thomas mortgage: Veterans and Active Duty Borrower Being Denied VA Loan Relief - 10/20/10 10:17 AM
Thanks to my friend and fellow Mortgage Myth Buster Gary Miljour for collaborating with me on this post. It's a disturbing trend we are seeing that is having a very negative effect on our veterans. Read below and see.
Via Gary Miljour - Mortgage Lending for Tempe Arizona (Sunstreet Mortgage, LLC):
If you are a veteran or active duty military and own a home in Arizona, California, Florida or Nevada you have just been plagued and punished for living in a sand state. While most homeowners are taking advantage of refinance opportunities with these low interest rates you are suffering … (2 comments)
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thomas mortgage: Some of the mortgage loan myths we’ve busted - 09/21/10 08:40 AM
RS from Florida....
A first time homebuyerhad applied with a local military credit union and were prequalified for well over $200k and told to go shopping for a home. Once they found a home and began the loan approval process, their lender said they would only be able to approve them for $135k! Thankfully the Mortgage Myth Busters where called and now this couple will actually be buying their home with a USDA Rural Development loan that was never even offered by the other lender! Did we mention that since a recently deployed veteran is a co-buyer, they will be qualifying … (6 comments)
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thomas mortgage: USDA Rural Development loans are back! - 05/27/10 11:07 AM
The USDA issued a memo yesterday, May 26, 2010, reauthorizing the issuance of conditional commitments for USDA loans. What that means is that your better lenders (the ones that usually close USDA loans while funds are waiting to be allocated) will immediately be able to continue closing loans. The amount that has been authorized is $2.5 billion and it's expected that new funding will be available from Congress before this is exhausted (there are currently a few bills, but HR 4899 is the most likely to pass quickly- possibly by today).
Do know this money comes at a cost. Per the memo, … (11 comments)
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thomas mortgage: Short Sale contracts and the deadline for the Homebuyer Tax Credit- what MUST you know? - 04/16/10 10:33 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)
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thomas mortgage: Mortgage loan applications are down for the week of April 12th but does anyone know why? Maybe it’s USDA. - 04/14/10 09:45 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)
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thomas mortgage: USDA Rural Development loans expecting to run out of funds by late next month - 03/11/10 09:57 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)
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thomas mortgage: Ruin your credit with a Mortgage Loan Modification - 12/28/09 09:27 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)
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thomas mortgage: USDA Rural Development loans are NOT out of money, and other important facts for Lake County, FL. - 09/29/09 05:42 PM
Last Friday the USDA formally announced it was entering its annual "roll over" of funding as of its new fiscal year October 1st. This mainly administrative action results in USDA's funding being delayed until it's made available through the General Accounting Office (GAO). This by no means indicates the USDA is out of funds! What it does do is delay funding for loans and guarantees. While there are still a number of lenders that can and do close and fund loans during this period, the vast majority of lenders do not. This doesn't mean your loan won't close, it … (4 comments)
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thomas mortgage: So what’s the skinny on extending the First Time Buyer Tax Credit? - 09/24/09 06:57 PM
You hear plenty of talk from NAR (National Association of Realtors) and the NAHB (National Association of Home Builders) regarding the push to extend the First Time Buyer Tax Credit, but what is really going on with it? There is little argument the program has been successful in spurring sales and I can say from experience it's doing great things for many a first time buyer. Will it be continued? Will it be expanded or increased? Will it be forgotten?
Those of you who follow my blogs know I prefer to stay in the realm of fact as opposed to opinion. … (7 comments)
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thomas mortgage: What the Mortgage Disclosure Improvement Act (MDIA) will mean to our industry - 08/03/09 11:50 AM
On July 30, 2009 the rules changed- are you ready?
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)
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thomas mortgage: Pace of Home sales spikes up for June in Lake County, FL - 07/16/09 08:35 AM
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)
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thomas mortgage: Using the $8000 tax credit as down payment in Lake County Florida-update - 07/07/09 03:35 PM
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)
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thomas mortgage: USDA appraisal requirements changing July 01, 2009 - 06/26/09 03:37 PM
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)
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thomas mortgage: USDA Rural Development funds for refi’s and pools is in! - 04/24/09 06:37 PM
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)
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thomas mortgage: USDA income limits change April 20, 2009 for Lake County - 04/10/09 07:19 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)
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thomas mortgage: Rural Development loans not jumping on the appraisal change bandwagon - 04/07/09 03:10 PM
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)
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thomas mortgage: USDA Rural Development loans no longer accepting ANY pools?-updated 04/08/09 - 04/06/09 06:35 PM
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)
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thomas mortgage: February ’09 sales stats for Lake County, FL. Have we seen the bottom? - 03/12/09 11:20 PM
After a rough January the real estate market in Lake County found some footing in February. A number of very positive stats stick out:
•· The average sales price jumped over $10k from the previous month. Thirteen single family homes over $300k sold compared to just 6 in January.
•· Although a total of 55.2% of the homes sold were under $140k, the bulk of them were priced between $100-$140k.
•· With the exception of last December, we now have less inventory than any time since April of 2007.
Yes we still have over 5000 homes which represents an … (4 comments)
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thomas mortgage: FHA downpayment 101-rules to live by - 03/06/09 07:21 AM
First Time and FHA buyers have always had down payment as their biggest hurdle to homeownership. As recently as last year we had seller funded down payment assistance that often bridged that gap but it seems pretty clear that option may not come back. So what can we do to get to the magic 3.5% needed by FHA when our buyers haven't saved it? The HUD Housing Handbook 4155 is our bible to reference this information. Let's start with the basics.
Of course the funds can come from the borrower as long as they have been seasoned. That means we … (4 comments)
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thomas mortgage: Latest update on availability of funds for Rural Development loans - 02/26/09 10:12 AM
Pursuant to my sources at the USDA it will be taking about another two weeks for the funding allocated by the recent economic stimulus bill to trickle down to retail levels. For those who are seeking a Guaranteed Rural Development loan from a lender such as myself, this should not affect you since we are still funding loans in anticipation of the money we know is coming. If you are working with another lender who is not funding loans, it's probably worth it to wait with them as opposed to starting over with another lender. Do know, however, they have … (8 comments)
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