Purchasing a 3-4 Unit Property with a Low Down Payment - 04/26/11 07:54 AM

Buying a 3-4 unit property in Pennsylvania is often a great investment.  The buyer obtains a primary residence and has extra units to rent out and collect extra income.  Often this extra rental income ends up covering the mortgage payment and expenses of the property.  This enables the owner to live in the property with their housing expenses covered by the rents received.  
I am please to see that some of the rules for 3-4 unit properties have recently relaxed.  Below are some quick guidelines for purchasing a 3-4 unit property with a Government Mortgage either through the FHA or the VA. 
… (0 comments)

Lowest Mortgage Rates in Pennsylvania - 04/26/11 07:45 AM
Finding the Lowest Mortgage Rates in Pennsylvania is sometimes just a matter of looking in the right place.  As a mortgage professional in Pennsylvania, I keep tabs on this subject and have found that the key to finding the lowest mortgage rates in PA is all about having access to as many lenders as possible at the same time.  Here at Flagship Mortgage, we have set ourselves up as both a banker and broker.  This allows us the convenience of in house processing and pricing while having the broker ability to access all the programs of every other bank's wholesale department.  The … (0 comments)

USDA Mortgage in Washington County, Pennsylvania - 04/23/11 09:05 PM
 
Using a 100% USDA mortgage is a great way to finance the purchase of your next home in Washington County.  These are great loans for those who qualify and the USDA loan remains as one of the true no down payment programs out there.  If the home appraisal allows, the closing costs can also be wrapped into the mortgage resulting in no money needed at the closing table.  Interest rates for USDA mortgages are comparable to the low fixed rates of Conventional and FHA/VA financing.
USDA mortgages are available for areas that meet USDA population limits.  Certain areas of Washington County … (0 comments)

Home Buyer Tax Credit : Do I Have to Pay It Back If I Sell My House? - 04/23/11 11:48 AM
 

The $8000 tax credit that expired at the end of June 2010 placed a lot of new homebuyers in their very first house.  Most of these first time buyers probably planned on owning these homes for years and years to come. 
We all know that sometimes life gets in the way of even the best laid plans.  Unexpected life events such as a job transfer, divorce, or financial difficulty can cause a homeowner to sell their newly acquired home before they planned.  One of the key stipulations to the $8000 tax credit was that the homeowner had to live in the property as … (3 comments)

My property is no longer in a USDA zone... can I still refinance with a USDA mortgage? - 04/18/11 11:18 AM
 
My property is no longer in a USDA zone... can I still refinance with a USDA mortgage? 

 
I had this question from a caller the other day and it was a good question.  They had read my recent post about USDA Refinancing and wondered if they would still be eligible for USDA financing since there had been a lot of development around them since they bought the house years ago. They checked the USDA eligibilty map and their property was no longer in a USDA eligible zone.
 
Could they still refinance their existing USDA mortgage with a … (0 comments)

USDA Refinance in Pennsylvania - 04/16/11 08:34 AM
Using a USDA Refinance in Pennsylvania is a great way to lower the monthly mortgage payment on a USDA loan.  Rates are still near historic lows and taking advantage of these rate levels will benefit many who are seeking to refinance a USDA mortgage.   USDA refinances can only be used to pay off an existing USDA mortgage and can not be used to pay off other mortgages like VA, FHA or Conventional. 
 
Benefits of a USDA Rural Development Refinance Mortgage include:                
Low fixed interest rate                     The ability to finance in the USDA Guarantee Fee and all closing costs (if the appraised value supports … (0 comments)

Achieving the Dream of a Free and Clear Home - 04/09/11 08:04 PM

 
Achieving the dream of a free and clear home is more in reach than many homeowners realize.  The main benefit that is often touted when refinancing is that those who qualify can often lower their mortgage payment by several hundred dollars per month.  The new payments advertised with these lower monthly payments are typically for 30 year mortgages.  No doubt, there are substantial savings to be had with these lower payments, resulting in greater cash flow and more monthly money in the customer's pocket.  This pure payment reduction does however come with a price.  By going with a new 30 year … (1 comments)

FHA 203K Process and the Steps to FHA 203K Success - 04/03/11 09:00 AM
 

The FHA 203K Process breaks down into a series of steps that enable the homebuyer or homeowner to determine the cost of the desired renovations, how these renovation will improve the property's market value and how their desired renovations will effect their FHA 203K financing options. 
The order of events with the FHA 203K are typically as follows...  
 
Review the Feasibility of the Project
the extent of the work and a rough estimate of the cost expected market value of the property after the project is complete
 
Execute a Sales Contract
contract should be contingent of … (5 comments)

Will Having a Second Mortgage Limit My Refinance Options? - 04/02/11 08:23 AM
 
If you have a second mortgage on your home you need to be aware of the rules of when a refinance is considered "cash out".  When an application is considered a cash out refinance, the maximum Loan to Value will be limited to 80% for Conventional financing and 85% for FHA financing.
The presence of a second mortgage can often cause an obstacle to a successful refinance if not handled properly.  In some cases, a second mortgage will prevent an applicant from having enough equity to qualify under the stricter cash out guidelines.
80/10, 80/15 and 80/20 mortgage programs, also … (0 comments)

Ineligible Improvements and Repairs with the FHA 203K Program - 04/02/11 08:08 AM
 

A few weeks ago we talked about the improvements that were allowable under the FHA 203K program, that article http://activerain.com/blogsview/2172018/allowable-improvements-under-the-fha-203k-program discussed all the improvements possible with the program. 
 
I had some follow up questions from customers asking...
"Are there any types of improvements I can't do with the 203K?"
The 203K program is not eligible for items that are considered Luxury Items or what is deemed excessive or recreational improvements such as swimming pools, tennis courts or non-permanent features.  HUD allows for foundation and structural work with the Full FHA 203K program but the majority of FHA lenders seem to have their … (1 comments)