Read more about the FHA Loan here.
Readers ask questions, and our real estate expert answers. This week, a reader named Rich from Glencoe asks about the specifics of turning his home into a rental in order to buy a new home.
Delaware Home Buying Seminar on May 19, 2012 at the Christiana Hilton Hotel in Newark, DE from 10 AM till Noon and again from 1:00 PM till 3:00 PM. The seminar will cover everything you need to know in order to purchase a home in Delaware, Maryland, or Pennyslvania. The seminar will cover FHA Loans, VA Loans, USDA Rural Housing Loans, FHA 203k Loans, and conventioanl financing. We will cover first time home buyer programs that are available. The seminar will walk you thru the whole process from budgeting, to credit, to pre-approval, all the way to shopping for a home. Each participate will receive a Free Credit Scoring Handbook, Free Home Buying Handbook, Free Budgeting Worksheet, and the oppurtunity to get a copy of your credit report and be pre-approved for a loan.
It is free to register for the seminar and you can register by calling 302-703-0727 or by sending an e-mail to Delawaremortgages@yahoo.com. You can also register online by clicking the link below:
Delaware Home Buyer Seminars
The address of the seminar is The Christiana Hilton Hotel, 100 Continental Drive, Newark, DE 19713. Two session to choose from 10 AM till noon or 1 PM till 3 PM. You can visit Delaware Home Buyer Seminars for more information or for other seminars.
The seminar is being presented by the author of the new book, Your Guide to Buying Your First Home in Delaware.
If you feel like you won’t qualify for any reason, then don’t worry you can get signed up in our Free Get Mortgage Ready Program, which is a step by step program to help you budget, clean up your credit, and get your ready to buy a home.
If you would like to see the list of home buyer seminars in Maryland please visit Maryland Home Buyer Seminars
If you would like to apply for a pre-approval to buy a home you can apply here.
John R. Thomas – Certified Mortgage Planner – Primary Residential Mortgage
NMLS – 38783
302-703-0727 DE Office
248 E Chestnuthill Rd, Newark, DE 19713
www.DelawareMortgageLoans.net
http://www.prmidelaware.com/
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Beginning June 12, 2012, Rhode Island home owners who currently have an FHA mortgage will be able to do a streamline refinance with reduced mortgage insurance premiums.
In a recent mortgagee letter, the FHA is lowering its up-front mortgage insurance premium (UFMIP) to 0.01% from their current 1% rate. Also the new annual MIPs under the program will be 0.55% for qualifying FHA borrowers, discounted from the FHA’s current 1.15% rate.
“This is one way that FHA can make a real difference to help homeowners who are doing the right thing, paying their bills on time and want to take advantage of today’s low interest rates,” said Galante. “By significantly reducing costs for these borrowers, we can make certain they cut their monthly mortgage burden which will benefit the housing market and the broader economy in the process.”
In order to qualify for a streamline FHA-insured mortgage and receive the reduced MIP rates:
- The homeowner must be current on their existing FHA-insured mortgage
- The homeowner’s existing FHA-insured mortgage must have been applied for on or before May 31, 2009.
- The new FHA case number must be ordered after June 11, 2012
- No appraisal is needed
For more information or to , contact your RI FHA Specialist today.
Lynda Mckenzie
RI license#137627/NMLS#137627
Direct: 401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web: http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL
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On April 9, 2012, FHA loans just got more expensive for Rhode Island Home buyers.
The Upfront mortgage insurance premium (UFMIP) will be increased from 1 percent to 1.75 percent of the base loan amount for case numbers assigned on or after April 9, 2012. This increase applies regardless of the amortization term or LTV ratio.
The FHA currently has two different types of FHA MI premiums:
The New Increase to Annual Mortgage Insurance Premium Are As Follows:
For more information, please contact your Rhode Island FHA Mortgage Specialist today.
Lynda Mckenzie
RI license#137627/NMLS#137627
Direct: 401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web: http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL
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Is your Rhode Island home worth less than your current mortgage? The HARP 2.0 refinance program may be your answer.
Starting March 19, 2012, if you have an upside down mortgage on your home located in Rhode Island, you could possibly refinance under the HARP 2.0 program.
There are several factors if you can qualify for the HARP 2.0 loan in Rhode Island:
- Your loan must be owned by Fannie Mae or Freddie Mac. To check the availability of who services your loan you can visit FREDDIE MAC LOOKUP or FANNIE MAE LOOKUP
- You must be current on your mortgage with no late payments in the last 12 months
- You must have a 720 credit score or better
- You haven’t refinanced since May 31, 2009
- Primary and Investment Properties Alowed
- 28/36 DTI Ratios
- W-2 Employee (Self-Employed case-by-case)
- 6 Months Reserves Needed For Each Property Owned
- LTV capped at 105% for Freddie Mac loans
- LTV capped at 125% for Fannie Mae loans
To apply now for your HARP 2.0 mortgage loan, please visit my website at https://www.guaranteedrate.com/lyndamckenzie. I would be happy to help.
Lynda Mckenzie
RI license#137627/NMLS#137627
Direct: 401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web: http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL
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getclosetohome.blogspot.com – Even though leaves are falling, winter is around the corner and temps are beginning to get real low — life goes on. People move on, sell their homes and others buy homes too. So why is it that homeowners think the winter is a bad time of year to sell? We disagree and to show you why, we’ve put together some numbers so you can see exactly why selling your house today could be the smartest idea. Check out this week’s video blog to learn more. Sarah Close Associates 3505 Columbia Parkway STE 125 Cincinnati, OH 45226 Phone: 513-766-0656 sarah@getclosetohome.com
Orange County home owners who are underwater on their homes and unable to take advantage of low interest rates recently got some good news for a change. The revised Home Affordable Refinance Program, or HARP 2.0, will allow Orange County home owners to refinance even if they have no equity in their home. Even if they owe twice as much as their home is worth. Even if their Orange County property is a condo. Even if they no longer live in the home, but rent it out. And even if their credit FICO score is as low as 620.
Previous versions of the HARP program included lower maximum loan to values, more Loan Level Pricing Adjustments, which had a negative affect on the interest rates and pricing being offered to a HARP borrower. With HARP 2.0, the LLPA’s are held to a maximum of .75 of a point. This means that even if you own an investment property that is a condo, and your FICO score is 620, your new interest rate will barely be affected.
The monthly savings for most Orange County home owners who are able to refinance with the HARP program will be huge. For those choosing a new 30 year fixed rate loan, it will be easy to achieve monthly savings ranging anywhere from $300 to $500 per month for loans in the $300,000 to $400,000 range. But many HARP refinance borrowers are current choosing either a 20 year or 15 year fixed program. By choosing a 15 year fixed, the payment will most likely increase rather than go down. But with 15 year fixed rates in the low 3’, anyone whose goal is to pay their home off before they retire should seriously consider choosing a 15 year fixed.
The primary criteria for determining whether you can use the HARP program is that your loan must be owned by either Fannie Mae or Freddie Mac. Also, Fannie Mae or Freddie Mac must have bought the loan prior to May 31, 2009.
Fannie Mae and Freddie Mac have set up a search site to help homeowners determine whether their loan is a Fannie Mae or Freddie Mac. Loan. You can check them out by Googling Fannie Mae Lookup and Freddie Mac Lookup. (Or just click on the links.) But how do you know if your loan was purchased prior to May 31, 2009? You’ll need the help of an Orange County HARP Loan Officer. The figure it for sure, the HARP Loan Officer will need to complete a loan application run it through Desktop Underwriter (DU) or Loan Prospector (LP). DU is Fannie Mae’s automated underwriting engine, and LP is Freddie Mac’s automated underwriting engine. The Orange County HARP loan officer can also prepare a Side by Side Analysis of your current loan as it compares to a HARP refinance, comparing the different programs (30, 25, 20, and 15 year fixed).
For all those who have been left out of the low interest rate party, now is the best time in years to take advantage and start saving money.
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Taking out a Boise Idaho VA mortgage loan on a new home purchase is a fantastic way to finance a property with a low interest rate, with little to no required down payment.
Purchasing a home with an Boise Idaho VA loan may seem like a daunting task at first glance, but it is actually pretty straightforward.
The basic process is as follows:
After these steps are completed, you will own your own home with a low-interest Idaho VA purchase mortgage, with no private monthly mortgage insurance required!
Please note that when the VA receives report of the loan, the Certificate of Eligibility is adjusted to reflect use of entitlement and is then returned to the veteran.
No further actions are required to get your COE back, which just makes the overall process easier for veterans.
A common question we get is, “How long does the Boise Idaho VA loan approval process actually take?” The overall period of time it takes for a VA mortgage approval varies depending on the amount of volume the lender has at that moment. It also depends on how quickly the VA borrower is able to respond to documentation requests.
As of late, getting full approval and closing your Boise Idaho VA purchase mortgage has been taking between 3 weeks to 45 days. This time-frame is more or less the same as that for conventional loans.
There are some things you can do to ensure your loan process is as quick as possible, such as sending requested documents as soon as possible, working with a knowledgeable Idaho VA loan specialist, and making your hours of availability as flexible as you can.
For further advice on how to make sure your loan process goes as fast and smoothly as possible, please read our article titled VA Mortgage Approval – How Long Does It Take?
Q: What is a VA Guaranteed Home Loan?
A: VA guaranteed home loans are loans made to eligible veterans for the purchase of a home as their primary residence. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.
Q: Does my entitlement guarantee that I will get a home loan?
A: No VA cannot compel a lender to make a loan that would violate their lender policies.
Q: How much is my entitlement?
A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the Idaho VA county loan limit for a single family home may be available . This means that qualified veterans could get a no down payment purchase loan for those amounts.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with my company who is a mortgage lender that participates in the VA home loan program. At some point you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it’s called Web LGY. Most lenders have access to the Web LGY system. This internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records.
Q: Is the surviving spouse of a deceased veteran eligible for the home loan benefit?
A: The unmarried surviving spouse of a veteran who died on active duty or as the result of a service-connected disability is eligible for the home loan benefit. In addition, a surviving spouse who obtained a VA home loan with the veteran prior to his or her death (regardless of the cause of the death), may obtain a VA guaranteed interest rate reduction refinance loan.
If you have any questions about a VA home loan feel free to contact me.
Michelle Guth
Diversified Mortgage Group
Branch Manager/Owner
Direct: 208-475-0865
Loanswithmichelle@gmail.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
HTTP://FINDYOUAHOMELOAN.COM
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Idaho VA Home loans allow you to refinance your home to take advantage of lower interest rates that can ultimately save you sizable sums of money in both the long-run and the short-run by lowering your monthly payment.
If you currently have a Idaho conventional loan, you can refinance into an Idaho VA Home loan if you are an eligible veteran or member of the armed services. Transferring from a Idaho conventional mortgage to an Idaho VA Home Loan is known as a “Idaho Conventional to Idaho VA Refinance Loan” and is a very straightforward process.
The “Conventional to VA Refinance Loan” process is described in detail in our article Can I Qualify For An Idaho VA Refinance If I Currently Have An Idaho Conventional Loan?
A common question related to VA refinancing is whether or not you can get a refinance on a VA loan if you are currently upside down on your mortgage. The answer is…you can!
Just to be clear, being “upside down” on a mortgage is when you owe more on your mortgage than the current value of your home. This is a highly unfortunate situation that many American home owners are facing today.
In 2008 a law titled the “Veteran Benefits Improvement Act” was passed to assist veterans who were upside down on their mortgage. This law created the opportunity for eligible veterans to get an Idaho VA refinance and improve their financial circumstances.
The enhancements made to the VA home loan program are described in our article Can I Refinance My VA Loan If I Am Upside Down On My Mortgage?
Of course, you are also allowed to refinance your home if you currently have an Idaho VA mortgage. An Interest Rate Reduction Refinancing Loan (IRRRL) is considered a Idaho VA Streamline Refinance. This is a quick and easy way to either lower your monthly mortgage payment or take money out of your home with minimal work, at no cost to you!
Some of the additional benefits of an Idaho VA Streamline Refinance or IRRRL include:
Q: What is a VA Guaranteed Home Loan?
A: VA guaranteed home loans are loans made to eligible veterans for the purchase of a home as their primary residence. The guaranty means the lender is protected against loss if you fail to repay the loan. The guaranty replaces the protection the lender normally receives by requiring a down payment allowing you to obtain favorable financing terms.
Q: Does my entitlement guarantee that I will get a home loan?
A: No VA cannot compel a lender to make a loan that would violate their lender policies.
Q: How much is my entitlement?
A: Your basic entitlement is $36,000. For loans in excess of $144,000 to purchase or construct a home, additional entitlement up to an amount equal to 25 percent of the Idaho VA county loan limit for a single family home may be available . This means that qualified veterans could get a no down payment purchase loan for those amounts.
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with my company who is a mortgage lender that participates in the VA home loan program. At some point you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Complete a VA Form 26-1880, Request for a Certificate of Eligibility. You can apply for a Certificate of Eligibility by submitting a completed VA Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it’s called Web LGY. Most lenders have access to the Web LGY system. This internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records.
Q: What is acceptable proof of military service?
A: If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which identifies you and your social security number, and provides your date of entry on your current active duty period and the duration of any time lost.
If you were discharged from regular active duuty after January 1, 1950 a copy of DD Form 214, Certificate of Release or Discharge From Active Dutyshould be included with your VA Form 26-1880. If you were discharged after October 1, 1979, DD Form 214 copy 4 should be included.
If you are still serving on regular active duty, you must include an original statement of service signed by, or by direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters which shows your date of entry on your current active duty period and the duration of any time lost.
If you were discharged from the Selected Reserves or the National Guard, you must include copies of adequate documentation of at least 6 years of honorable service. If you were discharged from the Army or Air Force national Guard, you may sumit NGB Form 22, Report of Separation and Record of Service, or Reserve, you may submit a copy of your latest annual points statement and evidence of honorable service. Unfortunately, there is no single form used bythe Reserves or National Guard similar to the DD Form 214. It is your responsibility to furnish adequate documentation of at least 6 years of honorable service.
If you are still serving in the Selected Reserves or the National Guard, you must include an original statement of service signed by, or by the direction of, the adjutant, personnel officer, or commander of your unit or higher headquarters showing length of time that you have been a member of the Selected Reserves. Again, at least 6 years of honorable service must be documented.
If you have any questions about a VA home loan feel free to contact me.
Michelle Guth
Diversified Mortgage Group
Branch Manager/Owner
Direct: 208-475-0865
Loanswithmichelle@gmail.com
ID MBL-5696 / NMLS # 36853 / 36852 / 1850
HTTP://FINDYOUAHOMELOAN.COM
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