Lynne's Blog

AmeriDream May Come Back

Lynne Dewar (Lenders Direct) — Wed, 27 May 2009 17:13:02 -0500

There is a bill before Congress that would re-instate the AmeriDream Program. It is H.R. 600 and would allow AmeriDream to make a gift for the down payment on FHA loans. This program would use no tax dollars and would open home ownership up to thousands of buyers. Please call or write your congressman today to support the bill.

New FHA Loan Limits

Lynne Dewar (Lenders Direct) — Mon, 16 Mar 2009 18:38:15 -0500

Great News! As part of the stimulus package FHA as increased their loan limits until December 31, 2009. The new Arizona limits for single family units are below:

Coconino County - $450,000

Navajo Counlty - $308,750

Yavapi County - $390,000

Gila County - $325,000

Apache County - $281,250

Maricopa County - $346,250

Mohave County - $322,500

Pima County - $316,250

Pinal County - $346,250

All other Counties - $217,050

FHA allows a minimum down payment of 3.5%. FHA also allows 100% Gift Fund for the down payment from a family member.

For more information please call Lynne Dewar at (928) 814-6362

Time is Running Out!

Lynne Dewar (Lenders Direct) — Wed, 19 Nov 2008 15:30:34 -0600

Time is running out to take advantage of the temporary higher FHA loan limits. Effective January 1, 2009 the FHA loan limits in Coconino County, AZ will drop from $450,000 to $333,500. The last day to lock in an FHA loan with the higher limits is November 28th and the last day to close is December 15th.

In addition, the downpayment for an FHA loan will be increasing from 3% to 3.5% effective January 1, 2009. For a $300,000 sales price this will mean an additional $1,500 down.

To take advantage of the $7,500 first time buyer tax credits you still have until June 30, 2009 to close.

For futher information please call Lynne Dewar at (800) 552-1188.

Repairing Credit

Lynne Dewar (Lenders Direct) — Tue, 12 Feb 2008 11:28:38 -0600

FICO Scores are becoming even more important with the recent guideline changes. There are several steps you can take to increase your FICO Score.

First you need to pull a copy of your credit report from Annual CreditReport.com. You can get a free credit report once a year. You can then buy a copy of your credit score from Equifax.com. The FICO Scores run from 350 to 850, The higher the number the better. Your target score should be at least 720.

Check your credit report thourghly. You need to look for errors, misinformation, and negative information. If you see anything that is not correct you need to file a dispute with the three credit reporting bureaus.

Next you need to make a list of everything you owe, interest rates, and minimum payments. Then priortize your debt. The order you should pay your debt is; mortagage, real estate taxes, credit cards and medical bills.

If you have higher interest rates you can negotiate with your creditors for a lower interest rate. If you pay less interest then more of your money goes to reduce the principle each month.

Your FICO Score is lowered if you owe more than 30% of the limit of you credit card. Pay down the cards that have the highest balances with the lowest limits first.

Pay everything on time, even if you can only make the minimum payment. The ability to pay your debt on time is the most crucial component of your credit history.

Don't open and close alot of accounts. The more accounts you open the riskier you look and the lower your score. Closed accounts only stay on your report for 10 years so you are gettng rid of good credit.

Don't share credit except with your spouse. Co-signing means you will pay if they do not. It also will lower your score if they pay late.

If you need more information on raising your FICO Score please contact Lynne Dewar at (800) 552-1188

New Fannie Mae Guidelines

Lynne Dewar (Lenders Direct) — Wed, 09 Jan 2008 14:52:19 -0600

Fannie Mae has announced that they have gone to a new FICO based plan for all loans. The Higher your FICO Score the Lower your Rate. For example, on a $250,000 30 year, fixed rate mortgage the interest rate would be 5.75% if you FICO is 760 or higher. This would be a payment of $1,459. If your FICO is 680 to 759 then your rate would be 5.875% and you payment would be $1,479. If your FICO is 660 to 679 your rate would be 6.625% and your payment would be $1,601. If you FICO is 640 to 659 then your rate would be 7.125% and your payment would be $1,684. Finally if you FICO is 620 to 63 your rate would be 7.625% and your payment would be $1,769.

The higher the FICO Score the larger the savings. A score of 760 or better saves you $310 per month or $3,720 per year. We are able to help you clean up your credit and improve your FICO Score in one week with our Rapid ReScore Program

Call Lynne Dewar at (800) 552-1188 for a free consultation.

New Foundation for Manufactured Loans

Lynne Dewar (Lenders Direct) — Tue, 04 Dec 2007 16:42:52 -0600

We have a new foundation system for manufactured home that meets FHA requirements. It is called the Xi2 System. It is a concrete foundation system and can be installed in any type of soil. The total cost of the system is between $2,700 and $3,500 and that includes the Engineers Certification. The engineer will go out the first time to determine if the system in place meets FHA guidelines and then he will go back out to certify the work if it is needed. The $2,700 to $3,500 included both visits if needed. This is about Half the cost of the Suresafe Foundation System. The Xi2 System meets frost requirements and can be installed in one day. It beats Anchors 5 to 1. The Xi2 System is endorsed by the Manufactured Home Builders Asssociation.

If you have a listing that does not have a foundation and your buyers want to go FHA this is the way to go. The contractor will bill escrow and collect the funds at closing. This can open up many more qualified Buyers for your listings.

Call Lynne Dewar at (800) 552-1188 for more information.

1% Down Manufactured Home Loans

Lynne Dewar (Lenders Direct) — Thu, 08 Nov 2007 16:29:29 -0600

There is a new program available to help First Time Buyers get into their first home. It is a 1% down loan program. The Buyer puts down 1% and the AZ FHR Program gives them a 2% gift to make a 3% down payment.

This program can be used with Manufactured Homes or stick build homes. The AZ FHR Program will also give a 5% second loan for closing costs. The maximum loan amount is $342,000. You can use the program with single family, condos. or 1-2 unit properties. It is for Primary Residences only. No investor or second homes.

If the program is used on a Manufactuted Home you must have a permanent foundation, no hauled water and you need an engineer certification.

There may be income limits based on the county you are purchasing in.

Call Lynne Dewar at (800) 552-1188 for more details.

Benefits of Home Ownership

Lynne Dewar (Lenders Direct) — Fri, 02 Nov 2007 12:32:02 -0500

There are many benefits of Home Ownership. Some of the most benefical are listed below.

1. Homeowners accumulate wealth faster than renters.

2. The median net worth for homeowners was $184,400 in 2004 compared to only $4,000 for Renters.

3. Homeownership provides Tax Benefits - Mortgage interest and Property taxes are full Deductilbe for Income Tax purposes

4. Stable Housing Costs - As a Homeowner you no longer have to worry about Increasing Rents

5. Pride of Ownership - Home Ownership gives you and your Family a sense of Stability and Security

6. Capital Gain Exclusion - Up to $250,000 if you are single or $500,000 for a married couple if you have lived in your home for 2 out of the past 5 years.

Home prices are more affordable than they have been in the last two years. If you are still renting now is a GREAT time to purchase instead. There are many First Time Buyer Programs availabe to help you get into a home. You can get into a home with 100% Financing and have the seller pay the closing costs. That mean you can buy with Zero Down and Zero Closing Costs.

Please call Lynne Dewar at (800) 552-1188 to open the door for Home Ownership!

Property Taxes

Lynne Dewar (Lenders Direct) — Tue, 23 Oct 2007 15:01:55 -0500

One of the good side effects of property values declining is the opportunity of lower property taxes. If you feel that the "Full Cash Value" of your property is greater than the full market value you have two methods of appeal: Administrative or Judicial. You may appeal the "Full Cash Value" to the County Assessor where your property is located. The first step of the Administrative Process is to file a petition with the County Assessor. You must file your appeal within 60 days after the Notice of Value card was mailed to you. The second step is to request a meeting with the County Assessor's office or submit written evidence that supports your appeal. If you reach an agreement, no futher appeal is permitted. If you do not agree with the asessor's decision you move to step three. You may file a petition with the Board of Equalization for that county. The petition must be filed within twenty five days of the date the assessor's decision was mailed to you. If you are not satisfied with the Board of Equalization's decision then you go to step four. You may appeal to the Tax Court. You must file your appeal no later than 60 days after the Board of Equalization decision was mailed to you.

You may also file a petition directly with the Tax Court at any time after receiving the Notice of Value, provided you do not file an administrative appeal. You must file it no later than December 15. This is the Judicial Process.

Please feel free to call me at (800) 552-1188 for any questions.

Lynne Dewar

Sr. Mortgage Consultant

First Time Buyer Program

Lynne Dewar (Lenders Direct) — Tue, 16 Oct 2007 11:48:39 -0500

We have a First Time Buyer Program that is one loan - 100% Financing. There is no minimum buyer contribution and the seller can pay up to 3% of the sales price for the buyers closing costs. The loan can be combined with teh AZ Bond Program with a 30 year fixed rate of 6.125%. This program has very low mortgage insurance and can be combined with a 2-1 buydown. There are many different loan programs including 30 year fixed, 40 year fixed, and 5 year interest only. We can use non traditional credit and flexible income sources.

A person is classified as a first time buyer if they have not owned a home in the last three years. We need the last three years Federal tax returns to prove that you are a first time buyer.

A $285,000 sales price with zero down on a 5 year interest only loan would have an estimated payment of $1,918 including taxes and insurance.

Please contact me at (800) 552-1188 for any further questions.

Lynne Dewar

Sr. Mortgage Consultant

FHA Changes

Lynne Dewar (Lenders Direct) — Wed, 03 Oct 2007 17:17:44 -0500

FHA is going to expand the number of mortgages they will make to help out homebuyers. The Senate is likely to pass a bill that would raise the FHA limit to $417,000 and lower the down payment to about 1.5% from 3%. The House also has a bill which would raise the FHA limit to $730,00 and lower the down payment from between zero and 3%. "Raising FHA limits is long overdue", Schumer, a New York Democrate who heads the Senate Banking subcommitte on housing said in an interview.

This is Great news for home buyers and for homeowners who need to refinance. I will let you know when it is offical and what the exact limits are and the down payments.

For further questions please contact me at (800) 552-1188.

Thank you,

Lynne Dewar

Sr. Mortgage Consultant

Now is a GREAT time to purchase Real Estate

Lynne Dewar (Lenders Direct) — Wed, 26 Sep 2007 14:48:36 -0500

There's never a particularly bad market in Real Estate. What is required to invest in Real Estate is doing one's homework. Finding good values in Real Estate is all about finding the right place at the right time. What has dropped in some areas is market expectations more than market values. Most people who have owned their homes for at least a few years still have significant gains in their property. No one can be a successful investor without taking on risk. The trick is managing it successfully. A buyers market allows a buyer not to feel pressured to buy and allows them to do the necessary research. For investment property you should be looking at cash flow. The rental income should be able to cover the mortgage payment. You should also have some cash in reserve to cover vacancies and repairs. If you are looking to buy a personal residence or a vacation home the house payment should be no more that 40% - 45% of your gross income.

For a free consultation please feel free to contact me at (800) 552-1188.

Lynne Dewar

Lenders Direct Mortgage

Sr. Mortgage Consultant

Improving FICO Scores

Lynne Dewar (Lenders Direct) — Tue, 18 Sep 2007 12:29:13 -0500

We have a new program available called Rapid Re-score. I just had a client who raised their FICO Score from 599 to 704 by doing the Rapid Re-score. It allowed them to purchase the home they wanted with a fantastic interest rate and very little down. If you have a low FICO Score we may be able to help. It only takes one week to get your new score once we have the documentation needed.

Please contact me at (800)552-1188 for a free consultation.

Lynne Dewar

Sr. Mortgage Consultant

Now is the time to refiance

Lynne Dewar (Lenders Direct) — Tue, 11 Sep 2007 17:59:42 -0500

With the kids back in school and things getting back to normal now is the time to look at your finances and see if a refinance or home equity loan may be right for you. The credit cards may have your family vacation on them, or back to school items or even last Christmas purchases. The 30 year fixed rate is a low a 5.875%. If you borrow an additional $25,000 to pay off credit cards your house payment will go up approximately $147.88 per month and the money may be tax deductible. This is also a GREAT time to get rid of your ARM and trade it in for a FIXED Rate.

Please call me at (800) 552-1188 for a free consultation.

I look forward to hearing from you soon,

Lynne Dewar

Sr. Mortgage Consultant

Stated Income Loans

Lynne Dewar (Lenders Direct) — Thu, 30 Aug 2007 13:42:53 -0500

Seventy percent of the Alt A and Subprime Mortgage Lenders have shut down. Here at Lenders Direct Mortgage we are always looking for new programs to help our clients purchase homes. We have a GREAT new product. It is a Stated Income Loan that will go up to 95% loan to value with as low as a 660 FICO Score. With a FICO Score of 700 or better the 30 year fixed rate would be 6.875% with No Prepayment Penalty.

We also have a Stated Income/Stated Asset new program with as little as 10% down and a 681 or better FICO Score and a No Ratio program up to 95% loan to value with a 660 FICO Score.

If you are self employed and can't qualify on a regular loan these programs may work for you. Please call me at (800) 552-1188 for a Free Consultation.

Thank you,

Lynne Dewar

Sr. Mortgage Consultant

Lender Stability

Lynne Dewar (Lenders Direct) — Tue, 21 Aug 2007 15:37:55 -0500

The Mortgage Market is in a state of flux with Lenders going out of business every day. It is important for a consumer to make sure that they choose a stable lender who will be around to close their loan. Lenders Direct has been in business for over 35 years and we are owned by Gateway Bank. We are HERE TO STAY! We have closed 100% of the loans we have originated. Put your trust in a lender who has the experience and stability to close your loan.

Thank you,

Lynne Dewar (800) 552-1188

FHA Loans

Lynne Dewar (Lenders Direct) — Thu, 09 Aug 2007 16:04:10 -0500

100% Financing is disappearing with all the changes in the industry. An alternative loan is FHA. You can get in with 3% down plus closing costs. The 3% down can be a gift so you can get in without any money of your own if the seller agrees to pay closing costs. The FHA loan limit for Coconino County single unit is $342,000. That will buy you a lot of home. FHA does not require a FICO Score. You can use alternative credit to qualify for a loan. If you are tired of renting and ready to be a homeowner give me a call and I can qualify you for an FHA loan.

Lynne Dewar

(928) 527-7974

10 Year Interest Only Loans

Lynne Dewar (Lenders Direct) — Mon, 23 Jul 2007 17:45:47 -0500

With interest rates heading up the 10 Year Interest Only loan may help you get into your dream home with affordable payments. The interest rate is fixed for 10 years and the payments are caculated on the outstanding balance. The payment is lower on an interest only loan than it is on a 30 year fixed rate. There is NO Negative amortization or deferred interest on the 10 Year Interest Only loan. Call Lynne Dewar at (800) 552-1188 for more information.

Home Prices Vs. Interest Rates

Lynne Dewar (Lenders Direct) — Mon, 16 Jul 2007 15:11:36 -0500

Many potential home buyers are not sure if they should wait to purchase a home or buy now. Home prices are softening but they are expected to start going up in 2008. Interest rates are expected to increase. For each .50 point that the rate goes the home buyer loses about $25,000 of purchasing power. We have seen the rates increase from about 5.5% to 6.5%. This has translated into about $50,000 loss of purchasing power. Home prices have declined in some areas 1.2%. This translates into about $3,000. As you can see the person who wanted for home prices to fall while rates are going up has lost about $47,000 in purchasing power. My advise is to buy now and not wait.

FICO Scores

Lynne Dewar (Lenders Direct) — Tue, 26 Jun 2007 14:40:39 -0500

Many people do not understand how FICO Scores can effect their ability to get a Mortgage loan and the interest rate they will receive. Their are three credit bureaus and they each caculate a FICO Score. Most lenders use the middle score to base their loan approval on. FICO Scores take into consideration length of time accounts have been established, proportion of balances to high credit, number of new accounts opened in the last 12 months, number of accoounts with balances, late payments, collections, bankrupty, foreclosure, and numbe of inquiries, in order to rate a consumber. A FICO Score can range from 0 to 900. Over 740 is considered Gold. A recent late payment can lower your score 80 points. If you are thinking about purchasing a home make sure you pay all your debts on time. Most lenders pull a credit report before closing to make sure there is no new debt and if you have a recent late paymen that didn't show up the last time is was pulled it could cause you to get a higher interest rate or be disqualified for the loan.

Please feel free to contact Lynne Dewar at (800) 552-1188 for any futher questions.

Buydown Loans

Lynne Dewar (Lenders Direct) — Thu, 21 Jun 2007 14:00:35 -0500

I have been asked to expand on the Buydown Loan Program we offer. There are many types of buydown loans. Two of the most popular are the 2-1 Buydown and the 1-0 Buydown. The 2-1 Buydown Loan has an interest rate which is 2% below the note rate the first year, 1% below the note rate the second year, and then the rate goes to note rate years 3 through 30. This is a FIXED Rate loan. For example, the 30 year fixed rate is around 6.625% today. With a 2-1 Buydown Loan the rate would be 4.625% the first year, 5.625% the second year, and 6.625% for years 3 through 30. The cost of a 2-1 Buydown Loan is about 2.5%. These points can be paid by the seller if it is negotiated in the contract.

A 1-0 Buydown Loan has an interest rate that is 1% below the note rate for the first year and then goes to the note rate for years 2 through 30. The cost of a 1-0 Buydown Loan is about 1.0%. The 1 point can be paid by the seller if it is negotiated in the contract.

With rates heading up, a Buydown Loan can help you qualify for more home. This loan works very well for people who are getting raises every year and will be able to make the house payments as they increase.

Please call Lynne Dewar at (800) 552-1188 for any further questions.

Foreign National Loans

Lynne Dewar (Lenders Direct) — Tue, 19 Jun 2007 13:05:06 -0500

We can do Foreign National Loans. No Social Security Number, No Green Card, No Credit - OK. Stated Income (U.S. or Overseas) - OK. Thirty percent down payment required. Single Family, Condo's, PUD's - OK. We have varies loan programs available. Call Lynne Dewar at (800) 552-1188 for more details.

Buydown Loans

Lynne Dewar (Lenders Direct) — Thu, 14 Jun 2007 15:18:45 -0500

With interest rates climbing up almost one point in the last couple of weeks you may want to consider a buydown. Lenders Direct has a buydown loan starting at 5.75% for the first year and then fixing at 6.75% for the remaining term for just one point cost. This is a savings of about $163 per month on an average loan for the first year. The savings per month translates to about $25,000 more home that a borrower can purchase. Call Lynne Dewar at (800) 552-1188 for further information.

Fannie Mae My Community Mortgage Program

Lynne Dewar (Lenders Direct) — Tue, 12 Jun 2007 19:04:20 -0500

Fannnie Mae is committed to expand homeownership for all borrowers. They have a prgram to help lower income individuals get into a home. It is called My Community Mortgage. Lenders Direct is an approved Lender for this loan. These loans are 100% financing allowing the Borrower to buy without a downpayment. Forty year terms buydowns, and interest only options are available in order to help lower the house payment. Please call Lynne Dewar at (800) 522-1188 to discuss your qualifiations.

Interest Rate Update

Lynne Dewar (Lenders Direct) — Fri, 08 Jun 2007 15:46:48 -0500

The Bonds have climbed up to their hightest level in five years. This puts pressure on the Mortgage interest rates. The outlook for the summer is for the rates to continue to climb. As the rates climb a Home Buyer can qualify for less home. For example, a .50% increase in interest rates causes a Home Buyer to qualify for $15,000 to $20,000 less home. If you are in the market to buy, now is the time to lock in the interest rate while they are still in the 6's and not wait until they climb into the 7's.