Tampa Palms, FL

Understanding Lending Guidelines In Today’s Market

With today’s tightened lending guidelines, it is critical for buyers and agents to understand what is needed to successfully obtain mortgage financing today. Many buyers as well as agents get very frustrated over the whole procedure. Below are some of the issues that become frustrating given the current state of the market.

l. Bad Credit scores are now between 640 and 660. The bank usually says no to these buyers automatically. This is really not a true statement. Most FHA/VA loans require at least a 640 FICO. Here at Bay to Bay Lending, LLC, we offer a program for FHA with FICO’s as low as 530 with 10% down. 100% VA Mortgages with FICO’s as low as 530. We also have programs for Conventional Mortgages, for a primary residence, with 5% down and FICO scores of 620.

2. Not enough income. That is 100% correct. If sufficient income to support the mortgage payment cannot be documented, then the mortgage cannot be approved. That is why it is very important that all income documentation (pay stubs, W-2’s and Tax Returns) be received by the lender.

3. Paperwork glitches. Incomplete information, missing forms, etc., can slow down or stop the lending process altogether. Incomplete applications become a big challenge for all involved. When buyers only supply a few pages of a document, that will not be acceptable. Some also do not understand the importance of getting everything in ASAP. Time is of the essence with any request of documentation when the buyer in under contract. I often see contact information for the closing attorney/title company and HOA information missing from the sales contracts.

4. Homeowner Associations issues. HOA issues really pose a problem with the mortgage approval especially on Condos. Condos go through a more stringent approval to better examine their overall stability since it impacts every owner in the project. Things such as owner occupancy, pending litigations and delinquency of HOA dues are evaluated.

5. Appraisals: If the home doesn’t appraise, the banks won’t lend. Simple as that. The LTV (loan to value) is based on the lesser of the sales price or the appraised value. The seller and buyer can always renegotiate the transactions based on the new value.

6. Gaps in employment history can certainly be a problem for buyers trying to obtain a mortgage. If the buyer has a 6 month gap in employment, then they must currently be employed for at least 6 months before the income can be used to qualify. Bonus/overtime/commission income, must be received at least 12-24 months before it can be used. Then it is averaged out. Unreimbursed Business Expenses claimed on tax returns are also deducted from the buyer’s qualifying income.

7. Name inconsistencies, Contracts, and Discrepancies in title Work. This is where agents need to be very careful when writing a sales contract. If they pull the USPS for the address, it will be 100% accurate. They need to use the buyer’s LEGAL NAME. (Robert, not Bobby, John, not Jonathan). I see addendums all the time that need to be changed because the legal names were not used and then the title company has to change their documents because they used the buyer’s names as they appeared on the sales contract.

Having agents set proper expectations upfront will go a long way in making mortgage closings much easier. Everyone working together will result in quicker and much smoother closings.

It is always advisable to consult with a knowledgeable lending professional when navigating today’s turbulent mortgage and real estate marketplace. I am committed, qualified and equipped to help you evaluate your options.

NEW TAMPA --

A couple years ago, Live Oak Preserve was without an owner and its residents flummoxed about slumping home values. A lot has changed since then.

Now, the subdivision nestled up to Bruce B. Downs Boulevard just south of County Line Road is one of the fastest selling communities in the Tampa region.

New homes sales in Live Oak II, the newest section of the 1,300-acre development, is on pace to total about 180 units this year, said David Ivin, a representative for Bradenton-based Starwood Land Ventures.

"We are working about 15 a month," Ivin said of newly constructed homes being sold.

"Sales have been extremely good."

Starwood bought 550 lots in Live Oak Preserve at auction in January 2010. The land grab was part of an $81 million purchase of TOUSA's Florida-based assets.

TOUSA, the parent company of Engle Homes, which previously owned Live Oak Preserve, filed for Chapter 11 protection in 2008 then stopped building homes and tried to sell its Florida assets a year later. The attempt failed, and TOUSA's Florida portfolio was eventually sold at auction.

Starwood began selling parcels to Tampa Bay area homebuilders immediately after it took over last year.

Three builders – Lennar, Ryland Homes and Standard Pacific – are currently building and selling new houses in Live Oak II. A fourth developer, Tampa-based Homes by WestBay, recently began construction on a model home on an 80-foot lot, with plans to build houses on 27 lots in the development.

"Live Oak is definitely filling in and filling in the right way," said Frank Micallef, president of the Live Oak Preserve master homeowners association.

Micallef remained confident even through the tough times Live Oak Preserve would bounce back, he said.

Engle yanked its management team and walked away from the development in 2009.

Micallef attributed the turnaround in part to quality-of-life investments the community made to help make Live Oak more appealing to homebuyers. He cited the new electronic security monitoring system, expanded playground and new lights for the tennis courts as examples.

Starwood also is launching talks with homebuilders interested in developing the last remaining parcel tucked near the back gate of the community at Oak Preserve Boulevard and Kinnan Street. The parcel spans 145 lots.

"We are negotiating with contractors," Ivin said.

No company has been selected, he said.

They say a picture paints a thousand words and when it comes to selling your home, you want those words to end with “sold.” It’s no secret that better-presented homes get more traffic and more buyer interest, therefore selling faster.

That’s why it is essential that you showcase your home through images in the best way possible.

According to the National Association of REALTORS^®, nearly 90% of all homebuyers begin shopping for homes online. Many flip through photos of the homes and send a list of those they want to see to their agent. In fact, homes with few or no photos are often passed over simply for that reason, even if the home’s description matches a buyer’s ideal listing.

Many agents believe that apart from staging, no other marketing investment is as important as professional photography in marketing a property effectively. So, to generate more buyer interest, there has been a dramatic increase in the use of professional real estate photographers in the past few years.

The best photographs are most likely to come from someone who has an eye for the underlying beauty of the home’s structure and spaces; has specialized equipment and techniques for lighting and perspective control; and uses workflow processes for post-processing of the images for use on the Web and in publications.

Let’s face it, as much as we all like to think we take great photos, a professional has an eye for seeing the best vantage points and lighting options and also has better equipment to make the photos bright, clear and sharp. A professional photographer will most likely use a 10mm lens that can capture up to 85% of a room and lighting that can illuminate the entire room.

The same holds true with taking video of your home to add to a website listing. An amateur can show what each room and yard looks like, but a video professional will make the strongest elements stand out and provide a much better video narrative of the home. Plus, you don’t have to worry about any shakiness or dullness that someone not that experienced with a video camera may give you.

Before bringing in someone to photograph or video your home, it’s essential that it is clean and de-cluttered so the pictures entice a buyer to want to see the home in person. You don’t want clothes, pets or anything else distracting people from the photo at hand.

Indeed, homes showcased with the best photographs and videos will attract more sellers and help speed the home-sale process to a successful conclusion.

Are you looking to purchase a home in the City of Tampa and need assistance with your down payment and closing costs? You can purchase your first home with as little as 1% of the purchase price.

The City of Tampa offers a mortgage in the form of a Deferred Payment Loan to income-qualified homebuyers purchasing a single-family home within the City of Tampa.

Homebuyers Must attend a homebuyer seminar. The applicant must apply for a first mortgage after executing a real estate purchase contract. The lender will then submit the loan to the City for consideration.

A deferred payment loan is second mortgage with no interest (0%), requiring no monthly payments as long as the property remains your primary residence. The deferred loan is secured by a promissory note (second mortgage lien), which defers repayment until a default occurs.

If you have never owned a home, have not owned a home in the last three years, or are a veteran, you may qualify for down payment assistance.

There is a limit on how much can be lent to you, depending on your income level and your household size.

The amount of assistance is adjusted for your family size, all family members are included. Income levels cannot exceed program income limits.

If you qualify you can receive one of the following types of down payment assistance

* Very Low Income - Up to a Maximum of $40,000 in Down Payment Assistance

* Low to Moderate Income - Up to 20% of the Purchase Price with a Maximum of $25,000 in Down Payment Assistance

The actual amount of mortgage assistance provided by City of Tampa will depend upon a financial analysis of each individual household. Not all buyers will qualify for the maximum amount of assistance.

Single-Family Detached Housing, including Townhomes and Villas are eligible types of housing within the City of Tampa limits. Homes with in ground swimming pools are not eligible.
Home Must become applicant's Primary Residence. Rental Properties, Second Homes and Mobile Homes are Not Eligible for Assistance. Maximum purchase price of a home must be at or below $165,000.00.

The amount of down payment to be provided from your own funds is 1% of the purchase price which goes towards the down payment and closing costs.

This requirement can be satisfied by the down payment on the purchae contract or at closing. No credit is given against this requirement for expenses such as home inspection and appraisal fees.

ResMac Mortgage is a direct lender in Tampa. We offer the best rates and fees in the industry with in house underwriting and processing, allowing us to close loans in 21 days or less.

We are a full service direct lender with no lender overlays with Stated Income loans, Conventional, Jumbo, FHA, VA, USDA, HUD Homes, My Community, Home Path and Hard Money to 70%.

I also have access to Down Payment Assistance Programs in most Counties.

• 600 Mid Score on FHA Financing, 620 Mid Score on Conventional, VA & USDA Financing, 640 Mid Score on HomePath, also Stated Income Loan Program
• REO, Short Sale, Foreclosure & Probate Purchase's
• Up to 100% Financing On VA & USDA
• Up to 97% Financing On HomePath
• No Monthly Mortgage Insurance Payments (HomePath, VA & USDA)
• Fixed Rate, ARM & Interest Only Options Available
• I Can Close Your Loan in 21 Days or Less, All Programs
* Up to 6% Seller Paid Closing Costs on FHA, VA & USDA, Up to 3% Seller Oaid Closing Costs on Conventional
* Cash Out Refinance Up to 85% LTV on FHA & Conventional and Cash Out up to 90% LTV on VA.
* Hard Money Purchase Up to 70% for Primary, Second Home and Investment Property
* Very Low Lender Fees, Very Competive Rates and Exceptional Customer Service

Please contact Jason R Hands for information on getting a rate quote. Or if you have a current offer from a lender please fax it to 866-216-6322 and I will beat their offer! Please contact me to discuss our loan programs, current rates and financing options.

Jason R Hands

ResMac Mortgage

5811 Memorial Highway, Suite 206

Tampa, FL 33615

800-917-7002 Ext 103 - Office

813-463-0283 Direct

813-385-1109 - Mobile

866-216-6322 - Fax

http://www.mortgagestampa.org

NMLS Originator ID: 214834 FL # LO562

Stated Income Program, FHA, VA, USDA, Conventional, Jumbo, Home Path, HUD Homes, My Community and Hard Money Financing Options Avaialable