mortgage: Keep It Super Simple - Mortgage Grammar 101 - 05/13/09 11:18 PM
Keep It Super Simple K.I.S.S Sometimes we get caught up in our craft that we tend to forget our clients are not familiar with our short jargon or abbreviated sayings. Nobody wants to feel they are being talked downed to making them feel dumb or clueless on the words and sayings we use on an everyday basis. There is an effective saying in life and that is to keep everything super simple or K.I.S.S. The home buying process can already be scary and confusing in itself and we don't need to add to already what they are feeling. Our … (5 comments)
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mortgage: No Equity? Bad Credit? Refinance FHA Streamline Your Mortgage - 05/04/09 11:53 PM
Don't Be Quick To Turndown a Loan
Just last week a client was referred to me by reading one of my blog posts. The reason he was searching for a local lender is because he tried to get approved in refinancing his mortgage from an 8% rate. The lender he tried to go with did not even bother calling the client back after pulling his credit. This is a sign that usually the client had qualifications lower than the minimum and the loan officer decided not to call the client back.
However, I work with the client till the … (5 comments)
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mortgage: Congratulations David Stevens on being appointed as the NEW FHA commissioner for HUD!! - 03/24/09 01:08 PM
David H. Stevens
It gives me great pleasure to congratulate David Stevens on his recent appointment from President Obama to head up the FHA Administration. (Washington Post Article)
Even though its not official until the Senate approves the final vote, I am very excited because of Two reasons.
1st of all if elected, Mr. Stevens will be the only the only FHA commissioner to have a strong background in Mortgages and Real Estate.
2nd of all Mr. Stevens was the president of my company (Prosperity Mortgage a joint venture of Wells Fargo and Long & Foster Realty), he was also … (4 comments)
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mortgage: FHA Down Payment Assistance Program Alternatives - 10/23/08 08:10 PM
The Bad News…DAPS Going Away The Housing and Economic Recovery Act of 2008 eliminates seller-funded down payment assistance programs (DAPs) as an acceptable source of funds for FHA loans for all lenders. Officially, the Act eliminates seller-funded DAPs on FHA loans with final credit approval issued to the borrower on or after Oct. 1 2008
But There is Good News… FHA Alternatives
FHA Cash to Close Savings Plan FHA Sweat Equity FHA Bridal Registry Account 1st Time Home Buyer Tax Credit City Free Grants / Municipal Programs State Programs / V.H.D.A USDA Rural True 100% Loans FHA Cash to … (30 comments)
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mortgage: FHA Removes Rental Income Because Of "Buy and Bail" Scams - 09/23/08 10:38 PM
Effective for all FHA case numbers assigned on and after September 19th 2008 to further notice.
A Borrower cannot use rental income to offset the payment on their departure residence without very specific and narrow exceptions.
The old guidelines when someone wanted to rent their current residence out to buy a new home, FHA guidelines permitted the Rental Income being used to offset the mortgage payment used in Debt-to-Income ratios.
FHA has released the mortgagee letter nationwide found here HUD LETTER
This is due from the simple fact that many homeowners have been found guilty of the "Buy and … (11 comments)
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mortgage: Microsoft Helps Turn A Negative Into A Positive - 09/21/08 11:56 PM
For the past couple of years, Apple has been aggressively advertising Macintosh's Brand as young, hip and trendy with the famous Im a Mac vs Im a PC ads.
I don't know what happened with Microsoft over the years they just stood there taking a beating from Apple with the domination of the Ipod and Mac sales recently.
If anyting we thought Microsoft was done.....or are they?
Just recently Microsoft has been pushing back to the extreme with.....
* The mojave project ads (an experiment playing off that most people just have that vista sucks in their head … (58 comments)
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mortgage: Bank Of America Gets Even Bigger With Merrill Lynch - 09/15/08 12:53 AM
September 15 2008 Bank of America Announced buyout of Merrill Lynch & Co., inc. for $50 Billion Dollars! [Article]
Merrill Lynch a 94 year old company seemed strong for a long time until recently of talk of the company losing money and ground in Wall Street.
The buyout deal was negotiated in a 48 hour frenzy with the two boards that got approved late Sunday. Originally Merrill wanted Morgan Stanley to buy out them but didn't have enough time for Morgan Stanley to review the specs.
My 2 cents
Talk about a quick buyout, I wonder if Bank of … (11 comments)
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mortgage: Oct 1st Flat Fee for Upfront Mortgage Insurance Premiums - 09/13/08 11:48 PM
As a reminder the new change from Department of Housing and Urban Development (HUD), the upfront mortgage insurance premiums (UFMIP) on Federal Housing Administration (FHA) loans will revert back to a flat fee, effective with case numbers assigned on or after Oct. 1 2008.Upfront MIP factors effective with case numbers assigned on or after Oct. 1, 2008, are as follows:
Purchases and Full Credit Qualifying Refinances = 1.75% Streamline Refinances = 1.50% FHASecure transactions = 3.00% Sections of the Act NOT impacted:
223(e) Declining Markets 238(c) Military Impacted Areas 255 Home Equity Conversion Mortgages … (2 comments)
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mortgage: First Time Home Buyer Overview and Quick Tips - 09/10/08 02:01 AM
There are some great benefits in being a First Time Home buyer but what exactly defines a First Time Home Buyer and what are the benefits you may ask?
A First Time Home Buyer is considered an applicant who has not have held an ownership interest in a principal residence within the past three years.
Benefits of being a First Time Home Buyer:
On FHA Loans the MIP Cap of 2.25% can be lowered to 2.0% if the client is a First Time Home Buyer Eligible to qualify for State Specific Finance Companies like VHDA for Virginia … (6 comments)
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mortgage: VHDA 103% Financing FHA Plus Loan - 09/10/08 12:58 AM
VHDA is Virginia's State Finance Company which more can be found here in my previous blog.
With the Down Payment Assistance programs being eliminated here shortly, there are very few true 100% loan programs out there.
There is hope though, VHDA has a loan program called FHA PLUS which is VHDA financed and FHA insured designed to help First Time Home-buyers gain home-ownership.
Contact your local mortgage professional who is licensed for VHDA loans. (I am in the Virginia Beach Area and fully licensed)
Here is a quick overview of the loan
This is a piggyback Combo loan with … (7 comments)
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mortgage: VA Mortgage Quick Tip: BAH and BAS Income - 09/05/08 11:34 PM
Military Mortgage Progam - VA Loan Quick Tip
When calculating income used to qualify for a VA Mortgage, make sure you are working with a Mortgage Expert that can analyze your income correctly.
Many mortgage professionals fail to calculate the correct income on LES Statements.
A LES statement is a Leave and Earnings statement. This is the best summary of all income.
The 3 main entitlements on the LES are Base Pay, BAS and BAH.
Your Base Pay should NOT BE THE ONLY income to qualify for a house. If just your base pay is used you could lose … (13 comments)
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mortgage: Appreciate Your Blogs Before Its Too Late - 08/26/08 10:51 PM
This is a Re-Blog so to speak to provide additional awareness and promote blogger rights.
The Blog in reference is from Tina Merrit's Blog "A Sad Story of A Wonderful Blogger"
Naoma is actually a real good friend of mine who I met when I first started in the Mortgage Industry. We both pretty much started our Loan Officer careers together and kept a good relationship in the office and outside aswell.
Its no surpise that this story has hit hard with me witnessing Naoma's past success from blogging and her passion in blogging even while pregnant!
Naoma was … (18 comments)
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mortgage: Its not FHA - Its VHDA: The FHA Alternative in Virginia. - 08/14/08 10:50 PM
What is VHDA?
VHDA stands for Virginia Housing Development Authority. Its Virginia's Mortgage Finance Agency. Most every state has their own Finance Agency.
Mission?
VHDA was created in 1972 by the General Assembly of Virginia to help overcome barriers to affordable housing.
VHDA is not for everyone. The eligibility requirements does have a few restrictions not limited to the following:
Household income of 65k and below for Virginia Beach County (Does vary for each county contact your mortgage expert) Underserved Minorities Disabilty and Ederly
VHDA vs FHA ?
The main difference is VHDA is more local driven … (7 comments)
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mortgage: The Waiting Game Simplified - 08/12/08 11:02 PM
We all hear the lines "Now is the time to buy" "Lock in rates now" "Hurry up, Take Advantage now"
These liners all have the same point in which to bring in a sense of urgency but we do we know the whole picture why its a bad idea to wait?
I am going to break it down very simplified and to the point to show you what your options really are.
Waiting for the rates to drop:
Sure rates can drop but rates can also rise. Its best to lock in your rate now to secure your payment. … (13 comments)
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mortgage: FHA Quick Savings Tip Regarding Increased MIP Change - 07/31/08 11:19 PM
Risk Based Mortgage Insurance Premiums
July 14 2008 FHA implemented a new system for the Mortgage Insurance Premiums.
FHA Premiums has been normally 1.5% and have now increased up to 2.25% based on credit worthiness.
Money Saving Tip
There is a way to avoid paying the max tier of 2.25%.
Participating in a Pre-Purchase Counseling by a HUD approved counseling agency can cap your max tier at 2.0% for First Time Home Buyers.
You can find a list of approved counselors on HUD's main website Hud Approved Counseling
Key-Points to Counseling
Counseling must be completed before … (2 comments)
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mortgage: Positive Spin on Down Payment Assistance Programs Gloom - 07/29/08 07:56 PM
Hud has been playing the Grim Reaper on the Down Payment Assistance Programs lately.
As most are aware the Down Payment Assistance Programs has helped many homeowners in the past acquiring down payment assistance for government loans that required a minimum of 3% down.
Recently HUD has made it clear that the Ban will take place on October 1st 2008 eliminating DAP's.
Another change taking place is the increase from the minimum 3% down payment required to ---> 3.5% now. The increase also will start on October 1st 2008.
The Ticking Time Bomb
Now nothing is … (16 comments)
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mortgage: Tax Incentive For First Time Home Buyers - 07/28/08 10:17 PM
Great News - Great News - Great News
A new incentive passed by the Housing and Economic Recovery Act of 2008 allows First Time Home Buyers to receive a $7,500 Tax Credit from the purchase of their new home.
From June 1st 2008 - June 1st 2009 will be in effect. ( Can be retroactive back to April 2008 ) Income restrictions is $75k income for Singles and $150k income for married couples. This is a Tax Credit and not a Tax deduction which means mostly will add to your refund money instead of just another write off. For … (6 comments)
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mortgage: Being Consistent - 07/23/08 08:17 PM
Consistency and practicing your core fundamentals is a strong trait to have.
Many times especially in this business professionals tend to become cumbersome in following through a complete transaction process and tend to find shortcuts or alternatives in doing their job.
I have had recently came across golden opportunities through the misfortunes of my competition in their costly mistakes.
One client was 90% done with the purchase process with another lender and during the closing conditions of the loan (homework that needs to be done before closing a loan)
The client was asked to provide bank statements showing … (6 comments)
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mortgage: FHA 203k Streamline vs 203k Full Renovation - 06/13/08 10:57 PM
Renovation Lending
The main concept behind these loans a.k.a Rehab, Renovation, 203k and Home Improvement loans is quite simple, clients who wants to finance the costs of home improvements through the mortgage for a purchase or refinance.
Financing the costs of the home improvements through the mortgage can be cheaper than high interest credit cards, emergency savings and high interest unsecured loans.
Don't worry about the appraised value if the house is in bad shape, the loan is based on the after improved value of your improvements.
Typically these loans can close in 30-45 days, with contract work started … (14 comments)
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mortgage: Returning Phone Calls Spells Success - 06/07/08 11:50 AM
I just had an interesting week of coming across misfortunes of clients who had explained to me that the effort in their Mortgage Broker / Loan Officer getting back in touch with them or even to touch base was unbelievable.
I know we are not at a time where business is too much to handle or that we portray ourselves as the part time experts where we only get back to clients at our convenience.
I do understand that its nearly impossible to be available to recieve every phone call and will inevitably reach your voice mail at some … (9 comments)
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