Conroe, TX

First, I must proclaim that I am NOT an Attorney and in no way am I attempting to give legal advice.

My question is, "how SAFE is it to owner finance in Texas?"

I received a call from a friend yesterday and she was asking me about the potential of OWNER FINANCING her Texas home. She explained that a couple had viewed it and said their credit was not up to par and would the Seller consider holding the note. This answer was a no-brainer. It was a big fat "NO". Their home is still mortgaged which caused the obvious problem. ARMS LENGTH MORTGAGES ARE ILLEGAL IN TEXAS. In fact, if you go into a contract stating you will finance the home for them and you consider it a sale, it is my understanding that your note holder will call your note due and payable immediately!!! If you've sold the house they want their money!

BUT WAIT THERE'S MORE! HOUSE FLIPPERS BECOMING A DYING BREED...

As Realtors, and Mortgage Pros and all of us that are involved with this business it seems we have to pay attention to LAWS OUTSIDE OF OUR PROFESSION to stay on top of things. Yes, yes, we all know this but with the changes being made every day it's tough to keep up.

Are you familiar with the 2010 "SAFE ACT" IN TEXAS HOUSE BILL 10?
“Secure and Fair Enforcement for Mortgage Licensing Act”)

I was not familiar and came across it quite by accident. What an eye opener it is.

The bill states that, Under the current code, owner-financiers must have a Residential Mortgage Loan Originator license from the Texas Savings and Mortgage Lending Department.

Once upon a time we were allowed up to 5 transactions a year...kind of like flipping cars. This restriction is just unimaginable! It seems to me that if the sales took place at a legal Title Company with legal paperwork, the government shouldn't be able to tell us what we can or cannot sell!!!!!! Come on now! They are now saying not even ONE owner finance per year with a few exceptions.

EXCEPTIONS:

If you own the home free and clear and it is your homestead.

If you sell to a family member.

Or, use a Third Party Mortgage Originator...there goes the profit!

AND IF YOU DO IT ANYWAY ARE THERE REPERCUSSIONS?

Oh my, YES. If you are caught doing it anyway you are subject to a $25,000 fine, you may owe damages to the Buyer and well, isn't this all bad enough?

So, FLIPPERS BEWARE!

Here is your weekly interest rate update:

Conventional 30 year Mortgage: 3.875%

Credit score:740

LTV:80%

Loan Amount:$200k

APR: 4.25%

FHA 30 year:3.75%

Credit Score:640

LTV:96.5%

loan amount:$200k

APR:4.85%

Conventional 15 year:3.25%

Credit score:740

LTV:80%

Loan Amount:$200k

APR:3.65%

Call me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.

If your dream lifestyle includes an upscale setting with occasional glimpses of Lake Contoe and the secure feeling of living in a gated community. We now have an offering such as that at a true bargain price. To visit it, you need to treat yourself to a trip down League Line Road to "Pebble Glen on Lake Conroe."

The lot is not water front, but the trip to it is filled with thrills for your senses. Easy access off I-45N, close proximity to a large outlet mall, a Cracker Barrel and other eateries plus lovely forested rolling hills are just a few of the pluses this location affords.

Several other high end communities are also close by. The French Quarter development, Bella Vista and Piney Shore Resort feature homes that are pleasant to see.

A new home has just been built across the street from this lovely lot. With a little creativity you can design something stunning! Perhaps you can even create a roof deck or third story that will give you a priceless view, with no chance of erosion!

The lot comes with a back fence, easy access to the area storage lot for your boat or water toys and just enough trees to make a great start to your landscape. Just look at this precious yellow weed. If it is this happy here just imagine how delighted more civilized plants that get occasional attention will be.

Since this area has been built with all the insulation from a boring life style, you can be free to express your unique style. Coming home to this lot could be the beginning of great fun.

Here is your weekly interest rate update:

Conventional 30 year Mortgage: 3.875%

Credit score:740

LTV:80%

Loan Amount:$200k

APR: 4.25%

FHA 30 year:3.75%

Credit Score:640

LTV:96.5%

loan amount:$200k

APR:4.85%

Conventional 15 year:3.125%

Credit score:740

LTV:80%

Loan Amount:$200k

APR:3.5%

Call me today if you are thinking of refinancing or buying a home, for the best mortgage rate possible.

As noted in my previous post the HAP $10,000 Down payment assistance program ran out of money in late 2011. First the Good news the HTF- HAP $10,000 Texas Down payment assistance program is coming back within the next few weeks. The not so good news is that TDHCA will only be allocating $1,000,000 and that is enough for less than 100 loans across the state of Texas.

Once this funding is gone the program will be discontinued and it will NOT come back. Of the down payment assistance programs in the state of Texas the HAP down payment assistance program is by far the best and has the lowest fees of any down payment assistance program in the state of Texas for First time home buyers. The most uptoday information on this program and other first time home buyer programs in Texas is located at our Texas First Time Home Buyer Program Resource page.

Purchasing your first Home in Texas is about to become more difficult and costly

As announced on January,26 2012 FHA is considering Lowering the Seller contributions. The HAP $10,000 Texas down payment assistance program was the only program that a first time home buyer could use to get into a home with very little to no down payment. However, while most down payment assistance programs in the state of Texas such as Homes for Heroes and TDHCA Bond 77 will assist you with the down payment they do not cover much if any of the closing costs. For example on Bond 77 TDHCA provides you with the down payment but does not provide you with the closing costs. The same is true with with the Homes for Heroes down payment assistance program. The HAP $10,000 down payment assistance program solves all of these problems for Texans wishing to purchase their first home.

Waiting to apply for down payment assistance means you may get none at all

It cannot be underscored enough that if you are considering using the HAP $10,000 down payment assistance program in Texas that you get your application in to a Lender that is approved to offer the program immediately. We offer these loans and access to this and many other Texas First time home buyer and down payment assistance programs. If your lender does not carry ALL of the Texas Down payment assistance programs you may apply with us with our online application located here.

Where can I find out more about first time home buyer programs in Texas?

As more updates become available on Texas First time home Buyer Down Payment assistance programs we will post them at our first time home buyer and down payment assistance program page.