“With the fall of 80/20 type loans that provided 100% financing …VA and FHA lending alike have risen to the forefront of home lending”.
The VA Home Loan Program is one of the last 100% financing loan programs. As a veteran borrower, you are able to purchase a home with no down payment and the seller can contribute up to 4% toward pre-paids, discount points, and debt. Additionally, the seller can pay all closing costs. In some cases the seller will pay in excess of the 4% to create the optimal purchase loan and financial opportunity.
Are you an active military, a veteran of the U.S. Armed Forces, or an unmarried surviving military spouse? There are 25 million veterans in the U.S. today. If you fit into one of the categories mentioned above, you are likely eligible for one of the best home loans available today.
If you would like to learn more about VA loans or to find out if you qualify for the VA Home Loan Program, contact Matt Dill with PC Bank Home Loans at 253-286-5363.
To search for VA approved properties CLICK HERE.
A Comparative Market Analysis is a method used to determine the value of a property. And although it is typically used to help a seller develop an asking price for their property in can also help them to estimate the equity in their property. This can benefit a seller in several ways:
1. Short Sales: A short sale is when a homeowner may owe more than what a property can sell for. The Lender may consider accepting less than what is owned but will require a Comparative Market Analysis be completed. This is to verify the Seller’s estimated net proceeds and verification that indeed the sale would be short of the funds needed to payoff the existing debt.
2. Refinancing: Before a homeowner can refinance an existing mortgage there needs to be enough equity in the property (Typically at least 20% on a conventional loan). A Comparative Market Analysis can help a Mortgage Broker determine if the homeowners could qualify for the new loan.
3. Loan Modification: Many homeowners have found themselves in situations where they can no longer afford their existing mortgages and cannot sell it for what they owe (as in the short sale situation). By working with their current Lender they may be able to adjust the terms of the existing mortgage, helping the homeowner remain in the home versus facing possible foreclosure. Providing a current market analysis with the loan modification request can strengthen the homeowners’ chance for modification.
Knowing what your home is worth and the amount of equity in it, is important information to have whether you’re selling, facing foreclosure or just doing some basic financial planning.
For a free Comparative Market Analysis you can visit my website by clicking here or contact me directly to learn more.
As you prepare your taxes this year don’t forget, if you purchased a principal residence between April 9, 2008, and July 1, 2009, you may be eligible for a credit of up to $7,500.
The credit was a provision that was included in The Housing and Economic Recovery Act of 2008. The credit as it stands, is like an interest-free loan from the government and must be repaid over a 15-year period. You must also have not owned another principal residence during the 3 year period ending on the date of purchase. If you believe you may qualify, make sure to talk with your accountant to see if you can take advantage of this credit.
According to a recent article on Forbes.com, Seattle is listed as #1 in best places to invest in real estate and most likely to rebound in the coming year. The article refers to a recent study by The Urban Land Institute, where real estate professionals were asked the best and worst places to invest in 2009.
According to bankrate.com’s weekly national mortgage survey, mortgage rates were down for the second week in a row.
Survey results show the 30-year fixed averaging 6.60% and a 15-year fixed at 6.14%.
The monthly payment on a $250,000 home loan would be (principal and interest only):
30-year at 6.60%: $1596.65
15-year at 6.14%: $2191.54
Year-to-date existing homes sales are off 41% in July. With approximately 3,551 properties sold vs. 5,199 from last year.
- Average price $300,737
- Average square foot for homes sold: $165.13
- Best price range: $225,000 – $250,000
- Second best range: $250,000 – $275,000
Stats provided by http://realestats.net/
When the Housing and Economic Recovery Act of 2008 was signed into law on July 30th, 2008, it included the elimination of down payment assistance programs. These programs such as Nehemiah, provide private gift funds (ordinarily contributed by the Seller) of up to 6% of the sales price to be used towards a buyers down payment or closing costs.
Typically this is how it works:
Say you get approved for a $250,000 home. It’s an FHA loan and you need 3% for a down payment. And you also need approximately 3% for your closing costs (e.g. loan fees, title, escrow, etc.). Total equals $15,000.00.
So as the Buyer you will need to bring in $15,000.00 to get into a $250,000.00 home. Quiet a lot of money for a first-time homebuyer starting out. So, these programs in essence, allow the Seller to contribute up to the 6% to the program. Essentially allowing the Buyer to get in with 0 down.
The new law eliminates these programs on October 1st, 2008.
Throughout my career I have assisted numerous clients that benefited from these programs, giving them the opportunity for homeownership that they may not have had otherwise. And it’s unfortunate to see them go away especially at a time all the other 100% financing options have since disappeared.
There is still time to close on a home before October 1st although the clock is ticking…
There is a new law that has been proposed to save the down payment assistance programs and you can help by showing your support. Read about it here and take action today!
Due to the mortgage mess of the last few years, a majority of the 100% financing programs have since went bye-bye, but if you do some research you will find there are definitely some other options out there. One such option is the USDA Rural Development Program. It offers 100% financing with no down payment. The catch is there are only certain areas or counties that are eligible and there are income limits that apply. Directly funded by the government, the programs primary goal is to assist low-income individuals purchase homes in rural areas.
The programs basics are:
- Can finance 100% plus the loan fee
- Properties must be located in eligible rural areas
- Income limits apply
- Do not have to be a first-time buyer
- No loan limits
- No mortgage insurance premium
- Funds can also be used to build new, including preparation of building site.
Click here for a printer-friendly information sheet on the USDA program in PDF format.
Provided by Kisha Weir with Mortgage By Design.
Tonya M. Locken
