VA Loans Still Safest Product on the Market
February 3, 2012 by Chris Birk · 2 Comments
The Department of Veterans Affairs issued a news release this week trumpeting the continued growth of the VA Loan Guaranty program. The agency backed just under 360,000 loans last year, a 14-percent increase from FY10 and a whopping 168-percent increase since FY07.
But that wasn’t the only good news. The release also noted that VA loans have had the lowest rates of foreclosure and serious delinquency for the past 14 quarters and 11 quarters, respectively, according to the Mortgage Bankers Association National Delinquency Survey.
Those figures are even more surprising considering that about 90 percent of VA loans come with no down payment.
“The continued strong performance and high volume of VA loans are a testament to the importance of VA’s home loan program and a tribute to the skilled VA professionals who help homeowners in financial trouble keep their homes,” Secretary of Veterans Affairs, Eric K. Shinseki said in the release.
The VA works closely with borrowers and their servicers to avoid foreclosure. Veterans in jeopardy should always contact their loan servicer first, but the VA provides services and staff to help borrowers pursue options like modifications, forbearances and repayment plans. Homeowners can call 877-827-3702 to talk with a VA specialist.
“We are committed to making even more veterans and service members aware of this important benefit and delivering the assistance they deserve when financial difficulties arise,” said VA Under Secretary for Benefits Allison A. Hickey.
HARP Refinance Program – Underwater Homeowner’s in Atlanta Get RELIEF!
January 20, 2012 by Jonathan Blackwell · Leave a Comment
Underwater Homeowner’s in Atlanta Get Refinance Help from Obama Administration
Atlanta, GA (January 2012) - Originally launched in April 2009, the Home Affordable Refinance Program (HARP) was designed to help underwater homeowner’s take advantage of low mortgage rates even if they were low equity or slightly upside down.
By allowing underwater homeowner’s the ability to take advantage of today’s lower interest rates without have to pay down their equity the HARP program was intended to help homeowner’s save money which they would them use to purchase consumer goods or create new jobs.
Sounds like a good idea right?
It was. HARP 1.0 helped a lot of people refinance. It was limited though. There were restrictions, price adjustments and loan to value caps that prevented a lot of Atlanta homeowner’s from benefiting.
One of the biggest issues with HARP 1.0? It was limited to your current mortgage servicer, you had to deal with a big 4 bank. Welcome to your own personal hell.
90+ days turntimes? CHECK. Multiple requests for the same documents? CHECK. Days waiting for you loan officer to return your call? CHECK. Three weeks before an initial decision? CHECK.
Enter HARP 2.0
Limited to a big 4 bank? Not anymore! The new HARP program is opened to all participating mortgage lenders. You can now use the mortgage professional YOU want to use for your HARP refinance. No more 3 month turn times to get your HARP closed. Does 3 weeks sound better than 3 months?
Loan to value restrictions? Gone! No equity, no problem. It does not matter how upside down or underwater you are, HARP 2.0 has no restrictions on loan to value.
Not an Owner Occupant anymore? No problem! HARP 2.0 is available to all homeowners. Second homes, investors, people that have relocated can now take advantage of today’s low rates.
Sounds good right? How do I know if I am eligible for HARP?
HARP 2.0 Eligibility & Guidelines
HARP, sometimes referred to as DU REFI+ or the Obama Refi plan, has some basic eligibility guidelines that potential refinance homeowner’s must meet
In order to be eligible for the HARP refinance program :
- Your loan must be backed by Fannie Mae or Freddie Mac.
- Your current mortgage must have a securitization date prior to June 1, 2009
- You must be current on your mortgage with no late payments in the last 6 months.
If you currently have an FHA, VA, USDA or Jumbo loan you will not be eligible to participate in the HARP 2.0 refinance program. You may have other refinance options, but HARP is not one of them.
No LTV Restrictions for HARP 2.0? Really?
Yes, there are really no loan to value (LTV) restrictions! Even if you are ridiculously underwater, so long as you meet the HARP | DU Refi Plus eligibility requirements outlines above you should be eligible to participate.
Even if you are currently at 200+% LTV you can still benefit from Obama’s Home Affordable Refinance Program. Ready to see if you meet HARP Guidelines? Stop waiting, click below for a HARP 2.0 consultation and we will let you know your refinance options.
Are you one of the 300,000 Atlanta homeowner’s underwater? Keep your house, explore a HARP Refinance, learn how Obama’s Home Affordable Refinance Program can help you!
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How Do I Choose My FHA 203K Lender?
January 7, 2012 by Jonathan Blackwell · 3 Comments
Choosing a FHA 203K Lender
Why Is 203K Lender Selection Important? What Should Potential FHA 203K Clients Look For?
When I started specializing in 203K Renovation Loans there were very few people that offered the product. There was little to no training and you were mostly resigned to using a lender that would end up selling the loan to a certain big 4 bank that, quite frankly, sucked.
Times have changed, there are multiple 203K lender options these days and it seems that every loan officer now offers the product. Competition is good right? It is good, for the most part.
It is fantastic for the foreclosure market that lenders have finally joined the show and made the 203K loan widely available. After all, foreclosure renovation loans, like the 203K, the HomePath Renovation and the HomeStyle, are integral pieces to restoring the housing market.
However, the growth of the renovation loan market comes with a price. Lost earnest money, useless inspections, ridiculously long escrows, angry sellers and frustrated home-buyers.
Those of you that have researched the 203K have seen and heard the horror stories. On the message boards, in the forums and from Real Estate Agents and even Mortgage Lenders. FHA 203K loans are too difficult, too much paperwork, too slow and too expensive.
Guess what, they are right. They are all of those things if you choose the wrong Loan Officer, the wrong HUD Consultant or the wrong Contractor. 203K loans are a specialty mortgage product, they require a SPECIALIST.
It’s Not the 203K Loan Product, It’s the 203K Loan OFFICER
I understand the bad rap that 203K loans get. I get between 5 – 10 calls a week from frustrated home-buyers working with the wrong loan officer, the wrong lender, the wrong consultant or the wrong contractor. For most of them it’s too late, I can give some advice, but I can’t save them.
They didn’t do their research. They entered blindly into one of the largest transactions of their life. It’s not all the customers fault, many of them trusted their agent to get them to the right loan officer or that their loan officer was qualified.
I’ll probably ruffle some feathers, but 80%+ of agents and loan officers are not qualified to handle even a basic transaction, let alone a renovation loan. So how do you avoid the 80% and choose wisely? Research.
Choosing Your 203K Loan Officer
I think this is obvious, but clearly you start with Google. Educate yourself on the product FIRST. If you haven’t done the research then how will you know if you loan officer is answering your questions correctly?
As you peruse Google for 203K info you’ll see at a lot of the same folks showing up. These are you experts. They may not be in your area, but they can probably guide you to a 203K expert that is.
Don’t forget about LinkedIN or Facebook Fan Page search, both will guide you to 203K experts, who is recommending them and their accomplishments.
Finally, you need to interview the candidates. They should, without hesitation, be able to answer some basic questions.
- What’s the Difference Between the 203K Streamline and the Consultant 203K?
- How Many Renovation Loans Have You Closed?
- How Are the Draws Disbursed?
- What Additional Fees Does the 203K Have?
- How Long to Close?
203K Bathroom Renovation
What Is A 203k Loan
December 23, 2011 by Mark Madsen · Leave a Comment
An FHA 203k Loan is a government insured mortgage program that allows borrowers to wrap the cost of property upgrades into a new 30 year fixed-rate home loan.Since many homebuyers are finding that most of the foreclosures and short sale listings they are interested in purchasing require a minimal amount of repairs in order to bring them up to personal or bank standards, a 203k loan provides a perfect financing program for borrowers who have a limited budget for downpayment + home improvement repairs.According To HUD’s Website:
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.
Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods.
The Section 203k program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work. To minimize the risk to the mortgage lender, the mortgage loan (the maximum allowable amount) is eligible for endorsement by HUD as soon as the mortgage proceeds are disbursed and a rehabilitation escrow account is established. At this point the lender has a fully-insured mortgage loan.
The FHA 203k Loan is one of a few popular Rehab Lending programs available that allow buyers to finance minor cosmetic or major structural upgrades at the time of purchase through one 30 year fixed, low interest rate home loan.
Most buyers think that a 203k loan is only for completely rehabilitating a distressed foreclosure or short sale that has been seriously destroyed, is in a bad area or requires a lot of work.
However, a 203k loan can be used to finance any property that fits within standard FHA guidelines, regardless of the amount of home improvement work needed or desired.
Best of all, the approval process for a 203k loan follows the same flexible credit score requirements, income documentation and low downpayment as a basic FHA loan.
203k Resources And Links
- FHA 203k Loan Overview
- FHA 203k Eligible Properties
- FHA 203k Eligible Improvements
- FHA 203k vs Conventional Mortgage
- 203k Streamlined vs Full 203K
- FHA 203k Myths
- FHA 203k Renovation Terms
- FHA 203k Loan Process
- Qualifying For An FHA 203k Loan
- 203k Down Payment Requirements
- FHA 203k Loan Closing Costs
- Receiving Gift Funds
- FHA 203k Appraisal Process
- Releasing Funds To Contractors
- PRINT – 203k Lending Process Checklist
- PRINT- 203k Contractor Checklist
- PRINT – 203k Bid Checklist
- 203k Borrower Approval Process
- Hiring An FHA 203k Loan Consultant
- Hiring An FHA 203k Contractor
- Renovation Loan Comparison Chart
- FHA 203k Streamlined Loan
- FHA 203k Full Renovation Loan
- Fannie Mae HomePath
- Energy Efficient Mortgage (EEM)
Riding a Refinance Wave, VA Loan Volume Up 14% in FY11
November 29, 2011 by Chris Birk · 1 Comment
Riding a wave of new refinance loans, the VA home loan program experienced a huge year in Fiscal 2011, guaranteeing nearly 360,000 loans, according to data provided by the Department of Veterans Affairs.
VA refinance loans surged 40 percent from FY10, as military borrowers sought to capitalize on historically low interest rates. Refinance volume increased at least 40 percent in more than two dozen states, from Alaska to West Virginia.
Purchase loans fell slightly from FY10, but overall loan volume was up 14 percent.
Odds and Ends
Total loans guaranteed increased at least 20 percent in 11 states (Alaska, California, Colorado, Hawaii, Iowa, Massachusetts, Michigan, Oregon, Tennessee, Vermont and West Virginia) and the District of Columbia.
Four states saw VA refinance volume increase at least 70 percent, including a staggering 108-percent jump in Michigan.
With FY11 in the books, the VA has now helped more than 18.7 million borrowers secure a home purchase or refinance since 1944. The total loan amount now exceeds $1 trillion.
Looking Ahead
A tighter lending climate has spurred renewed interest in this long-cherished program. VA loans feature less stringent requirements and require no down payment for the vast majority of borrowers. In fact, 9 in 10 VA borrowers secured financing in FY10 without putting down a dime.
That flexibility, coupled with record-low interest rates, continues to spur military borrowers to explore the home loan benefits earned by their service.
With rates likely to remain low and thousands of service members set to return from Iraq and Afghanistan in the coming months, the VA loan program appears poised for continued growth.
Finally, A Govt Agency That Wants to Hear From You!
September 13, 2011 by Karen Deis · Leave a Comment
Looks like the CPFB has been working on hard on creating new loan disclosure forms and guess what?
They want to hear from you–yes YOU!
I’ve copied the email that they sent out! They want you to choose between two loan scenarios (Jasmine and Nandina) and tell them why you would choose one loan option over the other one. There is also a short questionnaire asking you for suggestions on what else you’d like to know about.
Would you please take a look and choose one of the other. Please let us know which loan option you choose and why! What suggestions did you make? THIS IS YOUR CHANCE TO PROVIDE INPUT (which is totally rare for a government agency anyway!) Karen Deis, Publisher, www.MortgageCurrentcy.com (Reading the fine print–so you don’t have to!)
Email Notice From CFPB:
Since May, we have been asking you to help us improve mortgage disclosure. By comparing different draft forms, you’ve helped us understand how to communicate information more effectively.
Now we need you to do something just a little different.
This time we’ve posted just one version of a disclosure, but with two different mortgage loan products. We’d like you to look at them and decide which one you would choose.
Make your choice today:
www.consumerfinance.gov/knowbeforeyouowe
We’re shifting gears for a simple reason: Comparing two versions of a form is useful, but in the real world, consumers should be able to use disclosures to compare different loan offers, not different forms. An effective disclosure form should help people make the best decisions for themselves and their families.
We want to see how well this version of the form lets people do that. Can consumers use the form to choose the right loan for themselves and their families? Can lenders or advisers make a clear recommendation about the best loan?
Tell us which loan you prefer. Help us make mortgage disclosure forms easier to understand and use:
www.consumerfinance.gov/knowbeforeyouowe
Thank you for your help,
The Consumer Financial Protection Bureau
Benefits Of The USDA Rural Housing Mortgage Program
March 20, 2011 by Joshua Bucio · 6 Comments
The USDA (United States Department of Agriculture) mortgage program was created for low income families looking to buy a home in rural areas. This program has become more and more popular in recent years, because of the tightening of lender guidelines with conventional mortgage loans.
There are many benefits of a USDA Rural Housing mortgage loan, but these are the main benefits that makes this program one of the best mortgage loans available.
No Down Payment Required
This mortgage program still allows you to buy a home with no money down. It’s one of the only programs still available that allows 100% financing. This is a great benefit, because you can buy a home with very little money out of pocket. This leaves more money for home improvements and savings for future repairs of anything breaking down in the home.
No PMI Required
Conventional mortgages require a PMI (Private Mortgage Insurance) payment, in addition to the regular mortgage payment, if you don’t have a down payment of at least 20%. The USDA Rural Housing program doesn’t require PMI, even if you finance 100% of the purchase price. This is a huge benefit, since it keeps your mortgage payment low, while allowing you to qualify for a larger mortgage loan. No one wants to pay PMI, because it’s not applied to the principal balance or the interest you pay over the life of the mortgage loan.
Low Interest Rates
Even though you don’t have to put any money down with USDA Rural Housing mortgage loans, you will still receive a lower interest rate. Depending on your situation, typically, the interest rates are not much more than 0.5% higher than conventional mortgage loans. This is a great benefit in addition to not having to come up with a down payment and not having to pay PMI. A lower interest rate will save you tens of thousands in interest payments over the life of the mortgage term.
These 3 benefits alone will put you in a better position to buy an affordable home.
Learn more about Wisconsin Home Loans and other mortgage programs like the Rural Housing program.