Are You One of the 19 States? USDA Refi Pilot Program!
February 13, 2012 by Karen Deis · 12 Comments
Good news. If you currently have a USDA loan, call me about the new refinance program.
- No credit report,
- no appraisal,
- no property inspections,
- no income verification.
- Last 12 months mortgage payments must be made on time.
- Interest rate must be 1% below current rate borrowers are paying now
With the issuance of AN4615 on February 1, 2012. USDA Rural Development announced a new refinance pilot program designed to help existing Section 502 borrowers, for both the 502 direct and 502 guaranteed loans, to refinance their homes with greater speed and ease. I like what RD is trying to accomplish under this new refinance pilot initiative but I wish it was available in all states, not just the 19 selected. You can bet that many states outside of this select group and those distressed homeowners living in them feel they are just as deserving.
Only 19 States Allowed in USDA Pilot Refinance Program – Additional States are not eligible at this time.
- Alabama,
- Arizona,
- California,
- Florida,
- Georgia,
- Illinois,
- Indiana,
- Kentucky,
- Michigan,
- Mississippi,
- Nevada,
- New Jersey,
- New Mexico,
- North Carolina,
- Ohio,
- Oregon,
- Rhode Island,
- South Carolina,
- Tennessee.
Eligible Borrowers: Current Section 502 Direct or Guaranteed Loan borrowers must:
- Meet current income eligibility requirements (Comment: While applicants for the program must still meet the income eligibility criteria, repayment income is technically not a factor in that an USDA RD grants an automatic ratio waiver)
- Reside in an eligible rural area or an area that was eligible at the time of the original loan closing (Comment: In other words, even if the area where the property is located is no longer eligible you can still refinance under this program); and
- A Rural Refinance Pilot loan may only include the principal balance of the loan plus a portion of or the full upfront guarantee fee. The applicable upfront refinance guarantee fee is 1.5 percent. No cash out is permitted to the borrower. Accrued interest, closing costs, lender fees, and late fees are not eligible to be part of the refinance loan. (Comment: This means that only the principal balance of the loan may be refinanced with only the 1.5% guarantee fee added to the loan amount. All other costs associated with loan must be either paid for by lender premium pricing or the borrower. In this case, I foresee many lenders pricing the loan in such a way as to allow them to pick up much of the borrowers closing costs. For the 502 direct program borrowers any subsidy recapture cannot be included in the refinance loan. RD however could subordinate the subsidy recapture amount)
- Rural Refinance Pilot loans must be manually underwritten. They cannot be processed through the Guaranteed Underwriting System.
Really detailed information can be found www.MortgageCurrentcy.com (Trial subscription $1 for 7 days)
If you are located in one of the 19 states, go through your database. This could be easier than HARP–especially if they “fit” the 1% rule and 12-month, on time payment requirement. Karen Deis, Publisher.
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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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.
Bill Would Open VA Loans to More Surviving Military Spouses
October 14, 2011 by Chris Birk · Leave a Comment
A House bill passed this week would increase access to the VA home loan program for surviving spouses of permanently disabled veterans.
Dubbed the Disabled Veterans’ Surviving Spouses Home Loans Act, the proposed legislation would eliminate the requirement that only spouses of veterans whose death is attributed to a service-connected disability may qualify for a VA loan.
Instead, the bill would provide loan eligibility to spouses of permanently disabled veterans whose deaths are not necessarily attributed to their service-related disability. It passed by a 418-6 vote as part of the Veterans Opportunity to Work Act.
“As we approach Veterans Day, we should ask ourselves if this Congress doing all that can be done for our veterans,” U.S. Rep. Virginia Foxx, R-N.C., the bill’s sponsor, said before the House vote. “This bill maintains our promise not only to the men and women that have served in the Armed Forces, but to their families as well.”
The change would provide loan eligibility to thousands of military spouses.
A series of veterans organizations came out in favor of the bill, including Veterans of Foreign Wars, the American Legion and Disabled American Veterans.
More than 18 million Americans have used the VA loan program to become homeowners since 1944. The program has become increasingly important in recent years as lending requirements have tightened.
VA loan volume has increased 135 percent since 2007. Last year, the agency guaranteed 314,011 loans last year, including about 1,000 to surviving spouses.
You think that you have it hard?
July 25, 2011 by Doug Adamczyk · 1 Comment
In life and in business we often come up against challenges and obstacles. No matter what we do, no matter how well prepared we are, the monster will rear its ugly head at the worst possible moment!
For those of us in the mortgage business, that ugliness appeared around the end of 2006. Since then, it has been a struggle to stay in business. And for those of us that have survived thus far, five years later, it remains a struggle.
How can you survive when faced with challenging obstacles? How can you overcome the demons that want to possess your life and your heart and stop you dead in your tracks?
Often times we think that success is because of luck. We think that if we are lucky enough, we will succeed through a challenge. But luck has nothing to do with it. It is even simpler than luck. How you handle your life, your business, and your family is based on one simple thing…
Your Attitude!
Your attitude is your first line of defense for any situation. And it is as simple as saying “self, what are you putting in your head?”
What you say and what you do (thoughts and actions) will have a greater affect on your outcome than how you do it. Your brain is a very powerful weapon in your arsenal of defense. It will process multiple situations at a time. Often, you do not even realize all of the thoughts that you are putting into your brain to process.
If you have lots of negativity and doubt, your brain will process that. And watch out! Because you will speak, sound, and reflect of negativity.
If you are positive, upbeat, focused, and driven, your brain will respond positively to those and your reflections will be positive.
So look in the mirror. How is your attitude? Will you be defeated today or will you win?
A colleague of ours, a friend and teacher of many in our industry, is facing the hardest challenge of his life. The meltdown in the industry was not able to take him down. Personal family relationships could not defeat him. And now he has to face another battle. A battle most of us have never had to face. Our friend, our colleague, Dustin Hughes, has been diagnosed with cancer. Specifically, brain cancer – stage 4 Glioblastoma Multiforme. This is an aggressive form of cancer with a low prognosis for survival.
You think that your attitude is bad? You think that you deserve a pity party? Dustin is 35 and has three young children.
Dustin is entitled to have an attitude! And let me tell you, he does! His attitude is on fire! His attitude is that he is going to kick his cancer in the ass and he is going to survive! Dustin is already a winner!
If you do not know Dustin or if you have not read his story, send a friend request to him – you need to read it! His attitude shines right through. This is someone that is entitled to be down. Yet, he has chosen to accept the challenge and defeat it!
Please join us in supporting Dustin, Tracy, and their children in this fight. Click here to join the Hughes’ Troop.
If you can, please support Dustin financially by clicking here. An online page has been set up to help Dustin and his family. Any amount, at any time, will be helpful.
And when you are faced with your challenge, remember, your positive attitude is what will get you through it! Keep up the fight. And keep up the POSITIVE attitude!
VA Promotes Relief for Homeowners Affected by Tornadoes
May 9, 2011 by Chris Birk · 2 Comments
The VA is urging its approved lenders to provide relief to military borrowers affected by the tornadoes that devastated Alabama, Arkansas and other parts of the country in April.
The agency issued a circular in early May to help those whose homes were damaged or destroyed and families of those injured or killed in the storms. Thousands of homes and businesses were ravaged by dozens of tornadoes that roared through the South.
Among the salient points:
- The VA encouraged mortgage servicers to waive any late charges or fees for borrowers in affected areas. It also suggested that servicers stop credit reporting on veterans whose homes, families or livelihoods have been impacted. The agency isn’t penalizing servicers for late default reporting.
- There’s a hope that lenders will abide by the VA’s suggested 90-day moratorium on starting new foreclosure proceedings against borrowers in affected areas.
- Lenders and servicers are expected to work closely with borrowers to determine their needs and what type of forbearance would likely prove most helpful and effective.
- National Guard members are being activated in some communities to help with recovery efforts. The VA is asking lenders to be mindful of those Guardsmen in the coming weeks and months, as they can experience financial stress during times of extended activation.
The agency put forward a similar message last September in the wake of the Gulf oil spill. Borrowers in need should contact their mortgage servicer as soon as possible. They can also contact their nearest VA Regional Loan Center by calling 1-877-827-3702.
Borrowers don’t need to have a VA loan to utilize the agency’s counseling services.
Military Members Can Still Secure Home-Buying Tax Credits
March 8, 2011 by Chris Birk · 3 Comments
The home-buying tax credits that helped the sagging real estate industry stay afloat last year are still available to one final group of prospective buyers: Active duty military members.
But time is running out, which means real estate professionals should jump at the opportunity, especially in military-rich parts of the country.
Service members who served at least 90 days on extended duty from January 2009 through April 2010 may be eligible for the $8,000 credit for first-time buyers or the $6,500 credit for existing homeowners. Service members have until April 30 to sign a purchase agreement and until June 30 to close on the home.
They also face the same general requirements that civilians did, including:
- The purchase price cannot exceed $800,000
- Buyers must be at least 18 years old
- Individuals can’t have an income greater than $125,000; married couples filing taxes jointly can’t have a combined income greater than $225,000
- First-time buyers cannot have owned a home in the last three years
The requirements for the $6,500 credit are the same, except that buyers must have lived in their current home for five of the last eight years.
Thousands of veterans and active duty service members serving in Iraq, Afghanistan and other destinations abroad may be eligible for these tax credits. They can be claimed no matter the loan product.
For many prospective buyers, the VA Loan Guaranty program may represent the most cost-effective path to homeownership. These government-backed loans come with no down payment and feature flexible credit and underwriting standards. VA loan rates are typically lower than conventional rates, and VA loans have no private mortgage insurance or prepayment penalties.