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lender: Just do the math to see if it a real no cost loan - 12/15/11 05:18 AM
Unfortunately, some of the terms in the mortgage industry are not applied uniformly. My favorite example concerns a mortgage that supposedly has no closing costs. For a true no cost loan, the math is very simple. Take your payoff, add the amount for escrows (such as property and insurance), and the upfront mortgage insurance premium / funding fee, if it apples. This should equal your new loan amount, with appropriate adjustments if you are bringing cash to the closing or receiving cash back. Sometimes the lender may be able to pay the upfront FHA mortgage insurance premium or funding fee for the borrower. Ask your lender about this. If they … (1 comments)

lender: Fixing and Renting. By Dan Polimino. - 11/08/11 08:07 AM
If you read my column from last week, you would know that I was talking about how hard it is right now to find a good fix and flip home. Inventory is so low that contractors cannot find enough good homes to buy to sustain their fix and flip market. I have resorted to knocking on doors of duplexes that are not even listed for sale. If you want to re-read that column, go to coloradodreamhouse.com/news.
This week, I want to talk about whether or not you should fix and flip the house or fix and rent. Fix and flip has … (0 comments)

lender: The Bait and Switch. By Dan Polimino. - 08/23/11 03:47 AM
When I came out of college, I got a job selling cars and some of my fellow car salesmen were involved in the old “bait and switch” tactics of selling. If a customer came in and it looked like they were not going to be buying that day, the salesman would let them leave the dealership with a monthly payment that no one in town would be able to match. The price was so low it was almost hard to believe. Of course, the customer would go and shop around for the same car, but as expected, no other dealer could … (6 comments)

lender: Portfolio and Private Money Mortgages - 08/11/11 06:42 AM
Nature abhors a vacuum. With the tightening in the mortgage market we have seen an increase in portfolio and private, also known as hard money, loans to fill the void created since subprime mortgage products have become extinct. The good news is that borrowers who do not fit in the box for a standard FHA, VA, or conventional mortgage now have options. The bad news is that rates, liquid assets after the closing for reserve requirements, "skin in the game", etc., will probably be higher. Skin in the game is defined as the amount of equity or down payment one has. Once in a great there is still some common sense in the … (1 comments)

lender: The Purple Cow. By Dan Polimino. - 01/04/11 07:41 AM
We have all watched and been affected by the rapidly changing landscape of lending over the last two years. Sometimes, the new restrictions and precautions can be maddening and sometimes, they are just laughable. More than once in the last two years, I have heard this statement come out of a buyer’s mouth, “Why does the lender need that information? It has nothing to do with the loan.” In most cases, that buyer is correct. The requests that come from the lender (more importantly, underwriters) have gotten more bizarre with each passing day and usually, they have nothing to do with … (4 comments)

lender: No Good Options, Part Two. By Dan Polimino. - 11/08/10 06:26 AM
Last week, I started a story about people trying to get some relief on their mortgage. I called my mortgage lender, Wells Fargo, and pretended that I needed some help. I did this because I wanted to find out for myself what people are going through in trying to refinance their homes or getting loan modifications. I started out with the refinance department and got nowhere quickly. To re-read Part One of the story, go to http://www.coloradodreamhouse.com/index.php/mortgage/no-good-options-part-one/.
As we pick up the story this week, I asked the representative from Wells Fargo refinance what I should do next if refinancing … (2 comments)

lender: Easy Refinances Still Available - 09/21/10 04:26 AM
As almost everyone is aware, the good old days of easy rate and term refinances are mostly gone. A double whammy of tighter underwriting standards and falling home values have trapped some borrowers. Two types of relatively painless options that have survived are the FHA streamline refinance and a loan modification with your existing lender. The FHA streamline is a new mortgage, while the loan modification is a modification of your existing loan to provide you with a lower interest rate. With a "loan mod" your original loan is modified, not replaced with a new loan.
The FHA streamline is for borrowers who have an FHA mortgage … (1 comments)

lender: A Good Lender Makes All The Difference. By Dan Polimino. - 09/20/10 09:52 AM
A couple of weeks ago, I talked about the fact that a lot of real estate deals are falling apart over inspection items. That seems bad, but dulls in comparison to the amount of deals that are getting held up or falling apart because of lending issues. This was and still is the number one reason why people are not or cannot buy homes. Many have tried and failed because of lending issues in the last two years
The lending landscape is tighter than ever even though banks are showing record profits once again. I can understand why lending institutions … (1 comments)

lender: Down Payment Assistance (DPA) (Part 3 of 3) - 03/23/10 10:58 AM
In my previous 2 Blogs on DPA, I discussed and tried to dispel some of the myths surrounding down payment assistance. In addition, I highlighted some of the key factors in determining what it takes to qualify for DPA. Today, I will address who are the agencies out there who offer DPA and how doing a little research can help in deciding which program you should consider and how to find out if your lender works with that agency.
If you go to HUD’s website and search for down payment assistance, you will find that there are over 30 different state, … (0 comments)

lender: Down Payment Assistance (DPA) Part 2 of 3 - 03/16/10 08:53 AM
In my last post, I discussed that the MAJORITY of first time home buyers are eligible for DPA here in Colorado. In this post, I am going to talk about what are the qualifications for DPA. You will be surprised how easy it is to qualify and it is not that restrictive in order to get your piece of the DPA pie.
The first factor that has to be considered for DPA is HOUSEHOLD INCOME. Household income is defined as “everyone” in the household (that will live in the home) that earns an income. That total income has to be counted … (0 comments)

lender: Down Payment Assistance (DPA) (Part 1 of 3) - 03/09/10 10:15 AM
So you think you want to buy a home. You have a good job and reasonably good credit but you don’t have the 3.5, 5%, or 10% down payment that is required in order to purchase these days. You’ve heard rumors about different down payment assistance programs (DPA) and how you can get in for as little as $100 or $1000. Those programs are myths or urban legends correct? Or those programs are designed to help only the under-served, the homeless, and the people who fall below the median income in this country……right? THINK AGAIN!
DPA is designed for one thing, … (0 comments)

lender: FHA Changes Are Coming - 01/29/10 10:12 AM
HUD announced this week several major changes for FHA loans later this year. Some of this items will not go into effect for several months but are worth noting. Overall, HUD is doing the right thing to keep themselves in business and help consumers be able to purchase homes.
1. Up-front MIP will increase to 2.25%, to be announced in a Mortgagee Letter today; this will go into effect sometime in the spring (NOT effective immediately).
How this effects you: Currently up-front MIP is at 1.75% of the base loan amount. Example, on a $100,000 base loan amount, the amount that … (0 comments)