Tuesday, June 29, 2010
6/29/2010 04:28:00 PM | Posted by
Arbor Mortgage
With the mortgage market tightening up over the last couple of years, many people think their only down payment option for a new home is 20% or more. That couldn’t be further from the truth. Surprisingly, there are many options for low down payment loans.
Zero – That’s right, $0 – down loans
Didn’t zero down loans go away with the mortgage meltdown? No way, there are still some terrific zero down programs available.
USDA Rural Development – The United States Department of Agriculture has a Rural Development loan product that is truly zero down. USDA loans come in 2 flavors – Guaranteed and Direct. The Direct program is for low income buyers and is only available through the USDA offices. The Guaranteed program is available through mortgage lenders or brokers and is for low-moderate income families purchasing in rural/semi-rural areas. Aside from not requiring a down payment, these loans have many other advantages. There is no monthly mortgage insurance, interest rates are very low, and the areas of rural eligibility are very liberal.
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Tuesday, June 22, 2010
Raise your hand if you've ever received the dreaded "Escrow Analysis" from your mortgage lender? I see it, dozens, hundreds, no thousands of hands are raising right now.
It usually comes once a year and describes which bills, tax and insurance, were paid out of your escrow account and how much money was put into your escrow account each month. Inevitably, there wasn't enough money to cover those bills and keep a cushion, so now your mortgage company is {gasp} raising your payment!
Thursday, June 17, 2010
The web is just abuzz today with reports that the Homebuyer Tax Credit has been extended. This is not quite true. In fact, it’s downright misleading. In the first case, the issue on the table is extending the deadline for those already in contract to still be eligible. It would not allow new buyers to take advantage of any credits. Second, it was not approved.
The original proposal, which would extend the deadline for those with executed contracts before April 30, would give until September 30, 2010 to close their loans; extending it 3 months. The Senate actually voted AGAINST it. They did, however, accept it as an Amendment to the Tax Extenders Bill. The Senate Finance Committee just has to rework the proposal, and any amendments will stand, as long as the reworked proposal is approved.
What does this mean for you? This means that if you entered contract on a home before April 30, you could have up until September 30 to close your transaction. For those waiting bank responses on short sales, this is a big relief. Those transactions typically take much longer and are out of the buyer’s hands. It does not change the deadline of April 30 for the contract date. If you don’t have a contract now, you won’t be eligible for a tax credit.
The proposal is likely to be approved with the new amendment, but the House will have to reconsider the new amendment and agree to the final version. It’s hoped that this will be resolved by July 2.
Tuesday, June 15, 2010
On June 10, the House of Representatives passed the Federal Housing Administration Reform Act (HR 5072) in a practically unanimous vote of 406-4. This law is intended to boost the reserves held by the FHA, which now insures roughly a third of the nation's mortgages.
This vote just finishes what was started back in April 2010, when the up front mortgage insurance was increased from 1.75% to 2.25%. The passage of the bill allows FHA to increase the annual mortgage insurance premium, which is paid monthly, from .50% or .55% to 1.5% maximum. However, FHA says they only intend to raise it to .9% at this time.
Wednesday, June 9, 2010
If you don’t know anyone in the real estate business, how do you choose a real estate agent? It doesn’t have to be a drawn out process. Try these easy steps:
- Start by asking friends or family for a personal referral. If you know someone has had a good experience with a person, chances are good you will, too. If you can’t find a personal referral, speak to your loan officer about a referral. Arbor Mortgage has a list of Preferred Real Estate Agents all over the state of Michigan. Try to interview a couple of agents to find a good fit.
Tuesday, June 1, 2010
The most stressful step for a first time home buyer is often the first one. Where do you start the home buying process? It’s not as daunting as it seems. Let’s walk through the home buying process step by step.
Step 1 – Become Pre-Approved for Financing
Many new home buyers make the mistake of looking at homes first, before becoming pre-approved for financing. They could spend countless hours finding just the right home, only to find out they don’t qualify for a home loan. For this reason, many real estate agents won’t even start working with a client until they know that they can be approved for a mortgage.
Your first phone call should always be to a trusted financing source. Many people ask, “How do I pick a lender?” Start by asking your friends and family for a referral to someone they have worked with successfully. Try getting at least 3 options, and then research those companies. Be sure to call them all on the same day for quotes when you’re ready to be pre-approved. Calling them the same day solves two problems; it ensures that you are getting “apples to apples” pricing from each (since pricing changes every day) and it ensures that your credit pulls will all be grouped together and only count as 1 mortgage pull. If you don’t have any friends or family that can refer you to someone, you can still check online or your phone book; just be sure to research the company with places like the Better Business Bureau.
Step 2 – Choose a Buyer’s Agent
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About Me
- Arbor Mortgage
- Arbor Mortgage is a Michigan based mortgage lender that has been providing mortgage solutions for more than a decade. Since 1998, Arbor Mortgage has helped more than 20,000 people purchase or refinance their homes. Arbor offers a variety of mortgage programs including FHA, USDA Rural Development, VA, Conventional and Alternative loans.
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