Carlos Silva, Rancho Cucamonga's Preferred Realtor!

VA Loans: PROGRAM SUMMARY: The Veterans Administration loan program enables veterans and active duty personnel to purchase or refinance a home with favorable loan terms. VA offers fixed- and adjustable-rate mortgages that can accommodate no down payment on many purchase transactions. The VA Interest Rate Reduction Refinance Loan (IRRRL) program is for use by borrowers who would like to refinance an existing VA loan into a fixed-rate loan, a lower interest rate or shorter loan term without taking additional equity out of the property. For all required guidelines and updates refer to the VA manuals or Web site, http://www.homeloans.va.gov. The maximum guaranty amount is 25% of the 2010 VA limit. Therefore, a veteran with a full entitlement available may borrow up to the 2010 VA limit and VA will guarantee 25% of the loan amount. If the VA guaranty has been used previously and has not be restored the amount has to be reduced accordingly. Also, remember if the Veteran has a home that has a VA loan then they must sell or refinance into a regular loan in order to restore the VA guarantee in order to purchase another home with the VA loan. * 100% financing * No Mortgage Insurance * 620 minimum FICO score (640 preferred) * Loan limits depend on certain counties: Los Angeles is $593,750 * Must be a Veteran or the spouse of an eligible veteran * Max seller contributions 4% * All VA loans have a funding fee of up to 2.15% and it depends on the type of Veteran and if the Veteran is putting down a down payment. This fee is financed into the loan amount just like FHA requires an upfront mortgage insurance to get financed into the loan. * All applying veterans have to get their DD214 which is a certificate of eligibility form. We can help them fill out the forms or they can go directly to their commanding officer. Call for more information! (909) 224-5391 Thanks!

Spoke with one of the lenders I work with this morning. After informing me of the raised minimum FICO score for FHA, to 640, he explained it would make more sense, across the board, to have our buyers go with a Conventional Loan at 5% down, as opposed to 3.5% fown on an FHA.

Some of the advantages he explained are: slightly lower monthly mortgage payments, slightly lower monthly Mortgage Insurance Premiums, and slightly easier lending guidelines.

Remember, when performing an FHA loan, since California is a community property state, the lender will take the spouses derrogatory credit marks into consideration! Not good, if the non-borrower has a short pay, bankrauptcy, or foreclosre on their credit!

Before deciding to go FHA, make sure you talk to your lender about Conventional options!

Also, one more tip he give me, get a second or even third quote from a non-credit union lenders, when doing an FHA loan with a credit union!

GOOD LUCK!

As FHA has gained ground these last couple of years, I've been asked this question quite oftne. Here are some guidelines regarding the removal of MIP...

Canceling FHA's Annual Mortgage Insurance Premiums

o Cancellation based on Initial Amortization Schedule: Effective for all loans closed on or after January 1, 2001, FHA's annual mortgage insurance premium will automatically be canceled-once the unpaid principal balance, excluding the upfront MIP, reaches 78 percent of the lower of the initial sales price or appraised value based on the initial amortization schedule and pursuant to instructions contained in ML 00-38. Although the annual mortgage insurance premium will be canceled as described, the contract of insurance will remain in force for the loan's full term. This mortgage insurance premium cancellation provision applies only to loans insured under the Mutual Mortgage Insurance (MMI) fund. The MMI fund does not include mortgages on condominiums or Section 203(k) rehabilitation loans, among others.

Once the mortgage amortizes to a loan-to-value ratio of 78 percent, collection of the annual MIP will cease. FHA will determine when the mortgage reaches the amortized 78 percent loan-to-value threshold based on the contract interest rate (initial note rate on adjustable rate mortgages) and the loan-to-value information provided to CHUMS by the originating lender, and will cease billing the servicing lender accordingly. FHA's calculation of the 78 percent threshold will be predicated on the loan amount excluding the upfront MIP.

Effective May 1, 2001, FHA will provide the date at which the annual MIP will end. The cancellation date will be available to lenders via the Case Query Screen located in the FHA Connection Single, Family Origination section and the Portfolio and Advance Notice reports located in the FHA connection SF Servicing section. Lenders utilizing HUD's Frame Relay will be able to obtain the same information through the Portfolio Report and Advance Notice applications.

o Borrower Initiated Cancellation: In addition to mortgages that reach the 78 percent loan-to-value ratio threshold through initial scheduled amortization, borrowers can also request through their lenders cancellation of the collection of the annual mortgage insurance premium for those mortgages that reach the 78 percent threshold in advance due to prepayments (principal curtailment). Those loans reaching the 78 percent loan to value threshold sooner than projected (but not sooner than five years from the date of origination except for 15-year term mortgages) due to advanced payments of principal will have the annual premium collections canceled upon the servicing lender submitting supporting information to FHA following the borrower's request provided that the borrower has not been more than 30 days delinquent on the mortgage during the previous twelve months. As part of their annual disclosures to homeowners, servicers are to notify borrowers of their option to cancel the annual MIP in advance of the projected date by making additional payments of mortgage principal. As stated in ML 00-38, the 78 percent threshold will be predicated only upon the initial sales price or appraised value, whichever was less.

Effective May 1, 2001, FHA will also provide the amount the loan balance must reach in order to cancel the annual MIP. FHA will determine the loan balance at which the 78 percent threshold is met by excluding the upfront MIP. The required loan balance data will be available to lenders via the Case Query Screen located in the FHA Connection Single Family Origination section and the Portfolio and Advance Notice reports located in the FHA connection SF Servicing section. Lenders utilizing HUD's Frame Relay will be able to obtain the same information through the Portfolio Report and Advance Notice applications. Servicing lenders should use the formula provided by SFPCS-Periodic described in Mortgagee Letter 98-22.

If the borrower initiates cancellation of the MIP prior to FHA's original calculated cancellation date, lenders shall submit cancellation information using the FHA Connection or EDI processes. A separate Mortgagee Letter will be issued detailing the required information for the cancellation.

This is a question that a lot of first time buyers and people who are just staring to get back on their feet, are contemplating right now. When is the time right to buy? If you listen to the news they will tell you the market has not hit bottom yet, which I believe is to be true. There is no crystal ball or magic that can predict what the market is going to do today let alone in the next few months. All we can do is give you the facts about what the housing market is doing currently. Now, may be the right time for some people to buy. For others it might be in their best interest to wait. But before you make that descsion consider ALL the facts: First, mortgage rates are at all-time historic lows. By historic, I mean, they have never been this low EVER in the history of mortgages. Some buyers I have talked with told me it was like borrowing free money the rates were so low. Well maybe not quite free; but lower than ever recorded. The difference in the interest rate can increase your buying power in terms of price range you are looking in or substantially lower your existing payment on a home you have been saving to buy. Consider in Rancho Cucamonga, CA the average home price hovers around $350,000. One percentage point in interest affects that payment by a little over a $130.00 a month. Second, home prices are at 2003 price levels in much of the area in Rancho Cucamonga and surrounding cities. meaning the average person is earning more than they did in 2003 but paying 2003 prices for a home. This makes the amercian dream of owning a home more affordable to more people. (The abnormally high unemployment rate obviously does not factor into this theory.) Third, the market is currently in a buyers market. By that I mean a stable market (one which does not favor the seller or the buyer) is a six month supply of inventory. Less than that favors the seller. More than that favors the buyer. Currently we are in a buyers market. Fourth, owning a home gives you numerous tax benefits. A lot of first time buyers are unaware that the interest they pay on a mortgage is tax deductible. So, you are saving even more money when you go to file your taxes each year. Though you should consult your tax accountant for the full understanding of the tax benefit to owning a home. Lastly, you may be able to pay a monthly mortgage payment that is relatively equivalent to current rental rates in Rancho Cucamonga and the Inland Empire. Most of the homeowners in the past year or so, that I have helped by a home, that were renting, are paying close to what they were paying in rent, for their mortgage...including property taxes! So, is it a good time to buy a home? For some, the answer is going to be an obvious yes. For others it might not be. Each one is different; but one thing that is for certain the market has never seen this type of inventory coupled with interest rates this low increasing the buying power of the average American family.

Are you preparing to sell a house or condo? If so you likely know the importance of properly preparation and making it look just right. After all, in today's house market you are challenged to take every possible action to turn your house into the one that sells. One of the important steps is to stage the house. Staging involves creating exactly the right look to appeal to the greatest number of prospective buyers. It involves placing a limited number of items into the house such as a few key furniture pieces and simple yet tasteful knick knacks. Staging is one of those times when less is really more. Just a few small, attractive pieces of furniture are required. Then simple decorations such as candles, hand towels and throw rugs are added to pull everything together. This is where your local dollar store comes into play. As you are preparing your house or condominium to go onto the market, a trip to your local dollar store should be right at the top of your list of to-do actions. There you can find: * Hand towels and washcloths * Throw rugs * Shower curtains * Shower curtain rings * Candles * Candle holders * Artificial flowers * Vases * Kitchen towels and washcloths * Household cleaners (Bathroom, kitchen, carpet, floor, window and more.) * Sponges * Mops * Brooms * Dust pans * Scrubbers * Deodorizers * And much more You will find many of the items and supplies to make your house or condo show well. It will look clean, smell clean and inviting. With a good job of tastefully staging your house or condo, it will motivate visitors to start thinking about just how nice your house really is. Some will start to imagine exactly what they would do to decorate if it were their home. The great news for you; rather than paying many dollars each for these important staging items, the price at your local dollar store will be much more aligned to your tight budget. Don't forget to spend a little time searching each aisle of the store for those little extras to make your home even more appealing to prospective buyers. You never know what might be there. Each of those items is inexpensive. Best of all, while the cost is low, these simple items can help you accomplish the big job of selling your house. Give it a try. Article Source: http://EzineArticles.com/?expert=Bob_Hamilton