USDA Mortgage FHA VA Zero Down Homepath 1st Time Homebuyer Information Sun, 31 Mar 2013 04:53:04 +0000 en hourly 1 USDA Eligible Area survive until end of 2013 Sun, 31 Mar 2013 04:53:04 +0000 Administrator

On March 20, the Senate passed by a vote of 73 to 26 its amended version of the House-passed FY 2013 continuing resolution (CR), H.R. 933. On March 21, the House also passed, by a vote of 318 to 109, the amended version of the CR. The bill now goes to the President for his signature. The FY 2013 Agriculture appropriations bill included in the CR includes language to allow any area that was eligible for rural housing programs at the end of Fiscal Year 2012 to remain eligible until the end of FY 2013. For rural housing programs, the bill provides:

$24 billion for the Section 502 unsubsidized guaranteed loan program, equal to its FY 2012 enacted level.

This is great news for communities who have depended on zero down financing in thousands of areas across the United States and feared that many such areas would be ‘axed’ from the Eligibility Map.

Just like for this homebuyer who purchased a home in Sun City, CA with absolutely not a dime out of pocket, the USDA Guaranteed Rural Housing program remains a favorite!

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Some Better News About Private Mortgage Insurance (PMI) ! Sun, 10 Feb 2013 17:25:44 +0000 Administrator

Private Mortgage Insurance (PMI) is a necessary evil when you borrow more than 80% on a Conventional loan. But in 2007 the Govt. passed the Mortgage Forgiveness Debt Relief Act which allowed PMI to be tax deductible if you fit certain income criteria.
Unfortunately that Rule expired in 2011 which meant in 2012 homeowners couldn’t write off PMI as a tax deduction.
Well, the good news is that The American Taxpayer Relief Act of 2012 extended the 2007 Rule , even making it retroactive so folks who paid PMI in 2012 could go back and claim it on their tax returns when filing in 2013!
Secondly, the (qualified) deduction is extended through 2013 (again subject to some restrictions).
What To Do? :
(i) make sure you speak to your Tax Advisor about including MI as a deduction for tax year 2012 when you file this year.
(ii) If you’re considering FHA financing, think again and speak to your Loan Officer about how to go Conventional with cheaper PMI than FHA.

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USDA holding off Change of Eligibility Areas Until March 2013 Thu, 08 Nov 2012 06:10:14 +0000 Administrator

Good news, the recent USDA change of Eligibility areas was deferred until March 27, 2013. This means the geographic areas which had been singled out to be eliminated from eligibility for RD502 financing, will remain eligible until at least April 2013.
Here’s the entire Notice from the USDA from September, 2012.

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Warren Buffett says he’d buy a couple of hundred thousand homes Tue, 28 Feb 2012 20:32:58 +0000 Administrator

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Can Seller Pay Veteran’s Penalty for Breaking Apartment Lease? Mon, 30 Jan 2012 17:07:49 +0000 Administrator

VA Loan
VA Loan

The answer is yes! (As long as the penalty is included in the max allowable concessions by Seller on a VA loan).

This is great news for Homebuyers who are Veterans of the Armed Forces.

With Interest rates being as low as they are and house prices as affordable as they are compared to recent times, many Veteran homebuyers are held back just by the stiff penalties for breaking a  Rent-Lease.


The Seller can not only pay that penalty but it can be safely disclosed on the Closing Statement.

Pass on the good news!


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What? Can I Have Many FHA Loans At The Same Time? Thu, 01 Dec 2011 19:23:17 +0000 Administrator

Homebuyers and Real Estate Agents often don’t realize that FHA allows a Borrower to co-sign as the **Non Occupant** Co-Borrower on an unlimited number of FHA loans.

Really? Yes Really.

Even though, unless there are special circumstances,  (like a forced job relocation or sudden and dramatic increase in family size) a homebuyer can really only have one FHA loan at any given time, someone who doesn’t intend to occupy the property can cosign/co-borrow with the buyer(s) that *do* intend to occupy the property without such a limitation.

Better still, FHA allows the total incomes and debts of all the borrowers to be blended together to arrive at one (overall) debt ratio.

This feature has enabled many a homebuyer who couldn’t properly document all of their income for example, to qualify for a home loan when their income alone wasn’t sufficient for qualifying purposes.


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Consumer Confidence Will Dictate Housing Recovery Tue, 15 Nov 2011 18:29:22 +0000 Administrator

So the Chief Economist at NAR (National Assoc of Realtors) predicts housing sales will increase 4% next yr (2012).  Moody’s Analytics (Celia Chen) is more ambitious, thinking a 20%+  jump in 2012. But the much-desired housing recovery will be strangled by one thing above all . . .lack of consumer (homeowner) confidence in that Recovery. You see if house prices soften in the first two quarters of 2012 as expected by many, a good chunk of homeowners will react to negative equity by “strategically defaulting”. It’s a fact that being underwater is a common trigger which causes people to bail. The default and resulting number of foreclosures kicks off a cycle of events which repeats the drop in house prices.  Default leads to foreclosures . . leads to drop in prices . . .leads to negative equity . . leads right back to more default.

If somehow Consumer confidence and faith in long term appreciation in value could hold its ground, we’d see an overall housing recovery quicker and stronger.

Only time will tell  . . .Strategic Default ,negative equity


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Can Filing Chapter 13 Bankruptcy Move You Closer To Homeownership? What? Tue, 08 Nov 2011 01:46:45 +0000 Administrator

Chapter 13 Bankruptcy FHA Home Purchase TheZerodownloan.comit’s a little known fact amongst Homebuyers, Renters, Realtors and even Loan Officers that both FHA and VA allow a Borrower to purchase a home after they’ve made 12 timely payments on a Chapter 13 BK.
Wait! What? Yes you read that right.
Why is this important? It’s important because while grappling with many unpaid collections, charge off’s and judgements, a Borrower’s credit score remains low and unable to revive. This keeps them from FHA financing.
Bringing all that unpaid debt, all the dirty laundry so to speak, under the governance of the Bankruptcy Trustee forces the credit bureaus to begin reporting each of those negative accounts as “INCLUDED IN BANKRUPTCY”.
The magic is this: When a trade/account is reported in this way, the FICO (Credit) Scoring model treats the accounts as “non-rated”.
Their negative effect is diminished!
Now a smart homebuyer would couple this with obtaining maybe 2 or 3 **secured** credit cards which are virtually guaranteed, pay on them for 12 months alongside the Bankruptcy Trustee payments and . . . voila! After 12 months of filing Chapter 13 the Borrower has a better score *AND* some re-established credit.
It’s important if using this maneuver to not leave any unpaid collection/charge off outside the BK filing.
For more details on purchasing a home while in Chapter 13 Bankruptcy, contact us at 877-332-9703 or through the links on this blog site.

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Upside Down Homeowners Can Get New Relief With No Limits On Negative Equity! Thu, 27 Oct 2011 03:55:22 +0000 Administrator

The Federal Housing Finance Agency, together with Fannie Mae and Freddie Mac, have set up a bunch of updates to the HARP (Home Affordable Refinance Program).

The program has existed to help people who were in a position of negative equity but capped homeowners at 125% Loan-to-value. But now Homeowners can refinance without any limit on how upside down they are (i.e. limitless Loan-to-Value). The loans to be refinanced must have been sold to Fannie or Freddie on or before May 31, 2009 with current loan-to-value (LTV) ratios above 80 percent.

Here’s a summary of the most significant changes to the HARP program:

• Elimination of certain risk-based fees for borrowers who refinance into shorter-term mortgages and lowering fees for other borrowers;

• Removal of the current 125 percent LTV cap/limit for fixed-rate mortgages backed by Fannie Mae and Freddie Mac;

• Waiving certain representations and warranties that lenders commit to in making loans owned or guaranteed by Fannie Mae and Freddie Mac;

• Eliminating the need for a new property appraisal where there is a reliable A VM (automated valuation model) estimate provided by the Enterprises; and

• Extending the end date for HARP until Dec. 31, 2013 for loans originally sold to the Fannie or Freddie on or before May 31, 2009.

To see if your home loan is eligible, go grab the correct address at the Post office’s web site (to make sure you use the standardized address) then look it up at the Fannie Mae and Freddie Mac ‘Look Up’ addresses here.   Fannie Mae Look Up Site or Freddie Mac Look Up Site

To download the full Federal document, click here


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How Long Do I Have To Wait To Buy A Home After Bankruptcy, Foreclosure, Short Sale? Wed, 19 Oct 2011 23:38:30 +0000 Administrator

Did you know you can remain in Bankrtupcy and still purchase a home with FHA financing? Also, some buyers are eligible for FHA financing just 1 day after short sale ? Watch this informative video (40 mins) when you have time.



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