New HARP loan “HARP 2″ + new FHA loan limits 2011
Posted On: November 21st, 2011 by James Posted In: FHA Mortgage • Government Actions • Mortgage Programs • Mortgages • Refinancing
Christmas might be coming early for homeowners in Oregon and Washington! The Obama administration has been putting pressure on banks to come up with ways to extend opportunities to refinance into lower rates in recent months, and it appears that we’re getting some movement on this finally. The original HARP loan (aka: Home Affordable Refinance Program) has been around since early 2009, and allows homeowners to refinance their existing first mortgages into lower rates, EVEN if the value of the securing property has gone down dramatically. The program allows you to borrow 125% of the appraised value of the home, but most major lenders only really allow for 105%. Continue Reading – New HARP loan “HARP 2″ + new FHA loan limits 2011
Is it Possible to Buy Real Estate with Less Than 20% Down?
Posted On: October 28th, 2011 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgage Insurance • Mortgage Programs • Mortgages
A realtor colleague of mine was recently relating his shock to me about how often he is talking to renters who aren’t considering buying real estate because they are under the impression that a purchase requires a 20% down payment. This idea couldn’t be further from the truth, and this message is sadly often relayed on TV from uninformed talking heads and people who are obviously not real estate professionals. I’m here to tell you the truth, dear blog reader! Isn’t that why you read blogs?!
The truth is that just about every borrower in the market could qualify to put less than 20% down if they chose to. The FHA loan is one of the easiest loans to qualify for and it isn’t just for first time home buyers, nor is there an income cap on this program… and it only requires a 3.5% down payment, but I digress… let me break this down for you in internet-friendly bullet point fashion. Continue Reading – Is it Possible to Buy Real Estate with Less Than 20% Down?
What To Do If You Are Underwater On Your House
Posted On: June 15th, 2011 by James Posted In: FHA Mortgage • Financial Health • Mortgages • Refinancing
Many of us are finding ourselves living in homes worth less than we paid to purchase them (myself included). Some of us purchased with a down payment, to find that equity we started with evaporating at what seems to be an alarming and relentless clip. Some of us purchased with little or no money down and feel stuck in a home that cannot be sold for what is owed on it. These are troubling times for the recent home owner – and many of us need more than a mortgage 101. But I’m here with a message of hope. I recently met with a young woman who purchased a home with zero down in 2007 for $225,000.00 and bought with a fixed rate INTEREST ONLY product (meaning: she still owes $225 against it). She wanted to see what a refinance would look like for her. I told her to Continue Reading – What To Do If You Are Underwater On Your House
FHA Streamline: How to Qualify
Posted On: June 4th, 2011 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgages • Refinancing
I should have subtitled this post: “Why you might NOT Qualify”
The FHA mortgage continues to be one of the most popular mortgages in Portland. The reason for this is undoubtedly its FLEXIBILITY. The FHA loan is the easiest to qualify for, requires the least amount of cash, has the lowest credit requirements, allows for gift funds on the down payment, allows for non-occupying co-borrowers to fully count towards the DTI, the list goes on. But once you’ve GOT the FHA loan in place, the flexibility continues!
For one, the FHA loan is always “Assumable”. This means that when you want to sell your home, you can also offer your mortgage to be assumed by the buyer (provided they qualify with the lender, etc). Imagine how much value that might have in 5 or 10 years when rates are at 7%… or maybe the 30 year fixed mortgage won’t even EXIST in a decade?! Continue Reading – FHA Streamline: How to Qualify
Mortgage Rate Volatility and the End of the Refinance Boom
Posted On: December 2nd, 2010 by James Posted In: FHA Mortgage • Financial Health • Government Actions • Mortgage Rates • Mortgages • Refinancing
Kind of feels like an epic hangover. The low low rate party that seemed like it would never end, has come to a decidedly abrupt change in direction. The sunlight is streaming into the windows, our clothes are all wrinkled, and there are spilled drinks and confetti everywhere. We’ve seen a handful of days in the bond market this month that have been extremely precipitous in speed and size of the deterioration. Since April of 2010, every time I have locked a loan it has been a bittersweet and slightly regrettable experience. Of course every loan must be locked at some point in the process, but it was a strange new frustration to see rates improve so steadily and relentlessly. We would lock and fund, and then within a day or so rates would just get better. I got in the habit of floating everyone for as long as possible to capture as much of the improvement as we could. Continue Reading – Mortgage Rate Volatility and the End of the Refinance Boom
