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A friend of mine (who is an FHA expert in his own right) wrote a wonderful blog on the top 10 reasons to buy a home today! Via Jeff Belonger-The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( - FHA Home Loans - Infinity Home Mortgage Company, Inc):
The MORTGAGE PRO Week in Review is back. This weekly review has been away the last 18 months due to the lack of volunteers, in helping to get mortgage related information out to the public and to help keep realtors up to date on the ever changing topics of mortgages. This review will appear every Sunday eevning, once a week. There will be a post in a few days about this group and how you can volunteer.
Onto Mortgages and Real Estate. Below is some very good mortgage posts that tell you what you need to apply for a mortgage, specific programs, and what you need to know about mortgages in general. Please take the time to read these posts, it could be worth your wild and could save you thousands of dollars as a borrower.
In my opinion, this post is not a scare tactic, just the basic facts to as why buying now could very well be better than buying later. Let's not forget, that is if you are in the position to buy now.
Before you buy a home, you should have some sort of budget. Realtor, Paul Silver, writes a very good 3 part series on this.
This shouldn't be a hard topic to figure out. Just be like the Boy Scouts, "Be Prepared". It never hurts to be prepared with all of your mortgage documents before speaking to a loan officer. Gene does a good job of breaking it down for you.
R.J. brings up a good point that many loan officers don't talk about, especially when the consumer is shopping around. Loan officers fail to talk about how to lock in your rate or what the differences are in the lock periods, yet they offer these so-called great interest rates. Just very simple information to understand.
What a better follow up to Gene's post, is Larry explaining on what 4 items gets your loan approved from a lenders perspective.
This is an excellent post that goes into details that many didn't know about. I personally know that Drew did some research on this, bringing you the real facts and not what is perceived out there.
This is a good program for some. John explains what you get with this type of program. The biggest selling point is that you don't have monthly mortgage insurance. This program is used for those properties owned by Fannie Mae. But please read below what Gary Miljour has to share, comparing this program with FHA loans. You do need to understand your options carefully and not just because this loan has no mortgage insurance. And showing these 2 was not a knock on either John or Gary. Each borrower and each loan program is different.
Gary gives you a quick simple breakdown between FHA loans and the Fannie Mae Home Path loan. In his opinion, FHA loans are still the clear winner.
FHA has some new changes pertaining to credit scores and down payment. And did you know that FHA is changing the monthly mortgage insurance that goes into effect on October 4th, 2010? Changes in FHA mortgages for the monthly mortgage insurance & UFMIP
A very simple and easy to understand post. Just be careful when using online mortgage calculators. There are a few factors that you as a consumer aren't aware of.
You first learn what a 203-k loan is and there is a group below that has some posts about this loan program. Brent goes into more specifics about the 203-k contractor, what to do and not to do.
My bonus post - Non mortgage related, but realtor John Zolsky shares some very interesting tips about how to write within your blog posts, such things as fonts and colors.
The next 3 members for the Mortgage Pro Week in Review :
1. Larry Bettag 09/20/2010 through 09/26/2010
2. Gene Mundt 09/27/2010 through 10/03/2010
3. Gerry Suarez 10/04/2010 through 10/10/2010
If you are writing mortgage posts or mortgage related posts, you should try placing them in the groups below. Not only is this good for the consumer or Realtor, but it helps those that are searching for top mortgage posts for the weekly review.
All About Mortgages/Mortgage Networking Here is a group that many loan officers post their mortgage related blogs in. A good place to learn more about the type of programs, new industry news, and sometimes some inside tips. Don't hesitate to join.
The FHA Mortgage Group - Here is a group that specifically talks about FHA, FHA updates, and what FHA can do for your buyers and sellers.
Mortgages - Another group with anything and everything about mortgages. A diversified group.
FHA 203-k and 203-k streamline group - Special type of mortgage that allows you to roll in the costs of repairing you home, new or old.
USDA Rural Development Loan Group - All mortgage information pertaining to USDA loans, Rural Development Loans.
VA Loan Group - All mortgage information pertaining to VA loans.
Realtors Needing the services of the Lending Powers- A place where realtors can updates on mortgages in general.
Realtors® -For Real Estate Professionals to discuss marketing strategies, overcoming obstacles, successful sales techniques. And a place to add mortgage related topics helping the consumer and realtor.
We really could use some new volunteers for the Mortgage Pro Week in Review. Even if you are a realtor, a title person, or someone else that is related to the mortgage/real estate industry..... please read below.
MORTGAGE PRO Week in Review A repository for the Mortgage Week in Review. Please don't hesitate in joining this group. And any volunteers for the mortgage week in review, please e-mail Jeff Belonger at jbelonger@ihmci.com
There will be no recreations of any type regarding the titles or content of this group or Review without the permission and expressed written consent of the Group's founder.
Mortgage Pro Week In Review - Copyright 2010©
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FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
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For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
I think I do an overall good job with my Blog, but for more detailed info on the FHA changes please see Jeff's Blog as well...and if you haven't done so yet...save it as a favorite.
Thanks Jeff!
Via Jeff Belonger-The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( - FHA Home Loans - Infinity Home Mortgage Company, Inc):
FHA first proposed the monthly mortgage insurance changes in the beginning of 2010. Bill H.R. 5981 was first passed by the House in the spring and was just passed by the Senate the other day. What does this bill do for FHA mortgages? They have projected that it will yield approximately $300 million per month to the FHA insurance fund.
So what are the new FHA changes? - For terms greater than 15 years -
LTV's <= 95% will increase the monthly fee by 85 bps
LTV's > 95% will increase the monthly fee by 90 bps
And lastly, it will reduce the Upfront Mortgage Insurance Premium, UFMIP, from 225 basis points to 100 basis points.
The plan is to go into effect by September 7th, 2010 on all FHA case numbers. FHA gives it's reasons to this new plan. FHA letter from David H. Stevens
So what do the actual changes mean to the average borrower that will rely on FHA loans when purchasing a new home or refinancing?
- The Old Plan -
LTV's <= 95% will increase the monthly fee by 50 bps
LTV's > 95% will increase the monthly fee by 55 bps
Example of the changes regarding the FHA monthly mortgage insurance known as MMI or annual mortgage insurance premium and the FHA upfront mortgage insurance premium known as UFMIP.
As you can see, it would be much cheaper monthly with the old plan, even though you pay $3,317 more upfront, on top of your loan. This can also be a tax write off since it's included in your principal. You break even point on this type of scenario is 47 months, which is roughly 3.9 years. After this break even point, you would have started to spend more money in reality. This is how FHA will increase it's mortgage fund. As you can see, it won't be increased as quickly upfront, but over a longer period of time. So if you held onto this mortgage for 7 years, you would have spent approximately $2,522.
Now, there are several other factors to consider when reviewing this kind of information. Just for the fact that your original balance on the loan will be $3,317 lower and in 7 years, still be that much lower. And as I mentioned, you would have a little more of a tax advantage on the higher balance though.
All I wanted to do was to present the basics of FHA loans and not get into the extreme details on how one could show either side. What could this do to a potential home buyer? It could reduce your purchasing power. In this scenario, if you had originally qualified for a $275,000 loan with qualifying ratios of 31/43, what would your new purchase price be.
- New Purchasing Power after September 6th, 2010 -
With the new FHA monthly mortgage insurance and the FHA upfront mortgage insurance premium changes, your purchasing value would drop approximately $10,000, a purchase price of $265,000. Now, these are just averages, because this will all be based on the actual purchase price. Meaning if values are higher or lower, the total amount could change some. But this should give you a good understanding of what changes lie ahead for FHA mortgages in the near future.
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FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
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_____________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
Good Friday! There are some (big) changes to the FHA program beginning on September 7th, 2010.
FHA is lowering their Up Front Mortgage Insurance (Financed on top of the loan) from 2.25% down to 1%. Yes, this sounds great doesn't it? Not so much, they are raising the monthly mortgage insurance from .55% to .90%. It may not sound like much, so let's take a look at the example below:
How does this affect our clients?
$200,000 Purchase price
4.5% Interest Rate
PRE- September 7th
Principal interest and mortgage insurance payment: $1,127.16
AFTER- September 7th
Principal interest and mortgage insurance payment: $1,172.45
As you can see the payments will rise by $45.29 in this example.
If you have a borrower looking for a home now (or on the fence waiting), it's important
to let them know about these changes. This can alter their "approved for" amount by as much as $10,000!
It's important to work with someone who understands how these changes will affect you and your clients.
Please let me know if I can help in any way.
Have a wonderful Weekend!
Travis
Below you will find the actual letter sent out from David Stevens.
August 5, 2010 LINKS
Over the past week, Congress has taken quick action and passed H.R. 5981.
The bill gives FHA the authority to adjust its annual mortgage insurance
premium, yielding approximately $300 million per month in value to the FHA
Mutual Mortgage Insurance Fund at a time when its reserves are perilously
low.
As I have previously stated in my testimony before Congress, FHA will lower its
upfront premium simultaneously with the increase to the annual premium¹. It
is our intention that effective on September 7 insurance premium will be
adjusted down to 100 basis points on all amortization terms and the annual
mortgage insurance premium will increase to 85--‐90 basis points on amortization
terms greater than 15 years². A Mortgagee Letter will be forthcoming once
President Obama signs the bill into Law schedule, I wanted to immediately
inform the industry of our plans so the lending community can begin preparing
for the operational and system structure on all new case numbers by September 7, 2010.
With this authority, FHA is in a better position to address the increased
demands of the marketplace and return the MMI fund to congressionally
mandated levels without disruption to the housing market. While we appreciate
and applaud this recent action, there is still work to be done. HUD remains steadfast
in its commitment to comprehensive FHA reform legislation, similar to the FHA
Reform Act passed earlier this year by the and risk management efforts.
We hope Congress will take swift action to pass management efforts will not be
complete without the ability to monitor lender performance and ensure compliance
with our rules.
Although the transition timeframe is short, implementation by September is
critical. Thank you in advance for the efforts of you and your organization to
make this change happen on such short notice. We appreciate your hard work
and continued partnership.
¹The upfront and annual premium changes do not apply to the following FHA Programs: Title I,
HECM, HOPE for Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian
Reservations), Section 223 (e) (declining neighborhoods), Section 238(c) (Military Impact areas in
Georgia and New York).
Via Jeff Wilmoth (HomeStar Financial Corporation):
Updated Income Limits for the USDA Guaranteed Rural Housing Program
Effective June 2, 2010, the USDA Guaranteed Rural Housing (GRH) Program offers even greater flexibility for your clients in terms of income limits. The base income limits for the USDA Guaranteed Rural Housing (GRH) Program have increased. The standard 2 tier system is still in place, however now more families can have access to the program due to the increased income limits. The 1st tier provides an income limit for household sizes of 1-4 persons and the 2nd tier provides an income limit for household sizes of 5-8 persons.
Here are the Base Income Limits for all non-high cost counties:
1-4 Person 5-8 Person
$74,050 $97,750
So, regardless of whether we have a buyer purchasing a home in a high-cost (metro areas) or out in "the sticks" (non-high cost county), the benefit is that all 1-4 person households will qualify based on the 4 person limit and all 5-8 person households will qualify based on the 8 person limit.
Tip: The number of persons used for income eligibility is always the number of persons living in the home, not the number of applicants on the file.
The new income limits can be found at the USDA Rural Development Eligibility Home page by following either of the links provided below:
http://eligibility.sc.egov.usda.gov
(Click on "Guaranteed Housing" under the "Income limits" tab on the left side of the page)
OR,
http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm
(Direct link to the 2010 Guaranteed Rural Housing (GRH) income Limits)
Wait a minute, it gets better...
For those buying in markets located within high-cost counties of Georgia, such as Coweta, Spalding, Fulton, Carroll, Heard, Henry and even Pike County, to name a few, there are also the Maximum Adjusted Income Limits. Because those counties mentioned are considered part of the Atlanta-Sandy Springs-Marietta Metropolitan Statistical Area, the income limits are increased to allow for the higher cost of living. A Metropolitan Statistical Area (MSA) is generally a county or group of counties with a combined population of at least 50,000. In addition, adjacent counties are included in a metro area according to commuting patterns.
The Maximum Adjusted Income Limits for counties included in the Atlanta-Sandy Springs-Marietta Metropolitan Statistical Area (high-cost counties) are...
1-4 Person 5-8 Person
$82,600 $109,050
Depending on your debt ratios, you can buy a lot of home in Metro Atlanta!
When in doubt rely on the professionals...
Many may assume that everything is dead if your annual income exceeds the Maximum Adjusted Income Limits. However, there are a few ways to help those whose annual income may exceed the Maximum Adjusted Income Limits. For example, for each resident of the household that is under 18 Years Old, Disabled or a Full Time Student, there is a $480 deduction to the annual income. In addition, the program allows for adjustments regarding various child care expenses. The most important factor regarding whether or not you qualify is that you should not assume anything and rely on the experts. By allowing the loan originator to "spend some quality time" with you, you are increasing your odds of a smoother transaction.
As a reminder, unlike other home-financing programs, there are no loan limits for the USDA Guaranteed Rural Housing Program. The maximum loan amount for USDA Guaranteed Rural Housing applicants is based entirely on their ability to meet the repayment ratios for the program, while simultaneously staying within the program's income limits.
Interested in more information on the USDA Guaranteed Rural Housing (GRH) Program? Please visit our website or
Jeff Wilmoth | HomeStar Financial Corporation...Serving all of Georgia!
848 Jesse Jewell Parkway Gainesville, GA 30501
Cell 404.597.5662 | EFax 678.623.0444
jeff@jeffwilmoth.com
Apply online: www.jeffwilmoth.com
Mortgage Loan Originator NMLS ID: 206798; HomeStar Financial Corporation, NMLS ID: 70864; Georgia Residential Mortgagee Licensee #17368; Nationally Approved USDA lender USDA GRH program; FHA Lender ID - 897400009; VA - 64103600000
Via Joe Stumpf (By Referral Only):
Answer: The people who were referred to you and have not yet referred anyone.
These people are twice as likely to refer you as any other person in your relationship base.
Strategy: Today make a list of three people who were referred to you that have not yet referred anyone. Then call each of them and use these Magic Words:
Hi, Rich, this is Joe.
I was thinking about you, and how Kate was kind enough to introduce you to me.
Rich, I was wondering who you know who's in a situation similar to what you were in, when Kate introduced us.
(pause) A person like you, who wants to buy their first home so they can reduce their tax liability.
(pause) The reason I ask is, there are some great starter homes on the market today, with low down payment financing that makes owning a home actually cheaper than renting.
(pause) The next time you're in a conversation with someone you care about and they mention they would love to own their first home, would you call me and do your best to introduce me, just like Kate did for you?
This is a great way to prospect for business and you can do it right now!
On Your Team,
www.MyByReferralOnly.com
Good morning. Are you using Google to help you get more buyers/sellers? Maybe you should be... Below is a link to the tools offered by Google for the Real Estate Professionals.
By the way, I will be in town all weekend. If you need any assistance, I'm here to help. Questions...Pre-Approvals...Call anytime! Have a great weekend.
Travis Newton
503.931.4490
http://www.google.com/intl/en/events/realestatetools/index.html
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Google Tools for Real Estate Professionals
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Countless home buyers use Google to browse for real estate information each month. Google offers a full suite of tools for real estate professionals that let you reach prospects in your region at all stages of their home search - while they're looking for properties, checking out locations, and selecting an agent or broker. It's how you reach more sellers, attract more buyers, and sell more homes.
Here's why it pays to use Google to connect to home buyers and sellers:
- Google can help generate real estate referrals and leads.
- Google has more real estate searches than other search engines combined, and more unique visitors than all real estate specific web sites.
- Google is the most-used search engine for researching and purchasing real estate information and services.
- The Google Network reaches over 80% of U.S. Internet users.
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Tax credit is extended for those already in Contract on or before April 30th.
See article below.
WASHINGTON June 16 (Reuters) - The U.S. Senate voted on Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.
The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.
The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Existing homeowners buying a new primary residence are eligible for a $6,500 credit.
Reid offered the measure as an amendment to a bill that would extend some popular business tax breaks and extend unemployment insurance benefits for jobless workers.
The proposal would not have a significant impact on future home sales as the extension would be only for home buyers who already had a contract in hand by April 30.
The popularity of the tax credit has caused some anxiety because settlement offices are inundated with buyers trying to close on transactions by the end of this month to get the tax break. (Reporting by Donna Smith; Editing by John O'Callaghan)
There is no one better at explaining FHA loans than Jeff! Via Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages - USDA loans (Infinity Home Mortgage Company, Inc):
FHA Rumors & Myths about FHA LOANS
FHA Mortgages have gained popularity in the last 2 years because of the demise of the subprime mortgages and because of conventional loans. Conventional loans have become harder and in some cases, more expensive depending on your credit score and down payment.
In any case, I am still hearing some negative comments and input about FHA loans. I have been doing FHA loans since 1993 and I never felt that they hindered the loan process. These rumors are usually started by those that aren't as experienced in doing FHA mortgages.
List of FHA Rumors & Myths
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FHA Origination Fees - This one angers me the most. If you ever have a loan officer tell you that part of the origination fee goes to FHA or HUD, don't walk, but run from them. The handbook states that this fee is for administration purposes. In reality, it can be used for the lenders costs or to buy down your interest rate. PS. I actually had a previous client was told this by a loan officer.
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FHA Loans take forever, sometimes up to 2 months. Well, many loans are taking a little longer now because of all the checks and balances when it comes to the mortgage process. But if you are speaking to a very good loan officer and if they do their job properly upfront, then things should get done in a reasonable time. What is a reasonable time frame? 30 days from start to finish for a loan to close.
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FHA appraisals are more harsh than conventional appraisals. This one always made me laugh. First, let's start with the realtor who should be looking out for your best interest. Why would anyone want to purchase a home that might need repairs. Secondly, FHA did away with the VC sheet prior to 2003, so we are just talking about specifics in most cases. Overall, it's not because it's an FHA appraisal, but more so because it's harder to comp for values in some areas.
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FHA loans are more expensive than conventional loans. - This one would need to be broken down because there are to many variables and factors. The general fees and rates should be almost the same with any lender out there. For a better glimpse to why FHA loans might be cheaper, even with 10% down, please read this post. FHA loan vs Conventional loan with a 659 credit score
Summary : FHA loans in my opinion, are excellent for many borrowers. It just comes down to speaking with a very qualified loan officer who will ask the borrower about their goals, to figure out what loan best fits that borrower, not what's easy for the loan officer. And seriously, people need to stop listening to their friends, neighbors, family members, and some realtors that just don't know any better. There are also some loan officers that just don't know better or might be afraid of such loans as FHA loans, USDA loans, or VA loans. Just choose the loan officer wisely.
_____________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
_____________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
Good morning. I wanted to share something a bit different today. I know it sounds cliché but this is a poem I think about almost daily. In the Real Estate business we can only control so much....
Hope you enjoy it as much as I do.
Attitude
by: Charles Swindoll~~~~
The longer I live, the more I realize the impact of attitude on life.
Attitude, to me, is more important than facts. It is more important than the past, than education, than money, than circumstances, than failures, than successes, than what other people think or say or do. It is more important than appearance, giftedness or skill. It will make or break a company... a church... a team... a home.
The remarkable thing is we have a choice every day regarding the attitude we will embrace for that day. We cannot change our past... we cannot change the fact that people will act in a certain way. We cannot change the inevitable. The only thing we can do is play on the one string we have, and that is our attitude... I am convinced that life is 10% what happens to me and 90% how I react to it.
And so it is with you... we are in charge of our attitudes.
Have a wonderful week! Please let me know if I can help in any way.
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Travis Newton OREGON FHA, VA & USDA FINANCING
Salem,
OR
More about me…
W.J. Bradley 503.931.4490
Address: 1496 Commercial ST NE , Salem, OR, 97301
Office Phone: (503) 931-4490
Cell Phone: (503) 931-4490
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