Why are interest rates higher for some loan programs than for other? How many times have you seen an interest rate advertised only to find that it is not available to you?

The mortgage industry is very competitive, and lenders advertise the lowest rate available that pertains to a basic transaction, just to get you in the door.

The starting point:

Your credit report will give your lender a window into your payment history, previous addresses and your Social Security number.

When applying for a home loan, lenders are looking for more than your credit score. Most mortgage lenders are using the middle score as a starting point, if there is more than one person on the loan the lender will use the lowest middle score all borrowers on the loan. Generally lenders like to see 3 accounts with a 12 month payment history on open active revolving trade lines (credit accounts that you pay monthly). If your middle credit score is below 580 there could be adjustments to your interest rate that would give a higher interest rate than the advertised rate.

The type of property that you are purchasing can have a direct connection to your interest rate. What is your intention with the property that you are purchasing? Will you occupy the property, or will it be an investment property, single family, multi family or a condominium.

Loan programs vary depending on your income documentation.

With a full documentation loan the lender will request Tax Returns, W-2's, pay stubs and bank statements.

With a Stated Income/Stated Asset or Stated Income/Verified Asset loans are designed to assist self employed or commissioned buyers, excellent credit profile is desired and a larger down payment is required.

The kind of property and documentation can result in adjustments to your interest rate.

Choose to work with a local professional!  Call today and get pre approved!

Finally there is a real opportunity for First Time Buyer's to purchase an affordable home, with an attractive interest rate, with the seller contributing to closing cost and/or down payment and the Government changes the rules.

Nehemiah, Ameridream and other approved non profit organizations open the door to home ownership to buyer's as well as creating an opportunity for sellers to participate in marketing their homes.

October 1, 2008 Nehemiah, Ameridream and other non profits will no longer be allowed to contribute as a gift to a buyer when the funds are from the seller. How many buyers will this remove from the market place? How many buyers will have to go back to renting? Home buyer's you have until October 1, 2008 to purchase and close on a home to benefit from Nehemiah or Ameridream programs where the seller can participate and donate to a non profit. Then you would apply for a gift from Nehemiah or one of the approved non profit down payment assistance programs that can be applied to your down payment and/or closing cost.

We are in a different place and time from when our parents purchased a home. From my point of view, home buyer's are not on the 5 or 10 year plan to save and purchase a home. They just wake up one day and the home shopping begins. These programs work well for buyer's that are qualified to purchase a home. Also we can put you in contact with your local government officials to voice your opinion.

Yes there are buyers that fall into default, for many reasons and we are all dealing with foreclosure market more so here in Florida. 

As a local mortgage professional I utilize these programs to help qualified home buyers purchase a home, as well as show sellers/Realtors to utilize these programs to market their homes to more potential buyers.

Since we are getting back to basics where buyers have to qualify for a home loan, I do feel that keeping these programs benefits buyer's and sellers. Contact your local representative to voice your opinion.

Contact me today and take advantage of the down payment assistance program, Doreen@fmsloans.com 

Get the Facts on Down Payment Assistance Funds

Kerwin Mellott of Orange Country Housing and Development and Doreen Hargreaves of Fidelity Mortgage Services, get the facts out on the changes for Orange County Down Payment Assistance.  It was an open invitation for REALTORS to learn about Orange County Down Payment Assistance / DPA directly from Kerwin Mellott.  It just makes sense that we start educating Realtors about the program since the buyers often start with a REALTOR. There are multiple programs for First Time Buyer's so let's get the facts out.

Kerwin Mellott presented the changes that have taken place as of May 1, 2008.  For those of you that attended you have an additional avenue to market your listings while providing buyers with accurate information. For Listing Agents this was an opportunity for you as well, your listing may qualify for a First Time Buyer's loan. For Buyer's Agents understanding the in and outs can save you time in the home search. The funds available within Orange County are allocated to New Construction and Rehabilitation at the present time. 

Tips on Orange County Down Payment Assistance

• Be a first time home buyer - exception displaced home maker
• Buyers should complete a full loan application
• Submit income and asset documentation to the lender
• Purchase in Orange County, FL
• Purchase price $219,000
• 620 Credit Score and or acceptable credit *exceptions may be granted
• Buyer contribution of $1000 or 1% of sales price
• Maximum 1 percent Origination
• No Discount points
• 15 year non-amortizing lien

This is just a small break down of the program to get you started. This is a great opportunity for buyers to have affordable housing.

A great way to utilize the program is to combine DPA with an FHA home loan to reduce the principal and request a seller concession to cover closing cost.

Seminars are scheduled bi monthly; the goal is to give REALTORS additional tools to build from.

Thank you to all that attended, it is always a pleasure.

Let's get the rumors straight, Orange County Down Payment Assistance Program is not out of funds!

There are many programs available to First Time Home Buyer's, and Orange County Down Payment Assistance is just one of them. There have been a few guideline changes but over all the program works in assisting various income levels with a down payment that can be applied to principal or closing cost. As a mortgage professional with the changes that are happening in the industry it is crucial to keep up with solutions to attain home ownership for buyers. Orange County Down Payment Assistance Program is accessible and user friendly to buyer's, Realtors, and Mortgage Professionals.

Orange County has funds available for Very Low, Low and Moderate income purchases. The funds are made available on New Construction that has not been lived in for 12 months, and Rehabilitation loans. The Rehab loans are not what we in the industry are familiar with (203K FHA loan). The formula for a Rehab is seller must have made substantial repairs in the past 12 months (Roof, re-wiring, re-plum ext.) prior to closing.

So for all of you that are interested in getting the facts stay tuned, we have an open meeting with Orange County Housing and Community Development to get all of the facts on the upcoming changes.

Foreclosure Prevention with FHASecure... Refinance today out of your sub prime loan

Part 1 of 3

            In a recent News Release, HUD Federal Housing Administration (FHA) is looking to save 200,000 homes from foreclosure by refinancing them to FHA.  FHA has a new product and that main feature is to refinance borrower out of the Sub prime loans into FHASecure loan.

            The FHASecure has been rolled out to meet the needs of home owners that are in Adjustable Rates Mortgages, with teaser rates that are adjusting. If the homeowner has been in good standing on the mortgage payments prior to the adjustment of the loan and is experiencing payments issues after the adjustment this may be the solution.

            Homeowners need a safe affordable mortgage so they can maintain there stability of homeownership. Many hardworking families will be able to keep their home because of this FHASecure.

To qualify for FHASecure, eligible homeowners must meet the following five criteria:

•  A history of on-time mortgage payments prior to  the borrower's teaser rates expired and loans reset;
• Interest rates must have or will reset between June 2005 and December 2009;
• 3% of equity in home or 3% cash
• History of employment
• Income to make the mortgage payment.
• FHA Loan limits http://www.hud.gov/

*The insurance premium will reflect the risk involved to the borrower,risk based pricing will begin January 1, 2008

There is also a thought that this could bring some liquidity to the market, by lenders offering FHA-insured loans, pooling them, and securitize them with the Government National Mortgage Association.

My personal thoughts are that some borrowers originally qualified for an FHA Home loan, but the mortgage broker was not licensed as an FHA lender so they were boxed into a Sub prime loan with higher rates. Also ome borrowers just insisted on buying more home than they could afford. It will be interesting to see the flow of these files in underwriting because my though is they will be a manual underwrite due to credit lates and scores. We will see.  

I have put a call into my contact at FHA and I will be posting more on the content so we can all be part of the solution.

Respectfully,

Doreen Hargreaves

www.visionloanteam.com

Fidelity Mortgage Service

407.399.7352

From reading material on FHA Mortgagee letter, Federal Housing Administration. News letters, Trade updates

I am so appreciative to you for helping me grow my business. I am always striving to help you grow your business, but ironically you have done that for me. My client's base has steamlined from Investors over to First Time Buyers for the last 2 years. Lisa I am grateful for your friendship but also as a business partner sharing our commitment to service. Way to go Lisa you have arrived! Watson Realty has a true asset with you as team member.

Doreen Hargreaves

Get the Facts on Affordable Housing/Down Payment Assistance Orange County. FLorida

SHIP Funds are designed to assist buyers with a down payment or closing cost. Buyer's can have a loan to value of 105%

This product loves FHA loans. But can be used with Conventional & VA home Loans.

Borrowers qualify based on being a First Time Home Buyer, or a displaced Homemaker; recently divorced will qualify
Income, Assets, Family size, is just a part of the qualifying process.

$1000.00 of buyers own funds

Many people do not understand this program, but it does work for many buyers if you know the program.

At least once a week I receive a loan application on a buyer that was told you do not qualify for that program, and they do. Don't get me wrong this product is just coming back to life, so many do not understand the guidelines and they are not willing to tackle the paperwork. Each county has a bit of a variance on what they will do and how much they will give, but it is a workable solution for buyers with no savings.

Contract should be written for 45 - 60 days to accommodate processing paperwork.

There is so much I could share with you that will grow you business.

Borrowers can have a 1 year work history.

Financing can be 105%,

Mom or dad can cosign

Taking the Homebuyer Counseling class is not a guarantee to the assistance.

There are so many buyers that can use this program, call me if you have questions.

Work with a local professional that is committed to Clients First. Please feel free to call me 7 days a week.

Doreen Hargreaves / Fidelity Mortgage Services / 407.399.7352  Doreen@fmsloans.com

www.Visionloanteam.com

This letter in of my own writing and from my experience in dealing with Orange County Down Payment Assitance

FHA makes a Come Back!

If you think FHA is only For First Times Buyers, think again.

FHA works with all credit profiles. Seller only pays TAX Service fee $70.  Home Inspection and Pest Inspection are not longer mandatory. Call today to get more information

If you have a buyer or seller call to learn more on FHA or VA HOME LOANS.

(*Dispelling common myths about participating with FHA

•1.       Myth: Takes more time processing
Truth:

•·         Takes no more time than a conventional loan

•·         Adds no additional or special requirements

•·         Uses TOTAL Scorecard/AUS approval allowing you to complete a loan in the amount of time it takes to get the appraisal

•2.       Myth: More paperwork
Truth: Requires only one additional document signed by the borrower

•3.       Myth: Higher costs
Truth:

•·         Rates competitive with the best in the industry

•·         Lender insurance programs eliminate shipping and reshipping costs

•·         Streamlined loan process

•4.       Myth: The borrower can't pay certain loan costs or fees
Truth:

•·         FHA eliminated non-allowable closing cost fee schedule (ML 06-04, 06-07)

•·         The borrower, or any interested party to the loan, may pay all reasonable and customary charges

•5.       Myth: FHA is too restrictive
Truth:

•·         FHA provides guidelines for underwriting - same as industry investors

•·         FHA allows for manual underwriting for all loan programs - some in the industry will not approve a mortgage loan without an automated approval

•·         Automated Underwriting Systems approval is not required - allows for hands-on, common sense judgments

*Dispelling common myths about participating with FHA was copied from Federal Housing Administration.

Feel free to search the FHA Website to HUD homes.http://www.hud.gov/homes/index.cfm

FHA is a great loan: the borrower can purchase with 3% or thier own funds or a gift. Seller can pay 6% of Closing clost. Utilize the  Down Payment Assistance & buyers can qualify for $20,000 - $35,000 in Assistance (deferred loan) Ask me about Affordable Housing programs.

Private Mortgage Insurance is Tax Deductible!

Doreen Hargreaves / Fidelity Mortgage Services / Doreen@fmsloans.com

www.visionloanteam.com

This is a from a fact sheet on Federal Housing Administration website, there is no notes on redistribution.

Success Secrets:

• How you think is everything.  Be Positive. Keep negativity at a distance,"Tom Hopkins"
• Search for your Dreams write down your goals & a plan to achieve them
• Action! Action! Action! Like Nike says "JUST DO IT"
• Education is the key to success
• Have staying power. Rome was not built in a day
• Details no matter how big or small they are part of success
• Manage your time and money
• Be different, go against the grain
• Communication is the art of hearing and listening
• Own what you do. Take pride in your convictions, create a new beginning

Doreen Hargreaves / Fidelity Mortgage Services / Doreen@fmsloans.com

www.visionloanteam.com

own personal notes

     Having a Mortgage Broker License does not make you a professional. How many times have you seen that someone has claimed to be a specialist?

      Take a look around there are many individuals in our industry that are "SELF Proclaimed Specialist" as to who they are and what they can do. Holding a license says that you have taken the extra step to educate yourself. A true professional is constantly striving to grow personally and professionally while assisting others.  Becoming specialized will come overtime as you increase your skills and adapt the technology, not by purchasing it.

When you least expect it, you will come into your own, and business associates will take note.

That being said we are beginning to see the "Order Takers or Application Takers" fall to the wayside in the mortgage industry.

I am proud to say that I work daily to be a Trusted Advisor to my clients. My goal is to assist my clients with their financial needs by aligning myself with Local Professionals that share my beliefs and commitment to putting the client first.

Doreen Hargreaves  / Fidelity Mortgage Services / mailto:Doreen@fmsloans.com

www.visionloanteam.com

This letter is from my own experience in the market place.