You’ve heard it here before–this product, sponsored by USDA Rural Development, allows borrowers to get 100% financing at a low fixed interest rate if the property is in designated rural areas–which aren’t limited to the back of beyond. Property just outside city limits is often considered rural for the purposes of geting these loans. But you may have to hurry. Continue reading ‘USDA 100% Mortgage: A Thing of the Past?’
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No, this isn’t a rerun of a previous post. Fannie Mae did toughen its guidelines ten weeks ago. And it’s doing so again.
Here are the latest changes:
- Lowered debt-to-income ratios to 45% maximum
- Minimum credit score increased to 620
- More loan-level pricing adjustments when MI is involved
Loan level pricing adjustments (LLPAs) can be found in Fannie Mae’s matrix (aka the Chart of Death) and can be unbelievably onerous. Continue reading ‘Fannie Mae Making Things Even Tougher. Again.’
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Okay, you have been estranged from your spouse for several years. You’d like to buy your first house and of course you want the $8,000 first time home buyer tax credit. You file your taxes as a single person–in fact, you file as a Head of Household because you are for all practical purposes a single parent. How does the credit work for you? Continue reading ‘The $8,000 Question: Can Separated Home Buyers Take the First-time Buyer Credit?’
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You are a smart shopper. Whether it’s for a bad credit mortgage, an FHA loan, or a debt consolidation home equity loan, you know what to do–get online or on the phone, touch base with several lenders, and get your disclosures quickly. Once you have decided which lender you like best, it’s time to apply for your mortgage. But what about that rate quote? Is it guaranteed? What are your rights when it comes to mortgage interest rate quotes? Continue reading ‘My Mortgage Rate Is Locked……Isn’t It?’
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On January 1, 2010, would-be borrowers will get a rude awakening from FHA. The agency’s streamline refinance will no longer be the easy transaction it is today. Today, the biggest advantage of FHA streamline refinances is that they don’t require an appraisal or credit qualifying. So even if your home’s value has tanked and you have bad credit, you have been able to refinance easily into a better FHA loan. That opportunity is about to go away. Continue reading ‘FHA Toughening Guidelines in January: Better Refinance Now’
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According to an article in the LA Times, mortgage problems are becoming credit problems. While refinancing under making Home Affordable programs won’t hurt your credit and may even help it a little, the same can;t be said for short sales. Many holders of under water property assume that a short sale won’t harm their credit, or at least not much, but it really depends on how the lender chooses to handle the sale. Unless you live in a non-recourse state like California, your lender has the right to pursue a deficiency judgment against you. If it does, you could be liable for the difference between the sale proceeds and the loan balance. And even if you pay this in full, one large American bank still reports the transaction as a “charge off,” which is little better than a foreclosure. Continue reading ‘Mortgage Problems Hurting Americans’ Credit’
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Last year, FHA implemented a policy of risk-based mortgage insurance premium (MIP) pricing, which made those with bad credit scores pay more for insurance, and allowed those with good credit to pay less. That idea went over like a lead balloon with lawmakers and activists alike. And so on October1, 2008, a couple of months after it started, the policy was scrapped–for a year. Well, that one year moratorium is over October 1st of this year. If you have bad credit and want an FHA loan you need to do it now–because after October 1st it may cost you more. Continue reading ‘Thinking FHA? Think Fast if You Have Bad Credit’
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The chairman of the House of Representatives Financial Services Committee said that he plans to keep working on legislation to reduce mortgage balances via bankruptcy proceedings, and that the lame performance of lenders, some of which received taxpayer bailout funds and have yet to modify a single mortgage, increases the support for that legislation. Continue reading ‘New Legislation May Help You When Your Lender Won’t’
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You need a mortgage modification. You checked the questionnaire on www.makinghomeaffordable.com and discovered that you meet the criteria for a modification under the Home Affordable Modification Plan (HAMP). So you call your lender, get your modification packet, and return it. And then nothing happens. For months. Continue reading ‘Frustrated with Your Lender? So Are Some Judges’
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Those of you waiting to take the step from renting to home ownership may want to step it up. First, unless Congress extends the deadline, that first-time home buyer credit is going away the end of November. Of course those on the sidelines face challenges–often bad credit, a little short on income, insufficient down payment, or lack of time on the job. But you don’t know until you try, right? With a good loan agent, even a decline from a lender can be a useful tool. Here’s how to make the most of that information. Continue reading ‘Even Being Declined for a Mortgage Can Be Useful’
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