Columbus Ohio real estate

Before I explain that question, let me ask you this one: "How long have you been in the business?" Ever have someone ask you that? Here's my answer, and it will really make you think!

I was in the business before we had the Equal Credit Opportunity Act (ECOA). ECOA went into law in 1976, and protects against discrimination based on race, color, religion, national origin, sex or marital status, or age.

So, you ask???

Well, when I was first in this business, if I were taking a loan application from a married couple that were of child bearing age and they wanted her income to be taken into consideration, I would have to document their birth control procedures!!

Yep! That's right! A letter signed by the two of them certifying they did not intend to have children, why, and then explaining their form of birth control would sometimes suffice, but not always! Imagine having to ask THAT question at the face to face loan application (which a face to face was the only kind of loan application we could accept)! Remember, back then maternity leave was not protected by law. Thus, if the wife were to get pregnant, there would be no guarantee that she would get her job back. So job stability could not be established, disallowing the income from being taken into consideration.

And to think today we're all uptight about a new Good Faith Estimate and HUD!

"We've come a long way, baby!" (Do you know what advertisement that line was used in?)

This post is included in the brand new "Financing Friday" group, which we invite you to join.

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Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Starkey Mortgage.

 Ruth Vogt, Colorado Regional Manager

 Colorado #LMB100023827, NMLSR# 257576

   www.MyLenderOfChoice.com

   rvogt@wrstarkey.com

 

          

 

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Beginning January 1^stthe new and improved Good Faith Estimate (GFE) will be required for all mortgages. What does this mean to you the consumer? It means you will be confused like never before.

That's not the intent behind the new disclosure. Indeed our government spent upwards of 7 years researching and perfecting a form that would make shopping for a mortgage as transparent as possible. As they say the road to hell is paved with good intentions; and although this new disclosure is intended on improving consumer's understanding of the loan they are applying for, it falls woefully short.

So why is this new GFE so bad? Let's start with the fact you are never disclosed your total monthly payment. Worse yet, you are never disclosed how much cash you will need to complete the transaction. The form simply addresses information pertaining to the mortgage loan, and does NOT even provide for discussion of your taxes, insurance or other costs.

The new form also requires lenders to commit up front to the total they will charge you. A great idea you say? Yes, except the requirement is so draconian that lenders are now forced to disclose the worst case scenario, before they may know all the particulars of your loan. Would you like to guess how many lenders will drop their fees once your scenario doesn't play out as bad as expected? This will certainly result in borrowers actually paying more costs for loans, regardless of how hard they shop.

Let's look at an example. Say you are refinancing and are unsure what your home is worth (does anyone know what their home is worth anymore?) and when the appraisal comes in it's a bit short of the value you needed. The lender will be charged "loan level price adjustments" accordingly but unless he disclosed these costs he can't pass them on to you.  This requires the lender to price that adjustment on any loan he MIGHT have to pay it on, which in turn means you will have to hope he is honest enough to drop the cost if it doesn't apply. Most lenders will be honest enough to do the right thing, but you don't need protection from them. An unscrupulous lender will have every chance to overcharge you for a loan, and that's what these disclosures should prevent.

The bottom line is you can't legislate morality. Know who your lender is and get references from past customers and industry professionals. An ethical, knowledgeable lender working with you to accomplish your goals can make all the difference between a good deal and a rip off. Shop for your loan, but shop for your lender just as hard!

 

Good Credit does not happen accidentally.  It is a deliberate effort on the part of consumers and it comes from simple things that are within everyone's control.  Things like paying your bills on time, keeping lower balances on your credit cards and not over extending yourself with lines of credit.

The Ad Council has come up with a very funny and innovative public service announcement campaign for television and radio.  The campaign features the concept of consumers believing in the Credit Fairy and their friends and spouses dispelling that myth.  Check out this one:

More people with good credit means more people who can legitimately qualify for and afford to buy new homes.  After the string of Short Sales, Foreclosures and other financial hardships we have seen over the past few years, there will be many consumers who need to rebuild their credit.  Helping to educate them will benefit us all.

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If you are in the Dallas/Fort Worth metroplex and are looking for a REALTOR® to help make the home buying or selling process easier and more friendly, call me today at (469)449-9840 to schedule a consultation.  Or visit my website at EasyTexasRealEstate.com.  I'd be happy to help you move forward and achieve your Real Estate dreams and goals.  Not located in the D/FW area?  Contact me anyway... I'd be happy to refer you to a real estate professional in your area who can help you.

Renovation Lending

The main concept behind these loans a.k.a Rehab, Renovation, 203k and Home Improvement loans is quite simple, clients who wants to finance the costs of home improvements through the mortgage for a purchase or refinance.

Financing the costs of the home improvements through the mortgage can be cheaper than high interest credit cards, emergency savings and high interest unsecured loans.

 

Don't worry about the appraised value if the house is in bad shape, the loan is based on the after improved value of your improvements.

Typically these loans can close in 30-45 days, with contract work started within 30 days of closing.

Whats the difference between the 203k Streamline and Full Renovation?

 

 

FHA 203k Streamline

• NO HUD CONSULTANT - this is the biggest distinction here compared to full renovation.  Saves time and delays.

• Less fees vs a Full Renovation - cheaper
  

• No Reserves - Full 203k requires reserves
  

• Restricted to $35,000 in repairs - *no major structural repairs* Over 35k is Full 203k.
  

• No Inspections - over 15k in repairs just needs to verify work is done.

• No Contingency Added

• Repairs must be completed in 6 months - no extensions, after 6 months must be kicked to full renovation.

• Owner Occupied / 1-4 family

 

 

Rennovation Specialist

Renovation programs are great for 1st time home buyers providing solutions for needs and wishes into reality.

 

With Foreclosures and short-sales on the rise, many homes on the market need a lot of T.L.C and most of the time the previous owner had not taken complete care with the home, this is repair the 203k loan can shine for you.

 

 

Remember, not all Mortgage Professionals offer 203k Loans.  Consult with a Renovation Specialist who can guide you through the decision in Streamline vs Full Renovation.  By the way...I offer both :)

 

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Just-In-Time Loans - Mortgage Needs and Advice on Time. (757-228-3668)

 

This is a pre announcement about a program that OHFA will have available effective March 30, 2009.   The short and sweet is that OHFA will be lend Qualified Buyers up to 3% of the Sales price in anticipation of the buyer recieving the Federal Tax Credit Stimulus as part of the Recovery Program.  This could create a Zero interest loan if the loan is paid in Full by July 1, 2010.  

If the program is like the Prior Secondary loan that OHFA has offerred in the past, the buyer must use the Rate Based OHFA Program and would not be allowed to that the 2.50% DPA program that was associated with it. 

Added March 19, 2009 10:45AM So far this morning OHFA has been swamped with phone calls about this program.   They are asking that Lenders, Realtors and Consumers be patient and wait at least a week for details, remember the program does not start until 3/30/09.   Any Realtors of buyers wishing to recieve updates, please drop me an email and I will forward any information I recieve as soon as it is recieved.  

 

Additional Details to follow.    

Homebuyer Tax Credit Advantage Program

Effective Date:  March 30, 2009

The Homebuyer Tax Credit Advantage Program offers a second mortgage to borrowers who obtain a first mortgage through the OHFA First-Time Homebuyer Program. In order to encourage first-time homebuyers to enter the market in 2009, the program will allow OHFA first-time homebuyers to leverage the benefit of the federal first-time homebuyer tax credit for down payment and/or closing costs. The American Recoveryand Reinvestment Act of 2009 amended and extended the first-time homebuyer credit to include purchases closing between January 1 through November 30, 2009. For qualified first-time homebuyers who purchase a home in 2009, the maximum credit is $8,000 and can be claimed on a buyer's 2008 or 2009 federal tax return.

 The loan may be up to three percent of the purchase price.  No cash back may be issued to the borrower.

• Principle and interest payments are deferred until July 1, 2010 after which, loans will amortize over 15 years at an interest rate 1% above the first mortgage rate.
• The OHFA application fee will be $300 and can be paid by the buyer, seller or financed in the loan.
• There is an incentive for early repayment of the loan. If the loan is paid in full prior to July 1, 2010, OHFA will forgive $300 of principal.
• Lenders may charge a special processing fee of $75.
• All loans must be recorded as second mortgages using OHFA note and mortgage documents.
• Borrowers must have a minimum 600 credit score.
• Borrowers must complete homebuyer education through a HUD approved counseling agency or through OHFA's streamlined program.

 

Just like this magical rainbow in the middle of a storm, there's a sweet spot emerging right now for buyers, agents and lenders.  It's a convergence of price and the cost of money.

Home prices have fallen to levels affordable for buyers across the spectrum. 

Today, on the announcement that the Fed plans to buy as much as one trillion dollars of bonds, rates fell.  Qualified buyers (for the moment) can borrow purchase money at a fixed rate in the mid fours.  Qualified borrowers can refinance existing mortgages.

It's a sweet spot in the middle of a financial storm, and I believe its beauty is destined to be momentary.

The future must hold rampant inflation again, as the government prints money out of thin air.  There will be inflation, but not this month.  Not at this moment.

Yesterday was St. Patrick's Day, and the interest rate Leprechauns are spilling gold at the end of the rainbow.  Don't hesitate to take advantage of this lull in the storm. 

• Buyers, call your REALTOR. 
  
• Don't squander the opportunity on a short sale that won't close for months.  The rates may have evaporated by then.  
• Get something under contract that you can close in 30 days. 
  
• Call your favorite mortgage broker, complete your application, and LOCK IN THE BEST RATE.

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I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Think of me as your Tucson mortgage expert.

Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

photo copyright Chuck Park (used with permission)

Washington has been busy lately.  In one of the most rapidly approved bills in memory, the Housing and Economic Recovery Act was passed into law, and could have significant implications on the housing and mortgage industry.  While there is a lot to share with you, I wanted to reach out to let you know a few things that could impact you or someone you know right away.

The first thing that stands to impact many homebuyers is the elimination of what is known as seller down payment assistance for FHA loans.  Seller down payment assistance is where a home seller contributes money to a down payment assistance company who in turn provides a legal grant to the homebuyer.  This has helped over 900,000 families obtain homeownership since 2000. 

However, as the legislation is written, this will be eliminated for homebuyers effective October 1.  There is currently some discussion as to when the hard date will be in effect, as to whether someone who is in process of buying a home will need to have their loan application in process.

That said, if you or someone you know needs the ability to implement down payment assistance as a tool to buy a home, get on it quickly.  The clock is ticking.

The other really interesting piece that was included in this legislation is that for first time homebuyers, they have a window to qualify for up to a $7,500 tax credit.  The tax credit will be 10% of the purchase price of a home, up to a maximum of the full $7500 credit.  The tax credit will have to be paid back over a period of 15 years...but Washington just provided first time homebuyers a 15-year interest free loan to help them buy a home!  There are other qualifying factors here, but I will save them for anyone that would like to know more.

The bill is 789 pages long and you can expect that I will be passing along other pertinent information as to how it may impact you.  Or if you prefer, pick up the phone and give me a call.  There is a lot that is being said in the media and I want to make sure you get all the information that could help you.

Michael Reeve, CMPS^®

Vice President

The First Bexley Bank

614-237-2006 x129  direct
mreeve@firstbexleybank.com

 

This is an Important read for any Buyers, Sellers or Real Estate professionals, that have concerns about DPA programs going away effective Oct 1, 2008. as a result of the "Housing and Recovery Act of 2008" 

Buyers in Ohio have the option of using the OHFA Program to receive a 3% grant that can be used towards their down payment.   The seller can still assist them with Closing Costs, so there will not be much change except for those buyers that exceed the income limits of the OHFA program.   

Buyers should also be aware that if they use the OHFA program they will not be eligible for the $7,500 Tax Credit/Loan that was part of the "Housing and Recovery Act of 2008".  

Also, I ask all Buyers, Sellers and Real Estate professional to please take action to authorize 100% financing on FHA Loans.   I believe this is better than continuing to allow the DPA programs to use the loophole that they have been using to justify their existence. 

 Anyone wishing to recieve updates on this issue should drop me an email and I will provide updates. 

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