FHA and Investor Specialist

Despite the contraction of the secondary markets, there are still stated income(w/ full asset verification) programs available(currently in NJ only) to those who qualify  for this type of financing in the vein of which it was originally intended: allowing for consumers who cannot prove their actual true income via their tax returns.  We offer this program on a brokered basis and the terms are subject to change without notice, just like everything else in this world we live in.

The basic parameters of the loan are as follows: 70% Loan to Value (30% down) for purchases and rate/term refinances up to $750,000 for credit scores of 720 and above.  65% Loan to Value (35% down) with credit scores of 700-719.  Cash-out refinances not allowed, and other qualification parameters apply as well. 

Basic rates for this program are competitive: 6%-6.5% range for short term ARM financing (3/1, 5/1, 7/1) and 30 Year Fixed rates, typically with 1 discount pt.

Michael Byrne     

www.refi-fhasecure.com

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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. Equal Housing Lender.  © 2008 Gateway Funding Diversified Mortgage Services, L.P.

Thanks to all of the fraudalent activity by consumers who have decided to walk away from their highly leveraged homes then purchase a new home using an FHA loan, HUD has changed their underwriting guidelines regarding rental income for recently vacated properties.  Basically, HUD will not consider using rental income from a recently vacated property.  Unfortunately, the dishonest acts of others will have negative consequences for those who may actually need to re-locate.

Why?  Because homeowners are walking away from their current home which may be upside down regarding what they owe, then purchasing a new home at the reduced market price across the street at the current reduced market value.  The consumer then stops making payments on their recently vacated home, and lets it go into foreclosure.  This is only exacerbating the current market unrest by adding another foreclosure to the market.  By claiming the rental income of their old property, this aids a buyer to hopscotch from an over-leveraged home to a similar home with a lesser mortgage.

I would guess many of the same folks who speculated, took negam arms, and the like are the ones screwing over the system once again.

Michael Byrne

www.refi-fhasecure.com

http://www.mortgageprosforum.com/sitemap.htm

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10. No Down payment required.

9.   Most closing costs can be included in the loan amount, if justified by the appraisal.

8.   One time MI Fee of 2%, then no monthly fee thereafter.

7.   Loans processed locally.

6.   Moderate Income required to qualify:  NJ Income Guidelines

5.   Many new and/or existing homes qualify.

4.   Many areas qualify in NJ:     NJ Area Eligibility

3.   Maximum loan amount determined by repayment ability.

2.   Sellers can contribute towards closing costs

1.   Your client gets one of the best 100% financing deals currently available!

• Based on information provided by The United States Department of Agriculture, Rural Development.  Clinton, NJ area office www.rurdev.usda.gov/nj in a flyer dated 8/27/2008.

Michael Byrne

www.refi-fhasecure.com

On November 15th, Randy Couture will return to the UFC to face upstart Brock Lesnar.  For those of you unaware, the now 45 year old, 225 lb. Couture had been involved in a contract dispute with the UFC and had "resigned" from the company, preferring to film a direct to video movie, run his gyms, and fight the UFC in court to breach the contract he had negotiated himself a year or two prior.  As Couture aged and his bank account dwindled, he decided to re-sign with the UFC and face Brock Lesnar on 11/15.

In the meantime, the 30ish, 280 lb. Brock Lesnar(who also had left the WWE and had a no-compete clause as well) has recently entered the sport of MMA, and is sporting a 2-1 record.  Lesnar was an NCAA Heavyweight Champion in College, and has a great enthusiasm for training.  Lesnar is the younger, bigger, stronger, and faster of the two.  Couture is a master grappler and gameplanner.

Who do you think will win?  I will post comments myself as the bout nears with updates.

Michael Byrne

www.refi-fhasecure.com

When talking to clients and professionals, we all get the opportunity to use some catchphrases and here are just a few that I have come to really dislike:

1. When giving loan terms: "Is that the best you can do?"- Gee, no, and I never sold used cars either.  I know the value of my time and effort, and don't need to be told what my time and effort is worth.  I suppose I could you ask you, Mr. Customer, how you feel about taking a pay cut at your job.

2. When giving loan terms: "Sharpen your pencil." - Thanks for the advice.  Usually not the consumer saying this. See above.

3. General "It's like anything else." - Actually if it were like anything else, there would be no need to differentiate it.

4. General "It is what it is."  - And that it is.

I am sure there are more, feel free to add a few.

Michael Byrne

www.refi-fhasecure.com

Sometimes, like when the 2nd appraisal done on a 70% LTV FHA refinance loan shows $2000 in deferred maintenance on an outdoor swimming pool, I am in the mood to strangle someone.  Watching MMA and occasionally training a bit is a good outlet and has fewer negative consequences as well.  So MMA is a good thing.

Last nights UFC Fight Night 15 confirmed some of the reasons I watch MMA more than other sports now: it is pretentious and I admire the grit of the competitors.  How can you not root for an over-matched Clay Guida gutting out a victory when on paper Mac Danzig is the more talented fighter?  Or how about Ed Herman losing a close fight to superior striker Alan Belcher, while pressing forward and trying to get the take-down while absorbing multiple jabs?  Or Nate Diaz, displaying unbelievable balance and transitioning seamlessly on the ground against a game Josh Neer?

I love my football and baseball, but there is just more drama in a short 15-25 minutes of an MMA bout that one can really lock into.  Football has it's moments, but they are fleeting and the celebrations and taunting afterwards are worn out.  MMA just has a certain amount of honesty: 2 people in a cage using multiple martial art disciplines to find a winner within 25 minutes.  No other sport can top that.

Michael Byrne

www.refi-fhasecure.com

     In today's ever tightening market, there are few products outside of the GSE and Government Loan Products.  One exception to that rule is a product still available in a brokered capacity that is a No-Doc Loan.  This loan is available in all counties in New Jersey, Connecticut, and Delaware.  This product is also available in limited counties in Virginia, Pennsylvania, New York, Massachusetts, and New Hampshire: contact me for details on availability.

     The good news about the product is that this loan is available all the way down to a 601 credit in some cases, and can be used for Purchases, Rate/Term Refinances, and Cash-out refinances(at lower LTV's).  The rates range from the mid 7's to 8% range on 3/1, 5/1 and 7/1 ARM terms.

     The bad news is that the maximum Loan To Value is 60% for a purchase and 55% for a cash-out loan.  LTV's get reduced down by 5% increments for numerous reasons.  

     So there you have it, No-Doc loans are still available, just not quite like they were a few years ago.   

Michael Byrne

www.refi-fhasecure.com

*programs subject to change without notice, not available to broker to 3rd parties.

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. © 2008 Gateway Funding Diversified Mortgage Services, L.P.

     Washington Mutual Bank is the next in a series of banks to be hit hard by the housing crisis.  As I had written before, WAMU's 360 Million Dollars in "earnings"  they have been in some trouble for a while.  Sunday's have become a big day for announcements as of late, and last Sunday their Cheif Executive was ousted.  Word is that JP MorganChase is in talks to purchase the nation's largest S&L, and I think it would be a great move by JP MorganChase to scoop up a rival at a discount and avoid any government takeover.  The downgrading of WaMU by several of the alrger credit agencies will make it very difficult for WaMu to recover, in my opinion. 

    If you are considering purchasing your first home, with rates low and inventory high, now may be the perfect time!  Remember, FHA Loans ,  VA Loans , and USDA Loans  are available to help first time buyers.

Michael Byrne

www.refifhasecure.com

While browsing the VA Mortgage website at http://www.homeloans.va.gov , I saw a press release from 6/12/2008 entitled: VA Reaching Out to Vets with Mortgage Problems.  According to the release, April 2008 Foreclosures were down by more than 50% of the level they were at in April 2003.  The nine regional centers which have VA Loan Counselors as well as prudent undwriting guidelines were attributed to the success of the VA loan program.  Apparently, a proactive approach helps to keep deliquencies down.  I saw another study that noted a surprisingly low number of delinquent conventional mortgage holders actually even make contact with their loan servicer.

It is interesting to note that most of the VA's loans are 100% financing, allow credit scores as low as 540 and delinquencies appear to be down in the current market.  Using an experienced lender also can be a benefit for a veteran utilizing their Guaranty as well.  Gateway Funding offers VA mortgage services with in-house Underwriting, processing, approval and closings. Gateway Funding has also been granted VA Automatic status from the Department of Veterans Affairs and has on staff underwriters with LAPP Authority to allow for faster, better, and easier appraisals

Michael Byrne

www.refi-fhasecure.com

http://www.mortgageprosforum.com/sitemap.htm

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Part of The $300 billion Housing and Economic Recovery Act of 2008 is a program designed to help consumers refinance their home loans into cheaper, government insured loan programs.  To qualify for the program, borrowers need to show a hardship(31% or more of their gross monthly income going towards mortgage payments) and that without assistance, they will soon go into default on their existing mortgages.  The program is only for owner-occupied loans and the loans need to have been originated between 1/1/2005 and June 2007.

The new "Short Refi" loans will be insured by FHA, and apparently banks will be given a benefit for forgiving a portion of the loan being paid off, although details were unclear.  There is no word on what programs will be available for responsible borrowers who took out loans they could afford and have kept current.

The real question is, will banks and servicers cooperate and get this program off the ground?

Michael Byrne

www.refi-fhasecure.com