FHA and Investor Specialist

Home Buyer Tax Credit -

Deadline Coming Soon

As we head into the spring home buying season, recent housing numbers and anecdotal evidence, suggests that home buying is beginning to pick up. One of the reasons for the increase in home sales, outside of lower prices and interest rates, is the $8,000 first time home buyer tax credit for new home buyers as well as the $6,500 home buyer tax credit for existing owners. This credit of course however, is nearing its deadlines as purchase contracts must be signed by April 30, 2010 and must close by June 30, 2010 in order to receive the credit.

For those that have interest in purchasing and obtaining the tax credit, now would be the time to act. Especially if you have concerns which may lengthen the process, such as credit or down payment issues that may affect the loan process.

In addition, there is also a negative in the positive that is increased buyers; that is a more difficult time in getting your purchase offer accepted. Home buyers and real estate agents in the current market have reported that multiple offers are common place on almost all bank owned homes in the current market. Meaning that it could take longer until you have your offer accepted, as you may end up having to bid on more than one property.

In addition, other transactions such as short sales, will typically take longer to close as well, as a third party bank must approve the sale.

What this all means is that this is certainly an opportune time to purchase, with the combination of affordability and tax credits in the current market for buyers. However, with the time length from start to finish of purchasing a home in the current market, April 30^th and June 30^th are a lot closer then it may seem. If you are looking to purchase, now may be the time to contact a mortgage broker to begin the prequalification process and real estate agent to begin searching for homes.

For more information on home purchase loan or refinance programs for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: info@strategicmtgaz.com or online at www.strategicmtgaz.com

8 Tips to Guide for Your Home Search

1. Research before you look. Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you'd be willing to spend each month for housing.

2. Be realistic. It's OK to be picky, but don't be unrealistic with your expectations. There's no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get prequalified for a mortgage. This will save you the heartache later of falling in love with a house you can't afford.

4. Don't ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.

5. Decide your moving timeline. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.

6. Think long term. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you'll buy as well as the type of mortgage terms that will best suit you.

7. Insist on a home inspection. If possible, get a warranty from the seller to cover defects for one year.

8. Get help from a REALTOR®. Hire a real estate professional who specializes in buyer representation. Unlike a listing agent, whose first duty is to the seller, a buyer's representative is working only for you. Buyer's reps are usually paid out of the seller's commission payment.

 

Dallas Chambers

RE/MAX Agents Realty

Office:  770-922-7777 X316

Cell:     770-595-1541

Web:  http://dallaschambers.agentsrealty.com

E-Mail:  dallasc@remax.net

Each Office Independently Owned and Operated.  All information deemed reliable but not guaranteed.

Since I'm a journalist as well as a realtor, I have the lucky happenstance to learn more about selected subjects, to write about them and to share my new knowledge with those who might want to know more as well.

I must confess that I was embarrassed until recently that I didn't know enough about the 203(k) loan and had never recommended one to any of my buyers. But when I met Sal Callarme of Continental Home Loans in New York, I know I had the opportunity to learn from someone who knows what he's talking about. 

Here is the lead from that article:

     "Most people don't know about the 203(k) loan," said Salvatore Callareme, a mortgage consultant with Continental Home Loans, reminding me that I've been hearing more about greater numbers of applications for this loan from individuals who want to purchase foreclosures, vacant properties and fixer-uppers in need of work, as well as those who want to upgrade or repair their currently-owned homes.

     The Section 203(k) loan program is offered by the U.S. Department of Housing and Urban Development (HUD) allowing an individual home buyer to finance the purchase of a property and to include the cost of its repairs through a single mortgage. Such loans are provided through HUD-approved mortgage lenders and insured by the Federal Housing Administration (FHA).

     The 203(k) program is particularly beneficial to moderate-income buyers because the down payment can be as low as three percent. The loan can be taken as a 15- or 30-year fixed rate mortgage or as an adjustable rate from an HUD-approved lender. The total amount of the mortgage is based on the projected value of the property after the renovation is completed, and the purchased property must be used as a principal residence for the buyer. A portion of the loan pays for the purchase of the home and the remainder is placed in an interest-bearing account and released in stages as rehabilitation is completed. 

To read the entire article, click the link below:

You Can Upgrade Your Home with a 203(k) Loan

 Bill Primavera is a realtor specializing in the upper Westchester and Putnam County markets of New York. Also he writes as The Home Guru in the Examiner Newspapers in the region.

If you want to know more about his practice, visit: www.PrimaveraHomes.com

 

The federal refinance program Home Affordable Refinance Program (HARP) designed to help borrowers with high loan to value ratio mortgages has received a one-year extension, now set to expire June 30, 2011.

The program was originally introduced February 2009, and has come to cover loans backed by Freddie Mac and Fannie Mae with loan to value ratios up to 125%. The program was designed to help qualified home owners with underwater loans refinance their deals in order to avoid foreclosure or short sales. According to the Federal Housing Finance Agency (FHFA), about 5 million homes would qualify for refinances under this plan.

Reasons for the extension were that continued instability caused by unemployment and a still unsteady economy warranted an continuation of the program in order to promote a healthier housing market,

 

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Christine Hynes

"Specialists in Preserving the American Dream"

Looking for help with a Loan or Loan Modification? Our California Loan Modification Attorneys are here to help! We have Attorneys available for all states!

 

I AM SEARCHING FOR A HOME BUT I REFUSE TO WORK WITH A REALTOR

I received a call from one of my many listings in Phoenix, Arizona. Personally, I put my cell phone number on every listing so people are able to call me directly on the weekends to receive the correct information on that particular listing. Hopefully, they will be writing an offer on that house. Anyway, this buyer quickly informs me that she has decided not to work with a Realtor and to find a home on her own. She continues to tell me that she has been looking for a over a year. Meanwhile, I quickly jump on my computer to look for listings in that area. I find out that she has been approved for FHA loan at $131,000. My listing was over that price point. She asked me if my seller was willing to go down in price. I told her to put in an offer and I present it. She later informs that the house might be out of the school district of her choice.

How many other buyers are out there just like this one? They think all they have to do is find the right house and put in an offer. She will be eaten by the sharks if she is not careful when purchasing a home. I was on the phone with her for about thirty minutes. She allowed me to send her a list of nine homes that match her criteria. It seems that I was beginning to earn her trust over the phone. I told her that I live in the area and I know other homes available that are not on the MLS. Perhaps, she would be interested in viewing the homes. She said she would be open to that suggestion. She has many options but needs to find the professional Realtor to find her a home.

I have decided to take on this challenge this week to find her a home. I want to regain her trust in the name behind Realtor. I will keep you informed of my progress this week.

Make the Call, Set the Plan, Do the Deal$!

Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities.  The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona.  You can listent to past shows, or stream on-line.

Phoenix Real Estate Resource Center

 

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  Are you aware how difficult it is to get a jumbo loan these days? If you are selling your jumbo loan sized home or listing one, what are you doing to make it easier for a long line of qualified buyers able to buy your home? 

One strategy you may want to consider is a seller carryback. A seller carryback is financing by the seller, usually in the form of a second mortgage. 

The easiest way to understand how a seller carryback works is to look at an example. Suppose you own a home worth $1 million. You owe $300,000. You plan to buy a new home for $1,500,000, and make a 25% down payment of $375,000. 

Assuming a sale price of $1 million minus 7% selling costs, you net $930,000. If you pay off your $300,000 loan, you can net $630,000. You only need $375,000 for the down payment, plus $25,000 for closing costs, moving expenses, and a little vacation after all this stress! Now you have $230,000 left over. What are you going to do with these funds? 

Suppose you offer a $230,000 seller carryback second mortgage. How does that benefit a buyer:

 

• A smaller down payment may be needed
• It takes the financing out of the jumbo category and puts it in the conforming category, which is easier to obtain
• It gets rid of the need for private mortgage insurance, which is an additional monthly cost to the buyer
• The buyer does not have to qualify for private mortgage insurance, which is very difficult these days

OK, you say, that is great for the buyer, but how does a seller carryback benefit me? Here's how:

• You get a higher yield than if you put the $230,000 in a low yielding account
• You have opened the door to a larger pool of qualified buyers to purchase your home, therefore
• You may be able to sell your home for a higher price because you have reduced the toughest barrier to purchase a home today, financing

Now that we have the benefits of a seller carryback, let's talk about implementation. First, let's talk about what the first mortgage lenders usually require with a seller carryback:

1. The term must be at least for 5 years
2. There must be monthly payments (no deferral of payments)
3. The payments must at least cover the interest
4. The interest rate charged must be a "market" rate (I interpret this to mean not way lower or way higher than the current market rates)

How do I make myself comfortable, you ask, that this buyer can make the payments? Well, the first mortgage lender will only approve the buyer if they are comfortable with the borrower's ability to pay. There is comfort in knowing that, especially today when almost all of the loans being approved are with full documentation.

To make yourself more comfortable, you can write into your contract that you reserve the right to have a mortgage originator of your choice review the buyer's loan application and package. Be specific - ask to review current paystubs, two years of tax returns and w-2s, the most recent two months of bank statements, and a credit report. 

Staging your home, marketing it with massive exposure, and making it accessible are all important factors in getting your home sold. Equally as important, and I think even more important in these days of difficult to obtain mortgage financing, is to have a financing strategy in place to make it easier to buy for a larger number of people. The seller carryback is one tool, the seller buydown is another.

Implement these strategies and sell your home fast for top dollar!

 

 

 Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me                                                                                                           

 

Look! Sitting at his desk! It's an accountant! No,it's a telemarketer! No, it's Your Buddy The Mortgage Broker!

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Q: How do I apply for a VA guaranteed loan?

A: You can apply for a VA loan with any mortgage lender that participates in the VA home loan program. At some point, you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.

Q: How do I get a Certificate of Eligibility?

A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility: You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request For A Certificate of Eligibility For Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service. In some cases it may be possible for VA to establish eligibility without your proof of service. However, to avoid any possible delays, it's best to provide such evidence.

Q: Can my lender get my Certificate of Eligibility for me?

A: Yes, it's called Web LGY. Most lenders have access to the Web LGY system. This Internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY - only those for which VA has sufficient data in our records. However, veterans are encouraged to ask their lenders about this method of obtaining a certificate.

Q: What is acceptable proof of military service?

A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from regular active duty after January 1, 1950, a copy of DD Form 214, Certificate of Release or Discharge From Active Duty should be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included. A PHOTOCOPY OF DD214 WILL SUFFICE.....DO NOT SUBMIT AN ORIGINAL DOCUMENT.

If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.

If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force National Guard, you may submit NGB Form 22, Report of Separation and Record of Service, or NGB Form 23, Retirement Points Accounting, or it's equivalent. If you were discharged from the Selected Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used by the Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.

If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing the length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.

Q: How can I obtain proof of military service?

A: Standard Form 180, Request Pertaining to Military Records, is used to apply for proof of military service regardless of whether you served on regular active duty or in the selected reserves. This request form is NOT processed by VA. Rather, Standard Form 180 is completed and mailed to the appropriate custodian of military service records. Instructions are provided on the reverse of the form to assist in determining the correct forwarding address.

Q: I have already obtained one VA loan. Can I get another one?

A: Yes, your eligibility is reusable depending on the circumstances. Normally, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property. In either case, to obtain restoration of eligibility, the veteran must send a completed VA Form 26-1880 to our Winston-Salem Eligibility Center. To prevent delays in processing, it is also advisable to include evidence that the prior loan has been paid in full and, if applicable, the property disposed of. This evidence can be in the form of a paid-in-full statement from the former lender, or a copy of the HUD-1 settlement statement completed in connection with a sale of the property or refinance of the prior loan.

Q: I sold the property I obtained with my prior VA loan on an assumption. Can I get my eligibility restored to use for a new loan?

A: In this case the veteran's eligibility can be restored only if the qualified assumer is also an eligible veteran who is willing to substitute his or her available eligibility for that of the original veteran. Otherwise, the original veteran cannot have eligibility restored until the assumer has paid off the VA loan.

Q: My prior VA loan was assumed, the assumer defaulted on the loan, and VA paid a claim to the lender. VA said it wasn't my fault and waived the debt. Now I need a new VA loan but I am told that my used eligibility can not be restored. Why?

Or,

Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

A: In either case, although the veteran's debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran's eligibility to be restored until the loss has been repaid in full.

Q: Only a portion of my eligibility is available at this time because my prior loan has not been paid in full even though I don't own the property anymore. Can I still obtain a VA guaranteed home loan?

A: Yes, depending on the circumstances. If a veteran has already used a portion of his or her eligibility and the used portion cannot yet be restored, any partial remaining eligibility would be available for use. The veteran would have to discuss with a lender whether the remaining balance would be sufficient for the loan amount sought and whether any down payment would be required.

Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?

A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. If you wish to make application for the home loan benefit as a surviving spouse, contact our Winston-Salem Eligibility Center. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of death), may obtain a VA guaranteed interest rate reduction refinance loan. For more information, contact our Winston-Salem Eligibility Center.

[NOTE: Also, a surviving spouse who remarries on or after attaining age 57, and on or after December 16, 2003, may be eligible for the home loan benefit. However, a surviving spouse who remarried before December 16, 2003, and on or after attaining age 57, must apply no later than December 15, 2004, to establish home loan eligibility. VA must deny applications from surviving spouses who remarried before December 16, 2003 that are received after December 15, 2004.]

Q: Are the children of a living or deceased veteran eligible for the home loan benefit?

A: No, the children of an eligible veteran are not eligible for the home loan benefit.

for more information on VA Mortgage & Home Loans call the VA Mortgage Experts at (253) 472-1500 Locally based in the Northwest serving homeowners since 1986  - Kevin Tinsley - All Tech Mortgage Inc. http://www.alltechmortgage.com

Kevin Tinsley
All Tech Mortgage.com

Tacoma's #1 Mortgage Expert - Since 1996
FHA | VA | Conventional Purchase & Refinance Home Loans
7403 Lakewood Dr W, STE 2
Lakewood, WA 98499

(253) 472-1500 Office
(800) 339-7059 Toll Free
(866) 421-1788 Fax
kevin@alltechmortgage.com
www.alltechmortgage.com