ATLANTA, GA (PRWEB) November 20, 2008 - Katz Mortgage Team, www.KatzMortgageTeam.com, backed by Fairway Independent Mortgage Corporation, has announced they are now offering a new FHA-insured mortgage program developed by HUD, called the "Streamline (k)" Limited Repair Program that permits homebuyers to finance up to an additional $35,000 into their mortgage to rehab or improve their home.
With this product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser. All standard FHA underwriting guides apply as they do for regular FHA loans in regards to credit, income & asset documentation, as well as the use of automated underwriting systems and manual underwrites.
Stephen Katz, of Katz Mortgage Team states, "With the current economic times negatively affecting the real estate market there are thousands of foreclosed and undervalued properties available. The downside is that many of these real estate bargains need some work before a lender will close on them. Banks are reluctant to spend money on a house they just got burned on, so the homes just sit on the market. Now with the FHA Streamline Rehab Program, a buyer can close on the house and do the work shortly after closing."
Even if the needs were just cosmetic and the lender allowed the transaction to close, borrowers previously had to pay any repair costs directly out of their own pocket after closing. For example, let's say you find a great property for $100K, but it needs $30,000 worth of repairs to make it livable. This new FHA Streamline 203(k) rehab program allows you to borrow 97% of the "after repair" value of $130,000.
Although some types of renovations, such as new room additions and major remodeling projects, are ineligible for coverage under the Streamline 203(k) loan, , many common improvements are included such as: repair/replacement/addition of roofs, gutters and downspouts, plumbing and electrical systems, flooring, decks, patios, porches; exterior and interior painting; minor kitchen remodeling; weatherization projects; purchase and installation of appliances such as ranges, refrigerators, washer/dryers, dishwashers, etc.; accessibility improvements for the disabled; basement finishing, remodeling, and waterproofing, and more.
About Katz Mortgage Team Katz Mortgage Team, backed by Fairway Independent Mortgage Corporation and headquartered in Atlanta, Georgia, is a high-performance team of top mortgage professionals with a commitment to providing the highest level of personal service to customers across the nation. As a full-service residential mortgage lender, Katz Mortgage Team specializes in residential mortgages, refinancing, FHA Rehab loans a wide variety of programs attractive to both first-time homebuyers and the seasoned borrower.
About Fairway Independent Mortgage Corporation One of the largest correspondent lenders in the country with over 80 offices nationwide, and closing over $1.5 Billion in residential mortgages in 2007, Fairway is a company where customer service is a way of life, and the goal is to streamline the loan process, expedite the paperwork, and do whatever is necessary to put customers at ease. Fairway Mortgage works with more than 150 lenders nationwide to find the most competitive rates and programs.
Now Available: 100% Financing For Primary Residential Purchases
FOR IMMEDIATE RELEASE:
ATLANTA, GA (PRWEB) November 20, 2008 - Katz Mortgage Team, www.KatzMortgageTeam.com, backed by Fairway Independent Mortgage Corporation, has announced they have teamed up with Fannie Mae to offer 100% financing on primary residence mortgages, filling a void created by the current lack of 100% mortgages available to residential borrowers.
Stephen Katz, of Katz Mortgage Team states, "In these tough economic times, particularly in the real estate market, many would-be home buyers assume that 100% mortgages are a thing of the past, and are reluctant to make a home purchase - whether it be their first home or their fifth. Yes, credit has tightened in the past year, but, in conjunction with Fannie Mae, we've developed a unique 100% financing program that allows qualified borrowers the ability to finance 100% of their primary home purchase, giving them the benefit of holding onto their cash for home improvements or even future real estate projects."
"This program is something that has been clearly missed from the market place, but is now available even to self-employed borrowers with limited income verification." Katz states. In fact, our 100% program is tailor made for our self-employed borrowers. "
About Katz Mortgage Team Katz Mortgage Team, backed by Fairway Independent Mortgage Corporation and headquartered in Atlanta, Georgia, is a high-performance team of top mortgage professionals with a commitment to providing the highest level of personal service to customers across the nation. As a full-service residential mortgage lender, Katz Mortgage Team specializes in residential mortgages, mortgage refinancing, adjustable rate mortgages (ARMS), fixed rate mortgages, and a wide variety of Interest-Only loans attractive to both first-time homebuyers and the seasoned borrower.
About Fairway Independent Mortgage Corporation One of the largest correspondent lenders in the country with over 80 offices nationwide, and closing over $1.5 Billion in residential mortgages in 2007. Fairway is a company where customer service is a way of life, and the goal is to streamline the loan process, expedite the paperwork, and do whatever is necessary to put customers at ease. Fairway Mortgage works with more than 150 lenders nationwide as a broker to find the most competitive rate for customers, regardless of financial history.
Katz Mortgage Team, has announced they are once again able to offer "Stated Income" loans requiring no income verification from borrowers. Although most lenders no longer offer financing for those who cannot verify their income, such as self-employed borrowers, Katz Mortgage Team offer buyers of primary residences and vacation homes, a variety of fixed and adjustable loan programs for both home purchases and cash-out refinances. Although assets must be documented, paycheck stubs, K1's, W-2's, 1099's, 1040 tax returns, and real estate leases are not required.
Atlanta, GA (PRWEB) November 21, 2008 -- Katz Mortgage Team, www.KatzMortgageTeam.com, backed by Fairway Independent Mortgage Corporation, has announced they are once again able to offer "Stated Income" loans requiring no income verification from borrowers.
Although most lenders no longer offer financing for those who cannot verify their income, such as self-employed borrowers, Katz Mortgage Team can now, once again, offer buyers, of primary residences and vacation homes, a variety of fixed and adjustable loan programs for both home purchases and cash-out refinances. Although assets must be documented, paycheck stubs, K1's, W-2's, 1099's, 1040 tax returns, and real estate leases are not required.
Stephen Katz, of Katz Mortgage Team states, "Although this program is available to any qualified borrower, we find that many self-employed borrowers have particularly complex financial situations. Often times, business expenses, depreciation and investments cause self-employed borrowers to appear to have less income than they actually do. With this renewed program, business owners of 2 years or more: we are now back in the market!"
Katz goes on to state, "We needed to find a way to once again allow these highly qualified borrowers to purchase homes. This stated income program was something that has been clearly missing from the market place due to the recent credit crunch." Katz Mortgage Team listened to borrowers who had the ability to validate their assets, and took the idea to their parent company Fairway Independent Mortgage Corporation. The result is a new Stated Income Verified asset program.
Eligible properties under this program include: Fee simple, single family, owner-occupied units and second homes (detached) in Georgia, Tennessee, North Carolina, South Carolina and Virginia. Both minimum and maximum loan amount requirements apply ($80-$750,000), and depending upon the borrowers credit score, include a 20% minimum down payment on home purchases, or a minimum amount of 35% equity to qualify for a cash-out refinance.
About Katz Mortgage Team Katz Mortgage Team, backed by Fairway Independent Mortgage Corporation and headquartered in Atlanta, Georgia, is a high-performance team of top mortgage professionals with a commitment to providing the highest level of personal service to customers. As a full-service residential mortgage lender, Katz Mortgage Team specializes in residential mortgages, mortgage refinancing, adjustable rate mortgages (ARMS), fixed rate mortgages, and a wide variety of Interest-Only loans attractive to both first-time homebuyers and the seasoned borrower. Katz Mortgage Team is licensed in GA, FL, NC, SC, TN and VA only.
About Fairway Independent Mortgage Corporation One of the largest correspondent lenders in the country with over 80 offices nationwide, and closing over $1.5 Billion in residential mortgages in 2007. Fairway is a company where customer service is a way of life, and the goal is to streamline the loan process, expedite the paperwork, and do whatever is necessary to put customers at ease. Fairway Mortgage works with more than 150 lenders nationwide to find the most competitive rates and programs for their customers.
Your Realtor is absolutely right. Qualifying for a mortgage has become more challenging in a number of ways:
•1) Larger Down Payments Required - 100%,"No money down" financing deals are gone. You can still put 3% down using an FHA loan, but for the most part, conventional financing is a minimum 5% down.
•2) Higher Credit Scores Required - All of the automated underwriting systems have been adjusted to be more conservative in their approvals. There are also severe pricing penalties for credit scores below 680.
•3) No More Free Stated Programs - In fact, Stated Income and Stated Asset programs have become very scarce and expensive.
My advice is to get pre-approved as soon as you can. Know your credit score and how much cash you will need at closing. This way you will know what price range you should be looking in, and how to best formulate your offer.
Currently, the FHA has a 'one size fits all' premium structure that charges borrowers 1.50 percent of the loan balance upfront and .50 percent annually regardless of their credit standing.
But the FHA felt this approach did not treat borrowers equitably and could put their insurance fund at risk.
That's why under their new guidelines scheduled to begin July 14, 2008, the FHA's upfront mortgage insurance premium will range from 1.25 percent to 2.25 percent with borrowers still needing to adhere to the FHA's strict underwriting criteria.
By charging different premiums, the FHA will be able to operate like most other insurance companies. This will allow them to serve more people without making taxpayers pick up the tab.
And with the modifications to FHASecure, also scheduled to begin July 14, 2008, they will be able to help homeowners struggling to keep up with their high-cost subprime adjustable rate mortgages who have missed up to three monthly mortgage payments over the past 12 months.
As an alternative to foreclosure, eligible borrowers will be able to refinance with the FHA and lenders can voluntarily write down the outstanding subprime mortgage principal balances.
Borrowers refinancing into FHA loans from the subprime market will be better off, even with slightly higher mortgage insurance premiums, because FHA insurance gives them access to substantially lower interest rates, and will lower their overall mortgage costs.
March 3, 2008 Fannie Mae will expand their list of geographical areas considered "Declining Markets" So what does this mean for potential borrowers?
In a recent Fannie Mae memo: If the subject property is determined to be in a declining market, the maximum LTV/CLTV must be restricted by at least 5% less than the maximum allowed for the transaction. All loans are subject to underwriting approval and additional conditions may need to be met with a loan in a declining market. Please keep in mind that transactions located in (several states including Georgia and Florida) will be limited to a max LTV/CLTV of 95%. For example, if the loan would be eligible as a standard mortgage, the maximum financing of 95% would be reduced to 90% in a declining market.
If a loan is submitted to automated underwriting for 100% financing with Flex 100 (special Fannie Mae 100% program), but the subject property is located in a declining market, the maximum financing would be limited to 95%. These new declining market areas will go into effect March 3rd, 2008.
MY ADVICE: Keep in mind that Fannie Mae will honor commitments for 60 days as long as they are locked before March 3rd. If you are seeking a high LTV purchase, I would get out and try to find a house asap. There are certainly a lot of bargains out there. If you are thinking of refinancing, I would make sure that you lock in your loan before March 3rd. Even if you decide that you don't want to proceed with the transaction, the lock in cost nothing. Really the only thing you have to risk is maybe the cost of the appraisal.
Big Loans Could Get Cheaper; Supporters Say The Proposal Would Help Jumbo Borrowers And Stabilize The Housing Market
A component of the government's tentative economic stimulus package announced Thursday would give an immediate lift to buyers and sellers in higher-priced housing markets and would provide nearly a year of cheaper loans for those borrowers buying or refinancing higher-cost homes.
Leaders of the House of Representatives and the White House agreed that the size of loans that can be purchased by government-sponsored mortgage buyers Fannie Mae and Freddie Mac should be increased sharply for a year from the current cutoff of $417,000.
The plan also would nearly double the size of loans insurable by the Federal Housing Administration, from $367,000 to $729,750. The increase in loan limits would not only improve liquidity in the mortgage marketplace, but also boost homebuyers' confidence levels, resulting in increased sales and economic activity.
Currently, any loans above $417,000 are considered "jumbo" mortgages. In recent months, they have become harder to obtain because skittish private investors have become reluctant to buy them.
Interest rates on jumbo loans were running about 6.5% this week -- 1 percentage point higher than rates on the so-called conforming loans that Fannie and Freddie could buy. Someone who wanted to borrow $500,000 would save about $330 a month, or $3,960 a year, if such a loan were considered conforming and thus had a lower rate.
"It's the single most effective step they could take to stabilize the housing and mortgage market," said Rick Simon, a spokesman for Calabasas-based Countrywide Financial Corp., the nation's largest home lender, which had led the lobbying to raise the loan limits.
The precise increase on the "conforming" ceiling was still being debated late Thursday. House Republicans said they had agreed to temporarily raise loan limits for Fannie Mae and Freddie Mac to $625,500 while Democrats said the deal would boost limits to $729,750.
Either way, the increased limit on loans eligible to be bought by Fannie Mae and Freddie Mac would be temporary, expiring Dec. 31, 2008.
"This is a very positive development for homeowners," said Susan DeMars, executive director of the California Mortgage Bankers Assn. The California Assn. of Mortgage Brokers said the plan would "increase much-needed liquidity in today's struggling housing market, giving homeowners and home buyers access to safe, sustainable loans."
The National Association of Realtors® estimated that lifting the conforming loan limit to $625,000 would lower interest payments for consumers who get new "conforming-jumbo" loans, reduce the supply of homes on the market by one to one-and-one-half months, strengthen home prices by two to three percentage points, and increase economic activity by $42 billion. An additional NAR report shows that increasing conforming loan limits could help reduce foreclosures by 140,000 to 210,000 and result in an additional 348,000 home sales.
"This is the quickest way to help the hurting housing market," said Gaylord. "As the potential for an economic recession increases and the fragile housing market continues to teeter, raising loan limits and reforming FHA would immediately impact the marketplace without the need for any new, complex federal programs or tax dollars. We strongly urge Congress to take these actions, in any stimulus plan, to stabilize the housing market and protect homeowners
Does the deal address the mortgage crisis?
Yes. The package would temporarily increase the size of mortgage loans - known as the conforming loan limit - that Fannie Mae and Freddie Mac can purchase: from the current $417,000 to a maximum of $729,750. It would also permanently raise the cap on Federal Housing Administration mortgage loans from $367,000 up to $729,750. Plus you would get all the generous feature of conforming loans, such as investor loans, stated income, interest only, cash-out, 100% LTV purchases and the rest of the goodies.
Why raise the conforming loan limits?
Supporters say raising the loan limits will deliver lower interest rates to a very large number of home buyers.
Right now, mortgages for more than $417, 000 carry higher interest rates than mortgages below that amount. That's because Fannie Mae and Freddie Mac are not allowed to back loans above that cutoff.
Higher loan limits will make many more homeowners eligible for lower rates, which could translate to savings of hundreds of dollars each month for those in high-cost areas of the country.
Sounds great, what's the problem?
The problem is that there will be an immediate demand for thousands of Jumbo refinances. Most banks and major lenders have shrunk down to a skeleton staff to try to save money and help make up for the huge losses they took on the collapse of the sub-prime market. Typical closing times gone from 15 to 30 days over the past year and I'm afraid this new influx of business will push turn-around time to 60+ days-plenty of time for the market to make pricing supply/demand adjustments.
At Katz Mortgage Team, we have already started accepting pre-applications for this new product change. It cost nothing to do. You simply fill out a loan application and pick a target rate based on the current mkt. That way the very day the president signs off, we can lock you in and put your loan in process, ahead of several thousand new loan applicants. You will be assured to get the pricing you want and fast turn around.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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