net, and use our easy online form, and it only takes a few minutes. No matter what state you’re in, I can help you!
My Thoughts On FHA
FHA loans are not the only product available, but I do believe that they are the best product available. They offer low rates, and FHA programs are based on the principle of common sense underwriting. This means that although you may have had problems in the past with credit or collections, they won’t always hold that against you.
There are some rules to everything, and rightfully so. This is just a part of life, and for every action there is a consequence. If we choose to shop and live by credit cards, then we will reap the benefits of having too much debt which can hurt your debt to income ratio when you are trying to get qualified. FHA may make some very small exceptions, but again, there are many factors that they look at. Assets are a good cushion for you, money in the bank, and if you do have some hairy past credit letters of explanation will be requested. Just keep in mind that all of this is to help you, not hurt you. I want to see families get into loans, and I want to see loans help families to move forward not backwards.
FHA itself is the best option out there for buying or refinancing. FHA can help grant some possibilities that otherwise wouldn’t have been possible. For more information on FHA guidelines and how you can get qualified today, go to www.fhaloansnow.net. Help is just a mouse click away.
There are some rules to everything, and rightfully so. This is just a part of life, and for every action there is a consequence. If we choose to shop and live by credit cards, then we will reap the benefits of having too much debt which can hurt your debt to income ratio when you are trying to get qualified. FHA may make some very small exceptions, but again, there are many factors that they look at. Assets are a good cushion for you, money in the bank, and if you do have some hairy past credit letters of explanation will be requested. Just keep in mind that all of this is to help you, not hurt you. I want to see families get into loans, and I want to see loans help families to move forward not backwards.
FHA itself is the best option out there for buying or refinancing. FHA can help grant some possibilities that otherwise wouldn’t have been possible. For more information on FHA guidelines and how you can get qualified today, go to www.fhaloansnow.net. Help is just a mouse click away.
Thursday, July 1, 2010
A Custom Mortgage
A custom mortgage could mean something totally different now than it meant five years ago. Custom mortgages at that time usually meant a unique mortgage term, with a unique situation. In addition, it could mean a unique rate according to which term and whether or not you were looking for cash out, or if you were looking for just refinance the home. Paying off bills? Absolutely, we can do that too!
Five years ago, custom mortgages were the in thing with subprime lenders. Lenders were using terms of 17 years, 24 years etc., in order to try and sway their borrowers. Did it work? In some ways yet, but there were more facets to it than that. Debt consolidation loans were the in thing at that time. They were not a bad idea but you have to remember that not everyone was able to manage a consolidation. There were so many people who would fall prey to the “we will custom taylor your mortgage just for you”, only to find out that the talk behind it was “I will service you, and check in with you everyday to let you know what is going on.” This is great, and it’s good service for the customer, but what about the loan itself? Are they going to be in more debt, or a high rate that they really cannot afford? Or, are they going to be in a loan that will provide them with a lower monthly payment, and will help pay their bills? That is a custom loan to me; one that is tailored to their needs, but not a subprime loan.
A custom mortgage means that there are no two loans alike. Some will need to do a streamline FHA loan, and some will need to do a debt consolidation loan. It is really that simple, but sometimes mortgage brokers make it hard. Now that banks are more respected than brokers, it makes it hard for someone to get a loan that is out of control with high fees and lack of benefits. Just remember, the loan has to make sense in order for the bank to do the loan.
For more information on a custom mortgage, and what this means now, you can go to www.fhaloansnow.net.
-Mayer Dallal
Five years ago, custom mortgages were the in thing with subprime lenders. Lenders were using terms of 17 years, 24 years etc., in order to try and sway their borrowers. Did it work? In some ways yet, but there were more facets to it than that. Debt consolidation loans were the in thing at that time. They were not a bad idea but you have to remember that not everyone was able to manage a consolidation. There were so many people who would fall prey to the “we will custom taylor your mortgage just for you”, only to find out that the talk behind it was “I will service you, and check in with you everyday to let you know what is going on.” This is great, and it’s good service for the customer, but what about the loan itself? Are they going to be in more debt, or a high rate that they really cannot afford? Or, are they going to be in a loan that will provide them with a lower monthly payment, and will help pay their bills? That is a custom loan to me; one that is tailored to their needs, but not a subprime loan.
A custom mortgage means that there are no two loans alike. Some will need to do a streamline FHA loan, and some will need to do a debt consolidation loan. It is really that simple, but sometimes mortgage brokers make it hard. Now that banks are more respected than brokers, it makes it hard for someone to get a loan that is out of control with high fees and lack of benefits. Just remember, the loan has to make sense in order for the bank to do the loan.
For more information on a custom mortgage, and what this means now, you can go to www.fhaloansnow.net.
-Mayer Dallal
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