Lisa Severseike - Home Mortgage Team

2009-10-28T22:02:00.001-05:00

Senate likely to extend homebuyers' tax credit

Washington (CNN) -- Senate leaders have reached a tentative deal to extend the first-time homebuyers' tax credit that was originally passed earlier this year as part of the stimulus bill, Republican and Democratic sources told CNN on Wednesday.
The agreement would extend and expand the credit to include current homeowners who want to move, according to the sources.

The original credit in the stimulus bill is set to expire at the end of November and offers a tax credit of $8,000 to first-time homebuyers.

Senate sources told CNN they have tentatively agreed to extend that $8,000 credit for first-time buyers until the end of April. In addition, they are adding a $6,500 credit for some current homeowners who buy a new residence by then.
To qualify, current homeowners must have lived in their primary residence for five continuous years.
Senators have not agreed on how the tentative deal would come up for a vote, but sources from both parties said they are considering adding the housing credit to a bill that would extend unemployment benefits.

House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.

CNN's Ted Barrett, Dana Bash and Lisa Desjardins contributed to this story.

Drama Free Home Buying Tips

2009-10-23T15:31:00.002-05:00

Drama-Free Home BuyingBuying a home is a life-changing event, so it's easy to get caught up in all the drama. Minimize the stress of home buying with these 10 action steps, strategies & insider secrets, from real estate expert Tara-Nicholle Nelson.

10 Review your closing papers.
9 Consider the contingencies.
8 Master the house hunt.
7 Avoid buying a lemon.
6 Make the perfect offer.
5 Get the right Realtor.
4 Avoid surprises during escrow.
3 Manage your mindset.
2 Know what to expect.
1 Get the timing right.

The home inspection reveals some nasty surprises.
Unexpected termite damage is bad, relative to your threshold for doing repairs, but you can still save the deal.

Your home loan falls through during escrow.
This can happen, especially in today's market with lending guidelines constantly changing. Take a breath, focus and act quickly.

You get outbid for the house you want.
Well-maintained, competitively priced homes in desirable neighborhoods will spark bidding wars. Be prepared.

"I want to buy a foreclosure."
A distressed home doesn't always mean "bargain." The property may need work, and the buying process is more complex.

"My partner and I can't agree on buying a fixer-upper."
DIY homes involve more time and money than most people think. And it may not be worth the price.

"I'm overwhelmed by the commitment of homeownership."
Monthly mortgage. Repairs. Taxes. Insurance. It can be a lot for a first-time homebuyer to handle.

"I lost my job while in escrow."
Losing a source of income affects whether you still qualify for the mortgage. Your contingencies should buy you some review time.

http://www.frontdoor.com/buy/Drama-Free-Real-Estate-Guide-Tips-and-Advice-for-Savvy-Home-Buying-Selling-and-Financing-Without-the-Stress/55032

2009-08-04T15:09:00.000-05:00

HERA Mortgage Disclosure Improvement Act

2009-08-04T11:22:00.002-05:00

As of July 30th the new HERA Mortgage Disclosure Improvement Act went into effect.

These changes are meant to help ensure that the financing process is transparent and that a buyer fully understands the loan they are receiving and that they have time to review any changes before the closing.

What does this mean for you as a buyer and a seller?

This means that you want to work with a mortgage professional that is updated on this act and is a good communicator with all parties involved with the transaction. The closing date used to be determined by the seller and the buyer. Now there are some time lines that have to be met in order for the closing to take place.

Some of the items that can change the date of a closing are:

When the appraisal is received
Change in the APR of .125%
Change in Mortgage Product
Change in Closing/Signing Date
Change in Loan Amount
Unlocked Rate
Change in fees by third parties

Planning a closing for at least 30 - 45 days is wise. But with the new guidlines, this means there are some items that need to happen on a buyers end.

Be pre-approved (not just pre-qualified) BEFORE looking for a home
Work with your Mortgage Professional to get everything needed as soon as possible
Review and Sign your RESPAs (your preliminary loan papers) as soon as possible
Respond to your REALTOR and Mortgage Professional as quick as you can regarding any additional documentation they may need.

Working with someone you trust and someone that is in communication with all parties is vital to create a smooth transaction.

HVCC - update

2009-06-29T13:13:00.000-05:00

The National Association of Home Builders and National Association of Realtors have joined the National Association of Mortgage Brokers in panning the new appraisal code implemented by Fannie Mae and Freddie Mac two months ago...

The National Association of Realtors chief economist Lawrence Yun said that a 2.4% increase in existing homes in May "is less than expected because poor appraisals are stalling transactions." Further, he claimed contracts fall through due to "faulty valuations" that prevent buyers from obtaining the loan.

The feelings are running so high that the petition circulating to end the practice has over 35,000 signatures according to HousingWire. It sounds like Congress is listening. Now The National Mortgage News reports that two Congressmen introduced a bill last week to place an 18-month moratorium on the rules.

What you Need to Understand About FHA loans

2009-06-24T14:48:00.002-05:00

What You Need to Understand About FHA Loans

The Federal Housing Administration, commonly known as, FHA, provides mortgage insurance on loans made by FHA approved lenders. It is the largest insurer of mortgages in the world, with well over 34,000,000 insured properties. FHA simply provides this insurance to protect lenders against losses due to foreclosure. FHA is a government agency and the only one that costs the tax payers nothing and is completely self-funded.Unlike a conventional loan, this insurance requires very little cash investment, because the loan itself is well insured. Since the loan is so well insured, the underwriting guidelines, income requirements, credit score and payment ratios are a bit more flexible than conventional loans offering itself as an excellent alternative in today's market place.

More information is available online: www.hud.gov/groups/lenders.cfm

What FHA Isn't

FHA insured loans are not sub-prime loans.

These are prime loans and do require a 620 credit score and full documentation of income and down payment. In order to get FHA insurance, guidelines have been established to insure homeowners can afford the investment. I think FHA loans have been deemed in the marketplace as a sub-prime loan and these origins stem from the 1930's when FHA loans first hit the mortgage world to help the millions of Americans without jobs afford homes.

Mortgage Insurance

Home Buyers will pay an UFMIP (Up Front Mortgage Insurance Premium) of 1.75% of the loan amount. This fee typically financed into the loan. In addition, a monthly premium of .55% of the loan amount will be paid monthly, this premium generally lasts a term of 5 years or when the loan to value reaches 78%, whichever is longer.

Appraisal Standards

In order to obtain FHA Insurance, the home must be deemed in good operating condition. A few key areas of concern are chipping and peeling paint, loose railings systems, poor roof conditions or anything else which can affect the safety of the home owner.

Rates

Rates on FHA loans generally mirror conventional financing and are often times much better because they: 1) do not have credit score adjustments or if they do, they are very slight, and 2) do not have the 75% condo adjustment currently in place for all Fannie/Freddie loans with loan to values greater than 75%.

Loan Costs

FHA underwriting fees are no more or less expensive than conventional financing. On average, the fees range from $400 - $700 plus appraisal, title, attorney, and points can be paid up to 1%. UFMIP is added to the loan amount and not generally considered an underwriting cost but is a closing cost.

Condominiums

FHA requires that all condos are approved. Check if a project is approved online: https://entp.hud.gov/idapp/html/condlook.cfm Generally these are larger developments greater than 4 Units.If a condominium development is not FHA approved, a Spot Approval can be obtained by your lender. In order to obtain a Spot Approval I suggest the following basic guidelines:The legal documents do not contain the right of First Refusal - The project is not a cooperative - The HOA has been turned over for at least 1 year - The common elements are complete - not subject to add'l phasing - No Special Assessments are pending - No legal action is pending against the Association - 90% of the units are sold - 51% of the total units are owner occupied - No single entity owns greater than 10% of the total units - The Association has a reserve fund for deferred maintenance = 3 months operating budget - Other restrictions apply:Smaller Condominium Projects (4-10 Units) can meet the Spot Approval Guidelines. I see the common area of concern being the reserve fund for deferred maintenance. I suggest you contact us to review each non-FHA approved condominium and we can email you a Spot Approval form to be completed for review.

Any questinos regarding FHA financing please contact me: 515.233.5046 or lisa@globalstatemortgage.com

100% financing - are there any left?

2008-08-20T21:58:00.004-05:00

Yes.

If you are a veteran we still have VA Loans that are 100% financing. We appreciate those that serve our country and the VA loans are worth a look when putting anywhere from 0 -15% down.

If you are not a Veteran then the one program that is left with a good interest rate is the USDA Rural Development Guarantee program. This is a GREAT program! It does have property restrictions and income limits. It does not, however, have monthly mortgage insurance. There is a 2% guarantee fee that can be included in your loan amount.

Property restrictions: This program is geared towards small communities. Unlike what the name infers, it is really meant for small rural towns. This program does not want a working farm. In the Midwest it works well, since we have many small towns. There is a web site that the address can be entered and you will find out if the area you are looking in qualifies for the program. The home has to be in pretty good condition. This loan is NOT for the fixer upper.

Income restrictions: The income is determined by the county you are buying the home in. If there are two people in the household, income from both will be used, even if one is not on the loan. It does take into account the number of people living in the house and if there is daycare expense, this will be taken into consideration also.

Credit: This program likes a 620 mid score, but will look at those under that to a 580. If you do not have any credit, this program will also allow you to build your credit with non-traditional credit lines. It does not however, like derogatory credit.

Two great programs that still allow for a buyer to finance 100% of the purchase price.

Welcome

2008-08-20T21:53:00.003-05:00

Welcome to the HOME MORTGAGE TEAM blog. With everythig that is going on in the mortgage and real estate world I am going to try to keep you up to date and provide a place to ask questions. Enjoy and ask away!