Monday, July 30, 2012

Fannie Mae's HomePath Program Be Sure to Check Out This Great Opportunity

I want to make sure you know about a great program that's available to homebuyers around the country. When foreclosures occur on Fannie Mae-owned properties, Fannie Mae hopes to sell those properties quickly so the community isn't impacted too greatly. These properties are known as HomePath properties, and there are some great incentives in purchasing them. Highlights include:
  • 97% conventional financing
  • 3% down payment can be gifted/grant funds
  • No appraisal (sale price = value)
  • No PMI
  • 6% seller concession allowable over 90%
  • Investment property allows for higher LTVs
    • 90% - 1 unit
    • 80% - 2 unit
    • 75% - 3-4 unit OR if financing properties 5-10
The bottom line is that HomePath properties offer flexibility and opportunities to save some money. So, it may be worth your time to take a look at them.

Buying a home is a big decision, but even in today's markets great opportunities are available. If you want to learn more about HomePath opportunities in your area, call or email me anytime. I'm always happy to answer any questions you may have.

Saturday, July 28, 2012

Need a Smaller Down Payment?

While down payment requirements have increased for some programs, it is still possible to buy a home with less than 5% down…or even NO money down.

For example, FHA offers a loan program that requires as little as 3.5% down. In addition, the VA and USDA offer loans that require no down payment. Of course, there are restrictions with each of these programs that can include maximum loan amounts based on a home buyer's location with FHA loans, income and property requirements for those offered by the USDA, and a home buyer's qualifying status as an eligible Veteran.

In addition to those programs, keep in mind that many sellers in today's market are willing to offer concessions, such as paying part or all of the buyer's closing costs. That can decrease the amount of funds buyers may be required to have to purchase their next home.

The point is that it's still possible for millions of Americans to purchase a home with less than 5% down.

Monday, July 23, 2012

Pre-approved Buyers: Disaster-Proof Your Deal

A constriction in mortgage product offerings and the ongoing effects of the credit crunch have radically changed our business.

It's not all doom and gloom. There is still plenty of money available to creditworthy borrowers. But lender guidelines have tightened significantly, and the days of easy credit with no down payment and no documentation are all but over.

With this in mind, it's more important than ever for homebuyers to get pre-approved – not pre-qualified – in order to avoid the kind of painful last-minute surprises that can blow up deals.

With actual written documentation that proves the full support of a lender, pre-approved borrowers represent less risk to sellers and the Realtor. Of course, there is no way to guarantee a flawless transaction every time. But, by working together to bring pre-approved borrowers to the marketplace, we can preempt the major challenges and create a great experience for everyone involved.

If you have any questions about this or any stage of the mortgage process, please don't hesitate to call.

Tuesday, July 3, 2012

FHA Loans Facilitate Home Ownership

The Federal Housing Administration (FHA) program first began in 1934 in an effort to encourage home ownership despite the difficult economic times of the era. The program enables consumers who may not qualify for a standard loan to obtain the financing they need to purchase a home without income limitations.

FHA loans differ from typical loans in that they are insured by the Federal Housing Administration, which is a part of the Department of Housing and Urban Development (HUD). Because this insurance reduces the lender's risk on the loan, lenders have greater flexibility with regard to approving loans. For example, FHA loans are not as restrictive with minimum credit scores so a client may be able to obtain a loan despite having had credit problems or even a bankruptcy in the past. Alternatively, if a consumer does not have a significant traditional credit history, it may still be possible to obtain financing by documenting payment histories on items such as rent and utilities. Individual policies by lender may vary so feel free to call me for additional clarification.

FHA loans require a down payment of as little as 3.5% of the purchase price. The down payment may be obtained as a gift from a family member.  Also, FHA loans allow the seller to contribute up to 6% of the sale price in seller concessions.  This money can be used to go towards the total amount needed at closing from the borrower. 

FHA loans are processed just like any other loan, and they provide a wonderful opportunity for consumers who are seeking to achieve home ownership!  If you would like to know more about the FHA loan or any other type of home financing please do not hesitate to give me a call.

Monday, July 2, 2012

Happy 4th of July!

I hope you and your family have a very safe and happy Fourth of July!  Someone said: "Liberty is the right to choose, freedom is the result of choice."  I hope you have a chance to choose to reflect on all the freedoms we are blessed with in this country.  I hope this will motivate you to say thank you to the heroes that have risked everything to secure said freedom!  HAPPY FOURTH OF JULY!

If there is ever anything I might do for you please do not hesitate to give me a call!