Mortgage Miracles Happen

April 26, 2011

Loan Programs today!



CONVENTIONAL MORTGAGES

This program is a fully amortizing  offers 30, 25, 20, 15 or 10 year fixed rate mortgage and competitive ARM products with full documentation of income and assets. Interest only option loans are available for the first 10 years on a 30-year term mortgage.
For owner occupied homes, getting cash out refinance is allowable up to 85% of the appraised value after having owned the property for 12 months or 85% of the purchase price during the first 12 months of owning the property. Maximum loan amount is $417,000.00 in Utah for Single Family Detached, Condos, PUD’s (Planned Urban Development) for a Single-Family homes with no prepayment penalty. 

Purchase transactions for Conventional loans require a minimum 5% down payment.

FHA MORTGAGE

Backed by the Department of Housing and Urban Development (HUD) this mortgage offers Utah borrowers the ability to put as little as 3.5% down payment and they can even finance allowable closing costs.  The seller can contribute up to 6% of the purchase price towards the buyer’s closing costs.
FHA loans are available in most of Utah for up to $729,750.00.
Streamline and no-cash-out refinances are available up to 97% of the appraised value of the home and cash-out refinances are allowed up to 85% of the appraised value.

203K FHA MORTGAGE

The FHA Section 203(k) insurance program enables Utah borrowers to finance the purchase or refinance of a home and the cost of its rehabilitation through a single mortgage. The FHA 203(k) can help you expand your market reach and help borrowers find affordable financing. The improvements are “streamlined” to only allow a maximum of $35,000 of repair costs to be added to the loan. Improvements can be for a new kitchen, new bathroom, to add a garage or to structurally improve the property.  They can not be used to add amenities such as hot tubs or swimming pools.

VA MORTGAGE

Backed by the Veterans Administration and the federal government it is similar to FHA except that you have to be a qualified Veteran or active duty military person. VA loans are available up to 100% of the purchase price of a home  in Utah and are fully amortizing 30 or 15 year fixed rate, or 5/1 or 3/1 Treasury ARM’s.

JUMBO OR HIGH BALANCE LOANS

Jumbo and High Balance loans offer 30 and 15 year term, fixed rate mortgages and competitive ARM products with full document of income and assets up to $729,750.00 or 115% of the area median home price.
Cash out and No cash out refinances are allowable.  Single family detached, Condos, PUD’s and single-family second homes can be financed with no prepayment penalty.

OFFICER, FIREFIGHTER, TEACHER NEXT DOOR PROGRAM

HUD’s Good Neighbor Next Door initiative is designed to encourage renewal of revitalization areas throughout Utah by providing law enforcement officers, firefighters, emergency medical technicians and teachers an opportunity to purchase homes in these select communities.
HUD provides a substantial incentive in the form of a fifty percent (50%) discount off the list price of eligible properties and a minimum down payment of just $100.  In exchange HUD requires that the buyer live in the home for at least three (3) years as their sole residence.  Borrower may include closing and financing costs in the mortgage amount.
For more information on this program visit http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm
Homes available through this program can be found at http://www.mcbreo.com/st_utmain.htm

HUD HOMES

FHA has offered special sales incentives for HUD homes in Utah.  These incentives are available to owner occupant home buyers when they purchase a HUD property at the full asking price and using FHA financing and a down payment as little as $100.00.  HUD also pays up to 3% of the list price for closing costs.
A HUD home is a single family home, duplex, triplex or fourplex that is owned by HUD after a foreclosure on an FHA-insured mortgage.
Homes available under this program can be found athttp://www.mcbreo.com/st_utmain.htm

USDA RURAL HOUSING PROGRAM

The Rural Housing Service, an agency of the U.S. Department of Agriculture (USDA), offers loan programs that give qualified borrowers who wish to live in rural areas of Utah the ability to finance up to 100% with little or no down payment and favorable rates and terms.
Applicants for USDA Rural Housing loans may have an income of up to 115% of the median income for the area.
The programs also make funding available to individuals to finance vital improvements necessary to make their homes decent, safe and sanitary.
Homes in all counties of Utah except for Salt Lake and Davis and some areas of Utah County, Washington, Weber and Cache qualify for USDA Rural Housing financing.

FANNIE MAE HOME AFFORDABLE REFINANCE

Making Home Affordable Program, or HARP, is also known as a Fannie Mae Refi-Plus.  This program allows for Utah properties with Fannie Mae purchased loans to rate-and-term refinance without mortgage insurance (if there was no mortgage insurance on the original loan) up to 125% of the property’s appraised value.  Existing second mortgages can not be refinanced into the Home Affordable Refinance and must subordinate to the new first mortgage.
The expectation is that refinancing a Fannie Mae loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable loan product.

HOME PATH PROGRAMS

Home Path financing is for homes that have been foreclosed on by Fannie Mae. Home Path loans only need a 5% down payment, do not have mortgage insurance, do not need an appraisal and have flexible mortgage terms (fixed-rate, adjustable-rate or interest-only). You may qualify even if your credit is less than perfect.  Home Path loans are available to both owner-occupiers and investors.
The down payment can be funded by your own savings, a gift, a grant, or a loan from a nonprofit organization, state or local government, or your employer.
Please feel free to contact me with any questions you may have about these and other loan programs.
https://wedohomeloansforyou.com
801-399-2364 Tel
Ben Gerritsen

6 consequences of the Federal Reserve’s rule on loan officer compensation



6 consequences of the Federal Reserve’s rule on loan officer compensation - Positive or Negative impacts for the consumer, hmmmm.  Here's the real world street facts.

The Federal Reserve’s rules limiting independent loan originatior’s compensation (but not the compensation of big banks) are already hurting the consumer in these six critical areas:
  1. The loan officer can not lower their compensation to help the consumer, so the consumer will pay more when unexpected costs or situations occur during the loan process. These can be items like a title insurance policy actually being $100 more than expected or some other costs that come-up at the closing table. It is common practice for the loan officer to cover these overages out of their compensation.
  2. The lender will have to pay for the unexpected expenses from #1, thus they will have to increase underwriting and processing fees to build-up a slush fund to pay for the overages when the come-up.
  3. The borrower loses options resulting in higher rates and/or fees.
  4. Service level will decrease because many smaller companies will exit the business, creating a monopoly for the big banks who then can price-fix fees and rates to their advantage. Reduced competition equates to increased costs to the consumer.
  5. Rural areas will suffer with few or no lenders in the areas where bigger banks don’t set-up offices. These are the areas that smaller lenders and brokers excel in service.
  6. Lower income borrowers will suffer because lower loan amounts will not be available. We are already seeing many larger lenders increasing the minimum loan amount they are willing to fund. Smaller lenders and brokers again excel in these underserved markets.Minorities will also be vastly underserved. An independent study done by George Washington University evaluating over 2.2 million mortgages originated by both big banks and mortgage brokers found that those loans originated by big banks for minorities averaged nearly 2% more in APR than those originated by mortgage brokers: 2.93% APR less to African American borrowers, 1.182% less to Hispanic borrowers and 2.296% less to lower income borrowers of all ethnic backgrounds.The savings on second mortgages were even greater. Overall, independent mortgage loan originators serve minorities and lower income borrowers much better than big banks do.
          Loan amounts under $60,000 are out the window, a thing of the past.  Low income families   that cannot afford a property that is a higher loan, too bad.  You may meet all of the guidelines, you may have the credit and the income, but thanks to the Federal Reserve and their new policy, you have been sent back to the dog house.  Lenders now are not loaning on smaller loan amounts.  There is not a profit in the business of making mortgage loans because of all of the red tape and regulation that has been imposed on mortgage banks.
There are individuals and families that in the one month that this has been in place that have been affected in a negative manner where they are now unable to obtain financing they have been preparing to get.
If you have a problem with this, don't just sit back, but rather contact your Senator, Congressman, Legislators and those that have the ability in Washington to have their voice heard.
I personally have done this, I have gone into Senator Orrin Hatch's office in Salt Lake City, Utah and voiced my concerns to his staff and asked that this feedback be taken back to Washington D.C. to assist the people being affected.

Watch the video below for a great explanation of how independent mortgage loan originators save you money and how the new Federal Reserve rules will harm you.