All of this is funded by the US Department of Housing and Urban Development (or HUD) in an effort to provide financial assistance to qualified homebuyers to purchase lender-foreclosed homes with the City of Fort Worth in specific target areas.  Which areas?  Well I’m glad you asked.  Here they are:

• 76131
• 76133
• 76123
• 76112
• 76179
• 76248
• 71637

Obviously the HUD isn’t going to just give this money away to anyone who asks, so there are some qualifying factors you must take into consideration when applying.

First of all, income is the main thing the HUD will want to know when you fill out your application.  The limits are set in advance by HUD, so conversely, your income cannot exceed their parameters in order to qualify.   For example, the maximum allowable household income for a family of 4 is $72,900.  For 5 people it jumps to $85,500.

Secondly, the property you find must be located in the city limits of Fort Worth, and you must occupy it as your primary residence.  So in other words, no investment properties or second homes are eligible for down payment assistance.

So how does the program work?  Basically, eligible homebuyers will receive a deferred-payment loan with no interest or payments at all for 10 years. The only stipulation? You have to stay in the house for 10 years.   After this time period has expired the loan is forgiven.  It is also worth noting, though, that the amount of the deferred-payment loan begins to reduce after five years, so you won’t have to pay back the entire amount if you end up having to move out of the house after 6 or 7 years.

If you are interested in seeing if you qualify for the program, don’t hesitate to CONTACT US and we will review your situation.  If you would like to review the requirements yourself, just visit Fort Worth’s Homepage for more details.

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?

A mortgage is a loan to finance the purchase of your house/property which acts as the security for the loan. It is possible to look for online mortgage loans and the process is simple where you just have to fill out a form with personal details, loan amount required, etc. Then, there is a legal contract where you have to sign and make a promise that you will pay the debt, with interests and other costs in installments over a set period of time.

What to ask yourself before you take a mortgage

A mortgage is a legally-binding financial commitment that could last for several years. So make sure you are ready and ask yourself:

• If your current financial position is comfortable to make the monthly mortgage payment.
• Whether you will be facing sudden financial difficulties like losing your job.
• Whether you know the risks if you you cannot repay your mortgage in the future.

Advantages of taking an online mortgage

1. Approved faster: An online mortgage loan usually gets approved faster. So it is
   possible for you to try and apply with other lenders if you are not approved for the
   first time.
2. Ownership is retained: In mortgage, you retain all the benefits of ownership in an
   asset which has the potential to increase in value. The lender is only entitled to an
   interest return on its mortgage, and not a percentage of ownership.
3. Tax deducted: You get tax advantage, as interest payments on your mortgage are
   tax deductible.

Disadvantages of taking an online mortgage

1. Loss of property: As the purchased property is pledged to the lender,  the lender can sell it to  recover the outstanding money, if you default on the mortgage.
2. You may be scammed: With online mortgage loans, you might also fall in the
   trap of a scam company, where you might be robbed of your money.

The online mortgage secures your promise that the money borrowed will be repaid. Though it is the largest and the most serious financial obligation that you ever make, yet this type of mortgage usually comes with more flexible terms and lower rates of interests.

]]> http://www.dfwmortgageguide.com/all-catagories/online-mortgages/feed/ 0 http://www.dfwmortgageguide.com/featured/how-to-apply/ http://www.dfwmortgageguide.com/featured/how-to-apply/#comments Mon, 15 Mar 2010 16:11:26 +0000 Mortgage Mike - Admin http://www.dfwmortgageguide.com/?p=674 Thinking of buying a new home?  Whether you’re a first-time homebuyer or just looking to refinance, we can walk you through the process of finding a house and obtaining the right mortgage loan for your needs.

If you are ready to apply or are interested in getting prequalified, 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.

Before we get into this too deep, lets first get an idea of what this seasoning requirement originally entailed.  Basically, since 2003, the FHA has required that a house is “seasoned” on the market for 90 days before it is allowed to be resold.  This means that an investor or any other person who purchased a property had to wait for approximately 3 months before they were allowed to sell the house to an FHA insured buyer. 

More than anything, this was done to prevent people from buying a house and immediately selling it at an inflated price to a naive or uninformed buyer.  Luckily, over the past several years, most of the riff raff has been weeded out of the market, and this type of practice isn’t as widespread, or even really possible (as you will see from the rest of this article). 

So, this is obviously good news for investors, but why is it good for home buyers?  Well, per the official waiver:

“…the 90-day resale restriction often hinders community stablization and revitalization.”  They also said:

“FHA borrower, because of the restrictions we are now lifting, have often been shut out from buying affordable properties.  This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.” 

Basically what this means is that more houses will be put on the market that were otherwise just sitting there collecting dust.  Consequentally, this presents more options for people looking for the perfect house!

BUUUUUUT……before you get too excited, it should be noted that there are several specific nuances to the waiver that investors and homebuyers alike should both be aware of. 

4 IMPORTANT POINTS TO CONSIDER

1.  Seller MUST Hold Title

In other words, the person who is selling the house must legally and officially own the property, and thus, be on title.  In fact, FHA will expect to see the investor/seller as the owner of record as of the date the contract to sell to the FHA buyer is executed.  Long story short, no more back to back, same day closes to FHA end buyers.  Sorry. 

2.  You Still Need Short Term Funding

Basically what this means is that if the property doesnt sell immediately you need to be financially able to make the payments.  Be prepared to come up with short term funding for however long it takes to sell the house.  Luckily, in most cases, it is easier to find 30-60 day financing compared to 90. 

3.  Is There A Flipping Pattern?

This is an easy step.  FHA mainly wants to know that the subject property doesn’t display a history or pattern of previous flipping activity.  You can go and check the title from last year to see if the property has changed hands very often.  Best case scenario would be not at all. 

4.  The 20% Rule

If the sales price exceeds 20% of the previous purchase price, you will have to show proof that you actually made repairs making the property worth that much more.  This is done to ensure the sale is legitimate, and can include a full FHA inspection, or even a second appraisal.  The best way to combat this is to simply take accurate records as proof of what you did to enhance the value of the property.  Take plenty of before/after pictures, document the entire process, and you should be fine. 

Other Important Points:

 - All transactions must be arms-length

 - Assignments of a contract for sale will trigger a red flag.  No taking over deeds for people. 

LONG STORY SHORT, KEEP IT CLEAN AND STRAIGHTFORWARD! 

The better documented your case, the better chance you have of the process going smoothly.  As always, if you have any questions please don’t hesitate to CONTACT US and we will reply to your query as soon as possible.  I also urge you to read the original waiver from the FHA regarding the subject matter:

FHA WAIVER

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!

Here are some of the basic guidelines to see if you might qualify for the tax credit.  First of all, a “first time home buyer” is considered to be someone who has not owned a home for the past three years.  As for the limit you can receive, just look at the purchase price of the home and take 10%.  The max is  capped at $8,000, and is subject to income limitations, meaning that if you are single you would need a modified adjusted gross income of $75,000 or less to qualify for the full credit.  Married couples need a gross income of $150,000. If you happen to make more than that, you may in fact be eligible for reduced credits.  The last main requirement is that you must live in the house as your primary residence for at least 3 years.

Honestly it would be a big mistake to miss out on this opportunity.  I don’t care who you are, but $8000 is a good chunk of change to get for buying a house.  We may never see something like this come about again.

To see a video explaining the tax credit in further detail, please CLICK HERE.

And if you don’t feel like doing the research yourself just CONTACT US and we will find out if you qualify.  Here at dfwmortgageguide.com we will do everything we can to get you in a new house and out of the rent race.

Once the loan officer has this information from you they will run your credit and and make an estimate of approximately home much money you can afford to borrow at the current interest rates.

After this is done you will get a “prequal letter” that will have this amount indicated on it.  Prequal letters are often given to realtors as a a form of good faith because they show that a borrower can in fact afford a house payment of a certain amount.

This way a realtor will know what price range of houses to show a borrower, and they also know that the borrower is working with a loan officer, and thus serious about finding a home.

Another benefit of getting pre-qualified is that it makes you much more desirable to someone who is selling their home. When there are multiple offers on a particular property, a seller will be much more inclined to go with a buyer who has already been pre-qualified, because by having already proved your creditworthiness you are a lesser risk than someone who has not!  It makes perfect sense!

So if you are interested in getting prequalified, or if you have any questions about finding a home in the DFW area don’t hesitate to CONTACT US and we will do everything we can to make it happen.