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USDA Rural Development Loans ARE BACK!
As of yesterday, the US House of Representatives passed a new bill (HR 4899) which includes additional funds for the Rural Development Loan Program. This is HUGE news, as many many of these loans have been put into suspense over the past several months, or have been waiting for "subject to" commitments, which has been keeping them from closing, and not coincidentally, people from moving into their new homes. These additional funds will also be available for consumers looking to purchase new homes, although there is one small change to the previous requirements for qualifying. People are still eligible for the ever popular 100% financing the USDA RD loan offers, but the up front Funding Fee has been increased from 2% to 3.5%. This is small potatoes considering that this funding fee can be rolled into the loan amount, so you don't have to pay for anything out of pocket at closing (theoretically). If you have questions about the USDA Rural Development loan, or what properties in Fort Worth or Dallas qualify, don't hesitate to CONTACT US and we will review your situation. You can also FILL OUT THIS FORM or
Time is Running Out to Refinance in Fort Worth-Dallas
This is going to be short and sweet, but I figured it is worth noting that this refinance boom we have been experiencing lately could be coming to an end very very soon. Why? Well, if history is to be our guide, we could be at the apex right as we speak. And you can't get any better than the apex. For example, from April to July rates have been dropping quite steadily, but for the last several weeks they have leveled out, and don't seem to be dropping again. In fact, all signs point to rates going back UP before we see any type of drop again. What does this mean to you? It means that if you are on the fence about refinancing your mortgage you should take advantage of these low rates NOW before they go back up. This is the best we have seen since 1972, and if you don't feel like waiting another 40 years you should CONTACT US as soon as possible. You can also SEND US AN EMAIL or FILL OUT THIS FORM and we will review your situation. We can get your ...
Buying HUD Homes – A Simple Guide
The following information is provided in effort to give you an introduction on HUD homes, and how they can be purchased by you as a consumer. WHAT IS A HUD HOME? In its most basic sense, a HUD home is a one to four unit property (residential) that is foreclosed upon and then acquired by HUD, who in turn offers it for sale to recover any loss it may have incurred on said foreclosure claim. The houses are then sold to the public through internet listing sites that are ran by property management companies who are under contract from HUD. CLICK HERE for local Dallas-Fort Worth HUD home listings. HOW DO I GET ONE? If you find a property you like, just notify your real estate agent who can make an offer for you on your behalf. HUD will even pay the real estate agent’s commission (if it is included in the purchase contract). If you need a real estate agent just contact us and we will find the best one for you! WHAT ABOUT PRICE? Based on the most recent appraisal, HUD homes are offered for sale ...
Tax Credit Closing Extension signed by President Obama
Good news! President Obama this morning signed a tax credit extension for homebuyers who had a contract dated on or before April 30th of this year. The extension is expected to help an estimated 200,000 people complete their home purchases in order to receive the $8000 tax credit, which has been running the past few years. The bill will allow first time homebuyers and any eligible borrower until September 30th to close on their home. So if you recently put your home purchase on the back burner because you didn’t think you would get the tax credit, call your loan officer and get your mortgage moving again! As always, if you have any questions about the tax credit (or home loans in general) please don’t hesitate to CONTACT US and we will get back to you as soon as possible. You can also fill out this LOAN OFFICER CONTACT FORM and one of our representatives will review your situation and see if we can help you out!
$8000 Tax Credit Extension Deadline Looms for DFW
As the government squabbles to extend the deadline for buyers to close on their homes and claim the tax credit, anxious first time buyers are hoping they get something accomplished so they don’t miss out on their $8000. I don’t blame them. $8000 is a big chunk of change to ANYONE (ok maybe not Bill Gates). But for the rest of us, that type of money can make a big difference on your annual income. As of today, to receive the tax credit for first time home buyers, you would need to meet two guidelines in regard to time. First of all, you had to have your initial contract signed by the end of month in April, and you have to actually close on the transaction by the end of June. Sounds simple enough, right? Well, the problem arose when (just like always) people drug their feet and waited until the last minute to find a house or get a home loan. Consequently, a bevy of loans went to the lenders, and due to the high volume they couldn’t close them in time. Next thing you know, it is the end of June and ...
How to Find Foreclosures in Dallas-Fort Worth
For the second straight month, the number of foreclosed properties across the United States jumped to a record level, according to RealtyTrac.com. The total number of repossessions is estimated to be as high as 93,000 across the nation. This is somewhat surprising, being that April was the first month in recent history where the number of foreclosures actually fell from the previous month. Long story short, this behavior is indicating somewhat that the overall number of foreclosed properties has peaked. Only time will tell, though. BENEFITS OF BUYING FORECLOSURES According to the National Association of Realtors, the typical discount received from purchasing a distressed or foreclosed property is on average around 15 percent. That’s amazing, as long as the condition of the property isn’t deplorable. Why does this matter? Generally, to receive financing for a home, the property has to meet certain conditions and requirements in regard to its physical state. Bad roofs, wiring or plumbing all represent types of defects that would make a property essentially “un-lendable.” So unless you are planning on paying with cash, you’re going to have to get an appraisal or in depth inspection to see if the property will ...
FHA Plans to Lower Seller Concessions This Summer
The Federal Housing Administration, which currently offers one of the most popular types of home loans (FHA), is changing one of its most celebrated aspects this summer, at least that's what the rumor is. The aspect I am referring to is the maximum amount of allowable seller concessions, which permit property owners to pay for some of the services and fees connected with the loan transaction. Inspections, origination, escrow and title fees are just a few of the costs that can be paid via seller concessions, and the new change is expected to receive some backlash as the summer progresses. HOW LOW CAN THEY GO? The amount of the rumored change would drop the allowable amount of seller concessions from 6% of the sales price down to 3%, which is still enough to cover all the closing costs on a loan of approximately $250,000, but anything less than this will force buyers to pay at least some of their costs out of pocket. WHY WOULD THEY DO SUCH A THING? The FHA is making this change in an effort to protect the value of the homes it has loans on. When a seller ...
All About HELOC’s (How exciting!)
One of the good things about having a mortgage is the ability it gives you to build up equity in your home. What's equity you ask? Well, you can click here or I can tell you really quick. Quite simply, equity is the amount of money you have already paid against the value of your home, and it is an easy value to determine with a little bit of math. HOW TO DETERMINE YOUR EQUITY The easiest way to find out how much equity you have in your home is to subtract the amount of your mortgage balance (look on your mortgage statement for UPB, Unpaid Principle Balance, or just Principle Balance) from the current value of your home. For example, if your home is worth $100,000 and you owe $40,000, then your equity is $60,000. In other words, as you pay down the principle on your mortgage, your equity increases inversely. HOW DOES EQUITY WORK FOR YOU? What makes equity special? Well, equity can actually work for you if you know how to do it. Many people borrow against it and use the money they take out to ...
FNMA Won’t Secure Loans On Foreclosed Properties Still In Redemption Period
On May 27th, FNMA released a new guideline that will make it a bit harder for people to purchase foreclosed properties. The new rule states that FNMA will not buy or accept a loan on a foreclosed home that is still in its "redemption period," the length of which is specified by each particular state. For example, the redemption period in California is 12 MONTHS LONG. Wow. WHAT DOES THIS MEAN? Long story short, certain states have laws on the books that provide tenants with a "redemption period" that starts after a foreclosure or tax sale has occurred. During this time period the tenant or owner can reclaim title/ownership to the property if they pay all the amounts they owe. This new rule mandates that the house cannot be sold to FNMA during this time period. How are they doing this? Well, FNMA is declaring houses that are still in the redemption period to be specified as having "unacceptable title defects." Furthermore, any loan with an unacceptable title defect is deemed ineligible for delivery or sale to FNMA until after the redemption period has officially expired. Whew. FYI, loans are still ...
Now Is The Time To Refinance In DFW
I know I mentioned this last week, but it really is worth noting another time that interest rates here in DFW are at record lows. So, actually how low are we talking? Well, some people are claiming that this is the lowest we've seen rates in over 30 years. That's right, 30 years. To top it off, just last month home sales went up almost 8%, and the average home price also increased in the amount of 4% from last year. Obviously this change is being driven by something, but what exactly is it? CONTRIBUTING FACTORS TO HOME SALES The most obvious answer to this question would be the ever popular $8000 tax credit, which actually expired earlier this year. Experts agree that this credit pushed first time homebuyers into purchasing a home before the credit was gone. In order to qualify, buyers had to sign their real estate contracts by April 30 -- and they still have to close on their home by the end of this month, June 30th. So we could still see figures rise as we reach the full expiration of the tax credit. CONTRIBUTING FACTORS TO LOW INTEREST ...
