FHA Mortgage Loan Blog

First-time Buyers and FHA Gift Money

Brian Wiesner — Tue, 05 Jan 2010 22:50:33 +0000

First-time buyers in Los Angeles County will notice a key difference between conventional loans and FHA loans. FHA loan guidelines allow the home buyer to receive 100% of the down payment and closing costs as gift regardless of your income. Conventional loans do not allow gifted funds to close. They must be 100% verifiable borrower funds. Most conventional loans in Claremont, Upland, Pomona, and Glendora all require 10% down and have newer, tighter qualifying standards as well. FHA loans require 3.5% down and ALL of that 3.5% can be gifted funds from a relative, employer, church or other non-profit organization or documentable long-term family friend or partner. Those sources will also have to provide proof of the ability to give…in order to eliminate cause to suspect that any parties to the transaction have supplied the money, which is not allowed. Most FHA home buyers who use gift funds do get them from a family member.

Things to remember:

Your lender will send you a gift letter to be completed, signed and dated by the individual providing the gift for the FHA loan down payment.
You will need to send a copy of the bank statement where the gift donor will be getting the funds from.
You will need a receipt of the withdrawal of the funds from the gifter’s account and a receipt of the deposit if you put the money into your account prior to closing escrow.
The best way to handle the gift funds is to have them wired directly to the escrow company handling your purchase at closing. This way you only need a receipt of the wire to prove the source.
FHA loans also allow you to receive a gift for all of your purchase closing costs as well. So you can get a gift for closing costs + ALL of the down payment.

It’s sometimes humbling to approach relatives about gifting money to buy a home. However, while they declare you do not have to pay them back by virtue of the gift letter form, I certainly paid my mom back pronto back in 1990 when she helped me. It seemed like the right thing to do.

General FHA highlights:

To get an FHA loan your credit score does not have to be perfect
FHA loan interest rates are rarely higher than conventional loan rates
The maximum FHA loan is $729,750 in Los Angeles County, Orange County and Ventura County and $500,000 in San Bernardino County and Riverside County.
FHA loans are eligible for no-cost Streamline Refinances if market interst rates drop!

Brian Wiesner

California FHA Mortgage Expert

Monaco Mortgage Corporation
Toll Free: 866-343-1579
Direct: 909-581-4075

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Refinance Your USDA Rural Home Loan Before Rates Rise in March

Paul Dunn — Mon, 04 Jan 2010 16:16:29 +0000

Refinance USDA Rural Home Loan

Why It’s Time to Refinance Your USDA Rural Home Loan.. Now..

Many Arizona home owners who have existing USDA Rural Home Loan may be eligible for the program allowing for a Streamlined Refinance of their existing USDA Rural Home Loan into a lower fixed rate monthly payment.

But waiting a few more months to refinance your USDA Rural Home Loan might not be a good idea.

Here’s why…

The Central Bank has been buying mortgage backed securities in an effort to keep mortgage interest rates artificially low for a sustained period of time. Their goal was to buy $1.25 Trillion in mortgage backed securities by March 2010.

Fed Chairman Ben Bernanke reiterated last Monday that the Fed’s buying program will end in March. The Feds currently hold just over $910 Billion in mortgage backed securities.

So once the Fed’s effort to keep mortgage rates low ends in March 2010, rates should rise.

Highlights of the USDA Rural Home Loan Refinance:

Refinance of an existing loan can be either a USDA Guaranteed Loan or a USDA Direct Loan
Grandfathered eligibility even if the property is no longer in a USDA Rural Home Loan eligible area
The refinance interest rate of the new USDA Rural Home Loan MUST be at least 1% lower than the existing USDA Loan
May be able to refinance even if you owe more than your home is worth – No Appraisal Option
May be able to refinance without an appraisal in most circumstances

Find out today if you can quickly and easily refinance into a lower payment USDA Rural Home Loan.

To Refinance your USDA Rural Home Loan go to USDA Rural Home Loans and click on the Get Started tab or click here. You can also ask a question about getting a refinance for a USDA Rural Home Loan on Get Started tab.

New Jersey, NJ First-Time Home Buyer Tax Credits – Special Rules for the Military

Tony Croft — Thu, 31 Dec 2009 19:02:29 +0000

We all know what great sacrafices the members of our U.S. military make each day. Missing out on the first-time home buyer tax credit should not be one of them. Thankfully, Congress has acknowledged the unique circumstances affecting qualified service members*, by allowing the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 credit for repeat home buyers:

Exception- homes that are sold or cease to be used as a primary residence due to official extended duty within three years of the initial purchase are NOT subject to recapture of the tax credit.

Exception – For qualified service members on official extended duty, the qualified purchase date is extended for one year. For these home buyers the tax credit applies to to sales with a binding contract in place on or before April 30, 2011 and closed by June 30, 2011.

*A qualified service member is defined as a member of the uniformed services of the U.S. military, a member of the Foreign Service of the U. S., or a employee of the intelligence community.

FREE Home Buying Guide Reveals Insider Tips…
Click Here To Get Your Copy Today!

Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online applicationor call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

USDA Loans in NJ? It’s Not a FHA Mortgage, But It May Better – Zero Down Payment

Tony Croft — Thu, 31 Dec 2009 18:02:53 +0000

While FHA has been hogging all the headlines
(no pun intended) another little known loan program has been gaining in popularity. For over 60 years, the USDA (Unites States Department of Agriculture) has been guaranteeing loans for farms and rural communities. Recently, however, the definition of rural has expanded to include any communities with a population of 20,000 or less. This means that even towns next to sprawling urban communities may be eligible.

USDA Mortgages in NJ with no money down financing are still available in many areas.

Many Counties in New Jersey, particularly southern and western Counties, have eligible locations. Quick list of Counties containing eligible areas; Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, and Warren.

Click here to look at a map of eligible areas in New Jersey for USDA financing. Be sure to check the site first before looking at properties.

One of the great features of USDA loans is that no down payment is required. This means that with the government’s current $8,000 tax credit for first-time home buyers, some might actually MAKE money on their purchase. Note that USDA loans are not limited to first time home buyers, but the borrower may not currently own a home.

So why wouldn’t every small town borrower apply for a USDA loan versus a FHA mortgage? The qualification standards are stricter – the borrower must have a credit score of 620 or higher, and a debt-to-income ratio of 29/41. Also, the loans offered are 30-year fixed rate only with the rate tied to Fannie Mae and Freddie Mac.

Some other highlights of the USDA loans are:

No monthly mortgage insurance premiums
No bank account or asset reserves required
Income limits based on number of people in the household
No pre-payment penalty

To see if a property qualifies, go to http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Click on the following link to view a story about USDA loans which aired on November 20, 2009 on CNBC.

Check it out!

http://www.cnbc.com/id/15840232?video=1337326009&play=1

FREE Home Buying Guide Reveals Insider Tips…
Click Here To Get Your Copy Today!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

New Jersey – USDA 100% Home Loan

Gerald Santoro — Wed, 30 Dec 2009 22:38:23 +0000

There is a little known and under utilized home loan available in New Jersey and across the country. This loan provides 100% Financing! You read it right…..100% financing…..and no Mortgage Insurance!

WHAT ARE THE SPECIAL ADVANTAGES OF THE LOAN?

* No Down Payment
* No Mortgage Insurance
* No Cash Reserves Required
* No stated maximum loan amount…..maximum loan based on repayment ability
* Loan up to 102% of appraised value allowed
* No First Time Homebuyer Requirement
* New and Existing Homes allowed
* Fully Amortized 30 year Fixed Rate Loan
* No Prepayment Penalty
* No Seller Contribution Limit
* No limitation on source of funds for closing costs
* 100% gifted closing cost permitted
* Loan amount can include closing costs and repairs up to appraised value

This loan is only available for owner occupied properties. The above is a brief overview of the program. Naturally there are guidelines to qualify the applicant and also the property. Many areas in New Jersey suprisingly do qualify. You can identify eligible areas here and also find out more about the guidelines.

I hope this information proves useful. Please contact me @ 732-536-3330 ext 310 if I can be of help answering any additional questions for this or any other loan options available in today’s market.

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Can you get FHA financing after a short sale in Los Angeles, San Fernando Valley?

Khai McBride — Mon, 28 Dec 2009 17:28:24 +0000

New FHA guidelines have been announced to prevent short-seller sellers from buying replacement properties with an FHA mortgage.

These new FHA loan requirements apply in cases where “a previously owned property was sold for less than what was owed (short sale)” or “there is principal write down of indebtedness that cannot be refinanced into a new mortgage (short pay off).”

HUD states “Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence simply to take advantage of declining market conditions, and purchase, at a reduced price, a similar or superior property within a reasonable commuting distance.”

Is it possible to get FHA financing is you have had a short sale? Yes, after three years.

Exceptions - HUD says that “borrowers in default on their mortgage at the time of the short sale (or pre-foreclosure sale) are not eligible for a new FHA-insured mortgage for three years from the date of the pre-foreclosure sale. Lenders may make exceptions to this rule under certain circumstances.”

Again, this is a case by case basis, so if you would like to see if you are eligible, please contact me.

Khai McBride
800.399.6890 Phone | www.mcbridegroup.com
Follow us on Twitter: twitter.com/McBrideGroup
Join our Facebook Page: facebook.com/mcbridegroup

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FHA Energy Efficient Mortgage for San Jose Homes

Shashank Shekhar — Sun, 27 Dec 2009 21:57:52 +0000

FHA’s Energy Efficient Mortgage program (EEM) helps San Jose, CA homebuyers or homeowners save money on utility bills. This is done by enabling them to finance the cost of adding energy efficiency features to their house as part of their FHA insured loan.

EEMs recognize that reduced utility expenses can permit a San Jose homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it.

Eligible Activities:

EEM can be used to make energy efficient improvements in one to four existing and new homes. The improvements can be included in a borrower’s mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life.

The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package.

The energy improvements are installed after the loan closes. The lender will place the money in an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved.

If you are looking for an FHA approved lender in San Jose, CA who could offer more information on FHA EEM program and other loan programs, please contact me at 408.905.6261.

FHA’s Energy Efficient Mortgage program (EEM) helps San Jose, CA homebuyers or homeowners save money on utility bills. This is done by enabling them to finance the cost of adding energy efficiency features to their house as part of their FHA insured loan.

EEMs recognize that reduced utility expenses can permit a San Jose homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it.

How does the process work:

EEM can be used to make energy efficient improvements in one to four unit existing and new homes.

The improvements can be included in a borrower’s mortgage only if their total cost is less than the total dollar value of the energy that will be saved during their useful life.

The cost of the energy improvements and estimate of the energy savings must be determined by a home energy rating report that is prepared by an energy consultant using a Home Energy Rating System (HERS). The cost of the energy rating report and inspections may be financed as part of the cost effective energy package.

The energy improvements are installed after the loan closes. The lender will place the money in an escrow account. The money will be released to the borrower after an inspection verifies that the improvements are installed and the energy savings will be achieved.

If you are looking for an FHA approved lender in San Jose, CA who could offer more information on FHA EEM program and other loan programs, please contact me at 408.905.6261.

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San Jose Mortgage Rates rise sharply

Shashank Shekhar — Sun, 27 Dec 2009 21:46:33 +0000

In last 3 weeks, 30 year fixed mortgage rates have gone up 34 basis points for San Jose homes. Rates for 15 year fixed and 5 year ARM loans have gone up too.

In the latest results of its Primary Mortgage Market Survey® Freddie Mac reported 30-year fixed-rate mortgage averaged 5.05 percent with an average 0.7 point for the week ending December 24, 2009. The 15-year Fixed Rate this week averaged 4.45 percent with an average 0.6 point. The 5-year adjustable-rate mortgage (ARM) averaged 4.40 percent this week.

These rates are for conforming loan amount $417,000 and lower. Higher loan amounts come with higher interest rates.

The rates through 2009 have been artificially kept lower by Fed by buying Mortgage Backed Securities (MBS). Fed is planning to stop buying MBS in March 2010 and if they actually decide to do so, mortgage rates could go up 25 bps to 50 bps almost overnight. No surprise that the average rates are projected to go beyond 6% by the end of the year.

If you are still on the fence to refinance your San Jose Home Mortgage, the window for low rates could be short. If you are looking for a San Jose Mortgage Broker who could shop more than 100 lenders to get you the best mortgage interest rate, call me at 408.905.6261.

In last 3 weeks, 30 year fixed mortgage rates have gone up 34 basis points for San Jose homes. Rates for 15 year fixed and 5 year ARM loans have gone up too.

In the latest results of its Primary Mortgage Market Survey® Freddie Mac reported 30-year fixed-rate mortgage averaged 5.05 percent with an average 0.7 point for the week ending December 24, 2009. The 15-year Fixed Rate this week averaged 4.45 percent with an average 0.6 point. The 5-year adjustable-rate mortgage (ARM) averaged 4.40 percent this week.

These rates are for conforming loan amount $417,000 and lower. Higher loan amounts come with higher interest rates.

The rates through 2009 have been artificially kept lower by Fed by buying Mortgage Backed Securities (MBS). Fed is planning to stop buying MBS in March 2010 and if they actually decide to do so, mortgage rates could go up 25 bps to 50 bps almost overnight. No surprise that the average rates are projected to go beyond 6% by the end of the year.

If you are still on the fence to refinance your San Jose Home Mortgage, the window for low rates could be short. If you are looking for a San Jose Mortgage Broker who could shop more than 100 lenders to get you the best mortgage interest rate, call me at 408.905.6261.

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New Good Faith Estimate debuts Jan. 1, 2010

Fred Chamberlin — Wed, 23 Dec 2009 23:31:31 +0000

Housing and Urban Development (HUD) regulators are always trying to make things better and more transparent for borrowers. This time they have made some major changes in the Good Faith Estimate, a backbone of the mortgage industry. These changes will be taking place January 1, 2010 and are some very major changes that are designed to help consumers compare loans from one lender to another. Very major changes but unfortunately, we still don’t know what all of them are or how they are being interpreted because HUD hasn’t released the final information yet. This is something that will have a direct bearing on your Real Estate transactions in the Eugene/Springfield Oregon area and is supposed to make shopping for a mortgage easier, but will it?

The new Good Faith Estimate (GFE) is nearly written in stone. There are many parts of it that cannot be changed once given to a consumer unless there are “Changed Circumstance.” These include, Act of God, war, disaster or other emergency, inaccurate information provided by the borrower, changed information such as loan amount or property value and interest rate change due to rate lock.

What this means is that you won’t be able to get GFEs from several different lenders to compare when first shopping for a loan, because they won’t give them out without a full application and property. So, where is the shopping here. Also, you have 10 days to “shop” after getting a GFE and if you are doing that, the lender will not be proceeding with the loan during that period since they won’t have a commitment from the borrower, thereby delaying the process. Where does that help anyone?

Also, if a GFE does change during the process, it triggers another 10 day shopping period. Also, when I give out a GFE, I have to tell you how long the interest rate is good for. Some days, that may be only 10 minutes as rates are fluid and volatile. So, overall, this could be an interesting time with the changes that have taken place and the ones that will take place. Not everyone feels the same way about the new form. Here is a video from Title Guarantee in Hawaii that has some very valid points:

Whatever is happening in the market, you can be certain that I will be on top of it. I am constantly reading, researching and checking out the new things I need to know. If you have any questions about the mortgage changes or to start your application process, give me a call at 541-342-7576/541-221-3455 cell or e-mail me. You can also come to the office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste 100, Eugene OR. The coffee is always on. In today’s changing environment, you need a professional to help you navigate those changes. Call me.

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Maryland FHA Responds to Short Sales

Bill Sohan — Wed, 23 Dec 2009 19:10:30 +0000

Maryland FHA responds to Short Sales and here are the 5 things you need to know.

Changes are effective immediately.

Maryland borrowers ARE eligible for new FHA financing if they are 0X30 on the mortgage in the last 12 months and the proceeds from the short sale serve as payment in full.

Maryland borrowers whose mortgage was in pre-foreclosure status at the time of short sale are NOT eligible for FHA financing for 3 years.

Maryland borrowers are NOT eligible for new FHA financing if they pursued a short sale to take advantage of the declining market in order to acquire a similar or better property near their current residence.

On a Maryland FHA refinance, borrowers ARE eligible if the current lender chooses to write down the mortgage due to declining values or reduction in income.

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FHA Mortgage Loan Blog

First-time Buyers and FHA Gift Money

Brian Wiesner

Refinance Your USDA Rural Home Loan Before Rates Rise in March

Refinance USDA Rural Home Loan

Why It’s Time to Refinance Your USDA Rural Home Loan.. Now..

New Jersey, NJ First-Time Home Buyer Tax Credits – Special Rules for the Military

FREE Home Buying Guide Reveals Insider Tips… Click Here To Get Your Copy Today!

Tony 201-943-6800

USDA Loans in NJ? It’s Not a FHA Mortgage, But It May Better – Zero Down Payment

FREE Home Buying Guide Reveals Insider Tips… Click Here To Get Your Copy Today!

Tony 201-943-6800

New Jersey – USDA 100% Home Loan

Can you get FHA financing after a short sale in Los Angeles, San Fernando Valley?

FHA Energy Efficient Mortgage for San Jose Homes

San Jose Mortgage Rates rise sharply

New Good Faith Estimate debuts Jan. 1, 2010

Maryland FHA Responds to Short Sales

FREE Home Buying Guide Reveals Insider Tips…
Click Here To Get Your Copy Today!

Tony
201-943-6800

FREE Home Buying Guide Reveals Insider Tips…
Click Here To Get Your Copy Today!

Tony
201-943-6800