Kevin Sandridge - Winter Haven Mortgage Broker

With the increasing popularity of FHA loan programs here in Winter Haven, I'm amazed at how many "myths" that seem to be floating around. Folks are obviously starting to do their homework, which is great! However, I figured I'd point my local Winter Haven home buyers and potential refinance clients in the right direction on a few key points:

FHA program and many FHA myths still abound. Here are a few points of clarification...

MYTH: It's harder to qualify FHA.

False: Qualifying is far easier with FHA! Just a few of the benefits here include:

• Credit scores in the 580 range are doable.
• Non-traditional credit requires only 3 credit lines, manual underwriting is available.
• Only 3.5% buyer downpayment is required, including FHA-Jumbo.
• Many allowable sources available for funds to close including: Gifts from family, non-profits (non seller funded), and others; Grants or soft seconds exceeding 100% Combined Loan to Value (CLTV); Funds borrowed from a 401(k), debt not counted in ratios; Cookie-jar money (sometimes); and lots more.
• More buying power with higher qualifying debt-to-income (DTI) ratios.
• No cash reserves after closing necessary - if you need to use all of your savings for your downpayment and plan to build them back up afterward - no problem!

MYTH: FHA is only for low income or first time homebuyers.

False: Second or third or even fourth time homebuyers here in Winter Haven, FL can take advantage of all of the exact same FHA features as low income and first-time homebuyers.

These include easier qualifying, low down payment, options, and - FHA does not have income limitations!

MYTH: FHA is ONLY for high Loan to Value (little money down) loans.

False: This Myth came about largely because FHA always requires both Upfront Mortgage Insurance (UFMIP) - to protect the lender - and, with few exceptions, annual/monthly mortgage insurance.

Still, Low LTV loans were always approved FHA when they couldn't qualify for a conventional conforming loan.

Today, low LTV FHA mortgages are increasingly panning out to be the best loan option for many low LTV buyers here in Winter Haven.

Due to Fannie and Freddie's tightening underwriting guidelines, more loans are "referred" leaving FHA the best, if not the only option.

The main thing FHA loans allow many Winter Haven, Florida homebuyers to sidestep are the countless extraneous fees that seem to be adding on to conventional loans on a near daily basis! Whenever a conventional loan ends up with higher than market rates, it's always wise to compare FHA, regardless of the LTV. The results may just surprise you.

MYTH: Many homes don't qualify for FHA loans. If they do, the homes always need repairs and extra inspections.

False: Although previously true, FHA's appraisal and property rules underwent an overhaul back in early 2006. [ML 2005-48]

For instance: termite, septic, well, and flat roof inspections are no longer automatically required - only if it appears that a problem exists.

Examples of conditions that do not automatically require repair are cracked windows, poor workmanship, cracked plaster, minor plumbing leaks, worn/badly soiled carpet, bare floors, lack of handrails, and more. HUD still requires that all paint remain intact when the home was built prior to 1978, and that all mechanical systems are in working order.

Realistically, the property requirements remain a little tougher than those connected with conventional loans, but they're a lot less restrictive than they were.

Unless it's a major problem, like pealing lead-based paint - you should be fine. (Note: Keep a copy of the Mortgagee Letter on hand for those appraisers who missed the rule changes.)

If you're considering a Winter Haven, Florida home purchase using an FHA loan, give me a call at 863-604-3019. We'll go over your financial situation and make sure things are in order.

Apply for a Florida FHA Home Loan Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884	Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloansspecialist.com
Building effective relationships one step at a time...

Catch More Florida Mortgage News and Insights here:

The Florida Mortgage Blogger | Central Florida Homes and Mortgage Report

In my continued efforts to clear up some of the mystery that still seems to surround FHA lending here in Winter Haven, Florida - I've pulled together 5 "Quick Hit" FHA secrets you should keep handy as you do your home loan homework!

1. When using a non-occupant co-borrower, such as parents, the occupant borrower is not required to have any income or assets of his/her own
2. 2- to 4-unit owner-occupied properties are eligible for 97% financing at the same interest rate as 1-unit homes
3. Mom and Dad can lend, not gift, some or all of the money for closing, and put a second lien against the home that exceeds 100% Loan to Value (LTV = Loan Amount / Home's Value) Note: The $7,500 First Time Homebuyer Tax Credit can be used to pay Mom and Dad back!
4. 15 year loans at 90% LTV have ZERO monthly mortgage insurance requirements
5. FHA has NO declining market policy reductions in LTV. (Loans over $417,000 in declining markets use the lesser of two appraisals to determine value)

These are just a few things to keep in mind as you look into FHA loans to fund the purchase or refinance of your Winter Haven home. If you're considering a Winter Haven, Florida home purchase or refinance using an FHA loan, give me a call at 863-604-3019. We'll go over your financial situation and make sure things are in order.

Apply for a Florida FHA Home Loan Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884	Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloansspecialist.com
Building effective relationships one step at a time...

Catch More Florida Mortgage News and Insights here:

The Florida Mortgage Blogger | Central Florida Homes and Mortgage Report

Not yet. But... things may change!

Rep. Al Green [D-TX] introduced H.R. 600, to revise and reinstateseller-financed downpayments for mortgages for single-family housing insured by the Secretary of Housing and Urban Development under title II of the National Housing Act.

Track the progress of this bill via RSS feed from GovTrack.us or visit the site periodically to stay informed. I'll also be posting updates here.

Note: This bill is in the first step in the legislative process. Introduced bills and resolutions first go to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills and resolutions never make it out of committee. We can't let this happen to H.R. 600.

Like many of you, I believe in this program. If you wish to see it or some semblance of it make it through, thus making seller-funded DPAs a viable option for would be homeowners, then please... Contact Your Congressional Representative today and ask them to keep an eye out for and to support this bill.

Well, folks... we've seen yet another week of the headlines squawking about plummeting mortgage rates here in Winter Haven, Florida and across the nation.

Eyes bulged and exclamations roared as the papers let fly with Freddie Mac's recently published mortgage rate resting at a very alluring 4.96 percent, the lowest since the survey started in 1971! (Cue the Awhooooogahhhh Horn!)

Ah, but wait. There's more....

You see, if we but take a moment to curb our enthusiasm and peer behind the proverbial Winter Haven home loan rate curtain, we find that there's another part of the story worth watching. Mortgage rates are falling but the number of points required to lock those rates is not.

Mortgage Rates Plunge as Mortgage Points Climb

Yup, your recently bailed out mortgage bank is requiring an average payment of 0.7 points to lock in that sexy 4.96 percent mortgage rate the headlines had us all screaming about like a bunch of scalded chimps. That's up from 0.6 percent last week and 0.4 percent a year ago.

Mini Mortgage Lesson: A "point" is a fee equal to 1 percent of the loan size.

So, if soon to be Henrietta Homeowner or Renee Refinanceer wants to gain access to a 4.96 percent interest rate on a $200,000 home loan, Larry the Lender is going to ask for an extra $200 bucks over what he'd ask for only last week... and a whopping $600 more than what he would've stuck you for last year.

Here's how it breaks out: .007 x 200,000 = $1,400.00

You got it, folks. Borrow $200,000 at 4.96 percent today, and you're going to pay $1,400 for it in addition to the "typical" closing costs accompanying a purchase or refinance, which run anywhere from 3 to 5 percent of your loan amount.

Make no mistake - Winter Haven, Florida mortgage rates are lower today than they've ever been. This said, the cost of getting access to these low rates is rising. Since that doesn't make for great news, you won't see it in the papers.

Guess you're lucky you happened upon this blog, eh?

(Image courtesy: The Wall Street Journal)

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If you've been following this blog with any regularity, you know that I am an avid promoter of all things social media and networking. 

I'm a fan because it works.

Since I embarked on a full fledged social media barrage via this blog, my Florida Home Loans Specialist website,  my work on the FHA Mortgage Blog, and a burgeoning effort over at my Wanna Networks managed Central Florida Homes and Loan Report blog, a new and amazing world has opened up to me.

Potential clients and Realtor partners are calling me!

I don't close every client deal or create winning relationships with each Realtor I talk to,  but what I am not doing is ticking off clients and potential Realtor partners by interrupting them and jamming my message in their face when they'd much rather be tending to family matters or some other business related issue that absolutely merits their undivided attention.

This brave new world of mine can be yours as well... a world free of cold calling or shelling out hundreds of dollars on print ads and mail-outs that never seem to deliver the results you're looking for.  Like me, you can leave the old school and enter into the new realm of inbound marketing.

Here are 3 Things You Must Know About Inbound Marketing

Read them, and then get on with it!  I promise you'll be happier and wealthier for it! The most successful inbound marketing campaigns focus on 3 key areas, and so should yours:

1. Content - Whatever your blog or social media platform, you need to provide content that folks want to read.  It's a little tired, but the adage "Content is King" still rings true.

   By researching key words, current "hot topics" in your industry or niche, etc. - you can generate content that will draw readers and potential clients to you.

2. Search Engine Optimization - The best content in the world won't mean a lick if you don't let folks know it's out there.  The beauty of inbound marketing is that by using Search Engine Optimization (SEO) - you can construct keyword rich copy and develop  inbound links to your site that will allow your stuff to show up naturally when you customers enter in their search terms.

   Remember, improving your search engine ranking is key, as most of your customers begin their buying process via their browser's search function.

3. Social Media - Social media sites like Twitter and Facebook - as well as bookmarking sites like Digg, Stumble Upon, and Propeller - function like Internet-based Bull Horns for your content.  Remember... Social Proof of your knowledge and expertise is absolutely imperative.

   Filtering your message through the networks that  friends and colleagues use to trade industry tips and catch up with each other will help you here.

   Think about it, if your buddy refers you to a certain Florida mortgage broker who he's particularly happy with, won't that carry more weight with you than if you saw a seemingly random Google Ad Sense ad on your right hand web sidebar or on the pages of your local fish-wrap?

I'll have more to say about inbound marketing later.  But take time to look into these 3 areas now.  I promise, you'll see results in the form of increased web traffic to your blogs and (GASP!) inbound client calls sooner than you think!