To Your Success ~
Maria
Maria@MariaMarriott.com
www.MortgageMinutesAndMore.com
If you're a CalPERS member, this is your lucky day. The CalPERS Home Loan Program is one of the few left that will help you get up to 100% financing. It makes purchases and refinances available to members who may not have qualified for any other mortgage loan.
This is how it works...CalPERS allows members to borrow 50% of their account balance up to $18,421 in the form of a personal loan to use as down payment assistance. Funds are not withdrawn from the member's account but used as collateral for the CalPERS personal loan. This personal loan will be due in up to 15 years depending on the amount taken. When combined to a conventional or FHA loan, CalPERS members can purchase a home at 100% financing. It's that simple.
The property has to be owner occupied and only single family residencies, condominiums, PUDs and manufactured homes (that meet Fannie Mae guidelines) are eligible.
The CalPERS Home Loan Program offers several other advantages included competitive interest rates and reduced fees and the qualification process is the same as if you're qualifying to another home loan. Buyers can use a gift from a relative and/or up to 6% seller contributions to pay for closing costs.
If you'd like to get pre-approved for a CalPERS loan, please call me. I'd be glad to help.
On Your Team ~
Maria
www.MortgageMinutesAndMore.com
www.HomeBuying101Now.com for our upcoming First Time Home Buyer Class
Your Name Is Being Sold!
Yep...Your information is now a hot commodity. Having your credit checked is an important step in the home buying process. But did you know that every time you have your credit checked the "inquiry data" that the credit bureaus (Equifax, TransUnion or Experian) have on file now have become an "article of trade"? The credit bureaus are selling this information to other lenders as well as to companies that sell and resell the same names and personal information. No wonder your mailbox is getting fuller by the minute with unwanted junk mail!
The credit bureaus have now found a way to make money at your expense and without your permission. These "inquiries data" include name, address, phone numbers (including unlisted), credit score, current debt, property information and more. Your privacy is being sold not once but over and over again. Crazy!
Check this out...Lenders that purchase these "leads" at a premium will need to recoup their investment and turn a hefty profit. And they'll do everything to make it happen.
An example - Clients have been called by disreputable lenders and told that the lender they had been speaking to previously "passed on" the information to them, because they knew that they'd be able to offer much better interest rates and terms. Ouch!
You Can Protect Yourself. JUST SAY NO!
The consumer credit reporting industry has provided a way to "opt out' and remove your name from these lists. Just contact them by phone at 1-888-567-8688 or online at www.optoutprescreen.com. You must opt out at least 48hrs before having your credit checked to make sure it is processed on time. Choose from a 5 year or lifetime option, and the lifetime option does require a signed form.
By opting out you will be protecting yourself from "pre-approved credit offers" coming in to your mail box, which is one of the leading causes of identity theft in the US.
You have the right to shop for the best professional to meet your lending needs but it should be done when and how YOU choose it to be, wouldn't you agree? So take action now and protect yourself. Unfortunately, these unsolicited marketing tactics are a nuisance and intrusive, but quite legal.
On Your Team ~
Maria
www.MortgageMinutesAndMore.com
www.HomeBuying101Now.com for upcoming First Time Home Buyer Class
Buying A Home
Protect Your Loved Ones
Understand How Holding Title To Your Home Affects Your Family
One of the last things most home buyers think about when buying a home is how to take title to their new house. It's best to consult a real estate attorney or your tax professional but, unfortunately, most home owners don't do that.
To help with this decision, here are the five most common ways to hold title to your home.
Sole Ownership
Tenants in Common
Joint Tenants
Community Property
Community Property With Right of Survivorship
*Step-Up In Basis: When a person dies, their real property is re-valued as of the date of death. A higher value can minimize or eliminate income tax due upon later sale of the property.
If you don't currently have a good estate planner and/or a tax professional, please let me know. I'll be happy to introduce you to one.
To Your Success ~
Maria Marriott / Mortgage Planning Advisor
www.MortgageMinutesAndMore.com
CLICK HERE for upcoming Home Buyer Classes
CaDRELicense#00654852
This blog contains general information and is not intended to be used as legal advice for your individual situation. How you choose to hold title to your real property may be affected by many factors not considered here. You should consult legal and tax professionals before deciding how to hold title to real property.
The Federal Housing Administration (FHA), an agency of the federal government, insures private loans that are issued for new and existing housing, and loans that are approved for home repairs. Created by congress in 1934, the FHA became part of the Department of Housing and Urban Development's Office of Housing (HUD) in 1965. Today the mission of the FHA includes helping borrowers get amounts they qualify for, and assisting lenders by reducing their risk in issuing loans. FHA loans do not come directly from the FHA. The FHA only insures the loans.
Long-overlooked, the FHA mortgage has become popular again for its low rates and the real security it provides borrowers and is responsible for over 75% of the loans financed within the past couple of years.
Benefits
If you're looking for low down payment loans, FHA is the way to go. It only requires a 3.5% down payment whereas standard loans will ask for at least 5% - 10% down and the interest rates on those loans are much higher.
Credit guidelines are easier on the buyers. FHA will allow credit scores down to 580. Now, with the credit crunch you'll find that banks have their own guideline "overlays". For example, even though FHA may be Ok with a 580 score borrower after looking at their credit history, the bank may require a minimum 620 fico score. You see, the bank is the one lending the money. FHA only insures the loan. So it's basically up to the bank to make the final determination regarding risk.
Here's the deal when it comes to credit. If you apply for a conventional loan (not government insured) the lender will be increasing your interest rate as your credit scores go down. So if you're not on the 700s, be prepared to face higher rates, especially if not putting much money down. But on FHA home loans, interest rates will remain the same as long as your fico score is higher than 620. Pretty good!
FHA also allows the seller to credit up to 6% of the purchase price towards the buyer's closing costs. This is double of what conventional financing allows. Last but not least, FHA doesn't always require cash reserves. This will be determined based on the buyer's overall financial situation.
If you'd like more to learn more about FHA or check if you qualify for one, don't hesitate to call me.
On Your Team,
Maria
www.MortgageMinutesAndMore.com
www.HomeBuying101Now.com for upcoming First Time Buyer Class
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Mortgage Advisor focused on educating clients on the home buying and financing process to help them make informed decisions.
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