FHA and Investor Specialist

I would like to make a special note of thanks to fellow activerain member  Veronica "Bonnie" DeCarolis for helping my wife and I purchase our first home together in Flemington, New Jersey.  My wife was starting a new position and we needed to relocate, albeit just 40 miles.  We were not particularly familiar with the area.  Bonnie was patient, listened to us, and knew the area well.  Bonnie helped us find a town home that fit our needs and budget, and was always available to answer questions throughout the process.  The whole process from offer to closing went smoothly.

Once again, thanks Bonnie!

Michael Byrne

www.refi-fhasecure.com

With the secondary market having contracted, it is often difficult to find financing for Non-Fannie Mae loan programs.  I am pleased to announce Gateway Funding is now offering a great Jumbo ARM program in the States of Connecticut, New Jersey, and Delaware, as well as in selected counties in Pennsylvania.(Berks, Bucks, Chester, Lehigh, Montgomery, and Northhampton only)

Highlights of this program include full doc loans on single family, primary residences of up to a 75% LTV to 1,250,000, and up to a 70% LTV to 1,500,000.  These LTV's are good for Purchases, Rate/Term Refinances, and Cash-out Refinances.  The minimum credit score for these loan programs is 680.  As always, certain restrictions apply and this does not constitute a commitment to lend.  Available to qualified applicants only.

 All in all, this is a great program for Jumbo loans!

Michael Byrne

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Gateway Funding Diversified Mortgage Services, L.P. is licensed by the PA Department of Banking as a first mortgage banker and licensed pursuant to the PA Secondary Mortgage Loan Act; Arkansas Mortgage Company License; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act; DC Mortgage Lender and Broker; a Georgia Residential Mortgage Licensee (#15499); Illinois Residential Mortgage Licensee; Kansas licensed Mortgage Company; Massachusetts Mortgage Lender and Broker (#MC-3052); Licensed by the New Hampshire Banking Department (#10192-MBB); Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker NYS Banking Department; a Mortgage Lender and Broker in Rhode Island; Gateway Funding is also authorized or exempt as a mortgage banker in AL, CO, CT, DE, FL, IN, IA, ME, MD MI, MN, MO, MT, NE, NV, NM, NC, OH, OK, OR, SC, TN, TX, UT, VT, VA, WV, and WI. This is not an offer to extend credit to any individual who may be entitled to a more complete disclosure per RESPA, TILA, HOEPA or any other more applicable federal, state or local law or regulation, Rates, Terms, Fees and Equity requirements are subject to change without notice. For qualified borrowers only. © 2006 Gateway Funding Diversified Mortgage Services, L.P.

One of the great things about the VA loan program is that there are limitations on the "junk" fees allowed by the way to be passed on to the borrower.  One item of note is that the VA does not regulate the interest rate or discount points on this program.  It is important to compare the pricing on the loan, as well as charges by third party providers.

 Here are a basic list of allowable and non-allowable closing costs for VA Loans*:

VA Allowable Closing Costs

-Discount Points

-Title exam fee, including tax and assessment search

-Flood Cert.

-EXACT amount charged for appraisal and credit report

-Attorney or Settlement agent fee

-Title insurance policy

-Pest inspection (must be paid for by seller unless veteran agrees in writing to pay for it)

-interim interest

-First Year Hazard Insurance Premium(and flood insurance if applicable)

- Tax and insurance escrows

Non Allowable VA Closing Costs

-Tax service fee

-Application fee

-Document Preparation fee*

-Underwriting fee*

Once again, the VA loan program is a great way to provide financing for Veterans.

Michael Byrne

www.refi-fhasecure.com

www.vamortgageassistance.com

*The doc prep fee and u/w fees can be charged to the seller.  Charges can vary by state and subject to guideline changes by the VA.

With the fallout of the secondary market and collapse of virtually every subprime lender, it appears that private hard money lenders are grabbing a larger market share of the mortgages funded these days.  As a mortgage loan officer, I have been compiling a database of private hard money lenders and their respective niches. 

My question is how have other loan officers been faring with referring clients out to hard money lenders, and is this a market you have been pursuing?  It appears there is demand for the product. 

Thanks, 

Michael Byrne

www.refi-fhasecure.com

Recently, my division put up a website dedicated to provided information to veterans regarding the VA Mortgage Loan.  The site is here.  Hopefully this will help veterans understand how to utilize their VA Certificate of Eligibility to purchase their first home, refinance their existing loan, or use the benefit for a subsequent use . 

One of the benefits of the VA loan is that there is no monthly mortgage insurance payment.  Instead, there is a one time funding fee which can either be financed into their loan or paid upfront.  Most veterans opt to finance the funding fee.

Here is a basic guide to the VA Funding Fee*:

* 

Our division's VA site is a work in progress, and any feedback is appreciated.  Once again the site is listed at www.vamortgageassistance.com .

Michael Byrne

www.mortgageprosforum.com

*As always, the market is constantly changing.  Check with your lender at time of application for specific fees for your loan.  Not an offer to lend.

     There is an old phrase that goes: "You can only keep what you have by giving it away" which in my mind means that if you take the time to teach another person something that you are knowledgable about, it will serve to reinforce what you already know.  On another level, it also goes along with the saying "What goes around comes around" but in a more positive way than that phrase often is used.

     So the question is: do you take the time necessary to show a new person the ropes, or are you the type of person that is "too busy"?  Obviously, this site has numerous people in the business of "giving it away" on a regular basis and I have been the recipient of many of those gifts.  Just today, however, I was walking someone through some basic steps of setting up an online account on a newtworking site and caught myself getting frustrated.  I had to remind myself of that very phrase "You can only keep what you have by giving it away".  On a business level as well, it is important to share knowledge with customers, vendors, and  referral sources alike as well.

     Just my thought for the day.

Michael Byrne

www.mortgageprosforum.com

This is my 100th blog post, and to celebrate I customized my background using the activerain customizer.  It was really easy and the site is located here http://www.activeraincustomizer.com/ , or simply click on the icon listed just below my picture and links.  Check it out if you haven't already.

Next, I think I will try for the third time to incorporate the RSS feature to post to my outside blog.  Any suggestions on how to set that up would be much appreciated!

Michael Byrne 

Check out our new VA Site here.

Recently, my company put up a website dedicated to provided information to veterans regarding the VA Mortgage Loan.  The site is here.  Hopefully this will help veterans understand how to utilize their VA Certificate of Eligibility to purchase their first home, refinance their existing loan, as well as how to utilize one's VA benefits for a second time. 

The site is a work in progress, and any feedback is appreciated.  Once again the site is listed at www.vamortgageassistance.com .  We sincerely hope this will provide a service to VA eligible clients and help educate prospective clients. 

Michael Byrne

www.mortgageprosforum.com

     With Fannie Mae implementing risk based credit scoring adjustments that have an effect on borrowers with as high as a 719 credit score, it is important for borrowers to know what impacts a credit score outside of a clean pay history.  In the "old" days, if someone had no late payments there really was no cause for worry, but with today's credit score adjustments, a few points on a credit score can cost quite a bit of money. 

     Here are a couple ways someone who pays on time can have a lower credit score:         

     -Maxed out credit card balances. As I had written previously here: Outstanding Credit Balances and Your Credit Score , having a balance on a credit card higher than 70% of the credit limit can impact your score negatively.  Try to keep your balances under 70% of the limit.  Keeping them under 30% is even better.

      -Avoid consolidating credit cards into one balance prior to applying for a mortgage.  Same reason as above.

      -Make sure you have the right "mix" of credit: if you have only revolving debts, you may want to establish a small installment loan with a bank.  Lack of installment loan debt can hurt your score.

      These are a couple ways you can increase your credit rating a few months before purchasing or refinancing your home.

Michael Byrne

www.mortgageprosforum.com

With government's HR 3221 bill being passed, I think that now is a great opportunity to get some free advertising by writing a series of informative articles about various government sponsored loan programs for several local newspapers.

I am curious if others have written articles giving information on a program and what the response was from the public as well as the editors of the newspapers.  I do not plan on writing an "info-mercial": just tinkering with 4 basic programs offered by the government.  The four examples are Reverse Mortgages: Senior Lending: Reverse Mortgages-The Basics , FHA: FHA Secure Product Now Available to the Public! , VA Loans: Back to Basics Mortgage Financing-VA Home Loans , and USDA Loans:  USDA to Create Additional Funding .

I already sent an email to the editor of my local paper and have an appointment to speak him.  Any suggestions and/or recommendations?

Thanks,

Michael Byrne

www.mortgageprosforum.com