Underwater Streamline Refinance into a Conventional Loan
For upside down homeowners that have a FHA mortgage right now, the Streamline Refinance loan is one of the most effective tools available for taking advantage of today's historically low interest rates. FHA interest rates have been lower than conventional interest rates for quite some time now. This hasn't always been the case, and it may not always be the case, but for now it's a reality and something to take into consideration when exploring your payment reducing options. If you're underwater now,...
Rising Home Values Help Owners Avoid Mortgage Insurance
Since 2008 home values have slid to incredibly discouraging lows for most California home owners. Many homeowners fell victim to economic challenges as well, resulting in bankruptcies, mortgage defaults, foreclosures and short sales. For the vast majority however, it's been a "sit tight and wait it out" kind of real estate market. If evaporating equity wasn't enough, to add insult to injury, interest rates dropped to historic lows. FHA Was The Lesser of Two Evils In order to take advantage of low interest...
Phantom Foreclosures Stop Boomerang Buyers
Boomerang buyers are those families that fell victim to bankruptcy, foreclosure or short sale in the past and are trying to buy again after the hardship. Most boomerang buyers find solace in the fact that recovery is at most only a few years away. At least that's the way it's supposed to be. Zombie Foreclosures We recently wrote about Zombie Foreclosures, which is a recent phenomenon being experienced by folks that surrender their home, most commonly after being included in bankruptcy. Years later, when...
Zombie Foreclosures Haunt Boomerang Buyers
When this phenomenon first began to rear it's ugly head, I initially tried to avoid using the term "Zombie Foreclosures". I have however, become more comfortable with the term due to the inability to come up with a more appropriate description. Faux-Closure It's been a strange real estate market since the big crash of 2007. As home values dropped, the economy followed suit as hundreds of thousands of families experienced challenges which, in many cases, resulted in the eventual loss of the...
HARP Underwater Refinance Program Extended to 2015
Due to expire on December 31st, 2013, the Home Affordable Refinance Program (HARP 2.0) has been extended an additional 2 years to December 31st, 2015. HARP 2.0 is the expansion of a refinance program available to underwater homeowners that meet very specific qualifying criteria. Most lenders and investors offer variations of the full qualifying criteria of the HARP program. For complete qualifying guidelines for the program, you can get this information on the Government website at www.MakingHomeAffordable.gov Are you Eligible for HARP...
Credit Reporting Errors Prevent Purchase After Short Sale
Boomerang home buyers are pouring back into the housing market only 2 years after a short sale or deed in lieu of foreclosure, only to be met with frustration and confusion by inexperienced lenders turning down their bid for homeownership. Fannie Mae guidelines state that 2 years after a short sale or deed in lieu, a buyer is eligible to apply for a conventional loan with a minimum 20% down payment and 680 credit score. We have successfully financed home loans for...
CalSTRS Home Loan Coming Back
In October, 2011 CalSTRS suspended it's last available home purchase loan program that offered a 80% first mortgage, and a 17% second mortgage to homebuyers that avoided the need for mortgage insurance. The CalSTRS 80/17 was a one of a kind loan that has been sorely missed. After almost 2 years, CalSTRS announced that it has found a new master servicer, and will once again offer a home loan program. Who is Eligible for a CalSTRS loan? Any employee of a California public school,...
A Complete Guide to FHA Mortgage Insurance Alternatives
As FHA mortgage insurance rates continue to sky rocket, leaving more and more home buyers with fewer home loan options, private mortgage insurance comes to the rescue. After 2007, private mortgage insurance became more more difficult to qualify for and was not a great alternative to the low cost of FHA financing and the then, much lower cost of FHA mortgage insurance. Today is a different story. Private mortgage insurance has relaxed qualifying guidelines almost in direct reaction to the constricting of...
How to Avoid Permanent FHA Mortgage Insurance
On April 1st, FHA annual mortgage insurance increases again making mortgage payments of first time and low down payment home buyers a little more expensive. On June 3rd, 2013, FHA annual mortgage insurance will remain for the entire term of the loan for all 30 year fixed rate mortgages with a loan to value over 90%. Here is the complete breakdown of the new PMI changes based on loan term and loan to value: Term LTV (%) Previous New <15 yrs <78 5 years 11 years <15 yrs >78 - 90 Cancelled at...
Refinancing Your Condo with FHA when your HOA Is Not Approved
A friend of mine recently shared with me some interesting news regarding her Condominium Association as it pertains to FHA Refinancing. She said that several of the residents had complained because they were unable to refinance their existing FHA Mortgage, because the HOA (Homeowner's Association) that they belonged to was not FHA Approved. Broadview Mortgage can streamline a FHA mortgage without HOA approval If you want to buy a condominium using FHA Financing, the HOA that operates and maintains the Condo Complex...
