gerry suarez: Short Sale contracts and the deadline for the Homebuyer Tax Credit- what MUST you know?
- 04/16/10 03:33 AM
Back in January I wrote a post that rattled a few people regarding the Homebuyer Tax Credit and short sales. Specifically it related to the upcoming deadline for being in a binding contract- April 30th- and still qualify for the Tax Credit (of course you still have to close by the end of June as well). A number of calls to the info line for the IRS made it pretty clear to us that the IRS is not considering a short sale contract to be binding if third party approval has not been obtained. Check out the original post and … (4 comments)
gerry suarez: Mortgage loan applications are down for the week of April 12th but does anyone know why? Maybe it’s USDA.
- 04/14/10 02:45 AM
The Mortgage Bankers Association reports that mortgage applications for the week ending April 9th are down almost 10% from the previous week. They go on to cite the recent increase in FHA upfront mortgage insurance as the main factor, and they likely have numbers to back up that statement. What the press release says is that a 19.1% decrease in "government purchase applications" fueled the drop, but do their numbers break down what specific programs were impacted most? My point is that as of last week most lenders in the country have given up on taking USDA Guaranteed Rural Development … (0 comments)
gerry suarez: USDA Rural Development loans expecting to run out of funds by late next month
- 03/11/10 01:57 AM
Updated information- Check it out below I normally hate titles that are meant to scare people into reading but unfortunately this time there is no exaggeration to the severity of the issue. USDA Guaranteed Rural Development loans, one of the best low/no down payment financing programs left, has recently announced they expect to be out of the funds they use to guarantee loans by late April. If no action is taken by Congress to re-appropriate more funds then it will be the next budget year, after October, before we have this financing option again. But the Tax Credit deadline is looming … (46 comments)
gerry suarez: Ruin your credit with a Mortgage Loan Modification
- 12/28/09 01:27 AM
In another blow to Obama's HAMP mortgage loan modification program it has come to light that these modifications can damage the borrower's credit score. This had previously not been reported to many homeowners' seeking relief through the program. The damage occurs when a borrower enters the trail period of a loan modification, negotiating a reduced payment with their servicer. Although that new payment is agreed upon by all parties, servicers have been reporting these reduced payments as less than the required payment. This results in mortgage payments being reported to the credit bureaus as late. While you might think this … (8 comments)
gerry suarez: FHA guidelines WILL be tightening in the near future
- 12/03/09 11:58 AM
HUD Secretary Donovan testified before the House committee on Financial Services Wednesday. Much of what he had to say concerned the fact that the FHA program is NOT going broke as many have claimed. He says unless things get decidedly worse, FHA will not need a government bailout. Reasons why FHA won't need a government bailout The HUD Secretary outlined a number of steps the agency is "drafting" to mitigate future losses. Among them are: •· Guidelines to improve enforcement and lender accountability. These will include "holding lenders accountable for their origination quality and compliance with FHA policies and increasing … (5 comments)
gerry suarez: HAMP loan modifications are nothing but predatory lending
- 11/30/09 11:05 PM
As I sit here and toil with the content of this piece, I'm fighting the urge to lash out at our new President and the democratically controlled Congress for creating this mess they call the "Home Affordable Mortgage Program" or HAMP. I realize it's not their fault because of their political persuasion but simply because they are politicians. As politicians they took the advice of the very bankers they needed to hamstring and in essence they have given the fox the keys to the henhouse. I'm here to give you a street level view of what's going on. What is really … (10 comments)
gerry suarez: First Time Homebuyer Tax Credit may not be just for First Time Buyers anymore!
- 11/04/09 11:25 AM
UPDATE- Today, November 5th the House voted for the Act with no changes to the Senate Amendments. Once the President signs it, this is what we will have as law. _____________________________________________________________________________ This afternoon at 5:28pm the Senate overwhelmingly approved the Unemployment Compensation Act of 2009 (H.R. 3548 as amended)which includes provisions extending AND expanding the Homebuyer Tax Credit. Now do understand the bill must be reconciled with the House of Representatives and then signed into law by the President, so there are provisions that can change. What it says right now is basically
•· First Time Buyers have what they had … (8 comments)
There is a lot of talk about whether THE Tax Credit will be extended or even expanded these days. I wrote a post that explained the state of affairs a few days ago but since then I've heard everything imaginable on the topic, so it's time for an update. Again, let's start with the facts. We still have a bunch bills although a new one was introduced in the Senate (see text here) and is beginning its quest to become law. Essentially little else has happened on the forefront of the Tax … (2 comments)
The MDIA is effective for mortgage loan applications taken 07/30/09 and thereafter and places many additional restrictions on how we lenders will have to comply with disclosing loan terms to our borrowers. The effort is laudable- to give customers the information they need to properly shop for a mortgage, when they need it; however it represents an awesome example of how badly government can screw something up. My vantage point for this fuster cluck is that of a Mortgage Banker. I get to see the Bank and Broker side of … (5 comments)
The typically busy spring home buying season has sprung in Lake County which surpassed the 300 unit per month threshold topping out at 317 for the month of June, '09 as reported by the National Association of Realtors. Prior to this April had seen the best sales so far this year with 288 and the June sales blow away January's total of 187 sales. Sales are clearly trending upward with price and rate affordability playing a big role, coupled with the first time buyer tax credit incentive. While sales of single family homes under $50k took a sharp jump … (2 comments)
gerry suarez: Using the $8000 tax credit as down payment in Lake County Florida-update
- 07/07/09 08:35 AM
To sum it up, the program will not be available in Lake County until early August at best. Applications cannot be accepted until that time. If you have buyers anticipating the need for these funds, now is the time to have them begin working with your lender to ensure they are ready to submit their application as soon as allowed. There is only $402,343 allocated to Lake County. Assuming we get only 1 use per family at $8000 per family that means we will be able to help only 50 families. If you have a buyer that needs this program … (2 comments)
gerry suarez: USDA appraisal requirements changing July 01, 2009
- 06/26/09 08:37 AM
The last holdout- USDA- will be requiring the 1004MC addendum to the appraisal on all Rural Development loans effective July 1, 2009. Up to now they were the only loan program to not require it so the news certainly doesn't come as a surprise.
The memo from USDA states files in process prior to that date can be submitted without the 1004MC until July 31, 2009. After that all files must include the addendum. Personally I have not seen any negative impact from the inclusion of the addendum on FHA and VA loans, so I expect no negative repercussions from … (3 comments)
Today the USDA announced it regular allocation of funding had been credited is now available for use. These are the funds that can be used to guarantee refinance loans (you can only refinance a current Rural Development loan) and homes with pools. Remember pools still require a special exception t be approved. If the appraised value of the home doesn't exceed the purchase price by the value given to the pool, your buyer would have to pay the difference. Talk to a knowledgeable RD lender for more details. Also, if you are considering purchasing a home and using the … (2 comments)
gerry suarez: USDA income limits change April 20, 2009 for Lake County
- 04/10/09 12:19 AM
It's been confirmed! The income limits in Lake County (and the entire Orlando area) for USDA Guaranteed Rural Development loans will go up to $70,750 for households from 1-4 persons and $92,400 for households from 5-8 persons. No false start anymore folks. We can start taking and processing applications immediately but cannot submit them to the USDA until 04/20. Folks don't take this lightly. I did my preliminary research on this change when it was first announced and discovered EVERY FHA deal I had done would have qualified for RD. Why is this a big deal? RD has no … (0 comments)
gerry suarez: Rural Development loans not jumping on the appraisal change bandwagon
- 04/07/09 08:10 AM
I just confirmed that the USDA will not be requiring the new 1004MC form for their appraisals. This in spite of the fact that Fannie and Freddie, FHA/HUD and the VA are requiring them. That effectively makes RD loans the only ones NOT requiring this additional info. Coupled with the fact you can still order your own appraisals through local expert appraisers, not some national company, this makes the RD loan program mighty attractive! As if you didn't have enough reasons before to like the program- count these benefits on top of such attractive features like: 100% financing, that can include closing … (0 comments)
gerry suarez: USDA Rural Development loans no longer accepting ANY pools?-updated 04/08/09
- 04/06/09 11:35 AM
Those who know me know I don't usually repeat hearsay. I like to confirm things beyond a shadow of a doubt before writing about it but this is just too important not to share. I heard from a reliable source today that because of some wording in the new funding allocation for USDA RD loans that they were no longer accepting pools under any circumstances. Those of us familiar with RD loans know there has always been an exception process to approving pools. It seems that may now be gone. My trusted source in Florida is out until tomorrow so … (8 comments)
Local information regarding Mortgage lending in Central Florida including Orange, Seminole, Osceola, Lake, Volusia and Marion Counties. Also providing up to date information on HUD and government loan programs, and first time buyer programs. I'm required to tell you I'm not acting on behalf of HUD/FHA or the US Government!
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