My Blog

If you've decided this is the year to become a home owner there's a few must do's that we should discuss.

Get pre-qualified.  It has never been more important to get pre-qualified and then pre-approved for a mortgage than it is now. You need to know what your credit score and programs that may fit your needs in this market. 

Housing has never been more affordable than it is now but in the current financing climate you need to get prepared in advance to ensure a smooth home purchasing experience.

Happy New Year!

Mortgage Insurance Premiums Increasing!

If you are purchasing a home this spring make sure that you make that you make loan application and receive an FHA case number prior to April 18, 2011.  The annual mortgage insurance is increasing. 

If you have been approved for a loan make sure you talk to your lender about the increase in payment to make sure you still can afford the monthly payment!

Loans > 15 years

UFMIP = 100 bps Annual Premium

Loans = 15 years

UFMIP = 100 bps Annual Premium

*For case numbers assigned on/before April 17, 2011

**For case numbers assigned on/after April 18, 201

The increase in the annual mortgage insurance will increase the monthly payment on a $163,000 mortgage $33 a month!

A word to the wise!!

Current regulations require lenders to obtain a copy of every home buyer's tax transcripts directly from the IRS. According to the IRS they are expecting to be 6 weeks behind on processing tax transcripts. If you are planning on transferring on a home purchase between April 15^th and May 30^th get your taxes done or file an extension now to avoid any delay in closing.

Give me a call if you need more details!

Did you know you could save up to 35% on your home purchase by purchasing a HUD foreclosed or bank owned property.  Distressed housing can sell for much less than housing being offered by the private sector.

If the home needs TLC we can help with a renovation loan.  By adding the cost of repairs to the purchase price you may be able to pick up some instant equity in value.

I have many options. Give me a call to discuss your options!

Dan

FHA's Energy Efficient Mortgage program (EEM) helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy efficiency features to new or existing housing as part of their FHA insured home purchase or refinancing mortgage.

Give me a call I''ll help you save some money on your mortgage.

Dan

Consider This if You Will

Some people define leverage as using other people's money but another way to describe it is when a small down payment controls a large asset by placing a high loan-to-value mortgage on it.  There are not many investments that allow leverage but homes certainly do and especially with an FHA or VA mortgage loan.

Annual Mortgage Insurance Increase Update

STATEMENT BY DEPUTY ASSISTANT SECRETARY VICKI BOTT

Tuesday, August 10, 2010

“Last week, FHA Commissioner David H. Stevens announced plans for implementing FHA’s new mortgage insurance premium structure. As we work to publish a Mortgagee Letter, it is our intention to announce that based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010.

“Over this past week, the industry responded with support of the new fee structure, but voiced strong concern about having system changes ready in time to meet the original September 7, 2010 deadline. Since these system changes impact regulatory disclosures, lenders expressed they must have the additional time to implement and test systems. FHA took this feedback seriously and has accommodated the need for additional time.”

The content of this message is not intended to substitute or alter guidelines in FHA/HUD official publications.

FHA is putting the following changes in place starting with case numbers assigned on and after September 7, 2010.  

1.) Upfront MI will decrease from 2.25% to 1.25%

2.) Annual MI will increase as follows; 

*Loan to value amounts < = 95% LTV = 1.40% of loan amount

*Loan to value amounts > 95% = 1.45% of loan amount

The mothly payment on a $100,000 with an interest rate of 5% will increase approximately $22.00 a month.

If you have questions regarding this topic or any others give me a call to discuss.

Although the "Tax Credit" has ended for first time home buyers there still is a tax advantage for every homeowner!

That tax advantage on a $100,000 mortgage is approximately $735 a year.  The benefit of home ownership vs renting an apartment for $750 a month is approximately $1,600 a year. 

Call me to discuss your tax advantages!

Dan

Many people have called and or emailed me to ask if they can rent out their current home and buy a new home and use the rental income to qualify for the new home.  The answer is yes as long as you have a minimum of 25% equity in you current home which will have to be supported by an appraisal. If you don't have 25% equity you will have to qualify with both the old and new house payments without the rental income.

For more information on this subject or any other mortgage question give me a call or email me your question.

Enjoy the spring!

Dan