What does a Goat have to do with Gas Prices? - 04/29/11 11:31 AM
Why is a blog about gas prices in a real estate blog? Because it has to do with finance, financial decisions and it is a budget consideration. Sometimes we choose to live further from the city because the homes are less expensive and we can drive in. Even when  budgeting for a home purchase if a buyers gasoline cost increases by $200- $300 each month that buyer is going to spend less for a property. A $300 monthly cost at 5% over 30 years comes to just over $55,000. So, a prudent buyer may purchase a less costly home and pay for gasoline instead … (5 comments)

Tax Considerations for real estate loan approval - 04/28/11 12:37 PM
For almost 10 years mortgage underwriters did not need to know much about income taxes to qualify clients for loans. That has changed and today it is important that the loan agent understands taxes completely so that he/she can direct the underwriter properly when a loan is submitted. There is a lot to know and this list are only some of the areas of expertise the loan agent and underwriter need to consider when determining a cash flow analysis.Form 2106  Employee Related Business ExpensesSchedule B Interest and DividendsSchedule C Sole ProprietorshipSchedule D Capital Gains and LossesSchedule E Supplemental Income and LossSchedule … (1 comments)

FHA FAQ - 04/27/11 05:41 PM
Are seller contributions allowed?Yes, up to 6%Are gift funds allowed?Yes, and there are no limits. Up to 100% of the down payment can be a gift.Can the borrower use a down payment assistance program?In some cases, Yes.What is the maximum loan to value for a purchase or refinance?96.5% for a purchase and 97.75% for a rate term refinanceWhat is the maximum loan to value for a cash out refinance loan?85%What is the minimum credit score?This may vary but for my company it is 640 to loans to $417K and 660 for larger loans.Can a non-occupant co-borrower assist with qualifying?Yes, FHA uses … (0 comments)

HomePath is excellent for first time homebuyers - 04/27/11 05:39 PM
HomePath Mortgage allows a borrower to purchase a Fannie Mae-owned property with a low down payment, flexible mortgage terms, no lender-requested appraisal and no mortgage insurance. Expanded seller contributions to closing costs are allowed.
Benefits to You, the Borrower
Low down payment and flexible mortgage terms (fixed-rate, adjustable rate, or interest-only). Down payment (at least 3 percent) can be funded by the borrower's own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer. No lender-requested appraisal. No mortgage insurance; ask your lender for cost details on loans without mortgage insurance. Expanded seller … (0 comments)

consumer Financial Protection Bureau may revamp mortgage loan documents - 04/18/11 05:13 PM
I picked this information up from Auto Finance News. I really hope the mortgage documents become more consumer and more me friendly. The cumbersome papers that have been laid on the mortgage industry the past 3 years have made it almost impossible for clients to understand. We deal with approximately 15 banks on a regular basis and they have all interpreted the disclosures differently, so we have to comply with different interpretations. It would really be nice if the application and the required loan documents would become easier for everyone. In the past I worked for Finance Companies and Private Banks … (1 comments)

What happens to the housing market if Congress takes away the mortgage deduction - 04/18/11 03:30 PM
What will happen to the housing market should Congress decide to eliminate mortgage interest deductions?
The 1986 Tax Reform Act reduced the top tax rate from 50% to 28%. At the same time Congress eliminated many of the deductions Americans claimed on their taxes-including writing off the interest paid on installment loans and credit cards. There were dire predicitons. But before the 1986 Tax Reform we were encouraged to occur debt; we got to write it off and indirectly the Government was encouraging us to borrow on credit via loans and credit cards. I rememeber being in deep credit card debt … (0 comments)

Reverse Mortgage Information Sources - 04/15/11 08:02 PM
Reverse mortgages are a powerful tool to help eligible homeowners obtain tax-free cash flow. The major eligibility requirements are that the applicant must be at least 62 years of age and own and occupy a home whose mortgage has been paid in full or has a low mortgage balance. There are no credit requirements and no income requirements. Here are some additional sources of information about Reverse Mortgages:AARP  http://www.aarp.org/revmort/National Reverse Mortgage Lenders Associationhttp://www.reversemortgage.orgHUD  http://www.hud.gov/offices/hsg/sfh/hecmhome.cfmDoug JonesMortgage MagicNMLS 286668
… (1 comments)

Need a FHA Wholesale lender who is offering FHA Title 1 - 04/05/11 01:46 PM
FHA Title 1 Home Improvement Loan

I may have done 500 or more of these loans back in the early 1980's. Then I changed banks and forgot about them completely. But I asked myself today; What do borrowers need? In my area the HELOC's are more rare than the abomiable snowman....then I remembered FHA Title 1.
This is a 2nd mortgage to $25,000 and it is for home improvements and repairs. I would love to write these loans again but need an FHA wholesale lender that offers them.
If you are such a lender or know a lender please pass along … (0 comments)

$35 Million to Fannie and Freddie Exec's- Government should be Ashamed - 04/04/11 01:10 PM
This article comes from Newsmax--Government should be ashamed. In my business when I lose money I don't get paid at all; as a matter of fact when I lose money I pay the company debts personally !-----------Top executives at Fannie Mae and Freddie Mac were paid more than $35 million in the past two years while the two bailed-out mortgage finance giants were receiving $153 billion in support from taxpayers.The huge payouts came to light in a new report published on Thursday by the Federal Housing Finance Agency's Office of Inspector General."Although the Enterprises [Fannie Mae and Freddie Mac] have lost … (2 comments)