FHA and Investor Specialist

Stated Income Mortgage: Despite the contraction of the secondary markets, there are still Stated Income Mortgage (w/ full asset verification) programs available (currently in NJ, CT, and certain counties of NY only) to those who qualify for this type of financing in the vein of which it was originally intended: allowing for self-employed consumers who cannot prove their actual true income via their tax returns.  We offer this program on a brokered basis and the terms, rates, and guidelines are subject to change without notice, just like everything else in this world we live in today.  Mortgage Brokers: This program is offered by my company direct to consumers only and not by my company on a wholesale level. 

The basic parameters of the Stated Income Mortgage loan are as follows: 70% Loan to Value (30% down) for purchases and refinances up to $750,000 for recommended credit scores of 700 and above.  This program is not so much credit score driven, as the whole credit picture is taken into consideration.  A high credit score lacking the necessary credit tradelines and credit depth may not be seen as favorable.  55% Loan to Value (45% down) with loan amounts up to 1,000,000.  A 50% Loan to value is available up to a loan amount of $3,000,000.

This program, once again, is designed for the borrower who truly cannot document their true earnings, thus the name Stated Income Mortgage.  Assets are documented and are expected to be consistent with the income stated.  By self-employed, a consumer is expected to show a corporate type structure, rather than simply some Schedule C income on a tax return to count as self-employed.  This is not a traditional "liar's loan".  Expect the appraisal and appraisal review to be on the conservative side, but not unreasonable.  A typical requirement for the Stated Income Mortgage verification of self-employement is a letter from your CPA or Tax Preparer, coupled with proof of incorporation.

Basic rates for this Stated Income Mortgage program are competitive: 4.75%-6.5% range for short term ARM financing (3/1, 5/1, 7/1, and 10/1) to 15, 20 and 30 Year Fixed rates, typically with 0-1 discount pt.  Rates can vary by loan amount, loan-to-value, and State, and are subject to change without notice.  For more information about this product and other available programs, please contact me directly at 908 531 6170.

FHA Reverse Mortgage: If you are 62 or older and own your own home, you may qualify to continue to live in the comfort of that home while receiving monthly cash advances and long term financial security.  FHA Reverse Mortgage gives you a simple way to unlock the equity in your home without having to sell, move, or take out a traditional home equity loan. 

FHA Reverse Mortgage, or a The Home Equity Conversion Mortgage (HECM) is a special type of home loan called a reverse mortgage, and is backed by the Federal Housing Administration.(FHA)  An FHA Reverse Mortgage loan enables you to tap the equity in your home and unlike traditional home loans, a HECM actually pays you.  Best of all, a FHA Reverse Mortgage  requires no repayment of monies received as long as you occupy your home as a primary residence.  There are no income or credit requirements as well.

With that said, there are some important things to be aware of regarding a FHA Reverse Mortgage, particularly in terms of upfront and monthly costs.  Some important points:

          •1. Owner Occupied, Primary Residences Only.  If you no longer reside in the home that has a reverse mortgage, you may be required to pay off the loan.

          •2. HUD fees are a 2% MIP- Mortgage Insurance Premium upfront which is due at closing.  This amount is based on the max claim amount. A.5% monthly fee is also assessed each month.  Closing costs are usually 4-5% of the maximum claim amount. 

          •3. The maximum claim amount is the lesser of the county 203b loan limit or the property appraised value.

          •4. All borrowers must be at least age 62 or older, and a citizen or a legal resident to qualify.

          •5. All borrowers must receive credit counseling, and a list of 10 credit Counseling Agencies must be provided to the client.

An FHA Reverse Mortgage allows for different payment plans, or payout plans depending on how you look at it.  A client can request a lump sum payment, or a line of credit, or even a monthly payment for as long as the property is occupied by the client.  The different plans can be modified as well, whereby a client can receive a small lump sum at closing and a monthly payment. Or a client could have a line of credit coupled with a monthly payment.  It is important to discuss your options that you feel would work best for you.

A newer development as well is a consumer may be able to purchase a home utilizing an FHA Reverse Mortgage as well, given they have a large enough down payment.  This is a great way for a c onsumer to downsize and reduce expenses significantly.  The down paymnet varies, but is generally approximately 50% of the purchase price.

An FHA Reverse Mortgage is not for everyone 62 or older, but in many cases it can provide the necessary cash flow, give the client the ability to make home improvements, or simply have an available line of credit to continue to live independently.  If you would like more information for yourself, a loved one, or if you are a financial planner or an attorney advising a  client; please feel free to contact me directly at 908 531 6170 or naitch6203 at yahoo dot com.

USDA Mortgages in CT with 100% financing are still available.  This is a great loan program for qualified Connecticut properties to qualified applicants with moderate income and little to no down payment.  As I had written previously in this blog: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program the USDA Mortgages in CT program is a great loan for rural and even some not-so-rural areas that qualify for the USDA program. Connecticut still has many areas that qualify for the RD Loan.   

If you have a listing or are selling your home and it qualifies location-wise for an RD loan, this also can be a great tool to market a property.   Everybody wants to get a bargain and /or a deal, and offering special financing is one way to create some sizzle.  "100% financing available to qualified buyers" with USDA Mortgages in CT is an attention getter.  The beauty of 100% financing for USDA Mortgages in CT is that it expands the pool of folks who could possibly purchase your home.

Every County in Connecticut, even Hartford and Fairfield Counties, has at least a portion of eligible locations.  Click here to look at a map of eligible areas in Connecticut for USDA financing.  All Counties, with the exception of Windham County, have at least some ineligible areas as well, so be sure to consult the site first.

There are property location restrictions for the USDA 100% financing program. According to USDA website's eligibility map listed here: Much of Connecticut is eligible for financing.   Check the website and also with a qualified loan officer for further details for information on USDA Mortgages in CT Keep in mind, both the property (based on location) and the borrower (based on income) need to qualify to be eligible for consideration for this loan program.   

The other qualification restriction is income based.  The income limits for the 100% Section 502 Guaranteed Rural Housing Program are listed here: Income Eligibility  According to the chart, a family of 2's maximum annual income would be $95,400 for the Section 502 Guaranteed Rural Housing Program in Hartford County.

There is a financed fee similar to the VA funding fee for this program, and there are credit qualifications-620 minimum fico- and property qualifications as well.

Once again, this a great program for 100% financing USDA Mortgages in CT.  For more details, contact Michael Byrne at 908-531-6170

USDA Mortgages in PA with 100% financing are still available.  This is a great loan program for qualified Pennsylvania properties to qualified applicants with moderate income and little to no down payment.  As I had written previously in this blog: Need 100% Financing? Try the USDA Guaranteed Rural Housing Loan Program the USDA Mortgages in PA program is a great loan for rural and even some not-so-rural areas that qualify for the USDA program. Pennsylania still has many areas that qualify for the RD Loan.  In the greater Philadelphia area, only Philadelphia and Delaware Counties have no eligible locations for this program.  Western PA has a number of eligible areas as well.  Even Allegheny County(Pittsburgh area) has some eligible areas on the edge of the County.

If you have a listing or are selling your home and it qualifies location-wise for an RD loan, this also can be a great tool to market a property.  "100% financing available to qualified buyers" with USDA Mortgages in PA is an attention getter.  The beauty of 100% financing for USDA Mortgages in PA is that it expands the pool of folks who could possibly purchase your home.

There are property location restrictions for the USDA 100% financing program. According to USDA website's eligibility map listed here: Much of Pennsylvania is eligible for financing.   Check the website and also with a qualified loan officer for further details for information on USDA Mortgages in PA Keep in mind, both the property (based on location) and the borrower (based on income) need to qualify to be eligible for consideration for this loan program.  Many other Counties such as Lehigh, Bucks, Montgomery, Northampton, Monroe, and Pike Counties (as well as others) have a great deal of eligible areas.

The other qualification restriction is income based.  The income limits for the 100% Section 502 Guaranteed Rural Housing Program are listed here: Pike County Income Limits  According to the chart, a family of 2's maximum annual income would be $78,400 for the Section 502 Guaranteed Rural Housing Program.

There is a financed fee similar to the VA funding fee for this program, and there are credit qualifications-620 minimum fico- and property qualifications as well.

Once again, this a great program for 100% financing USDA Mortgages in PA.  For more details, contact Michael Byrne at 800-999-2489 x7972 or 908 531 6170.

Delaware  FHA Cash-Out Refinance, is often the best route for borrowers in the State of Delaware to go when refinancing their homes to consolidate debt, pay off a 1st and 2nd mortgage (be it a home equity loan, line of credit, or equity note), or to simply pull out some cash.  Cash can be used for any reason, be it for home repairs, investments, debt consolidation, or college tuition.  The main reason a Delaware FHA Cash-Out Refinance often makes the most sense is because Fannie Mae loans often have  high pricing adjustments for credit scores falling under 740, and loan to values over 60%.  With a Delaware FHA Cash-Out Refinance, fewer pricing hits apply all the way up to a loan against 85% of a home's value.

FHA Loan limits in the State of Delaware have increased in many areas as well for 2009. The current single family FHA loan limits are as follows:  New Cast County: $420,000, Kent County: $376,250, and Sussex County: $376,000.  Check here for FHA and Fannie Mae loan limits in your County in Delaware, or anywhere else in the US. 2-4 Unit Properties have a higher loan limit.

 Many consumers here Delaware FHA Cash-Out Refinance and the first thought many consumers have is "I don't want monthly mortgage insurance and I don't want a Mortgage Insurance Premium of 1.75%".  While it is true you WILL have both monthly MI and a Mortgage Insurance Premium on ALL 30 Year Delaware FHA Cash-Out Refinances, even those below an 80% Loan to Value, it may be more cost effective to go with an FHA Cash-Out Refinance rather than a traditional Fannie Mae loan.  Here are a couple examples based on pricing as of 9/11/2009*:

#1: 30 Year Fixed Rates, 200k loan, 250k Home Value, Credit Score 639

FHA Loan                   5.25% (5.83% APR)    0 pts  1.75% MIP  .55% Monthly MI 

Fannie Mae Loan          5.625%(6.068 APR)    4pts    N/A   MIP   NO MI

Fannie Mae pricing adjustment: 5.75 points, credit score under 640 to an 80% LTV

#2: 30 Year Fixed Rates, 200k loan, 250k Home Value, Credit Score 675

FHA Loan                   5.25%  (5.79% APR)    0 pts  1.75% MIP  .55% Monthly MI 

Fannie Mae Loan          5.625%(5.88% APR)    2.5pts N/A   MIP   NO MI

Fannie Mae pricing adjustment: 4 points, credit score under 680 to an 80% LTV

These 2 cases can be argued to be a bit extreme, but the point is made: rates advertised often for Fannie Mae rates often don't take into account credit score adjustments made on loans these days.  Couple this with the fact that FHA loans allow for a Delaware FHA Cash-Out Refinance up to 85% of a home's value and allow credit scores as low as 620 currently, and you will find an FHA loan will benefit more consumers.  Another option gaining more notice as of late is the FHA 5/1 ARM as well, which offers interest rates in the 4's currently for Delaware FHA Cash-Out Refinance financing as well.

If you are considering refinancing, contact a mortgage professional who knows their way around the guidelines and pricing adjustments for various programs.

* Not a commitment to lend.  Other programs available.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MO,MT, NJ, NY,PA,TX,SC,VA

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Pennsylvania Jumbo Mortgage Rates: Our true jumbo mortgage rates continue to trend downward this week in all counties of Pennsylvania.  Despite the 2009 conforming loan limit remaining at $417,000 to $420,000 in Pennsylvania, we still are able to offer affordable financing to qualified borrowers for purchases as well as refinances for jumbo loans over the current conforming loan limit in your particular county.  My company, First Interstate Financial Corp., currently has established broker relationships with several investors that allow us to offer excellent Pennsylvania Jumbo Mortgage Rates. 

Currently we have the following Pennsylvania Jumbo Mortgage Rates with 0 points as of business close on 9/21/2009*:

30 Year Fixed 5.625%             5.81% APR (Fixed Program available in Lehigh, Montgomery, Delaware, Chester, and Bucks Counties only)   

10/1 ARM      5.125%             5.17% APR (not available in Philadelphia County)      

7/1 ARM         4.5%                4.55% APR                                            

5/1 ARM         4.125%            4.18% APR

 *Please call for specific quotes*,  due to market fluctuation and guidelines and county product availability your Pennsylvania Jumbo Mortgage Rates can vary depending on your particular scenario.  The main take-away is that there are jumbo loan programs available to fit your needs, even in our current lending environment.

Our Pennsylvania Jumbo Mortgage Rates can vary from the low 4% range to mid 5% range, depending on whether you are looking for a higher loan-to-value or a fixed rate or adjustable rate loan.

Typical minimum FICO scores for Pennsylvania Jumbo Mortgage Rates range from 680 to 720, depending on the loan program and scenario.  FICO scores are considered to be more a general indicator for this program, and the overall credit picture is reviewed more so than simply a number.  Please consult with me to determine the best available program for your needs.  Loans are for Full Doc loans only, and are subject to verification of post closing assets and full underwriting by our investor(s).

Currently we can offer loan to values of up to 70%-80% on purchase money/rate term/cash-out refinances to $800,000, up to 65%-75% on purchase money/rate term/cash-out refinances up to $1,500,000, and up to 60%-70% Financing to $2,000,000.  There are also great programs for second home financing, both in Pennsylvania and in other locations.  Loan-to-values depend on the specific program you are qualified for and rates can vary above a 60% Loan to value.

We also offer competitive pricing on FHA, VA and Conventional Loans in PA, as well USDA loans in qualified RD areas. The USDA program is particularly helpful for first-time homebuyers.  This program is slowly becoming my favorite loan program.

* Not a commitment to lend.  Other programs available.  Jumbo Loans are a brokered product.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MI,MO,MT, NJ, NY,PA,TX,SC,VA.  Check for availability within your market area, as some products are restricted.

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New York Jumbo Mortgage Rates: Our true jumbo mortgage rates continue to trend downward this week in all counties of New York.  Despite the 2009 conforming loan limit remaining at $417,000 to $729,000 in New York, we still are able to offer affordable financing to qualified borrowers for purchases as well as refinances for jumbo loans over the current conforming loan limit in your particular county.  My company, First Interstate Financial Corp., currently has established broker relationships with several investors that allow us to offer excellent New York Jumbo Mortgage Rates. 

Currently we have the following New York Jumbo Mortgage Rates with 0 points as of business close on 9/21/2009*:

30 Year Fixed 5.75%              5.81% APR (Fixed Program available in Columbia, Dutchess, Nassau, Orange, Putnam, Richmond, Rockland, Suffolk, and Westchester Counties only)          

7/1 ARM         4.5%                4.55% APR                                            

5/1 ARM         4.125%            4.18% APR

 *Please call for specific quotes*,  due to market fluctuation and guidelines and county product availability your New York Jumbo Mortgage Rates can vary depending on your particular scenario.  The main take-away is that there are jumbo loan programs available to fit your needs, even in our current lending environment.

Our New York Jumbo Mortgage Rates can vary from the low 4% range to low 6% range, depending on whether you are looking for a higher loan-to-value or a fixed rate or adjustable rate loan.

Typical minimum FICO scores for New York Jumbo Mortgage Rates range from 680 to 720, depending on the loan program and scenario.  FICO scores are considered to be more a general indicator for this program, and the overall credit picture is reviewed more so than simply a number.  Loans are for Full Doc loans only, and are subject to verification of post closing assets and full underwriting by our investor(s).

Currently with loan to values of up to 80% on purchase money/rate term/cash-out refinances to $800,000, up to 75% on purchase money/rate term/cash-out refinances up to $1,500,000, and up to 70% Financing to $2,000,000.  There are also great programs for second home financing.  Loan-to-values depend on the specific program you are qualified for and rates can vary above a 65% Loan to value.

We also offer competitive pricing on FHA, VA and Conventional Loans in NY, as well USDA loans in qualified RD areas. Stated Income programs are also slowly making a comeback as well.

* Not a commitment to lend.  Other programs available.  Jumbo Loans are a brokered product.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MI,MO,MT, NJ, NY,PA,TX,SC,VA.  Check for availability within your market area, as some products are restricted in the 5 Boroughs and Upstate NY.

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Connecticut Jumbo Mortgage Rates: Our true jumbo mortgage rates continue to trend downward this week in all counties of Connecticut.  Despite the 2009 conforming loan limit remaining at $440,000 to $708,500(Fairfield County) in Connecticut, we still are able to offer affordable financing to qualified borrowers for purchases as well as refinances for jumbo loans over the current conforming loan limit in your particular county.  My company, First Interstate Financial Corp., currently has established relationships with several investors that allow us to offer excellent Connecticut Jumbo Mortgage Rates. 

Currently we have the following Connecticut Jumbo Mortgage Rates with 0 points as of business close on 9/21/2009*:

30 Year Fixed 5.625%            5.68% APR          

10/1 ARM       5.125%            5.07% APR

7/1 ARM         4.5%                4.55% APR                                            

5/1 ARM         4.125%            4.18% APR

 *Please call  for specific quotes*,  due to market fluctuation and guidelines, our Connecticut Jumbo Mortgage Rates can vary depending on your particular scenario.  The main take-away is that there are jumbo loan programs available to fit your needs, even in our current lending environment.

Our Connecticut Jumbo Mortgage Rates can vary from the low 4% range to mid 5% range, depending on whether you are looking for a higher loan-to-value or a fixed rate or adjustable rate loan.

Typical minimum FICO scores range from 680 to 720, depending on the loan program and scenario.  FICO scores are considered to be more a general indicator for this program, and the overall credit picture is reviewed more so than simply a number.  Loans are for Full Doc loans only, and are subject to verification of post closing assets and full underwriting by our investor(s).

Currently with loan to values of up to 80% on purchase money/rate term/cash-out refinances to $800,000, up to 75% on purchase money/rate term/cash-out refinances up to $1,500,000, and up to 70% Financing to $2,000,000.  There are also great programs for second home financing.  Loan-to-values depend on the specific program you are qualified for and can vary.

We also offer competitive pricing on FHA, VA and Conventional Loans in CT, as well USDA loans in qualified RD areas. Stated Income programs are also slowly making a comeback as well.

* Not a commitment to lend.  Other programs available.  Jumbo Loans are a brokered product.  Equal Housing Lender.  Add-ons for loans over 1 Million or more.  Loan rates based on a 750k loan, at a 60% Loan to Value.  Licensed in CA,CO,CT,DE,FL,GA,MA,MI,MO,MT, NJ, NY,PA,TX,SC,VA

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New Jersey Jumbo Mortgage Rates: Our true jumbo mortgage rates continue to trend downward this week in all counties of New Jersey.  Despite the 2009 conforming loan limit remaining at $440,000 to $729,000 in New Jersey, we still are able to offer affordable financing to qualified borrowers for purchases as well as refinances for jumbo loans over the current conforming loan limit in your particular county.  My company, First Interstate Financial Corp., currently has established relationships with several investors that allow us to offer excellent New Jersey Jumbo Mortgage Rates. 

Currently we have the following New Jersey Jumbo Mortgage Rates with 0 points as of business close on 9/18/2009*:

30 Year Fixed 5.625%            5.68% APR          

10/1 ARM       5.125%            5.07% APR  

7/1 ARM         4.5%               4.54% APR                                          

5/1 ARM         4.125%            4.18% APR

 *Please call  for specific quotes*,  due to market fluctuation and guidelines, our New Jersey Jumbo Mortgage Rates can vary depending on your particular scenario. 

Our New Jersey Jumbo Mortgage Rates can vary from the low 4% range to mid 5% range, depending on whether you are looking for a higher loan-to-value or a fixed rate or adjustable rate loan.

Typical minimum FICO scores of 680/700.  FICO scores are considered to be more a general indicator for this program, and the overall credit picture is reviewed more so than simply a number.  Full Doc loans only.  Subject to verification of post closing assets and full underwriting.

Currently with loan to values of up to 80% on purchase money/rate term/cash-out refinances to $800,000, up to 75% on purchase money/rate term/cash-out refinances up to $1,500,000, and up to 70% Financing to $2,000,000.  There are also great programs for second home financing.  Loan-to-values depend on the specific program you are qualified for and can vary.

We also offer competitive pricing on FHA, VA and Conventional Loans in NJ, as well USDA loans in qualified RD areas. Stated Income programs are also slowly making a comeback as well.

* Not a commitment to lend.  Other programs available.  Jumbo Loans are a brokered product.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MI,MO,MT, NJ, NY,PA,TX,SC,VA. Add-ons required for loan amounts over 1 Million on certain products.

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CT FHA Cash-Out Refinance, is often the best route for borrowers in the State of Connecticut to go when refinancing their homes when one is looking to consolidate debt, pay off a 1st and 2nd mortgage (be it a home equity loan, line of credit, or equity note), or to simply pull out some cash.  Cash can be used for any reason, be it for home repairs, investments, or college tuition.  The main reason an CT FHA Cash-Out Refinance often makes the most sense is because Fannie Mae loans often have rediculously high pricing adjustments for credit scores falling under 740, and loan to values over 60%.  With a CT FHA Cash-Out Refinance, fewer pricing hits apply all the way up to a loan against 85% of a home's value.

FHA Loan limits in the State of Connecticut have increased in many areas as well, most notable in Fairfield County, Connecticut.  Check here for FHA and Fannie Mae loan limits in your County in Connecticut.

Many consumers here CT FHA Cash-Out Refinance and the first thought many consumers have is "I don't want monthly mortgage insurance and I don't want a Mortgage Insurance Premium of 1.75%".  While it is true you WILL have both monthly MI and a Mortgage Insurance Premium on ALL 30 Year CT FHA Cash-Out Refinances, even those below an 80% Loan to Value, it may be more cost effective to go with an FHA Cash-Out Refinance rather than a traditional Fannie Mae loan.  Here are a couple examples based on pricing as of 9/11/2009*:

#1: 30 Year Fixed Rates, 200k loan, 250k Home Value, Credit Score 639

FHA Loan                   5.25% (5.83% APR)    0 pts  1.75% MIP  .55% Monthly MI 

Fannie Mae Loan          5.625%(6.068 APR)    4pts    N/A   MIP   NO MI

Fannie Mae pricing adjustment: 5.75 points, credit score under 640 to an 80% LTV

#2: 30 Year Fixed Rates, 200k loan, 250k Home Value, Credit Score 675

FHA Loan                   5.25%  (5.79% APR)    0 pts  1.75% MIP  .55% Monthly MI 

Fannie Mae Loan          5.625%(5.88% APR)    2.5pts N/A   MIP   NO MI

Fannie Mae pricing adjustment: 4 points, credit score under 680 to an 80% LTV

These 2 cases can be argued to be a bit extreme, but the point is made: rates advertised often for Fannie Mae rates often don't take into account credit score adjustments made on loans these days.  Couple this with the fact that FHA loans allow for a CT FHA Cash-Out Refinance up to 85% of a home's value and allow credit scores as low as 620 currently, and you will find an FHA loan will benefit more consumers.  Another option gaining more notice as of late is the FHA 5/1 ARM as well, which offers interest rates in the 4's currently for CT FHA Cash-Out Refinance financing as well.

If you are considering refinancing, contact a mortgage professional who knows their way around the guidelines and pricing adjustments for various programs.

* Not a commitment to lend.  Other programs available.  Equal Housing Lender.  Licensed in CA,CO,CT,DE,FL,GA,MA,MO,MT, NJ, NY,PA,TX,SC,VA

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