1.  FHA is one of the best options available for qualified buyers without a lot of money to put down. 

2.  Even if you don’t plan to start your househunting until after the holidays you should get in touch with a mortgage professional TODAY to get your plan in motion.  Not everyone is in a position to buy a home now, but with the right planning and education you may find that you can take advantage of the tax credit and the historically low interest rates with just a little effort.  You will never know if you can buy until you take that first step.  Don’t worry . . . it’s painless!!

3. FHA is NOT just for first time homebuyers!!!!  Many people do not know that the FHA loan is available for first time buyers as well as people looking to sell their home and buy something else.  Let’s face it – many sellers  these days would like to move but they may not have the equity in their homes that they once did.  With the new tax credit offering up to $6,500 for qualified sellers you can use this credit to offset those loses in equity and leverage the FHA loan to be able to buy that new home that you have been looking for!

4.  FHA is NOT just for first time homebuyers!!!! Wait, didn’t I just say that?  Yes I did!  Again, this is an often overlooked option for many buyers.  Now more than ever we are presented with a unique opportunity to combine this great loan program with the tax credit and low interest rates to create options for buyers and sellers alike!

The most important thing to remember is that you have to take the first step.  Locate a mortgage professional who:

• Wants to learn what your goals are

• Helps you assess your current situation

• Helps you develop a plan to buy that dream home

We can all thank Congress for passing the extension and expansion of the tax credit.   This is a rare second chance that every buyer has been given.  Now is the time to start planning to take advantage of that chance.

Happy House Hunting!!

Jason Klaskin

Now, to the point of this post, the Golden Rule and VA Guaranteed Mortgage Loans. The Golden Rule we were taught growing up was: “Do unto others as you would have them do unto you.” However, when talking about mortgage lending, this time specifically VA Guaranteed Mortgage Loans, the Golden Rule is, “He with the gold makes the rules.”

VA Does Not Make Loans

First of all, let me explain again that VA does not make loans to home buyers, they guarantee a portion of the loan. The loan is made by a “wholesale” lender and often sold to a servicer, sometimes more than once. Sometimes the loan is sold to an investor and the servicing is sold to another “bank.” In all of this VA is the guarantor of a portion of the loan.

Overlays Developed by Lender

That means that the “bank” making the investment in the loan can make their own rules, as long as they are not less stringent than those laid out by VA. These are called “overlays.” This is why that although VA does not require a minimum credit score, many lenders will require a minimum credit score of 620 or 640 or even 660 before they will fund a loan. This is why that although VA does not require an appraisal on a “streamline” or IRRRL refinance, many lenders do.

Overlays Vary Company to Company

These “overlays” can vary widely from company to company. That is one of the reasons that I believe it is best to work with a mortgage loan officer that has some leeway in where they place the loan. If the loan officer can only place the loan with their company, you are stuck with that company’s “overlays.” That is why I think that working with a company like mine, a mortgage bank with the ability to broker to other wholesale lenders, is the best of all worlds.

Call a Vet for your VA Loan

Call me today at 541-342-7576/541-221-3455 cell or e-mail me for more information. I am a Vietnam era veteran and here to help other veterans. So today, take a moment to thank a Vet, it won’t cost you and it will make them feel more appreciated.

Well, the answer has less to do with the credit worthiness of the borrower and more to do with the prevailing home prices in the area in which the borrower is trying to purchase.  The government has come to realize that in certain areas of the country, Bergen County New Jersey being one, that many homes cannot be purchased for the previous maximum FHA loan amount of $362,790.  That is why in March 2008, FHA temporarily increased their maximum loan amount to $729,750 – yes you are reading that right $729,750.   This was supposed to be a temporary provision, but it has already been extended through 2010.  However, we do not know if these increased limits will remain in effect indefinitely.

So the answer is a resounding YES!!!!!  It does make sense for a first time home buyer in Bergen county and other high priced areas of New Jersey to apply for a jumbo FHA loan – and he or she should do it while the rates are down and the higher limits are in effect.

Click on the link below to find the FHA loan limit in your area.  For information on Jumbo Loans and why they are so Good for New Jersey Market go to FHA Jumbo Loans – Good for Bergen County  and the Northern New Jersey Market.

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FREE Home Buying Guide Reveals Insider Tips Other Mortgage Brokers Don’t Want You To Know…
Click Here To Get Your Copy Today!

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Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey (NJ) office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

Throughout California, and particularly in high cost areas, like Claremont, Glendora, Arcadia and in Orange County, homebuyers are realizing that the flexibility of FHA loans is paramount to taking advantage of this current market, especially with the extension of the Homebuyer Tax Credit.  While gift money is just that, and not a loan, the tax credit will allow for many buyers to “repay” the family members that may have helped them buy when they take the tax credit in 2010. 

FAQ

• Why would someone do an FHA loan with mandatory mortgage insurance if they can put 20% down, as in the case above?

             The rate was lower so it just about compensated for the monthly mortgage insurance payment.  FHA also has the Streamline Refinance feature which allows for the borrower to drop their rate easily and cheaply in the future.  FHA allowed the borrower’s brother to “invest” in the property with his gift donation.  Real estate is an investment and in this case it was much easier to use FHA and not have to get his brother approved for any part of the loan at all.

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Top Articles / Links / Questions:

1. FHA Loan Limits – Upland, CA
2. FHA Seller Paid Closing Costs – Upland, CA
3. California Investment Property With an FHA Loan
4. What Is FHA Gift Money?
5. The Trouble With FHA Loans in California

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Brian Wiesner California FHA Mortgage Expert Monaco Mortgage Corporation Toll Free: 866-343-1579 Direct: 909-581-4075

*The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.

*The tax credit does not have to be repaid.

*The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

*The tax credit applies only to homes priced at $800,000 or less.

*The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

*For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

*For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

*To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

*The tax credit does not have to be repaid.

*The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

*The tax credit applies only to homes priced at $800,000 or less.

*The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

*Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

These are highlights of the Tax Credit. To discuss a particular scenario or to be pre-approved for a purchase loan, contact me Jerry Santoro @ 8660970-3400 ext 310. or @ gsantoro@fcbmtg.com

My “Team” and I look forward to the opportunity to earn your business!

Under H.R. 3548 bill, first-time home buyers may qualify for up to a maximum of $8,000.  A  “move up” or “repeat buyer” may qualify for up to a maximum of $6,500.

• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.   
• The law defines a tax credit qualified “move-up home buyer “as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.

The tax credit is equal to 10 percent of the home’s purchase price up to the maximum allowable total. Purchases of homes priced below $800,000 are eligible for the tax credit and must be utilized as the borrower’s primary residence.  The home purchase must close on or before June 30, 2009.  You must be in a enforcable binding agreement by April 30, 2009.

• Eligible properties include single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
• It is important to note that you cannot purchase a home from a family member, a spouse or your spouse’s family.  

Income limits have been increased.  The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.

Other provisions in the bill include:

• Requiring taxpayers to include documentation to prove that they purchased a home
• Requiring a minimum age of 18 to claim the credit
• Authorizing IRS to look at prior year returns and determine if a taxpayer is eligible for the credit
• Improving tax administration by increasing the number of electronic returns filed by return preparers

There are also other provisions for veterans within the bill:

• Ensures service members will not have to repay the first-time home buyer credit if they are ordered to deploy to a different location and, as a result, forced to sell their home within three years; and
• Extends for one year, to April 31, 2011, the deadline for taking advantage the first-time homebuyer credit for qualifying service members, so that certain service members stationed overseas can take advantage of the credit when they return. 
• Ensures that certain payments under the Defense Housing Assistance Program (HAP) to assist military personnel selling a home that has declined in value are exempt from tax;

If you would like more information about the tax credit or would like to apply for a mortgage, please call or visit my website at http://www.mortgagemasterinc.com/lmckenzie.

Lynda Mckenzie

Mortgage Master, Inc.

NMLS# 137627

Direct:  401-524-9796

E-fax:     401-537-9156

E-mail:  lmckenzie@mortgagemasterinc.com

RI Loan Broker 95000655 / RI Lender License 2005 1976LL

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$1000 Is All You May Need

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With the media telling everyone that local programs do not exist, most buyer do not know that there are state programs that assist with the down payment here in Yuma, Arizona.

When working with the right Realtor and the right Loan Officer you can absolutely still access these programs. 

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The Right TEAM is CRITICAL!

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With the $8000 First Time Home Buyer tax credit being extended, you can now buy a home with as little as $1000 out of pocket and still recieve your tax credit up to $8000 back when you file your taxes.

I look forward to hearing from you about purchasing and financing your home in Yuma, Somerton, San Luis and Flagstaff,  Arizona.

Derek Egeberg, CMPS
The “Approval Coach”
Territorial Mortgage
928-314-1008 ext 13
928-246-0422
www.TheApprovalCoach.com

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I have the following question. I divorced 3 years ago and I owned a home with my ex-wife. I moved out into an investment property that I owned. Then I was deployed to Afghanistan and I just came back. I bought a home as a single person in July of this year. Do I qualify for the first time home buyer since the prior property was kept by my ex-wife?. I read somewhere that I could be considered as a first time home buyer
thanks

To answer your question, you need to identify dates and you need to state if you still own either home. If you are no longer an owner on your ex-wife’s home and also sold the investment property OVER three years before buying this new home, you would be eligible for the first time home buyer credit if you fall under the income limits.

We are not tax specialists so you should really consult a tax professional but I am pretty certain there are no exceptions. It cannot be close to three years; must be OVER three years. You cannot have owned any home in the three years prior to buying the new home. Does not matter if it was your primary residence, investment property, condo, etc.

The brand new legislation extends a $6,500 tax benefit to anyone who has owned and lived in one particular home for more than 5 consecutive years during the last 8 years. Cannot be a combined time line from two separate properties and there can be no time line gaps. Must be consecutive but this is new as of this week.

Good question but you really should consult a tax professional also. I hope this information helps get you started and if you have further questions about VA Loans please visit the VA Mortgage Center.com.

        Minnesota VA home loan interest rates are still very low. At VALoansMN we have 100% financing in the 5% range. I’ve written before about remembering mortgage rates in the high teens and there are some economists who think we might be headed there again. Also, home prices in Minnesota have dropped by 40% to 50% in some areas. Yet one of the most compelling reasons to buy using a Minnesota VA home loan: it is an assumable loan (more on that later). Finally, the President just signed into law a bill that extends the home buyer tax credit. First time buyers, those who have not been on a title for 3 or more years, qualify for up to $8,000 in tax credit. That is not $8,000 subtracted from your income that is $8,000 subtracted from the tax you owe. This means if you owe nothing the Feds will send you a check for $8,000. Under the new bill even moveup buyers get a credit of $6,500. There are some qualifying factors so give me a call or drop me a note at www.VALoansMN.com  for details.

        I mentioned earlier the assumable nature of a VA home loan in Minnesota (and all other states). Let me give an example of how this works. Let’s say you take out a home loan for 100% of the value of a house to make a $200,000 purchase. Let’s say that note rate is 5.5%.  Ten years later you decide to sell your home and move up to a nicer home. Let’s also assume that the housing market is not good and there are many homes for sale and only a few buyers (such is the case now). Also we’ve seen inflation kick mortgage rates up to 10%. Making regular payments on your 5.5% mortgage you would have paid off about $35,000 of that $200,000 loan. You still owe about $165,000. You put your house on the market and remember:  you have an assumable VA home loan of $165,000. A qualified Minnesota Veteran can assume your 5.5% loan of $165,000 while everyone else in the market is getting loans for 10%.  Do you think this makes your house more attractive in the slow market?  I do! 

        Please, if you’ve thought about buying a home and you are a Veteran, give these benefits very serious thought. If you know anyone who might qualify for these benefits call them now.  Urge others to take advantage of this great Veteran home buying opportunity. This window may be closing soon and I want as many Minnesota Veterans as possible to benefit from what may be once in a lifetime opportunity.

Effective with FHA case numbers assigned on or after November 18th, those seeking a MA FHA Streamline Refinance will face much more stringent rules which effectively eliminate the program as we know it.

Current FHA Streamline Refinance guidelines allow existing Massachusetts FHA mortgage holders to refinance their loan without the need for a new appraisal and without income or asset documentation provided that all mortgage payments have been made on time for the last year (or past 6 months if a newly purchased home). While these guidelines are extremely liberal by today’s stringent underwriting standards, FHA has permitted Streamline Refinances since the early 1980’s under the rationale that updated documentation is not needed for responsible homeowners that pay their mortgage on time.

With recent mounting evidence of losses though, the go-go years for FHA Streamline Refinances are coming to an end.  Under new FHA Streamline Refinance guidelines outlined in Mortgagee Letter 09-32, income and asset verification become mandatory such that borrowers must meet FHA ratio requirements and prove they have sufficient funds to close.

With mortgage rates at their lowest point since May and only about a week remaining, now is the time to act if you can take advantage of a FHA Streamline Refinance.

If your current FHA mortgage rate is over 5.500%, there is a good chance that you take advantage of a FHA Streamline Refinance and save money. Contact me today for your FREE, no obligation loan comparison.

Geof McLaughlin
Certified Mortgage Specialist, CRMS, CMPS
Mortgage Master, Inc.
508-272-0055
gmclaughlin@mortgagemasterinc.com