Molly's Blog

FHA closing cost limits - when seller has FHA loan and needs short sale.

Molly Lionberger (Prosperity Mortgage) — Tue, 27 Oct 2009 06:12:03 -0500

If your seller has an FHA loan and needs a short sale to obtain clear title, the max the seller can contribute towards closing costs for the new buyer is 1% of the purchase price.

Normally, the seller can pay up to 6% towards closing/prepaids.

Again, be sure you know as much about the seller and their situation as possible when making an offer. It's getting tricky out there and you don't need to find out about this rule 1 week prior to closing!

Feel free to refer me to your buyers, as there won't be any surprises at my settlements when I handle your buyers.

Molly Lionberger, Prosperity Mortgage, 443-523-5599

Serving the Eastern Shore of Maryland

New Flipping Rules for Rural Housing Loans

Molly Lionberger (Prosperity Mortgage) — Tue, 27 Oct 2009 06:05:57 -0500

More and more, lenders will be asking very specific questions up front questions about the seller of a property. Particularly, how long has the seller been on title. Here are the newest rules:

Rural & Conventional Financing - Seller must have owned property for 6 months.
FHA Financing - Seller must have owned property for 90 days.

There are some exceptions, but lenders are getting very picky. FHA is getting picker due to early payment defaults rising as the shear number of borrowers choose FHA loans.

Rural Housing Loans strong on Maryland's Eastern Shore

Molly Lionberger (Prosperity Mortgage) — Tue, 27 Oct 2009 06:01:13 -0500

If you or your buyer is looking for homes anywhere on the Eastern Shore of Maryland, a Rural Housing Loan is a great option. There are some metropolitian areas, for example, within the city limits of Salisbury that are not eligible. This is a 100% loan. There are strict income, housing and debt to income ratios to keep in mind. The housing ratio cannot exceed 29% of gross income. Total debt to income cannot exceed 41%. On this program, I can structure a loan so that the seller pays closing costs and buy is out of pocket $500 in earnest money.

Call me at 443-523-5599 to review your situation for other specifics or check .

Molly Lionberger, Home Mortgage Consultant

Prosperity Mortgage

VA Loans for Military Families

Molly Lionberger (Prosperity Mortgage) — Tue, 30 Sep 2008 06:34:26 -0500

No Down Payment for Military Families using their VA Entitlement!

For military families that would like to obtain off-base housing, consider using your VA entitlement! If you have the years of service required to obtain your entitlement. I can show you how to save money on your closing costs too! I can literally structure your loan so that you are out of pocket as little as $500. Plus, VA loans cost less monthly, the interest rate is fixed and lower than Conventional loans.

Gulfport Launches HOMELINE Program - offering $50,000 for Down Payment Assistance

Molly Lionberger (Prosperity Mortgage) — Tue, 30 Sep 2008 06:19:35 -0500

Attention all potential homebuyers that want to buy their primary residence in Gulfport, MS!!

Beginning October 1st, you can pick up your HOMELINE application at Trailer E-2 near City Hall. Part of the application process will be to obtain your homeloan financing.

Call Molly Lionberger, Assistant Vice President at First Bank & Trust of MS today to get pre-approved. 228-257-9000. Email: mlionberger@fbtonline.com

Be prepared with the following documents: 30 days of paystubs, 2 months bank statements, Last 2 years W-2s and tax returns, picture ID & Social security card.

Below is the press release from the City of Gulfport, briefly explaining the program.

CITY OF GULFPORT ANNOUNCES "HOMELINE"

A HOMEOWNERSHIP ASSISTANCE OPPORTUNITY PROGRAM

Gulfport, MS -- The City of Gulfport is very pleased to announce that it has been awarded $9 million in Katrina CDBG Workforce Housing Funds, which are being used to fund "HOMELINE," a homeownership assistance program providing $50,000 in down payment assistance for the purchase of affordable homes in the City of Gulfport.

HOMELINE funds may be used to purchase an existing home constructed in 1980 or later and in good condition, and newly constructed affordable housing located within the city limits of Gulfport.

To qualify for HOMELINE assistance, applicants must meet the household income qualifications, have the ability to secure a first mortgage, and complete a Homebuyer Education Class.

"The CDBG funds will provide long-awaited and greatly-deserved workforce housing opportunities for low and moderate income citizens. I encourage residents to take advantage of this program and fill out an application. The process is simple, and we are here to help," said Mayor Brent Warr.

October 1st, "HOMELINE" applications will be available for pick-up at the City of Gulfport Community Development Department, 2309 15th Street, Gulfport. For more information, call (228) 868-5736 or (228) 868-5862, or email communitydevelopment@gulfport-ms.gov.

City of Gulfport
Contact: Rebecca Kajdan
rkajdan@gulfport-ms.gov
(228) 868-5801

Remember, you need to get preapproved for your home loan. For more information and to get preapproved, call Molly Lionberger, Assistant VP at First Bank & Trust of MS, today to set up your appointment. 228-257-9000.

8+ ways to achieve 100% Financing

Molly Lionberger (Prosperity Mortgage) — Sun, 03 Aug 2008 21:37:03 -0500

Since I work for a bank, we seem to have more loan options available to borrowers than typical broker shops or internet lenders. Below is a list of ways to get to 100% financing.

1) State Mortgage Revenue Bond Program

2) Employer Assisted Housing Gift - this is allowable by FHA

3) Community Development Block Grant Program - in our area, the cities have them, probably more...

- Pascagoula, MS

- Gautier, MS

- Ocean Springs,MS

- Biloxi, MS

- Gulfport, MS

4) Home of Your Own Program - offers up to $20,000 for a family that has a disabled person living in the home.

5) VA Loan

6) Surviving Spouse of Veteran (if Veteran died while on active duty)

7) Obtain a 3% Gift from a blood relative

8) Build a home on land you already own. I can do 90% of the appraised value of total Project.

HUD approves $200 Million 'Ground Zero' Action Plan - Mississippi Katrina Relief Program

Molly Lionberger (Prosperity Mortgage) — Sun, 03 Aug 2008 21:18:52 -0500

Below is more information from the Governor's Office of Mississippi. I have heard recently that the Mississippi Development Authority will release to the individual cities and non-profits amounts to be allocated by the end of August. We still have over 4000 families in Fema trailers and desperately need people back in permanent housing.

Press Release from Governor Haley Barbour

FOR IMMEDIATE RELEASE

July 7, 2008

HUD APPROVES $200 MILLION "GROUND ZERO" ACTION PLAN

Local project proposals due by August 8

(JACKSON, Mississippi) - The U.S. Department of Housing and Urban Development (HUD) has formally approved the State of Mississippi's "Ground Zero" action plan, which directs about $200 million of federally awarded Hurricane Katrina recovery funding exclusively to Hancock County.

"When Senator Roger Wicker and Congressman Gene Taylor joined me in March to announce our intentions to implement a plan specifically for Katrina's ‘Ground Zero' impact area, Mississippians had no doubt about the tremendous recovery needs in Hancock County, where damage was most severe," Governor Barbour said. "We appreciate HUD officials understanding the plight of Hancock County's people and supporting our action plan."

The funding is sourced from a $5.4 billion Community Development Block Grant (CDBG) recovery package that Congress appropriated for Mississippi's hurricane recovery needs. All CDBG funding is administered through HUD.

With HUD's approval of the Ground Zero Action Plan, local governments in Hancock County may now submit proposals for specific projects. Specific proposals, due by August 8, will be reviewed by the Mississippi Development Authority (MDA) on how well they contribute to the overall Hurricane Katrina recovery effort.

From there, communities with proposals that meet Ground Zero's Katrina recovery mission will be invited to submit more detailed project applications. Each project must be approved based on HUD regulations.

Long Term Workforce Housing Action Plan - Mississippi Katrina Effort

Molly Lionberger (Prosperity Mortgage) — Sun, 03 Aug 2008 21:10:35 -0500

For all Mississippians or those that would like to invest in our great state. There is $2.7 billion of Community Development Block Grant Money allocated to help rebuild 20,000 - 25,000 units in the southern most 3 counties of MS: Harrison, Hancock and Jackson. See the press release below. Check my blog for more info to come.

FOR IMMEDIATE RELEASE

June 25, 2008

STATEMENT OF GOVERNOR HALEY BARBOUR

"Without question HUD's final approval of the Long Term Workforce Housing Action plan is a major milestone is Mississippi's Katrina recovery effort. This program, teamed with our public housing and small rental initiatives, is one part of a $2.7 billion CDBG -sourced housing recovery budget that will directly help build 20,000 to 25,000 low and moderate income housing units for both renters and new homeowners. This is in addition to the direct compensation provided to the more than 20,000 homeowners who have received checks from the CDBG homeowners assistance grants program.

"I've been working with HUD to obtain this final long term workforce housing approval, and frankly a lot of credit goes to Mississippi's Congressional delegation for providing invaluable assistance in that effort, specifically Senators Cochran, Wicker and Representative Taylor. As far as I am concerned, on August 29, 2005, we checked party labels at the door, and since Katrina's final deadly winds subsided, our state's recovery has been a bipartisan effort by the overwhelming majority of Mississippi's elected officials, and I know Mississippi's people expect us to continue our recovery in a spirit of cooperation that puts Mississippi's recovery needs above political agendas."

To receive more information on the growth and development of south MS, please email me and I will put you on my email newsletter blast list.

Molly Lionberger, Assistant Vice President

First Bank and Trust of Mississippi

email: mlionberger@fbtonline.com

1st Time Homebuyer Tax Credit and other info from new Housing Bill

Molly Lionberger (Prosperity Mortgage) — Sun, 03 Aug 2008 21:03:16 -0500

Now is the time to buy, if you are a 1st time homebuyer or if you haven't owned a home in the last 3 yrs...

"Cliff Notes" recap on the new housing bill

•· The tax credit is available for first-time home buyers only.

•· The maximum credit amount is $7,500.

•· The credit is available for homes purchased on or after April 9, 2008 and before
July 1, 2009.

•· Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

The Law's Other Provisions

In addition to providing a $7,500 tax credit for qualified first-time home buyers, the Housing and Economic Recovery Act of 2008 includes a number of other provisions that will help prevent foreclosures, reinvigorate the housing market and strengthen the nation's economy.

FHA Modernization

The maximum FHA-insured loan will be increased to 115 percent of an area's median home price, up to a maximum of $625,500, with a minimum downpayment of 3.5 percent, up from 3.0 percent currently. The legislation will give the agency greater flexibility to respond to the needs of borrowers, enable more working families to become home owners, provide a viable alternative to the volatile subprime market and allow the FHA to play an important role in stabilizing the mortgage markets.

Foreclosure Relief
The legislation will allow the Federal Housing Administration to guarantee up to $300 billion in refinance mortgages where current mortgage holders agree to accept partial payment so the outstanding principal on the new loan is more affordable for borrowers. This could help as many as 400,000 struggling home owners to stay in their homes, according to Congressional Budget Office estimates.

Mortgage Revenue Bonds
States will be provided new authority to issue an additional $11 billion in bonds to be used to refinance subprime loans, mortgages for first-time home buyers and multifamily rental housing. Expanding this program will help strapped borrowers seeking to refinance their home loans.

Government Sponsored Enterprises
The legislation will reform Fannie Mae, Freddie Mac and the Federal Home Loan Banks by establishing a strong, independent regulator that will have enhanced authority to raise capital standards and take corrective actions if the GSEs are undercapitalized. It will also permanently increase the maximum loan limit to $625,500 for Fannie Mae and Freddie Mac. This will help buyers seeking homes in high-priced markets such as California and the Northeast.

The bill also creates a new affordable housing fund to be financed by the GSEs. The fund will be used to finance the construction, maintenance and preservation of affordable rental housing projects nationwide.

Property Taxes
The legislation will provide temporary tax relief for home owners who do not itemize their deductions. For tax year 2008, taxpayers who do not itemize their deductions but pay property taxes will receive a $500 additional standard deduction ($1,000 for married couples). This provision will particularly benefit home owners who have paid off their mortgages.

Community Development Block Grants
The legislation provides $3.9 billion in grants to state and local governments for the purchase of foreclosed homes and the rehabilitation or redevelopment of residential property

Down Payment Assistance Programs - Moss Point, Pascagoula, Ocean Springs, Biloxi & Gulfport, Mississippi

Molly Lionberger (Prosperity Mortgage) — Thu, 31 Jul 2008 20:19:50 -0500

There are several down payment assistance options available to Mississippians in the Southern 3 Counties. These counties were hit hardest 3 years ago by Hurricane Katrina. Each program has its own rules and income limits. These programs will still be allowed under the new Housing Act. If you are interested in getting more information on any of these programs, please call me at 228-257-9000.

1) City Community Block Grants - each city receives a set amount of money by the state at the beginning of each year. In some cases, the grants can exceed $20,000 per family. It is distributed on a first come/first serve basis. Those who are approved bring all of the required items so that their application can be send to the state agency for final approval. One of these items includes a homebuyer class certificate. To obtain this certificate, the homebuyer must an 8 week course for homeownership through a non-profit agency approved by the city. Typically, the homebuyer must agree to stay in the home for a given amount of years and then the grant is forgiven. Most cities on the coast have about 12 grants available per year. If you want this program, be organized, get your credit straight and complete the homebuyer education requirement asap.

2) Long Term Workforce Housing Grant - see #1. The amount of the grants & rules for this program are due out by 9/1/08. Call me to be put on the email list for more information once this is officially announced.

3) MS Home Corps Mortgage Revenue Bond Program - these funds are available throughout the year. The down payment/closing cost assistance = 3% of the loan amount. There are income limits and purchase price limits. The 3% is a gift that does not have to be repaid, however, if the home is sold within the first 10 years, there could be a tax recapture fee if they realize a 50% capital gain as well as have an increase in household income greater than the formula set out by the program.

4) Home of Your Own (HOYO) - This program can give up to $20,000 in the way of down payment and upgrades to a home for a family that has a disabled person living in it. This program has unique rules and limitations. Call me for more information if you believe you would qualify for this program.

5) REACH Program - This program can offer up to $40,000 (up to $10,000 from employer & matching funds 3X EAH program) for eligible homebuyers. This program is still in the test phase and will hopefully be officially announced by the end of Aug 2008. If you would like to be on the email list for more information when it is officially announced, please call or email me.

Molly Lionberger, Assistant Vice President

First Bank and Trust of Mississippi

228-257-9000 cell/text message

228-872-1020 office

mlionberger@fbtonline.com or molly@mollysloans.com

Single Close Construction to Perm Loans

Molly Lionberger (Prosperity Mortgage) — Thu, 24 Jul 2008 07:51:55 -0500

Your buyers can save over $2000 in closing costs with a Single Close Construction to Perm loan. Buyers must have a 700 middle FICO and verified income/assets. Our rate on the construction loan is Prime + .5% and interest only! The rate on the permanent loan will be locked within 30 days of completition of the home. Typically, it takes 45 days from the day of application to close on this loan. We have to approve the permanent loan, construction loan and the builder's credentials. We can even roll the closing costs into the loan if the buyer has enough equity in the appraisal.

Call me if you plan to build your primary or second home in Mississippi.

Molly Lionberger, Assistant Vice President

First Bank and Trust of Mississippi

Office: 228-872-1020

Cell: 228-257-9000

Stated Loans for borrowers

Molly Lionberger (Prosperity Mortgage) — Thu, 24 Jul 2008 07:21:47 -0500

We still can close Stated Loans. These do not meet Fannie/Freddie guidelines. This is a niche product held in-house by our investor to reward self employed borrowers that have exceptional credit. Borrowers will now have to put 25% down on these purchases and will have to meet the following criteria:

- Must be self employed and provide documentation that they own 50%+ of the business

- Provide CPA letter certifying that borrower is self employed, current on taxes and has been a "____" for 'X" of years.

- Validation that business exists through independent search of the business name via phone book, internet, etc.

- Must have minimum credit score of 700+ middle FICO score & have 3+ open tradelines on credit, each with a 12 month current history and no lates.

- Borrower must sign 4506 or 4506T - that they have filed tax returns for last 4-8 yrs.

- No bankruptcy's in last 5+ yrs.

- Total DTI cannot exceed 36%

The one investor that buys these loans holds these in-house. This means that they can cancel the program at anytime. If you are a homebuyer and need one of these loans, be sure that you can meet all of these requirements, no exceptions.

Interest rates are about .5% above Conventional Market pricing.

Call me if you need one of these loans in Mississippi.

Molly Lionberger, Assistant Vice President, First Bank and Trust of Mississippi.

REACH Mississippi Program - Employer Assisted Housing Down Payment Assistance Program - coming soon

Molly Lionberger (Prosperity Mortgage) — Wed, 23 Jul 2008 19:00:36 -0500

REACH Mississippi is part of the Gulf Coast Renaissance Corporation's comprehensive framework to address impediments to the rebuilding process by providing gap financing directly to individuals or families that make up the work force of South Mississippi.

HOW THE PROGRAM WORKS (as of July 23,2008)

The Team at Gulf Coast Renaissance Corporation assist employers in setting up a Employer Assisted Housing Program (EAH). An EAH will benefit employers by reducing turnover, reducing recruitment and retention costs, increasing employee homeownership, thereby providing workforce stability. Although the final maximum contributions are still being worked out, the first version of the plan showed examples of Employers contributing up to $7,500 to the employee for Down Payment and Closing Cost Assistance. Early versions, showed the REACH Mississippi funds matching the employers contribution 3 times the employers EAH. The EAH & REACH funds will be a second mortgage on the home, forgivable after a period of time that is still being determined. Further, the employee and their household income must not exceed 120% of the Area Median Income (AMI). The employee must qualify for a full documentation mortgage loan and obtain homeownership counselling from an approved provider. The amount of the funds will be limited and subject to availability at the time the request is received. My understanding is that this program will only be available to homebuyers in Hancock, Harrison and Jackson Counties.

For Example:

Employer EAH benefit = $7500

REACH Match = $22,500

Total down payment and closing cost assistance = $30,000

So far, First Bank and Trust of Mississippi is the only lender to close the first 2 test cases. First Bank and Trust of Mississippi is on the approved list to offer these loans, once they are officially available. Up-to-date information regarding this program can be found at www.msgcrc.org

If you are an employer looking to add this benefit to your employees, contact Camille Schaffer, REACH program director at 228-896-3386 or via email at reach@msgcrc.com

For any other Down Payment Assistance Questions or programs available to Mississippians, for example the MS Home Corps Bond Program, please contact:

Molly Lionberger, Assistant Vice President

First Bank and Trust of Mississippi

Office: 228-872-1020 Cell: 228-257-9000

1st Time Homebuyer Program in Mississippi - Pascagoula, Gautier, Ocean Springs, Biloxi, Gulfport, Diamondhead

Molly Lionberger (Prosperity Mortgage) — Mon, 21 Jul 2008 15:43:45 -0500

Many first time homebuyers are taking advantage of the low interest rate programs offered by the Mississippi Home Corporation Mortgage Revenue Bond Program. While the program name sounds complicated, the program offers Home Buyers below market 30 year fixed interest rates and a cash gift of up to $8691.15 to use towards down payment or closing costs (Cash gift not to exceed 3% of the purchase price of the home with a maximum purchase price of $289,705 & payable at closing). Homebuyers must qualify for an FHA, VA or Conventional Loan Program and earn less than the income limits for the program. Call Molly Lionberger at 228-257-9000 for the income limits for the county that you are looking to purchase a home in. For example, in Harrison County, along the MS Gulf Coast, for a household of 3 or more, the income limit is $68,600. This means that if your household earns less than $68,600, you may qualify for the program.

Credit issues like unpaid collections, unpaid charge-offs, unpaid judgments or unpaid tax liens are the most common roadblocks to qualifying for this program. If a homebuyer has any of these derogatory items on their credit, it will need to be resolved and show ‘debt satisfied' prior to buying a home under this particular program. I recommend that homebuyers set up an account with each of the 3 credit repositories:www.transunion.com www.equifax.com www.experian.com to check their credit and resolve any of these issues. Be an informed homebuyer. For more information on this program and other Mortgage Financing questions, call Molly Lionberger, Assistant Vice President at First Bank and Trust of Mississippi. Equal Housing Lender, at 228-257-9000.

100% VA loans in Mississippi – Pascagoula, Gautier, Ocean Springs, Biloxi, Gulfport, Diamondhead

Molly Lionberger (Prosperity Mortgage) — Mon, 21 Jul 2008 15:34:48 -0500

If you are relocating or PCS'ing to the Mississippi Gulf Coast (or are the realtor helping a military family), be sure to call me first to see if you qualify to use your VA entitlement. In Mississippi, I can help you obtain 100% VA financing at low rates AND help you obtain closing cost assistance. Most military families need some type of help. The costs of moving are enormous and we all know that the military doesn't reimburse for every single cost. I have same day decision underwriting to help homebuyers. In some cases, eligible VA loan borrowers can obtain up to 3% of the loan amount to pay for closing costs through our State Mortgage Revenue Bond Program. This offers 100% financing with closing cost assistance at a below market interest rate. Call me for current rates and availability.

Recently, a family PCSing from Italy, emailed me and we had their 'credit side' fully approved before they even came to the states for their house-hunting trip. Many times, we are able to close on a VA loan in less than 2 weeks. My direct # is 228-257-9000. Homebuyers can also go to my secure web site and apply on-line at www.mollysloans.com

Molly Lionberger, Assistant Vice President

First Bank and Trust

First Bank and Trust, Mississippi is an equal housing lender and insured by FDIC.

Fannie & Freddie make more changes

Molly Lionberger (Prosperity Mortgage) — Sat, 19 Jul 2008 09:07:24 -0500

With regards to credit, one of our investors that we sell loans to advised the following changes effective 7/18/08:

Borrowers with past bankruptcy's or foreclosures:

Eligible 4 yrs after Chapter 7

Eligible 4 yrs after Chapter 13 dismissal; 2 yrs after Chapter 13 discharge.

Eligible 5 yrs after Foreclosure & must have 680 middle FICO and put 10% down.

Be sure if you have current deals in underwriting, that your Loan Officer knows about this.

New Fannie Mae Regs effective June 1st

Molly Lionberger (Prosperity Mortgage) — Sat, 03 May 2008 16:40:20 -0500

I am a positive, solution oriented and experienced Loan Officer. So along with this not so positive changes, I have added my solutions. Expect major banks to begin to adopt the new Fannie Mae regs before June 1st. The cliff notes version is the following:

1) Minimum FICO - regardless of LTV is 580. What this means is that if a borrower is putting down 50% and has a 579 score, it won't give the 'Approve/Eligible' DU decision.

Solution: Go FHA

2) Foreclosures - current guideline reads that a borrower must be 4 years past a foreclosure. This will change to 5 years. Plus, after the 5 years, the borrower must have a 680 middle FICO and put 10% down.

Solution: Go FHA

3) MCM - My Community Loans MAX LTV will reduce to 97% and min credit score will increase.

4) Regular Conventional Max LTV will reduce to 95% and min credit score will increase

5) Investment Property min credit score increases to 680 for 90%LTV. (Hope you can get MI on that loan)

Solution: Investors must put 20% down.

For all you Realtors and Brokers out there... Now is the time to bring an experienced Loan Officer into one of your sales meetings and explain in plain and easy terms how you need to navigate these rough waters ahead. We are all in this together.

For detailed changes, I recommend that ya'll go to the following web sites:

www.efanniemae.com

www.ugcorp.com

www.mgic.com

That's a good start.

Mortgage Insurance changes will begin to affect Realtors

Molly Lionberger (Prosperity Mortgage) — Sat, 03 May 2008 16:27:17 -0500

For realtors that need a 90% LTV Stated Income/Stated Asset or Stated Income/Verified Asset Loans, their is only one Mortgage Insurance company left that will issue a MI Certificate. That company is MGIC. That being said, they will only write it if the borrower is Self Employed, owns the business/brokerage and if the property is not in a declining market. I ran into this in late April. UG cancelled theirs effective May 1. If anyone you know has a deal in the works and its a SISA or SIVA, be sure your Loan Officer knows the new rules.

Feds lower rates. What is your local Loan Officer Quoting?

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 21:05:32 -0500

Today, as the case has been for the last 2 months, we had 4 rate changes today. Since I am a correspondent lender, our rates are typically lower than our local banks and much lower than local broker shops. Today, I was quoting 5.5% with 1 discount point, for FHA/VA loans. Yesterday I was at 5.875% with 1 discount point. See my web site for the APR. The market is extremely volatile. Stated refis today were around 6.25% with 1 discount point for you realtors who need to rate/term refi. Again, keep in mind that I am not a broker, but a correspondent lender and there is a major difference. If refinancing will save you money, get cozy with your favorite lender and get on their rate watch sheet (if they have one). You will know if they have one if you get regular calls or emails with updates. Keep in mind the breakeven on a refi. Breakeven in # of months = Cost of the refi/(current payment-new payment)/12.

FHA Loan Officers cannot hold an Active Real Estate License

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 19:41:53 -0500

This posting is intended for Homebuyers. FHA does not allow Loan Officers to hold a Real Estate License. They consider it to be a conflict of interest. If you think about it, typically, Realtors earn about 3% of the purchase price in gross commissions. If they are also doing your loan, there could be a temptation to 'fudge' numbers or worse, create fraudulent documents in order to 'get the loan approved.' Further, although it may seem easier, are you really getting the best rate and the lowest fees? Be sure to shop around. You have 15 days to shop for a mortgage with only a 1 point impact to your credit score. If a Loan Officer tells you otherwise, they are lying.

VA Loans for Military Families PCSing to Keesler or Seabee Bases

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 07:52:46 -0500

If you are PCSing to the Mississippi Gulfcoast (or are the realtor helping a military family), be sure to call me first to see if you qualify to use your VA entitlement. In Mississippi, I can help you obtain 100% VA financing at low rates AND help you obtain closing cost assistance. Most military families need some type of help. The costs of moving are enormous and we all know that the military doesn't reimburse for every single cost. I have my own in-house underwriter. Recently, a family PCSing from Italy, emailed me and we had their 'credit side' fully approved before they even came to the states for their house-hunting trip. Many times, we are able to close on a VA loan in less than 2 weeks. My direct # is 228-257-9000. Homebuyers can also go to my secure web site and apply on-line.

MS Home Corps Bond Program - 100% Financing still available for 1st time homebuyers

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 07:15:46 -0500

Many states have bond programs that offer Cash Advances at closing to be applied towards Down Payment and/or Closing Costs. In Mississippi, we have the MS Home Corps Bond Program. It currently is offering a 3% Cash Advance for families that meet the income limits. If you are a realtor or thinking about buying a home in MS, please feel free to call or email me for more information. I have helped dozens of families obtain home ownership with this program. Plus I can help structure the deal so that buyers can come out of pocket with as little as $500. My direct phone number is 228-257-9000.

Molly Lionberger, Assistant Vice President

First Bank and Trust of Mississippi

Watch out for Investment Property or Condo Kickbacks

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 06:53:26 -0500

I noticed the other day while checking out 'Referrals' that an investor group is advertising that the buyer will receive $10,900 designer credit 2-3 weeks after closing, in essense, a 100% return of their downpayment. That is a kickback or inducement to purchase and to the best of my knowledge, illegal. If you are selling property and you have knowledge that the developer or investment group is offering this, don't think that you are innocent in this transaction.

Rates expected to drop again today

Molly Lionberger (Prosperity Mortgage) — Tue, 18 Mar 2008 06:45:06 -0500

Over the last 30 days, the market has been the most volital I have seen in the last 2 years. We are getting updates to rate sheets 4-5 times a day. Yesterday, I was quoting on FHA and VA loans 5.875% Zero/Zero, saving my clients thousands over local banks rates. Realtors, now is a great time to discuss with your buyers to lock in rates. Who knows what the market will be at the end of this week.

Potential Issues with Stated Loans

Molly Lionberger (Prosperity Mortgage) — Tue, 11 Mar 2008 21:58:16 -0500

Stated Loans are quickly going out of vogue folks. Countrywide just sent out emails out to brokers notifying us to lock and close 'Fast & Easy's' asap. Stated Loan guidelines continue to tighten. My guess is that soon, a Stated Loan borrower will have to put 15-20% down. Reason being, MI companies don't want to write MI coverage on Stated loans. Just look at the stock price of Radian, for example. MI companies are loosing money and the value of their stocks continue to drop.

Further, most conventional/Alt-A stated loans now require a written or telephone Verification of Employment. MI companies are now requiring that 50% of the Stated Income be derived from Self Employment.

If anyone knows of an investor that offers True NO DOC loans, with no verification of employment...please let me know.

Somehow, everyone needs to communicate to buyers and refi borrowers that the easy - cheesy loans are pretty much gone. People need to put some type of REAL financial investment in a property or keep some equity in it when they want to refi.