FBC Mortgage Blog

Crisis turns homeownership upside down

2009-03-27T16:28:00.004-04:00

Interest rates have sunk to the lowest levels in six decades, and mortgage brokers' phones are ringing with anxious homeowners hoping to lock in a better rate and lower their monthly payments.

Orlando Sentinel - March 2009
Article by Beth Kassab

Reverse Mortgages a lifesaver for some

2009-03-27T16:28:00.003-04:00

Reverse Mortgages a lifesaver for some, but beware of the shady lenders.

Orlando Sentinel - March 2009
Article by Richard Burnett

Fannie Tightening Condo Loan Requirements

2009-03-27T16:26:00.001-04:00

Tougher rules make it harder for for Realtors, developers to sell inventory.

Orlando Sentinel - February 2009
Article by Anjali Fluker

Listen to David Acosta from FBC Mortgage on the Radio every Saturday from 1-2pm on WDBO 580AM

2009-03-05T11:07:00.003-05:00

Cleve Loveland with Loveland Properties, together with WDBO 580 AM in Orlando "Ask the Expert's" Department contacted David Acosta, with FBC Mortgage, LLC because his Real Estate Team needed a Mortgage Professional backed by a reputable local Licensed Mortgage Lender who is knowledgeable in all areas of Residential Financing to provide an informational talk show resource for the listeners.

WDBO News-Talk Radio is Central Florida's News, Weather, and Traffic station ...... and has been for 74 years in Orlando. WDBO talks to nearly 200,000 listeners each week.

Weekly topics of discussion include current interest rates, new programs available for first time home buyers, investors, and home owners looking to refinance. We also take on air questions from callers wanting to know more about FHA, VA, USDA Rural Housing, Conventional and Jumbo loan programs.

Tune in every Saturday from 1-2pm on WDBO 580am and listen to the Real Estate Today show with Cleve Loveland and David Acosta.

Press Release

2009-02-03T12:25:00.001-05:00

FBC Mortgage, LLC Announces Approval as an FHA National Direct Lender and Expansion into Missouri and Tennessee.

Press Release

2009-02-03T12:24:00.000-05:00

FBC Mortgage, LLC Acquires Staff and Certain Assets of Mount Olympus Mortgage, Altamonte Springs.

News Channel 13 - Orlando Foreclosure Rate 7th Worst in U.S

2009-02-03T09:54:00.000-05:00

Orlando Foreclosure Rate 7th Worst in U.S.

Central Florida USDA and Rural Housing Financing

2008-12-09T09:41:00.004-05:00

What is all the talk about USDA and Rural Housing Financing?

Can I get USDA Financing in Orlando?

The Guaranteed Loan from USDA Rural Housing is not just the old Farmer’s Home Loan Program. It has tremendous benefits and for the right borrower(s) is one of the best ways to finance a home today with limited investment. Qualified borrower(s) with little savings or those who wish to retain their savings can obtain financing up to 102% of a home’s ‘appraised value’. Yes, we did say Appraised Value. A borrower can negotiate a rock bottom price for a home and still may be able to finance a portion or all of their closing costs depending on the subjects appraised value. Below are some key points to frequently asked questions about this great loan program that many borrowers are taking advantage of today.

No PMI?

Yes, there is no monthly mortgage insurance premium to pay on a Guaranteed USDA Loan. Instead, there is a 2% one-time guarantee fee that can be financed into the loan as well.

Do I need Reserves? Savings?

No Reserves or savings are required for this loan program. Additional savings/reserves can be considered a compensating factor to your loan application for approval consideration.

Are there credit score restrictions?

No minimum credit score is required; however, lower scores may require compensating factors in order to be considered for approval. With a minimum of 620+ credit score, no explanations are required for past derogatory credit.

Are there income limitations?

Yes, borrower(s) can go up to 115% of their area median income limits for their household size. These limits can range from $49,550 to $93,400 depending on household size. On January 20, 2009 the new limits will be $70,750 (1-4 person household) and $93,400 for (5-8 person household). There are deductions per person in each household under the age of 18, as well as deductions for child care expenses and disabilities that can also help the qualifying income.

Does the home have to be out in rural areas?

There are area requirements however the ‘rural maps’ have not been revised in years. Therefore many currently developed areas may have been considered ‘rural’ when the maps were originally produced. FBC Mortgage can look up properties by address or area to see if the home you are interested in qualifies for USDA Rural Housing financing. If you are in the Central Florida area and looking for an Orlando USDA mortgage the following counties have areas available: Orange (East & West Orange), Seminole (East), Osceola (most outside heart of Kissimmee qualifies), Lake (All of Lake County qualifies), Polk (mostly), Volusia (mostly outside Deland). We can help you determine the properties eligibility pretty quickly.

Are there any other low down payment loan programs that offer as low of a payment?

Because there is not a monthly MI payment, and the mortgages are 30 year fixed rate mortgages, and the rates are as competitive as Conventional and FHA interest rates if not better at times, the USDA loan program offers one of the lowest payment options of all affordable mortgages in today’s lending market.

Can the seller contribute towards my costs if negotiated?

Yes, the seller can contribute up to approximately 6% of the sales price towards closing costs, prepaids, and any other fees including buying down the interest rate if negotiated into your contract.

Are gifts allowed when obtaining a USDA mortgage?

Yes, unlimited gifts are allowed to buyers and there are no restrictions on source of donor.

Jared Varitek
Mortgage Consulant
Team J&J
FBC Mortgage, LLC

How Important is my credit score and what determines it?

2008-11-19T09:32:00.003-05:00

How important is your credit score?
- Extremely Important!
Your credit score usually determines the price you pay for your money and everything that goes with it, (your mortgages, your auto loans and leases, your credit cards, signature loans and business loans just to name a few.).
The most significant part of your credit report is obviously your credit score. Credit scores range from 350 to 850, with 850 being the best possible credit score you can receive and 350 being the worst.

There are five primary factors that determine your credit score:
1. Your Payment History - 35% impact on your credit score.
2. The Balance You Owe vs. Your Available Credit Lines - 30% impact on your credit score.
3. How long your accounts have been opened - 15% impact on your credit score.
4. Type of credit that you currently have opened - 10% impact on your score.
5. Recent inquiries made by creditors - 10% impact on your credit score.

We’ll go over each of these areas in more detail below.

1. Your Payment History:
Paying your debts on time and in full has a positive impact on your score, where as, late payments, judgments, charge-offs, collection accounts and bankruptcies have a negative impact. The worst account to have a late payment on is your mortgage. Late payments on your mortgage have the greatest negative impact on your score within the 12 month period preceding the origination of your credit report. In reverse, timely mortgage payments have the most positive effect on your score and are one of the most important factors lenders look for when evaluating your credit history.

(Many times a single late mortgage payment within the 12 month period preceding the origination of your credit report can hold up you’re approval process or even possibly cause you to be denied. It also could spell the difference between being offered the best market interest rate available or a considerably less attractive, unfavorable rate.)

This is not to say that your mortgage is the only debt you should pay on time. Your payment history on other debts (installment loans, credit cards, lines of credit, etc.) is also given a lot of weight.

The credit scoring systems evaluate how many late payments you have had and whether they were 30, 60 or 90 days late. It also takes into account whether your accounts are currently in default, (greater than 90 days late). Additionally, the systems look at whether the late payments were consecutive, commonly referred to as “Rolling Lates.” If you only have one or two minor late payments on your report with no other derogatory marks, your score will not be too terribly affected but will be affected. You will have a hard time getting over that critical 720 level and will be negatively affected in the first few months following the late occurrence.

- Bankruptcies and judgments are another major area of importance.
If you have had any bankruptcies within the last 7 years, it will seriously affect your ability to borrow or establish new credit accounts. Additionally, if you have had any judgments within the last several years, it is very important that you pay off the judgment and get a "satisfaction of judgment" from the court. Any unsatisfied or recent judgments will make a bad dent in your credit scores and adversely affect your ability to borrow. Usually, judgments and liens must be paid prior to the closing. However, in some cases, they can be paid out of the loan proceeds.
- Four practical steps that you can implement to improve your credit score
1. Make all your payments on time.
(Past dues on any account will destroy your score - bring your delinquent accounts current immediately. A 30 day late payment one month ago is worse than a 90 day late payment three years ago.)
2. Pay your bills before they go to a collection agency if they are in a delinquent status.
3. Check your credit report for accuracy on a regular basis; and make sure that disputed bills are not negatively affecting your credit scores and have been updated by the credit bureaus.
You can accomplish this by accessing www.annualcreditreport.com once a year for a free copy of your report which gives you the ability to dispute items online.
4. Keep your balances on your revolving accounts, i.e. credit cards and lines of credit below 50% of the available credit limit. Keeping your balances below 30% has an even better effect on your credit score.

2. The Balance You Owe vs. Your Available Credit Lines:
Keeping your credit balances below 50% of your available limit is very important. Keeping your balances below 30% of your available credit is even better. This is perhaps the single most misunderstood part of credit scoring. There are a lot of misinformed people that don't understand how the credit scoring systems work, and yet they insist on pretending to be experts in this area. Here are just a few of the common myths:
- Four common myths regarding calculation of your credit score.
1. You should close all your credit accounts if you are not using them.
2. You should not have credit accounts appear on your report after they have been closed.
3. You should not have any open credit card accounts at all.
4. You should not have high limits on your credit lines.
(First of all, the credit scoring system looks at the percentage of debt that you owe compared to your overall credit lines - not the amount of credit that you have available to you. For this reason, most of the time it is better to leave your credit accounts opened. By not using the credit that is available to you, the system regards you as having enough financial restraint and discipline not to overload on debt.)

Remember, the credit scoring system looks at the percentage of debt you owe compared to your overall credit line.

(For instance, if you owe $10,000, and you have $100,000 of credit available to you, you are only using 10% of your available credit line. On the other hand, if you owe $10,000 and you only have $20,000 of credit available to you, you are using 50% of your available credit line. This is negatively interpreted by the credit scoring system as being a strong dependence on credit. Furthermore, if you owe $10,000 and you only have $10,000 available to you, you have "maxed out" your available credit and your credit scores will be very negatively impacted.)

Therefore, it is not how much you owe, but how much you owe compared to what you are able to borrow. Additionally, if you have no debt and no credit lines open or available to you, you will end up with a lower score than someone who has no debt and a few lines of credit available to them. Financing is a game of percentages and ratios. The credit scoring system does not look at the dollar amount of debt you have; only the balance you owe, compared to how much credit is available to you.
- 3 practical steps to improve your credit score in the area of Revolving Accounts:
1. Do not close your credit accounts unless it is necessary to do so. It is better to have many open accounts with little or no balance than to have just one or two accounts regardless of the balance.
2. Do not concentrate large balances on just a few accounts. Pay outstanding debt down as close to zero as possible, and evenly distribute the remaining balance across all your open credit lines. The key is to keep the balances down below 30% or at the very least 50% of your available credit line(s).
3. Call your credit card companies and try to increase your available credit lines if they can do so without pulling a new credit report.

3. How long your accounts have been opened:
The longer your accounts have been opened, the higher your score will be; newly opened accounts will bring your score down. It is better to have numerous open accounts that have been open for a long period of time with low or zero balances than to close all of your old accounts. Here are 3 practical steps to help you improve your credit score in this area:
- 3 Practical Steps on how to improve your credit score in the area of length of time accounts have been opened:
1. Do not close your credit accounts. If you have too many department store credit cards, close the newest ones - do not close the old accounts. If you keep your accounts open and use them every once in a while your score will improve over time.
2. Think twice before jumping on that latest 0% credit card offer or opening a new card just to get a 10% discount at a department store.
3. If you don’t have much of a credit history, and you are planning on taking out a mortgage in the future, it would probably be a good idea to establish a few open credit lines with little or no balance on them. Although newly opened accounts tend to lower your score initially, they will improve your score once they have been open for awhile, somewhat active and paid off with little or no balance.

4. Type of credit that you currently have opened:
A good mixture of auto loans and leases, credit cards and mortgages is always best. Too many credit cards are not a good thing and having a mortgage definitely increases your score. Just as many financial advisors direct their clients in the financial market to diversify; the same holds true in the world of credit reporting. It is always better to diversify and have various open accounts in the areas of revolving, installment and mortgage debt. Here are some practical steps to improve your score in this area:
1. Having 3-5 revolving credit cards open is optimal.
2. Having a good mix of auto loans, credit cards and mortgages is positive for the score; rather than having a concentration in credit cards only.

5. Recent inquiries made by creditors:
Inquiries affect the score for one year from the time the inquiry is made. Personal inquiries do not count toward your score. In other words, you can check your credit report as often as you like and that won’t affect your score. The score is only affected if a potential creditor checks your credit. Potential creditors include credit card companies, auto finance companies, department stores and mortgage companies. The reason that inquiries impact your credit score is because the scoring system assumes that if you have many recent inquiries, you must be strapped for money and in some type of "panic" mode, trying to get credit wherever you can find it. The system also assumes that all these inquiries will eventually result in new accounts being opened, and as stated before, the system doesn’t like you to open new accounts and punishes you by giving you a lower credit score.
- 3 practical steps that you can take to improve your credit score in the area of inquiries:
1. Multiple auto and mortgage inquiries are treated as only one inquiry if made within 45 days of each other. So, it is better to shop for a car or a mortgage over a two week time-frame rather than to prolong it over a longer timeframe.
2. Don't apply for a lot of credit or open multiple credit cards at the same time.
3. If you are thinking of applying for a mortgage within the next 90 days or so, it would be good to wait until after your mortgage closes before you apply for any new credit.

This report was designed through the resources available to the mortgage professionals employed at FBC Mortgage, LLC and should only be relied on as a guide to assist consumers in better understanding how the credit scoring system works and the possible steps they can take to improve their credit scores. FBC Mortgage, LLC and its affiliates are Licensed in the area of Mortgage Lending and are not be relied upon as Consumer Credit Reporting Agency. Please refer to the three National Credit Bureaus Equifax, TransUnion and Experian for more detailed information.

Josh Dougherty
Mortgage Consultant
FBC Mortgage, LLC

Understanding Your Credit Score

2008-11-10T11:47:00.002-05:00

What is it?

Your credit score is a numerical depiction of your worthiness (or lack there-of) as a borrower. There are three credit bureaus (Equifax, Experian, and TransUnion) that give you a score ranging from 300-850. The average American has a score of 678. As much as it might seem like this three-digit number is not a big deal, your credit score determines much more than might have ever expected.

Besides determining the amount of debt you can carry and the interest rates on your credit cards, mortgages, and car loans, you credit score also can affect your car insurance. A carrier may charge you a higher rate or deny your application completely if your score is too low. Many employers, landlords, and wireless providers also glance at your credit report to determine your credit worthiness and risk to them. This article will help you understand the major factors that affect your credit score as well as tips for building and maintaining a high score.

Pay on Time

The factor that has the largest affect on your credit score is your payment history on everything from credit cards, car loans, student loans, and mortgages. Anytime that a payment to any creditor is more than 30 days late, it is reported to the credit bureaus and becomes a negative fixture on your credit report for 7 years. One simple late payment can hurt your score significantly, dropping your score instantly by up to 100 points. We cannot stress enough the importance that you aim to pay everything on time, every month!!!

The 30% Rule

The second most important factor that determines your credit score is your debt-to-credit limit ratio for your revolving credit accounts (credit cards). This ratio is a measure of the outstanding balance on your credit card to the maximum amount of credit you have available to you on the account. In order to achieve the best credit rating and score, you should work to have your debt-to-credit limit no more than 30% for each credit card. For example, if you have a $1000 credit card, you ideally never want to carry a balance more than $300. When your debt-to-credit limit ratio is above 70%, your score is greatly negatively affected.

Don’t Close Old Accounts

Your most precious accounts on your credit profile are your oldest ones. Another important factor in determining your credit score is the length of your credit history. The longer you have had established credit, the better off you are. Whenever you close one of your oldest credit lines, it shortens your length of credit history by many years in some cases, which has a negative affect on your credit score. Always consider leaving credit card accounts open whenever they are older accounts that you have had for several years. Try to charge something on them every 3 to 6 months and pay that off in order to maintain an active credit line. It’s ok to keep them open and at a $0 balance, just make sure they aren’t charging you an annual fee.

Show a Variety of Credit

It will benefit your credit profile and score greatly to demonstrate that you can handle and maintain several different types of credit. Ideally, you should have 2-3 credit cards active and open. You could use a bank issued credit card, a store issued credit card, and a gas card, for example. You will also want to have at least one type of installment loan on your credit profile. Installment loans are things like car loans, boat loans, or student loans. These show that you can pay back a large amount of money over time on a set basis. When it comes to credit, a diverse profile with several different types of accounts is best for your score.

Check Your Report For Errors

You can get a free credit report once a year from www.annualcreditreport.com. Be sure to check your credit report at least once a year to scan it for errors. According to the U.S. Public Interest Research Group, 25% of credit reports have errors serious enough to deny you credit. Whenever you order your free annual credit reports, it will describe to you the process for correcting errors on your credit profile. The process is not easy and is very time consuming, but it can save you thousands of dollars over the long run.

Matthew J. Seymour
Mortgage Consultant
FBC Mortgage, LLC - Central Florida Mortgage Lender

I am a first time buyer. Can I buy a house with all of the changes and tightening in the mortgage market?

2008-10-22T14:36:00.006-04:00

In the last few months we have heard this question over and over. The answer is yes you can buy a house and it may be easier than you think. There are several programs geared toward first time home buyers. Many of these mortgage programs have been around for decades but have been overshadowed in recent years by a exotic loans. Below are two tried and tested loans programs and how you can use them to your benefit when buying a home.

FHA—I think most people have heard of FHA. FHA is short for the Federal Housing Administration. It is a department within Housing and Urban Development (HUD) and is run by the Federal Government. FHA is geared toward first time buyers however; you do not need to be a first time buyer to utilize this loan. There are several benefits to FHA over other forms of financing. First, it has a reduced down payment compared to conventional financing. Current down payment can be as low as 2.25%. Additionally, these funds do not need to be the borrowers own funds. Borrowers are allowed to get money for a down payment from a gift from a relative, grants, employer, or a 401k loan. FHA allows lowers credit scores than conventional financing. Typically FHA will allow credit down to 580 and even lower in certain circumstances. Conventional financing typically requires 620 or higher. Rates tend to be slightly lower with FHA then other forms of financing helping borrowers get a lower payment. Easier credit qualifying, lower down payments and lower monthly payments all make the FHA mortgage in Central Florida an excellent choice for first time buyers!

USDA- The USDA is a great loan and perhaps the best choice if you and the property can qualify. One big drawback to the program is it is in limited geographic areas (for a list of areas you can call FBC Mortgage directly or visit our website at http://www.fbcloans.com/). However, if you find a house in an approved location the benefits of these loans are excellent. First, USDA does not require a down payment. Additionally, if the house appraises higher than the sales price you can finance in your closing costs. This is the only loan that allows you to do this. The second major benefit of USDA is that there is no monthly mortgage insurance. On a $200,000 loan this will save you over $80 per months compared to an FHA loan. Credit requirements with USDA are can be slightly more difficult than FHA but are typically easier compared against standard conventional financing. No down payment, rolling in closing costs and no PMI—all great features of the USDA mortgage in Central Florida.

So before you think you can’t buy a home make sure you check out these mortgage options. It may be easier than you think!! For more information please call FBC Mortgage at 407.872.3383.

Rob Nunziata

FBC Mortgage, LLC Has Moved!

2008-10-21T15:48:00.002-04:00

I once heard someone say, “The only thing constant in life is change.” And it really has been filled with Change in the mortgage business. Fortunately, at FBC Mortgage, LLC we’ve had some positive changes in this crazy market. We recently moved our offices to the Plaza which is located downtown on Church Street and Orange Avenue. With our lease expiring, we were able to purchase office space in one of Orlando’s newest high rises. This exciting move keeps us located in the heart of Central Florida.

On another note, things seem to have calmed somewhat in our industry. The government take-over of Fannie and Freddie stabilized the mortgage market and has actually helped lower rates. FHA lending, which was almost none existent the last few years, has taken on a big role and we have seen nearly 40% of new mortgages going this route. These are big changes and with the addition of our FHA approved Direct Endorsement Staff Underwriter we have all the resources in place to make mortgage process as quick and seamless as possible.

Your past participation with our company has made my time in this profession rewarding and I would like to say thank you!!! Our first and utmost responsibility is to make sure you and your referrals have an excellent experience with our company. Please feel free to call me anytime to say hello or just catch up. Should you find yourself downtown, please take a moment to stop by and see our new offices!

Thanks!!

Rob Nunziata and the FBC Team!
President
FBC Mortgage

Welcome to the FBC Mortgage, LLC Blog

2008-10-21T15:17:00.002-04:00

Welcome to the FBC Mortgage, LLC Blog. Your guide to mortgage related information. Check back often or subscribe to our RSS Feed.