Well right now this is actually a possibility, due to the Department of Housing and Urban Development’s “Good Neighbor Next Door Program.”

Long story short, the HUD is offering half off a home mortgage if you are in one of the previously mentioned fields and find a property that falls into one of the designated geographic areas authorized by Congress under provisions of the National Housing Act.

Why would they do this?  Basically, HUD desires to make the communities of America stronger and safer, and improve the quality of life in distressed urban communities by encouraging Law Enforcement Officers, Teachers (pre-Kindergarten through 12^th grade), Firefighters, and Emergency Responders (EMT) to purchase and live in homes in these communities.

In return for the 50% discount, you must only prove once a year that you occupy the property as your primary residence.  You must do this for a total of 36 months.  In other words, as long as you live in the house for 3 years you never have to pay the other half of the mortgage!  It’s that easy.

How does the discount work?  Well, when you purchase the house, you will be required to sign a second mortgage for the other half of the loan.  As long as you stay in the house for the requisite 3 years the second mortgage is wiped away after that time period.

You can even refinance the mortgage down the road if it happens to be to get a lower rate or even to make repairs (203k loan).

Want to find out if you qualify for this type of loan?  Are you interested in seeing which properties qualify as a designated geographic area?  Just fill out this short form and we will get back to you quickly.  The HUD updates and changes the areas frequently, so it’s really much easier to let us do the work for you!

As always, if you have any questions about this type of loan, or if you just have questions about the mortgage process, feel free to contact us and we will get back to you as soon as possible.

So why don’t more people sell their house on their own?  Well, society and popular opinion will tell you that it’s a difficult, if not impossible process.  For example, a simple internet search of “selling your house without a realtor” will pull up such alarming claims as:

“Without a knowledgeable Realtor to guide you through the process, you’ll have to hone your knowledge of the housing market in your area, lending practices, loan availability and requirements for a home sale. You’ll need to brush up your negotiation and people skills and clear time in your schedule to be available to show your house…”

After reading such claims, it’s easy to think that you should just go ahead, give up and use a realtor instead of dealing with such drama.  Fortunately this isn’t so.  The truth is, selling a home by yourself can be both easy and cost effective……if you have the right tools.

WHERE DO YOU START?

So how do you get the right tools?  The answer is Nationwide By Owner, or NWBO.  NWBO was formed to help individuals generate the exposure needed to effectively sell their homes without a realtor.  Since then, it has helped literally thousands accomplish this feat, all without paying out expensive real estate commissions.  In fact, NWBO charges only $399 for their whole package.  For that amount here’s what you get:

• A personalized web page to showcase your home.
• A Brilliant Yellow Sign with an Audio Tour for interested buyers.
• A FREE Interactive Tutorial to answer common questions about selling your own home.
• Nationwide exposure 24/7.
• Prominent Search Engine Placement to attract active buyers to your listing.
• A team of experts to provide on-call professional help.
• A Virtual Web Office™ with 24/7 live email notification.
• Most Importantly – NO commission fees – Just one low price of $399!

So feel free to call NWBO at 1-866-205-2306, or visit their homepage for more info.  After all, you don’t use a travel agent to book business trips or vacations anymore, so why would you need a realtor to help you sell your own home?

To get pre-approved, you will need to CONTACT one of our loan officers, who can analyze your situation and tell you how much you can afford to spend on a house.

How is this accomplished?  Well, long story short, lenders are going to look at a few specific things before they give you the green light to go shopping for your first house. This includes running your credit and seeing how much income you earn, and then comparing it to how much you want to spend each month.  They will also take into consideration things such as how much money you have on hand and how much you pay each month towards bills like credit cards.

If you are ready to apply or are interested in getting pre-approved, just select the option below that is most convenient for you.

• Complete our Quick Loan Application Form.   This process usually takes less than five minutes. A loan officer will contact you once we receive your application.

• Give us a call and we will take your loan application over the phone.  817-527-3164 or 817-658-0504

• Send us an email describing your situation and what you are looking to do (purchase, refinance, etc).

• Have a Loan Officer contact you.

As always, if you have any questions please don’t hesitate to contact us and we will get back to you as soon as possible.

DFWMORTGAGEGUIDE.COM is an equal opportunity lender.

Fortunately though, there is a new program available from the United States Department of Agriculture that offers 100% financing for people that live (or are looking to live) in rural areas.

Why would they do this?  Is it too good to be true?  Well, long story short, the government offers the option of “zero money down” so that people who live in rural areas (who may have always been renters) can finally have access to affordable mortgages. Consequently, this type of loan is often the best scenario for people who live in the country and want to find a place they can call home. 

Another amazing feature of this loan is that 100% of repairs that need to be made to the property can actually be finance into the loan based on “after repair value.”  What this means is that the USDA Rural Development Loan can also be considered a renovation loan as well.  Because of all these qualities, these loans are quite possibly the best option on the market today. 

So you may be asking, what features does this type of financing entail?  What can I do to make this work for ME?  Well, here are some of the benefits of the USDA Rural Development Loan:

- NOT ONLY FOR FIRST TIME HOME BUYERS - This isn’t like the tax credit!

- LOW INTEREST RATES – Just because you are getting a good deal doesn’t mean you will pay more over the long run.  Rates on these loans are generally better than VA and similar to FHA.

- NO PMI (MORTGAGE INSURANCE) - This makes your monthly payment even lower.

- NO LIMIT ON PURCHASE PRICE - Buy what you want!  (Property must still be reasonable for your income)

- NO MINIMUM FICO SCORE- People that have zero credit history may even qualify.  Those with a credit histoty should have a reasonably good score.  Call for more details.

- SELLER CONCESSIONS UP TO 6% - What this means is that the person selling the house can pay for all or some of your closing costs, which saves you even more money.

- NO CASH RESERVES REQUIRED - Most loan programs require you to have a certain amount of money saved up before you can purchase a home.  This is not the case with the USDA Rural Development Loan.

- 100% FINANCING!!! - NO DOWN PAYMENT IS REQUIRED.  That’s right. NO DOWN PAYMENT.

So next is the issue of actually qualifying for the loan.  Here’s what you need to do, and some of the main requirements involved:

 - You must be a legal US citizen or legal permanent resident.

 - Your income must qualify for the house or property you desire.  As a point of reference, your mortgage payment should not exceed 29% of your gross monthly income.

 - The property must be used as a residence (no farms or commerical deals).

 - You can’t already own a suitable residence in the same area as your proposed new property.

 - Your total family income should not be more than 115% of the median United States income.

Probably the biggest requirement for this type of loan is that the property MUST be in a qualified rural area.  What constitutes a qualified rural area? Well, mostly this has to do with Income and Population Density restrictions, but you may be surprised to find out just how many areas around Dallas and Fort Worth in fact qualify.  As always, you can call or CONTACT US and we will review your situation and see if you (or a house you desire) qualifies.  (free of charge too!) 

But the government didn’t stop there.  Not even close.  The new bill even makes more homeowners eligible to claim the credit on their taxes.  First-time homebuyers (those who haven’t owned a a home in the past 3 years) still qualify for the existing credit of $8000, but now those who have owned (and lived in) a residence for at least 5 years can claim a credit in the amount of $6500!

“The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers.

You might be asking “how does this crazy tax credit work?”  Well, the tax credit is applied in relation to the taxes you actually owe. For example, if you owe $8750 in taxes and then apply your $8000 credit, your new tax bill will be reduced to only $750!  If you only owe $500 you will get a credit back in the amount of $7500.  It’s that easy.  As always, you can still amend your 2008 return and take the deduction in 2008, as long as you closed on a home before November 6, 2009.

ONE IMPORTANT THING TO CONSIDER:

If you purchase a home and take advantage of the tax credit, you can’t sell your home within the first 3 years of ownership without the entire amount of the tax credit being recaptured. This means you will be required to give that money back to the I.R.S.  So, if you take advantage of the tax credit, plan to stay put for 3 years.  After that you won’t owe anything!

As always, if you have any questions about the tax credit, don’t hesitate to CONTACT US and we will get back to you blazing fast!  You can’t even imagine how fast we will get back to you!  Just try it!  I dare you!

The truth is, a reverse mortgage can offer extremely beneficial assistance (monetarily) to a senior who may be out of options or who is just strapped for cash. But what exactly is a Reverse Mortgage?  How do they work?  What are the requirements for obtaining one?  All of these questions will be answered in the following guide.

In the most basic sense, a reverse mortgage is a special type of loan that lets you convert a portion of the equity in your home into cash. What this means is, the money you have built up over the years by making home mortgage payments can essentially be paid back to you. This is different than a traditional cash-out refinance or home equity loan because there is no repayment required until you no longer use the home as your primary residence. You can even choose whether to be paid all at once, in regular monthly advances, or in increments and amounts that you choose! Yippee!

To further explain, here are some of the most frequently asked questions and answers about Reverse Mortgages.

• Who can qualify for a reverse mortgage?

Seniors 62 years of age or older may qualify. There are virtually no income limits or qualifications you need to meet (even in regard to your credit).

• What kind of houses are eligible for a reverse mortgage?

The main establishing criteria for a reverse mortgage is making sure that the home in question is the borrowers primary residence (where you live most of the year). Primarily, reverse mortgages are taken on single family, one-unit homes. Some programs will also accept two-to-four unit buildings, as long as they are owner-occupied. Other programs even offer reverse mortgages on condominiums and manufactured homes, as long as they are built after June of 1976. Typically, mobile homes and cooperatives are not eligible for a reverse mortgage. Feel free to CONTACT US if you are interested in seeing if your home qualifies for a reverse mortgage.

• What fees will I run into if I decide to get a reverse mortgage?

Typically a reverse mortgage will have an origination fee, third party closing costs (such as an appraisal, escrow fees, and title insurance), and a monthly servicing fee. Whats good, though, is that these charges can be paid from the proceeds you receive from the reverse mortgage, which results in no immediate burden to you as a borrower (the costs are added to the principal and paid with interest when the loan becomes due).

• Is it true that if I got a reverse mortgage then the lender would end up owning my home?

This is definitely not true. Being as the borrower, you will still automatically retain the title to the property. The reverse mortgage lender is merely extending a loan to you. That being said, because you still retain title as a homeowner, you will remain responsible for paying such things as the hazard insurance, property taxes, and any maintenance required to keep the home in a livable condition.

• Does how much money I make (or don’t make) influence my ability to obtain a reverse mortgage?

No way! Since you won’t be required to make a monthly mortgage payment, there are (hence) no income qualifications!

• Can the bank take my home away if I outlive my reverse mortgage?

Absolutely not.  Your loan isn’t even due at that time either.  In fact, as long as you or another borrower (ie spouse) continue to live in the house as your primary residence (and you keep current on your taxes and insurance), you won’t need to repay the loan.

• Are there any stipulations or requirements in regard to how I use the money I receive from a reverse mortgage?

Nope.  You can you the money you receive for virtually anything under the sun (as long as you can afford it). This includes home improvements, health care expenses, vacations, groceries, etc, etc, etc. For many people, the funds received from a reverse mortgage are used to provide somewhat of a security blanket in case unexpected expenses arise.

• I still owe money on my existing mortgage.  Can I still get a reverse?

Of course.  You may be eligible to receive a reverse mortgage even if you still owe money on a first or second mortgage.  Actually, the funds you receive from the reverse can even be used to pay off whatever existing mortage you have!

• What are the main advantages of getting a reverse mortgage?

There are many actually, but here are some of the most significant:

1. A reverse mortgage lets you keep your independence by allowing you to remain in your home and retain home ownership.
2. There are NO monthly mortgage payments required. You are not required to pay back the loan or make any monthly mortgage payments until you permanently move out of the home.
3. Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free and will not affect your Social Security or the benefits you receive from Medicare.
4. Freedom and flexibility. You are free to use the money from a reverse mortgage in any way you choose or deem necessary.

Do you have a question or comment for us about Reverse Mortgages?  Feel free to comment below or CONTACT US if you want to ask anything specific!

- Pate

Believe me, all the different types of loans can be quite intimidating to someone uneducated on the subject.  In fact, most people in America don’t know hardly anything about their financing options.  But don’t worry. That’s to be expected.

BASIC LOAN TYPES

The type of mortgage that the majority of people today will get is know as the traditional fixed rate mortgage, or FRM. Over 70% of homeowners this year will get this type of financing for their new home. The main reason for this is that the FRM offers a much stronger sense of stability over the other types of financing. Whether the life of your loan spans 15 or 30 years, the interest rate of this loan is locked in at origination and will not change, no matter what happens to the economy or the mortgage market.

The other main type of loan is called an Adjustable Rate Mortgage, or ARM loan.  This type has an interest rate that is tied to an index, and can rise or fall depending on the current mortgage market.  In general, if the prevailing market increased during one adjustment period (which is specified when you close the loan) then your interest rate will rise, along with your payment.  Adversely, your payment amount will drop if the market drops.

The main reason some people decide to go with an ARM loan is that it will initially offer you a much lower interest rate, which means your monthly payment will be significantly cheaper.  That dark side is that your interest rate can sky rocket, leaving you with a mortgage payment that can be hard to pay every month.  Luckily, though, when you go to your closing, caps are usually set on how high your rate can go.  Be careful though. Make sure you know what you’re doing before you get setup in one of these loans.

OTHER LOAN TYPES

Payment Option ARMs. You may hear this type of mortgage referred to as a “flexible payment ARM.”  These loans have an interest rate that adjusts every month (like a regular ARM loan) but with no adjustment caps, meaning the sky is the limit.  The draw of these loans is that they allow homeowners to make a very low initial monthly payment, but unfortunately the amount will often jump up over time, and usually quite steeply.

Interest Only Mortgages. This type of loan allows borrowers to pay only the interest portion of their payment for a certain amount of time.  This is a good type of financing for the short term, because the principle of the loan is not paid down, and the outcome  is a lower monthly payment for the homeowner.  That being said, the interest only period doesn’t last forever, and once it expires you can expect your payment to increase due to the fact that you are repaying all of your principle over a shorter period of time.  Basically, the longer your setup your interest only period, the higher your monthly payment will be once it expires.

Balloon Mortgages. At first glance, these types of loans will very much resemble a traditional 30 year fixed rate loan.  The difference being that the term of the loan is almost always much shorter, usually around 5-7 years.  After this time limit is over, the remaining balance must be paid in one single lump sum.  In most cases a borrower will refinance once this point is met, or else pay the entire amount.

Biweekly Mortgages. CLICK HERE to read more about these types of loans.  They can take years off the life of your loan if done correctly.

As always, if you have any questions about the different types of loans, please don’t hesitate to CONTACT US and we will get back to you with an answer ASAP.

- Pate

Here at DFW Mortgage Guide we have numerous loan programs that can be custom-built to fit your situation, whatever it may be. We serve the Dallas Fort Worth area metroplex exclusively, so you know you are dealing with a company that knows the area.

We also work with over 20 lenders and have access to almost any loan program available.  These include:

PERMANENT FINANCING MORTGAGES
We offer a multitude of Mortgage programs for Dallas Fort Worth including conventional fixed rate mortgages, FHA Loans, VA, Jumbo, ARM’s, USDA, Interest Only, investment properties, condominiums, and many more!

HOME IMPROVEMENT MORTGAGES
Whether you are looking to purchase a home that needs improvements, or if you need to do some work on your existing house, we have options available for first and second lien home improvement mortgages.

HOME EQUITY MORTGAGES
We offer Cash-Out Mortgages for primary homes, second homes, and investment homes, as well as interest only HELOCs for primary residencies.

SECOND LIEN MORTGAGES
We also offer stand alone second mortgages and second lien mortgages closed concurring with first lien mortgages.

REFINANCE EXISTING MORTGAGES - If your existing mortgage payment is too high, it may be time for you to refinance.  Interest rates are at all time lows right now, and it is worth taking advantage of if you live in Dallas Fort Worth and want to lower your monthly bill!

FURTHERMORE, we strive every single day to be the absolute best mortgage company in Dallas Fort Worth.  We accomplish this by offering competitive costs, while also providing you a level of customer service that is unmatched.  Please call us at 817-527-3164 to prequalify for FREE and we will happily discuss your situation.  Even if you can’t get a home loan right away we will do everything we can to make sure you can get one in the future.

If you are ready to begin your home search, or if you have any questions about financing, don’t hesitate to CONTACT US and we will get back to you as soon as possible!