Posts Tagged ‘Melbourne Florida Beaches’

The VA loan is hands down the best mortgage loan there is. Here are some reasons why.

Thursday, November 29th, 2018

Why should you use VA loan


The VA loan is hands down the best mortgage loan there is. Here are some reasons why.

First, VA guarantees the loan for 100% of the appraised value of the property (technically, the loan is for the Notice Of Value amount, which in most cases is the same thing). This guarantee means that the lender is willing to make the loan. The loan amount for 100% financing goes as high as the maximum amount in each county.

Veteran buyers can get a loan for more than the county maximum; they just have to pay 25% of the amount above the county maximum. In pricey California, for example, a veteran could buy a home for $800,000 with a $40,963 down—roughly 5%. Which brings me to the next reason to get a VA loan:

There is no mortgage insurance. A buyer with a 700 credit score will pay about $400 per month for mortgage insurance if he puts 3% down on a conventional loan.

The rates are slightly lower in some cases. Also, underwriting standards are easier. Where conventional loans use dent-to-income ratios to qualify, VA loans use “residual income.” This looks at how much money they actually have available each month after meeting normal expenses from their take-home pay. Conventional loans are typically capped at a 45% debt ratio (or thereabouts). VA loans can many times be approved above 50% depending on the overall strength of the borrower.

When rates drop, refinancing is easy. VA loans offer a “streamline” refinance option, called an Interest Rate Reduction Refinance Loan (IRRRL). This allows the veteran borrower to reduce his or her rate with no appraisal, and very little underwriting of income. The primary criterion for approval is that the borrower has an acceptable payment history and that they are improving their position.

If a veteran wants to refinance and get cash out of his or her equity, there is no pricing adjustment for that process. A conventional loan will typically be about .25% higher in rate to get cash out.

For anyone who is a qualifying veteran, NOT getting a VA loan would be a costly mistake.

Hope this helps!

 

FHA Back to Work Program for Florida Homeowners

Tuesday, April 8th, 2014

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FHA Back to Work Program for Florida Homeowners! You have to read this, like it and share it. Get the word out about this FHA Back to Work Program. This FHA Back to Work Program is helping so many people get back on the path to home ownership once again in Florida.

As a result of the recent recession, many families faced a period of financial difficulty due to job loss or reduction in income. In August of 2013 the Federal Housing Authority (FHA), moved to relax its guidelines for borrowers who had experienced a significant “financial event”, such as bankruptcy, foreclosure, short sale, or a loan modification, with their Back to Work Program.

The FHA believes that some borrower’s credit history, although negatively affected by loss of income, may not truly show their credit worthiness. As a result, the FHA is now waiving their traditional waiting periods following a derogatory credit event. The former guidelines required that a borrower wait 3 years after a deed-in-lieu, foreclosure, or short sale, and 2 years after a bankruptcy, to qualify for an FHA mortgage. The new guidelines provide that if a borrower qualifies based on all other FHA requirements, the adjusted waiting periods will be only 12 months for those economic events.

The FHA Back to Work Program for Florida Homeowners program requires the following:

1.  The borrower has recovered from the financial difficulty and has 12 months of good credit history, free from derogatory credit issues.

2.  The borrower can document financial hardship, and that their credit issues were a result of a loss or reduction of income. Their household income had to have been reduced by at least 20% for a sustained period of at least 6 months and through the date of the “financial event”.

3.  The borrower must complete HUD approved housing counseling 30 days before writing a contract to purchase or officially starting the mortgage process.

Meeting the above requirements does not automatically qualify an applicant. They must still meet the Standard FHA underwriting guidelines, however, this program will allow many families to once again become homeowners sooner.

If you would like more information regarding the FHA Back to Work Program simply fill out the form below. We’ll be notified immediately of your email.

Harp 3 Comes Closer To A Launch Date For Florida Homeowners

Saturday, December 21st, 2013

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HARP 3 is the next release of HARP AKA Home Affordable Refinance Program.

 It’s a program which has been talked about for months, but not yet made into law.

The passage of HARP 3 grows more likely with Mel Watt at the helm of the FHFA because, as a congressman, Watt pushed for homeowner assistance programs and increased access to credit. He is expected to continue that advocacy as head of Fannie Mae and Freddie Mac.

For homeowners, this could lead to a number of meaningful changes.

As one example, the new FHFA may reduce some of its guarantee fees — costs charged to lenders and passed on to consumers in order to insure mortgage bonds against loss.

“G-fees” have been incrementally increased since early-2011, and are scheduled to rise again in next spring.

Without FHFA G-fees, conforming mortgage rates would be lower by as much as 0.75 percentage points.

However, it’s the passage of a HARP 3-like program that has U.S. homeowners most excited about Mel Watt. A HARP revamp would likely expand the program to reach millions of additional households, and may even allow current HARP homeowners to refinance via the program a second (or third) time.

Some of the potential HARP 3 enhancements include :

Changing the program eligibility date: Currently, to be HARP-eligible, your loan must be originated no later than May 31, 2009. With HARP 3.0, eligibility dates may move into 2010 or 2011.

Allowing non-Fannie Mae and non-Freddie Mac mortgages: Currently, only loans backed the FHFA are HARP-eligible. With HARP 3.0, eligibility may be extended to include Alt-A, subprime, and bank-held loans, too.

Permit the refinance of an existing HARP loan: Currently, the HARP program is one-use only. With HARP 3.0, homeowners may be allowed to “Re-HARP” an existing HARP mortgage.

Make HARP a true “streamlined” refinance: Currently, HARP requires some paperwork. With HARP 3.0, the program could mirror the streamlined programs of the FHA, VA and USDA for faster, simpler approvals.

Each of these enhancements would jump-start the Home Affordable Refinance Program and, by extension, the U.S. economy. Refinances help boost consumer spending which helps to keep job growth strong.

With Watt confirmed at the FHFA, HARP 3 could pass at any time. Will you be ready for it?

If you would like more information or to be kept up to date on Harp 3 please fill out the information below.

Steve Mugar