Down payment assistance can come in a many different forms ranging from loans, to grants to gifts... depending on your qualifications and in some case the property location can make a big difference in what a borrower can qualify. The best approach is planning ahead... many times we see first time home-buyers rush to submit an offer to find that is too late to maximize their Down-payment and/or closing cost assistance. We highly recommend a potential borrower get pre-qualified for all available down-payment assistance offer and/or any closing cost assistance that is allowable under a particular program. Having access to this information prior to moving forward can literally save a borrower thousands over the life a their mortgage. Planning is the key... don't make a a mistake...take your time and plan!

Information provided by Ron Giannamore (all rights reserved) (Equal Housing Lender)2011

Often we hear clients call our office telling us what they want.... we often explain to them that in-order to get what they want they NEED to take some actions that will allow us to get them what they want... the problem is many are not listening to what we've just shared with them which ultimately will cost them in the long run!

Gone are the days when mortgage brokers and originators across the country would have access to mortgage lending products that would allow anyone to get a mortgage. Many of these renters have had friends and relatives get mortgages in the past which were in the same financial position as they might be in now and many can't understand why they can't get approved for a mortgage now.... Even when you explain the reasons... they are not listening....

We live in a society that we order from a window and 30 seconds later get what we want or ordered... those days with regard to lending are over... the sooner and quicker our potential clients can understand that they must begin to take actions and be responsible regarding getting ready for owning their home the more time, energy they will save... having a plan is the key.

We work with many first time home-buyers and the key thing we look at is are they willing to do what is necessary. Most will say yes, but we follow it up with another question, NO MATTER HOW LONG IT TAKES?

If they can't answer yes to the later part of the questions they are not ready to own. Many of these borrowers don't realize that the federal government rates each and every mortgage broker and lender regarding delinquencies with federal mortgages. If any new home-owner is late for up to 24 months after which the broker/lender supports them into getting their first home loan they become late (for any reason), then that broker/lender will be affected by a formula used by the federal government called (Compare ratio) and the higher the number of delinquencies the more negative impact it has on the broker/lender... This has caused many brokers/lenders to be very cautious when working with potential home-buyers, especially the ones who are not listening.... the lenders and brokers don't get paid until the loan closes and if they are willing to spend in some cases 4-6 months helping renters get ready.. making sure they listen is key!

Good luck!

Ron Giannamore is a Senior Loan Specialist with Mortgage Services, Inc. for the past 23 years!

If you've been in the business for at least 5 years you know the game has changed, at least in the lending arena. The banks, government and mortgage companies are no longer approving borrowers like they have in the past. They continue to request more and more item in the mortgage approval or prequalification process which make it more difficult than ever to direct or coach a borrower in the right direction. We strongly believe being prepared prior to house hunting is the best approach to being prepared. Mortgage Services, Inc. has partnered with a few non-profit agencies to help support borrowers in the "Get Ready Program". The process has help hundreds of potential home-buyers todate and they are proud of the support being offered to these potential borrowers. 

Being prepared in more important than ever before.

This information is provided by Ronald Giannamore who has been a managing loan specialist with Mortgage Services, Inc. for more than 20 years.

The truth is there is NO secret! The simple fact is that lenders and the government have not changed the areas of focus, income, credit, and -..... They have just increased standards for approval. They no longer are willing to accept borrowers who have not demonstrated the ability to manage the responsibility of owning a home and all the problems that occur when doing so. They do not want to be calling up a borrower shortly after a borrower has obtained a home wondering where the mortgage payment is....they want to feel very comfortable that if they sat yes and approval a borrower that they will not have a problem with the borrower.

Knowing exactly what they are looking at beyond credit score, amount or availability of down-payment, and job history is the key. Even if a borrower has a 720 credit score lenders will look at credit history, about of available credit, length of credit history, number of payments that show up in the credit history, recent credit payment patterns, savings patterns regarding deposits, withdraws and patterns showing on your bank statements. They will also look at payment shock and what a borrower has been doing with their cash-flow leading up to their decision to want to purchase.

These are a few of the areas lenders will focus. Having a specific plan of actions with borrowers will allow for a safe transaction and approval with your borrower. We support many Realtor who wish to use our service (HAP) Home-buyers Advantage Program because it takes each client through the process. The client dictates the speed at which we work. We work with a few non-profit agency's across the US and other states along with credit consultants and tools to help us support whether a client will need 1 months of support or 24 months, depending on if they filed a bankruptcy or had a foreclosure in the past. The amount of time we work with a client is dependent on a number of factors but most is put on what their commitment to owning their own home is. If they have a strong commitment and are willing to do what is necessary they WILL and CAN get into a home, that is the Secret!

Ronald A. Giannamore is a Senior Managing Loan Specialist and consultant for Mortgage Services, Inc. If you have any questions he's is available at 800.922.3210 ext 121.

For those of you who have tried over the past few years to help your clients, this letter might shed some light. I will keep you posted on the results of it if I am lucky enough to get a response.

Recent sent letter to MakingHomeAffordable (Hope Program):

To Whom It May Concern, 

My name is Ron Giannamore I currently am a Board member for a local non-profit agency approved by HUD and NeighborWorks. I also have managed a mortgage brokerage company over the past 22 years which is currently licensed in 4 states. My question is directed at getting information to better help and support borrowers throughout the country with providing realistic solutions to help them save and better understand the Making Home Affordable initiative. 

I am referring specifically to the HAMP & HARP programs and although both these programs seem like they would make an extraordinary difference for many home-owners it almost seem impossible to get approved or find a lender to lend under them. From our perspective we feel that most lenders, that the government has identified and confirmed their participation in, have confirmed their participation only on the (disposal of asset side) as opposed to the lending side of the business. Without having lenders to participate on the lending side, especially with borrowers who've never been late, still have good assets, but are greatly underwater this is and will be a failed program. Most borrowers we work with are at least 10-40 percent underwater and have not been able to get their servicing company or lender to participate on the lending side, especially under HARP. 

We currently have some national lenders who participate in LP Relief Refinance program (Freddie Mac) and also DU Refinance PLUS which target borrower who's mortgage balances are upside down compared to their current property values and under the these two programs and the lenders we participate with the maximum LTV is only 105%, not the 125% as identified under the HARP program GUIDELINES that are being promoted by the government and the Making Home Affordable initiative. We deal with some of the largest national lenders in the country and none of them will lend more than 105%. 

I am extremely hopeful that your organization can provide us with a list of lenders who you know and/or have confirmed are lending up to the 125% limits. At least we can begin to direct these borrowers to these lenders if we ourselves will not be able to help.

 Our office has fielded over 500 calls over the past 2-3 years trying to help borrowers and we are getting more calls every day and would like to come up with at least some kind of solution other than to telling them that they are wasting their time and that although the Making Home Affordable Idea does exist there truly is not lender in the country lending on such terms as identified under the program guidelines, at least that we are aware of. 

Please help in our efforts to support these home-owners! 

Thanks you in advance of your help and support! 

Sincerely,

RonGiannamore@ToMortgageServices.Com

New SUBPRIME LENDER's!!

For those of you who didn't know there's been a few new SUBPRIME LENDER's in the game! That's right a few! Two to be exact!

They've been around for a long time and no one would have ever consider that SUBPRIME LENDING would ever rear it's ugly head again, but it's here.

Fannie Mae and Freddie Mac....

Ever since the two mortgage giants were taken over by the federal government we've seen good attempts at resolving the past problems... with people who have no clue of what they are doing.

Example: (The government first put blame for the mortgage meltdown on mortgage brokers and originators throughout the country for offering higher interest rates and closing costs to borrowers with slow or no credit.) These programs were mostly provided to borrowers who's credit scores where below 600. There focus on this as being the ultimate problem could not have been further from the truth. (In some cases this was true but not as a majority)

1.In the governments first attempt to resolve matters they created HVCC where appraisers could no longer receive appraisal directly from lenders or brokers, they all would now have to be placed through an approved Appraisal Management Company. Although this process was created to eliminate any appraisal influence to an appraiser it has now helped protect the appraisers but at the same time has caused appraisers to be more conservative on estimating values than ever before. Although most appraisers do a good job there are others that are very conservative on their opinions and have caused many borrowers from qualifying for the low interest rates that are available today. And for the sellers, who've listed their homes with professional real estate agents who perform a true Comparative Market Analysis (CMA)prior to taking on any new listing that they are going to spend money on to advertise, just to find that they can't sell to the home because the appraisal did not come in at the contracted sales price agreement. Little do these sellers know that in the event that an FHA insured mortgage is denied for any reason it is place and identified within FHA Connections and any new buyer needing an FHA insured loan will be denied for the same reason because it will be identified in the system for a six month period. This is not fair to the sellers! Weren't we told that value was determined by what someone was selling something for and what someone was willing to pay for it?

2. National Mortgage Licensing System (NMLS)- This was created to keep the criminals out of the industry and to provide a systematic way for states to communicate through a centralized system to reduce mortgage and housing fraud. Some states continue to do their own thing playing along with what the government has created and which the government highly recommended that they participate with. Again, it's the governments attempt to do the right thing, but the problem which has occurred is bigger than the problem solved. See although this process is now extremely difficult to get mortgage licensing approval, it has drastically reduced the number of lenders, brokers and loan originators through out the country. There are some estimates that in Florida alone 3 years ago that there were over 40,000 loan originators and now with the new licensing system there are less than 5000. We are extremely happy about this as less competition means more business.. but for the consumer, that's right, it also means that they will eventually pay more for doing a loan. As an example we've already seen the average cost of appraisal go from $200 to $450... to cover the additional costs in section 1 above.

3.) Increased Credit Scores- Minimum credit scores have increased from 580 to 640 over the past 18 month period. What many people don't realize is that unless thier creditscore is above 760 they stand a chance of having to pay higher fees. Although these extra fees may not be high enough to be considered SubPrime by definition, the amounts borrowers may end up paying over the life of the loan can total up to be thousands. The other thing that many people don't realize is that many lenders not only have a minimum credit score they also must meet a minimum number of existing loans and credit cards that have been established for more than 24 months. Lenders across the country have been adding additional over lay underwriting guidelines to loans that they feel may be not quite what they like. Now although a borrower may receive an automated approval finding report from DO or LP (The national automated underwriting modules provided by Fannie Mae & Freddie Mac) if the loan does not have other credit standards it will be denied. The way banks avoid discrimination is they make it a formal policy. It would be discrimination if they provided a loan to one borrower and didn't to another with the same credit score and trade lines opened. The additional credit overlays have been put in place by these lenders for one reason and one reason only... THE GOVERNMENT...

Who owns Fannie Mae & Freddie Mac right now is THE GOVERNMENT! Most loans provided in the United States today is either Fannie Mae, Freddie Mac or have at least have an FHA or VA guarantee which means the government has the say in the end. So when many lenders have been writing loans, packaging them to underwriting standards provided by the GOVERNMENT and then the loan does not get purchased by the GOVERNMENT (Fannie Mae Or Freddie Mac) then the lender must hold onto this loan or sell it at a discount as a scratch and dent loan even though it got approved through their automated underwriting system. We can't blame the lenders as they are being careful not to give a mortgage that will not be accepted by the government.

But, here is the kicker... early in 2010 Fannie Mae & Freddie Mac put in place credit score and loan to value pricing adjustments. These are additional points that must be charged to the borrower when their credit score and loan to values come in under 740 credit score. These additional fees can be up to 3 points extra to a borrower. Who must collect these fees on behalf of the GOVERNMENT are the same lenders, brokers and loan originators who where blasts and criticized for the mortgage and housing meltdown. If a borrower doesn't have the additional fees then they could get them down to zero by paying an additional .50 or 1 % more in interest on the mortgage. These extra finance charges can total literally thousands of dollars over the life of the loan. This is important to know when working with borrowers as to help them increase their scores way before thinking of purchasing a home. We specialize in supporting these clients and then handing them back to our affiliated or referring Realtor partner.....

Why this is even more important than ever is that they have just been increased again effective today. That's right, on average, each fee has increased either .25 to .50 in total fees on top of the already existing price add on's by Fannie Mae and Freddie Mac. And we don't expect them to get lower any time sooner but rather higher in the months to come...

The point is help your borrowers better prepare for tomorrow as the GAME has changed more than anyone could have ever imagined. And although the government is really trying to help, it is obvious that they have allot to learn.

Best regards for a happy, healthly and prosperous new year!

RonGiannamore is a Senior Loan Manager for Mortgage Services, Inc. for the past 23 years. 

Want to buy your first home, or have a client wanting to buy a home but for some reason there is a problem with credit, down-payment or closing costs? If so and you really want to buy a home, then this is your Guarantee!!!!

Mortgage Services, Inc. has been providing lending services over the past 25 year period and has designed a program to support those who really want to own a home. If you can't get approved quickly then our UNIQUE RENT-2-PURCHASE PROGRAM can help guarantee your home-ownership dreams come true!

Don't wait, call today 1.800.922.3210 ext 112

It's your guarantee!

Ron Giannamore is a Senior Loan Specialist with Mortgage Services, Inc. for the past 22 years.

For many renters, buying their first home will be their New Years Resolution.. for real estate and mortgage professionals, it will be just surviving this coming years continued economic environment. Which ever it might be getting in the game and working towards your goal or goals is the important thing!

Many times I've seen homebuyers who are very close to achieving their goal of home-ownership, just give up because they don't believe it will happen... and other times I've seen real estate and mortgage professionals do the same... the truth of the matter is that it takes persistence and determination to get anything that's worthwhile in life. Many years have gone by where we didn't need to go through or experience any of the circumstances that daily continue to hit us in the face. The fact of the matter is that first time home-buyers need real estate and mortgage professionals to stay strong and help them through the homebuying process more than ever before. 

Just because our economy is in economic turmoil doesn't mean that less renters want to achieve home-ownership, in some cases it's even more do, especially when their rents continue to increase and are expected to increase when inflation finally arrives.

Stay strong for yourself and your clients as you move through the next 360 days... you'll be glad you did!

Good Luck in 2011!!!!!

Sincerely,

RonGiannamore@ToMortgageServices.com

Realtors finally have a solutions to support their efforts when working their leads. No more wasted time showing homes, lock in your prospects so they return when they are qualified, don't spend any time or money working your prospects and leads, we will do it for you. IT's FREE!! Our HOME-BUYERS ADVANTAGE PROGRAM-HAP was designed with one thing in mind, produce results effectively and efficiently... and we have been doing that since 2008. With the loss of Wall Street mortgage products most every loan getting approved today is associated with the government. Gone are the days when 100% of your prospects could qualify for a mortgage instantly. For the past 10 years many Realtors and mortgage professionals had it pretty easy when working with prospects because of the easy access to mortgage products.... that game is over. Now are the days when operating efficiently and effectively are more important than ever.. without making these changes inevitably will cause you to go part time, if you haven't done so already or worse, leaving the business.....Having a system and plan of action is all it will take to empower your efforts and to get you back into the game. If you can design a system or plan that works, get to it right away. If you'd like to find out more about what we are doing and how the HAP program can work successfully for you then call me or one of our customer services reps to schedule a time to talk.

Ron Giannamore is a Senior Loan Specialist with Mortgage Services, Inc. for the past 22 years. His experience and knowledge is valuable in helping our clients and Realtor partners plan for a successful future. Call 800.922.3210 ext 112 to schedule a time to learn more. 

Many potential home-buyers have had to deal with increased down payment requirements, tighter debt to income ratio requirements, and higher credit score requirements during the past 2 years and it seems to be getting tougher..... the good news is that if you have a job and are generating income it is just a matter of time before you'll be able to qualify for a new home of your own. Although it may be very frustrating for you and your real estate agent, there is light at the end of the tunnel. And although it might be frustrating you will benefit in the end. The banks and the government are extremely concerned about first time home-buyer defaulting so they are making it more difficult, that means the less home-buyers will be in the market, less homes then will be selling, so prices should fall further... if you do what you need to do, when you need to do it, the chances are you will be in a home sooner than you think. If your not already working with a plan towards home-ownership, then you should do so immediately. The work you do now will pay off is the short future. Waiting will only disappoint you when you find the home of your dreams and you may miss an opportunity because you did not plan ahead. If your currently working with a Realtor have them call us and ask about our HOME-BUYERS ADVANTAGE PROGRAM-HAP or if you don't have a Realtor already, call us to find out how this program can help you.

Good luck!!!

Ron Giannamore is a Senior Loan Specialist and has been associated with Mortgage Services, Inc. over 22 years. Our national lender and federally chartered credit union relationships allow us to service your needs in every state. Check us on the BBB or just Google us today. www.tomortgageservices.com