fha financing: A New Opportunity for Homebuyers - 04/11/22 07:30 PM
  You may not have heard of anyone assuming an existing mortgage for over thirty years and didn't know they were even possible any longer.  The reason is simple, it didn't make financial sense but now that interest rates are increasing, it may be an opportunity for some homebuyers.
Conventional loans added clauses to mortgages back in the early 80's that gave the noteholder the right to raise the interest rate if a loan was assumed, as well as require the new buyer to qualify for the loan.  This essentially ended the practice of assuming conventional mortgages.
Then, in the late 80's, FHA … (1 comments)

fha financing: Assumptions Make Sense Again - 02/28/22 06:25 PM
  Existing FHA and VA mortgages are assumable at the note rate to owner-occupied buyers who qualify.  This can be an alternative to paying higher, current rates and benefit buyers with lower closing costs while saving money on the payment.
For the last 20 years, rates have been steadily coming down and there was no reason to qualify for the assumption when a new loan had a lower interest rate.
Assuming an FHA or VA loan with a lower interest rate will obviously mean lower payments but it will also build equity faster because the amortization schedule is advanced from a new … (2 comments)

fha financing: Paying Down Your Mortgage - 12/21/21 04:04 PM
When the situation arises that you have a lump sum of cash to pay down your existing mortgage,  there may be different options available.  Pre-paying principal on a fixed-rate mortgage shortens the term of the mortgage but the payment stays the same.
Conversely, recasting a mortgage with a lump-sum principal payment lowers the principal and interest payment but leaves the term intact with the same payoff date.
The interest rate on the mortgage will stay the same regardless.  Prepaying principal can be done at any time but may not be applied until the next payment date.  Recasting cannot be done within the first 90-days … (2 comments)

fha financing: Larger Payment, Shorter Term, Bigger Savings - 12/01/21 11:10 AM
          Some people consider a house payment as basic as monthly utilities but with a plan and some discipline, you can be mortgage free.
Consider a person borrowed $300,000 at 3% for 30 years, the principal and interest payment would be $1,264.81 and at the end of 12 years, the unpaid balance on the mortgage would be $210,900.
If that same person had financed the home on a 15-year term at 2.5%, the payments would have been $2,000 but the unpaid balance at the end of 12 years would be $69,310.  The homeowner will have a larger equity … (1 comments)

fha financing: Mortgage Forbearance - 08/27/21 09:07 AM
  Some homeowners who could not afford to make their mortgage payments this past year have been relieved to find out that their mortgage servicer or lender allowed them to pause or possibly, reduce their payments for a limited period.  While it does relieve the financial pressure, it is a temporary remedy.
About 2/3 of the people who entered forbearance during the pandemic have exited the program.  There are only a little over two million homeowners remaining in forbearance.
It is important for owners who find that they cannot make the payments on their mortgage to contact their lender and request a forbearance.  If … (0 comments)

fha financing: First Love, Second Wife or Third REALTOR - 06/21/21 03:21 PM
There is a story of a real estate agent's prayer: "Dear Lord, if I can't be someone's first love, or second wife, at least, please let me be their third REALTOR®."  In a normal market with a balanced supply of sellers and buyers, this describes the preference that it might be better to be the third listing agent to help the seller after they became more realistic about their list price.
In today's market, it might have more to do with buyers because of the increased competition, their chance of having an accepted offer is greatly reduced and it is only … (2 comments)

fha financing: Moving UP or DOWN - 02/01/21 03:05 PM
  Staying at home in 2020 caused of lot of owners to think about how nice it would be to have a larger home to accommodate the additional activities that come along with isolating.  Particularly for people with children at home or possibly, the potential of either adult children or parents coming to live with them.
There are other owners who are trying to weigh the pros and cons of selling their larger home and downsizing.  For entirely different reasons, the advantages could be very appealing to an owner.  A smaller home is easier to maintain and usually, has lower utilities, … (1 comments)

fha financing: Would you move if it was to your advantage? - 01/04/21 04:57 PM
  A much-repeated investment strategy is to buy low and sell high.  Some people who purchased around the financial crisis of 2010-2012 are poised to make considerable profits.
The median home price in America is now $295,300 up from $155,600 in February 2012 which calculates close to an 8% annual increase.  The median equity that homeowners have earned during the same period is $140,000.
Inventory is in short supply while demand is high which has caused prices to increase.  Factors that continue to contribute to the lower number of homes on the market are record low mortgage rates and housing starts have not met … (2 comments)

fha financing: Buyer's Closing Costs - 12/21/20 08:25 PM
  Ideally, each party will pay their own closing costs associated with the purchase and the sale of a home, but they can be negotiable based on lender requirements and market conditions.
The fees are usually paid at the settlement and will be itemized on the closing statement.  Buyers should be aware of them before contracting for a home.  If a mortgage is involved, the lender will want to verify that the borrower has ample funds available at closing to pay for them.
Buyer's closing costs can range between two to five percent of the sales price.  The real estate agents should be able … (4 comments)

fha financing: One More Reason to Refinance - 04/30/20 04:27 PM
  Taking cash out of the equity of your home could be a legitimate way to fund a temporary cash crisis now or to have it on-hand if the need arises.  Most homeowners can pull out the difference in 80% of the fair market value of their home and what they currently owe.
The most frequently cited reasons for refinancing are to lower the payment, eliminate the private mortgage insurance, combine mortgages, consolidate debt, convert an ARM to a fixed rate mortgage, remove a person from the loan or to take cash out for another reason.
The option of using your … (0 comments)

fha financing: What's the Difference in Pre-Qualification and Pre-Approval? - 11/12/19 06:37 PM
    What's the Difference in Pre-Qualification and Pre-Approval?11/13/2019 Before looking for a home, you need to know how much you can afford. While you may have a number in your head, the lender has the final say. Securing a pre-approval from a lender helps make the home buying process easier and helps to avoid delays.
Many buyers confuse the terms pre-qualification and pre-approval. They mean two different things. In simple terms, a pre-qualification is an estimate of what you can afford. A pre-approval is a conditional approval based on the proof you provide.
The pre-qualification is a preliminary step some borrowers … (0 comments)

fha financing: A Good Time to Buy a Home - 10/29/19 06:35 PM
  You may have noticed that REALTORS® seem to always think now is a good time to buy and they can usually justify it with solid reasoning.  While it can be true in general, a good time to buy has more to do with the individual than anything else.  There are four things to consider.
It is a good time to buy a home when you have good credit.  Since the Great Recession and the housing crisis, lenders have been required to be sure that the borrowers have good credit.  This actually benefits not only the lenders but the borrowers because no one wants to … (2 comments)

fha financing: Show Them You Are Serious - 06/17/19 06:35 PM
Show Them You're Serious6/19/2019 June and July are the busiest home sale months of the year. When inventory is in short supply and you may be competing with other offers, it is important to show the seller you're serious. Make your offer look as good as possible because you may not get the chance to make or accept a counter-offer.
Put yourself in the seller's shoes.  Your home has just gone on the market.  There is lots of activity and suddenly, there is more than one offer to purchase.  The seller's first consideration may be to accept the highest offer but there are many other … (2 comments)

fha financing: Owning? Renting? Rent VS. Own - 03/04/19 09:21 PM

For a short time after the housing crisis a decade ago, some homeowners thought the value of home is a place to live rather than an investment.  A home certainly has an appeal as a place to call your own, raise your family, share with your friends and feel safe and secure.  It can be more than an address; it can also be one of the largest investments homeowners have.
Most mortgages apply a portion of the payment toward the principal amount owed in order to pay off the loan by the end of the term.  This acts like a forced savings for the homeowner … (0 comments)

fha financing: When It's Important...Find the Facts - 02/13/19 07:27 AM
When It's Important...Find the Facts2/13/2019 Most parents don't put a lot of credence in the statements "Everyone is doing it" and "No one does that anymore." They'll dig a little deeper and get the facts of the situation.  Interestingly, when it comes to buying a home, similar common myths continue to prevail surrounding what it takes to buy a home.
One of the most common myths is that it takes 20% down payment to get into a home.  Certainly, an 80% mortgage might have the most favorable interest rate. It won't require mortgage insurance and qualifying requirements might be a little less but there are … (3 comments)

fha financing: 44 More Times Than a Renter - 12/17/18 07:52 PM
12/5/2018 The Federal Reserve Board's Triennial Survey of Consumer Finances recently revealed the net worth of a homeowner was $231,400 compared to $5,200 for a renter.  The net worth of homeowners increased 15% from 2013 to 2016 while renters' decreased by 5%.
Appreciation and principal reduction are the two dynamics that affect a homeowner's equity.  Each payment is applied to the interest for the previous month and the principal reduction to retire the mortgage.
A $300,000 home purchased with a $294,566 FHA mortgage at 5% for 30 years has an average monthly principal reduction $362 in the first year. Two percent appreciation would … (1 comments)

fha financing: Another Type of Financing Concession - 12/17/18 07:39 PM
Another Type of Financing Concession Price, condition and terms are factors that any owner must consider when marketing their home.  Price is usually the easiest to adjust to compensate for shortcomings in location or condition of the home.  Improving the condition of the property is more time consuming but updates to kitchens, baths and other things can appeal to a buyer.
One of the most overlooked marketing factors are terms which are also referred to as financing concessions.
Paying part or all a buyer's closing costs is the most common financing concession.  By doing so, the buyer doesn't need as much cash to get … (2 comments)

fha financing: Do You Know The Why of Buying a Home? - 11/27/18 06:09 PM
 
Do You Know the Way? It may be natural for first-time buyers to be unsure of the process of buying a home because they haven't been through it before but even repeat buyers need to know changes that have taken place since the financial housing crisis.
The steps in the home buying process are predictable and generally follow the same pattern.  It certainly makes the move stay on schedule when you know all the different things that must be done to get to the closing.
In the initial interview with your real estate professional, you share the things you want and … (3 comments)

fha financing: Gifts of Equity - 11/27/18 05:58 PM
There is a little-known mortgage program that could provide the vehicle for the right person to get into a home.  If a person sells their home to another for less than the fair market value, the difference in the appraised value and the sales price is considered a gift of equity for the buyer.
FHA requires that borrowers receive gifts of equity only from family members transferring title to the borrower. 
An appraisal is required to determine the value of the home.  The sales price is subtracted from the appraised value to determine the equity to be gifted.  If a home appraises for $300,000 … (4 comments)

fha financing: Fast Track Investment Property - 10/15/18 03:35 PM
  FHA allows owner-occupants to purchase up to a four-unit property with a minimum 3.5% down payment.  The rent collected on three units could be used to make the payment and the owners' pro-rata share would be less than ¼ of the payment itself.
The owner-occupied unit would be considered their principal residence.  The other three units are treated as rental property and eligible for cost recovery, a non-cash deduction plus all the normal business expenses.  The rental income of the three remaining units is calculated as income and assists the buyer in qualifying.
A homeowner could buy a four-unit, live in one for … (0 comments)

 
Patty Clark, Helping Families Move with Care (Morningside Homes, LLC 720-231-5200)

Patty Clark

Helping Families Move with Care

Denver, CO

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Morningside Homes, LLC 720-231-5200

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