Caroline's Blog

Congress Introduces Bill that would Reinstate Downpayment Assistance

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Wed, 04 Feb 2009 11:46:47 -0600

Press Release Congress Introduces Bill that would Reinstate Down payment Assistance: Nehemiah Responds - Bill Would Broaden Opportunities for Sustainable Home ownership Without Government or Taxpayer Dollars - Sacramento, CA – January 16, 2009 The following statement was issued today by Scott Syphax, president and CEO of the Nehemiah Corporation of America in response to H.R 600, a bill introduced in Congress that would reinstate seller-funded down payment assistance (DPA). Prior to the October 1, 2008 ban on DPA, Nehemiah was the oldest and largest provider of down payment assistance. "With foreclosures on the rise and banks maintaining their stranglehold on credit, we commend Congressman Al Green for recognizing the important role down payment assistance can play in the market's recovery. Through H.R. 600, DPA offers a simple solution that can empower thousands of worthy families to take advantage of depressed home prices therefore reducing the glut of homes on the market. Further, it does so without spending a single government or taxpayer dime according to the Congressional Budget Office. Creating opportunities for sustainable home ownership will be a cornerstone to strengthening a crumbling housing market and breathing life back into the economy. As the Obama Administration takes the reins tomorrow, we call on Congress to reach across the aisle and prioritize broadening opportunities for responsible home ownership in America by reinstating DPA.."

New Steps To Help Homeowners Avoid Foreclosure

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Fri, 28 Sep 2007 20:40:12 -0500

President Bush Announces Steps To Help American Families Keep Their Homes And Reform The Mortgage Finance System

Today, President Bush Announced Steps At The Federal Level To Help Homeowners In Need Of Assistance Avoid Foreclosure. These steps will help homeowners having difficulty paying their mortgages and ensure that the problems now disrupting the housing industry do not happen again. The fundamentals of America's economy are strong - economic growth is healthy, wages are rising, and unemployment is low. The markets are in a period of transition as participants are re-assessing and re-pricing risk. One area that has shown particular strain is the mortgage market, particularly the subprime sector.

The President Announced The Following Steps To Help American Families Keep Their Homes

1. The President Calls On Congress To Pass Federal Housing Administration (FHA) Modernization Legislation. The President's FHA modernization proposal would lower downpayment requirements, allow FHA to insure bigger loans, and give FHA more pricing flexibility. These reforms would empower FHA to reach more families that need help - first-time homebuyers, minorities, and those with low-to-moderate incomes - and offer more options to homeowners looking to refinance their existing mortgage.

The Administration Will Also Launch A New FHA Initiative Called "FHA-Secure." The President has asked Secretary Jackson to pursue important administrative changes to give FHA the flexibility to help more families stay in their homes during this time of transition in the mortgage market. The FHA-Secure program will help people who have good credit but who have not made all of their payments on time because of rising mortgage payments. For the first time, FHA will be able to offer many of these homeowners an option to refinance their existing mortgage so they can make their payments and keep their homes. FHA will also charge mortgage insurance premiums based on the individual risk of each loan, using traditional underwriting standards, so it can expand access and help even more families.
Since 1934, FHA Has Helped Close To 35 Million People Buy A Home And Stay In Their Home. FHA is a government agency that provides mortgage insurance to borrowers through a network of private sector lenders. It also offers options to homeowners looking to refinance their existing loan. The President's FHA modernization bill was first sent to the Hill in April 2006, and it passed the House last Congress with over 400 votes. The President has once again asked Congress to send him a clean FHA modernization bill as soon as possible so he can sign it into law.

2. The President Calls On Congress To Change A Key Housing Provision Of The Federal Tax Code So It Does Not Punish Families Who Are Forced To Sell Their Homes For Less Than Their Mortgage Is Worth. Current tax law counts cancelled mortgage debt on primary residences as taxable income. For example, if the value of a home declines and $20,000 of the homeowner's loan is forgiven, the tax code treats that $20,000 as taxable income. The President proposes temporary relief to ensure that cancelled mortgage debt on a primary residence is not counted as income.

The President Is Working With Congress In A Bipartisan Fashion To Make This Important Change. Senator Debbie Stabenow (D-MI), along with Senator George Voinovich (R-OH) and others, has introduced a bipartisan bill that would protect homeowners from having to pay taxes on cancelled mortgage debt. In the House, Representatives Rob Andrews (D-NJ) and Ron Lewis (R-KY), along with several of their colleagues, have introduced similar legislation. The President looks forward to working with Congress to reach agreement on a bill, so we can deliver this vital tax relief to American homeowners.

3. The President Announced That The Administration Will Launch A New Foreclosure Avoidance Initiative To Help Struggling Homeowners Find A WayTo Refinance. Housing and Urban Development Secretary Alphonso Jackson and Treasury Secretary Henry Paulson will reach out to a wide variety of groups that offer foreclosure counseling and refinancing for American homeowners. These groups include community organizations like NeighborWorks, mortgage lenders and loan servicers, FHA, and Government-Sponsored Enterprises like Fannie Mae and Freddie Mac. The goal of this initiative is to expand mortgage financing options, identify homeowners before they face hardships, help them understand their financing options, and allow them to find a mortgage product that works for them.

The President Supports Actions To Protect Homeowners And Prevent These Problems From Happening Again

Federal Banking Regulators Are Improving Disclosure Requirements To Ensure That Lenders Provide Homeowners With Complete, Accurate, And Understandable Information About Their Mortgages. Many borrowers did not receive clear and complete disclosure regarding the terms and conditions of their mortgages. To help protect homeowners in the future, Federal banking regulators recently issued new disclosure guidelines for lenders, and they continue to consider new rules. Homeowners must have complete, accurate, and understandable information - including on the potential increases in their monthly payments.

Federal Banking Regulators Are Working To Strengthen Mortgage Lending Standards. Questionable underwriting standards enabled mortgage lenders to place some borrowers in sophisticated products they could not afford. The Federal banking regulators recently set forth new guidelines to address lending standards, and they will continue to examine new rules. Lenders have an obligation to ensure that their standards accurately measure whether borrowers can afford their mortgage.

The Administration Is Working On New Rules To Help Consumers Shop For The Best Loan Terms. This fall, HUD will propose reforms to the Real Estate Settlement Procedures Act (RESPA) thatwould promote comparative shopping by consumers for the best loan terms, provide clearer disclosures, limit settlement cost increases, and require fee disclosure.

The Administration Supports State-Based Efforts To Create A Comprehensive Mortgage Broker Registration System. The President has also asked Secretary Paulson to examine the broad issues surrounding mortgage brokers and originators.

The Administration Is Committed To Pursuing Fraud And Wrongdoing In The Mortgage Industry. Some lenders deceived their customers - and pushed them into taking out loans they knew these home buyers could not afford. Federal agencies, such as HUD, the Department of Justice, the Federal Trade Commission, and others, are aggressively pursuing wrongdoers and predatory lenders to ensure they are punished. This will send the message that these practices will not be tolerated.

The President Will Create A Presidential Council On Financial Literacy Composed Of Leading Private Sector Individuals Who Can Help Promote Financial Literacy. This Council will work closely with the Treasury Department, HUD, and the Department of Education to make sure that we are raising awareness of these complicated issues.

The President Supports The Efforts Of Public and Private Sector Groups That Are Promoting Financial Literacy And Providing Foreclosure Counseling. For example, the President's Budget proposes $120 million for NeighborWorks, which provides foreclosure workshops and counseling to borrowers. The President's FY 2008 Budget request includes $50 million for HUD's housing counseling program.

The President Has Asked Secretary Paulson To Lead The President's Working Group On Financial Markets In Examining Some Of The Broader Market Issues Underlying The Recent Mortgage Problems. The President's Working Group on Financial Markets is led by Treasury Secretary Paulson and is composed of Federal Reserve Chairman Bernanke, Securities and Exchange Commission Chairman Cox, and Commodity Futures Trading Commission Acting Chairman Lukken. The group will examine:

The role of credit rating agencies and how their ratings are used in lending procedures, and
How securitization, the repackaging and selling of assets, has changed the mortgage industry and related business practices.

Why Ask For An FHA Loan?

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Fri, 28 Sep 2007 20:35:45 -0500

There are lots of reasons to ask your lender for an FHA loan instead of taking a conventional or an expensive and risky sub-prime mortgage loan. Why not take advantage of the many benefits and protections that only come with FHA:

Easier to Qualify - Because FHA insures your mortgage, lenders are more willing to give loans with lower qualifying requirements so it's easier for you to qualify.

Less than Perfect Credit - Even if you have had credit problems, such as bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.

Low Down payment - We have a low 3% down payment, and that money can come from a family member, employer or charitable organization. Other loans don't allow this.

Costs Less - Many times, FHA loans have competitive interest rates because the loans are insured by the Federal Government. Always compare an FHA loan with other loan types.

Help You Keep Your Home -The FHA has been around since 1934 and will continue to be here to protect you when the others walk away. Should you encounter hard-times after buying your home, FHA has many options to help keep you in your home and avoid foreclosure.

7 frequent financial mistakes that consumers routinely make

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Wed, 26 Sep 2007 16:00:43 -0500

Lew Sichelman Realtor.com couldn't have said it better. This is a great article for First Time Home Buyers.

Most advice columns tell you how you should do things. But there are all kinds of things you shouldn't do, either. Here are 7 frequent financial mistakes that consumers routinely make -- and you should avoid.

Don't:

•1. Choose the Wrong Mortgage: With the advent of instant refinancing, home loans are no longer the lifetime obligations they used to be. Still, you don't want to be saddled for even a short period of time with the wrong one. Investigate all your options, then lay your choices side-by-side and do the math, making sure to compare worst-case scenarios. Be sure to look at initial interest rates, future interest rates and payments (if different), and the possibility of prepayment penalties.

•2. Confuse "Pre-Approved" and "Pre-Qualified" with a Loan Commitment: These are debatable terms in real estate because not all lenders apply the same definition to each expression. In fact, one leading real estate dictionary contains neither expression because their definitions are uncertain. According to one school of thought, however, when you are "pre-qualified," the lender is making an educated guess about how much you can borrow based on information you've provided. When you are "pre-approved," the lender has verified everything you have told him or her and is offering to lend you up to a given amount at current interest rates -- under certain conditions. Whether pre-qualified or pre-approved, final clearance and a check at closing -- a loan commitment -- are subject to an appraisal satisfactory to the lender, good title, a last-minute credit check, and other verifications. When meeting with lenders, always ask how they define each term and what additional steps will be required to obtain a loan.

•3. Have Too Much Credit: Excessive credit is almost as bad as no credit or even bad credit. Even if you pay your bills on time, lenders tend to focus just as much on how much credit you have available to you as they do on timeliness. So being up to your ears in car loans and credit cards is a sure way to be turned down for a mortgage. Postpone any big ticket purchases until after you buy your house.

•4. Lie on Your Loan Application: Exaggerating your income on a mortgage application or putting down other untruths can be a federal offense. Lenders rarely prosecute liars. But if they find out later, they can call your loan due and payable. Don't ever sign your name to a loan application that is not completely filled out, either. Loan officers have been known to stretch the truth to get a client approved, but it's the borrower who ends up paying the price, often in the form of monthly loan payments he can't afford.

•5. Hide If You Can't Make Your Payments: The worst thing you can do is ignore phone calls and letters from your lender when you are behind on your payments. Lenders have many options at their disposal to help keep borrowers from losing their homes to foreclosure. But they can't do anything for you unless they can talk to you about your difficulties. Lenders are the enemy only if you give them no other choice.

•6. Skip a Home Inspection: Failing to make your purchase contingent on a satisfactory home inspection could be a costly mistake. Independent home inspectors examine houses from stem to stern. They'll be able to tell you whether the roof and/or basement leaks, whether the mechanical systems are in good shape and how long the appliances should last. They can't report on things they can't see, but at least their trained eyes are better than yours. So don't pass just to save $300-$400; that's money well spent.

•7. Hire Just Any Agent to Sell Your House: All real estate agents are not the same. You want to look for those who specialize in your neighborhood and are top producers. Ask your candidates how they plan to market your house, what you can do to make the place more attractive to prospects and how much you should ask. If you don't like any of the answers, looks elsewhere. And above all, stay away from relatives. Unless Aunt Bessie or Nephew Nick fit the description above, keep looking.

There are also these local first time home buyer programs:

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Wed, 26 Sep 2007 10:00:57 -0500

Abilene First Time Home Buyers (FTHB) Program (915) 676-6363
Arlington Homebuyers Assistance Program (AHAP) This contract is managed by Hunter and Hunter on behalf of the the City of Arlington. 866-231-5843
Athens Homebuyer Assistance Program (HAP) (903) 677-6610
Austin Housing Finance Corporation Home Down payment Assistance Program (HDPA) (512) 499-3149
Brazoria County First Time Homebuyer Program (979) 864-1860
Bryan Down Payment Assistance Program (DA) (979) 209-5183
College Station Down payment Assistance Program (979) 764-3810
Corpus Christi Home Buyer Program (HBP) (361) 880-3010
Corpus Christi New Construction Homebuyer Program (NCP) (361) 880-3010
Dallas County Upfront Cost Assistance (UPCAP) Program (214) 819-6060
Dallas Mortgage Assistance Program (MAP) (214) 651-7789
Dallas Piedmont/Seyene Housing Trust Fund Homeowner Assistance Plan (214) 943-9007
Denton Homebuyer Assistance Program (HAP) (940) 349-7726
El Paso Housing Assistance Program (HAP) (915) 541-4888
CIty of Fort Worth Assistance Programs (817) 392-7328
Garland NU STAR Infill Program (INFILL) (972) 205-3321
Garland Village of Eastgate Homebuyer Assistance Program (HAP)
Greenville Homebuyer Assistance Program (HAP) (903) 457-3160
Harlingen Community Development Corporation Homebuyers Program (HP) (956) 421-2351
Harris County HACH Public Housing Homeownership Program (PHHP) (713) 260-0763
Harris County Mortgage Assistance Program (MAP) (713) 578-2000
Harris County/Houston City-Homebuyer Assistance Program (HAP) (713) 644-8488
Hidalgo County Homebuyer Assistance Program (HAP) (956) 318-2619
Houston Alliance for Multicultural Community Services The Alliance IDA Program (IDA) (713) 776-4700
Houston Covenant Community Capital Corporation Smart Savings Program (SSP) (713) 223-1864
Laredo First Time Homebuyer Down payment Assistance Program (FTHB) (956) 795-2675
Lubbock Down Payment & Closing Cost (DP/CC) Assistance Program (806) 745-9559
Marshall First Time Homebuyer Down payment and Closing Cost Program (FTHB) (903) 935-4457
McLennan County Neighborhood Housing Services of Waco, Inc. Down payment Assistance Program (DAP) (254) 752-1647
Midland Neighborhood Housing Services Down Payment Assistance Program (DPAP) - NCR/Option 2 (915) 687-6647
Midland Neighborhood Housing Services Down Payment Assistance Programs (DPAP) - HIP/Option 1 (915) 687-6647
Multi Counties Lubbock Housing Finance Corporation Welcome Home Gift Program (GIFT) (806) 745-9559
Multi Counties Southeast Texas Finance Corporation First Time Homebuyer Assistance Program (FTHP) (281) 484-4663
New Braunfels Homebuyer Assistance Program (HAP) (830) 608-2100
Nueces County Community Action Agency First Time Homebuyers Program (361) 883-7201
Pasadena First Time Homebuyer Assistance Program - SETH (281) 484-4663
Plano First Time Homebuyer Program (FTHB) (972) 941-7665
Round Rock Home Ownership Assistance Program (HOAP) (512) 341-3320
San Antonio Homeownership Incentive Program (HIP) (210) 225-6833
San Antonio Our Casas Leverage Loan Program (LLP) (210) 225-6833
San Benito HOME Investment Partnership Program (HIPP) (512) 475-1391
Sherman First Time Homeownership Closing Cost Grant Program (FHCCP) (903) 892-7227
Tarrant County Housing Partnership Inc Homebuyer Assistance Program (HAP) (817) 924-5091
Temple Affordable Housing Program (AHP) (254) 298-5670
Temple Homeownership Program (HOP) (254) 773-2009
Terrell First Time Homebuyer Program (FTHP) (972) 551-6670
Texas City First Time Homebuyer Assistance Program (FTHB) (409) 643-5730
Texas United Cerebral Palsy of Texas Home of Your Own (HOYO) First Time Home Buyer Grants (HBA) (512) 472-8696
Val Verde County Del Rio Housing Authority Homebuyer Assistance Program (HAP) (830) 774-6506
Victoria Mortgage Assistance Program (MAP) (361) 572-2795
Waco New/Acquisition Housing Loan Program (HLP) (254) 750-5629
Webb County Laredo-Webb NHS First Time Homebuyer Home Ownership Pilot Program (HOP) (956) 712-9100
Wichita Falls First-Time Homebuyers Program (FTHP) (940) 761-7454

Another Texas Homebuyer Program

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Wed, 26 Sep 2007 09:48:09 -0500

Toll Free Help: 1-800-792-1119

The Texas First Time Homebuyer Program provides below market interest rate mortgage loans through a network of participating lenders to eligible families and individuals who are purchasing their first home or who have not owned a home in the past three years. Two types of loans are available under this program. An "Unassisted Rate" loan typically offers our lowest interest rate available and does not provide funds for down payment and closing cost assistance. For borrowers needing assistance with their down payment, an "Assisted Rate" loan is offered to income-eligible borrowers that provides grant funds up to 5% of the mortgage amount. These loans are offered at a slightly higher interest rate.

We also offer a Mortgage Credit Certificate program that increases a family's disposable income by reducing its federal income tax obligation. The tax credit is valid for the life of the loan as long as the borrower occupies the property as their primary residence.

NEW PROGRAM 70 RATES 30-year fixed rate loans.
5.75% Unassisted	6.50% 5% Grant Assistance

Did you know?????

Caroline Bordovsky (Texas Supreme Mortgage Inc.) — Tue, 25 Sep 2007 14:45:23 -0500

There are government grants out there for borrowers that make a decent living? Traditionally we only see grants for the low to moderate income borrowers. This can be quite frustration for the middle class borrower. There is a local Houston Corporation that has available funds for families with income levels up to 85,000 annually. Wow! Pretty amazing since most programs out there have income limits set around 40,000 annually. What family out there purchasing a home couldn't use 15,000 dollars towards the purchase of a home?!? Give me the opportunity to find your client or yourself free money.