Tammie Jungling

Scratching your head yet? Do you have a distress poperty listed? Do you have a buyer purchasing a home that can't get financing due to the condition of the home?

Psst... I have a solution for you.

A Renovation Loan.

Stay tuned!

I am going to do a series on Renovation Financing. I am going to give you tips on

• What is a Renovation Loan
• Why would you need a Renovation Loan
• What is required for a Renovation Loan
• Pit falls and time lines of a Renovation Loan

Be ready to take some note. See you all soon!

Have a Customer with a Lower Credit Score that Needs Help ?

Did you know that Wells Fargo is the Only Lender doing VA and FHA loans with a Credit Score Minimum down to 600 ?

Have a Buyer that Likes a House , but is scared of the payment OR doesn't make enough money to qualify ?

Wells Fargo is one of the few Lenders that offers a 5/1 ARM on FHA or VA loans Example :

With 1% Origination Today on a 200,000 Sales Price, You Have an Option Between 3.25 % on a 5/1 ARM = $858.85 P&I only 5.0% on a Fixed Rate = $1059.39 P&I only

That qualifies for almost 20 % more house or 20% less income.

Have any Customers Over 62 years of age that would move to Florida, but are afraid of making 2 House Payments ?

• Put Money Down and make no payments For Life
• No Credit Score Needed §No Income Verification
• Purchase and Refinance Options available

Have a Home that Needs Some TLC ?

• New Cabinets ?
• New Flooring ?
• New A/C ?
• New Paint ?
• New Roof ?
• New Bathrooms ?
• New Appliances ?
• Structural Problems ?

....One Time closing and all work financed in !!

Where do you go to finance a Manufactured Home?

Wells Fargo is one of the Last Lenders to still offer financing for Manufactured Homes even Single Wide

Need a Jumbo with a Credit Score down to 660 ?

Do a Blended Jumbo with at 75% CLTV with a Blended Rate the same as a NC rate at 70%.

Make a Happier Seller and Buyer when Negotiating a Contract with Listing Edge.

• Save money for the Buyer and Seller by using points to lower the payment vs. lowering the sales price
• Original Price: $200,000, rate 5.25% w/0 points, Down payment of 3.5% = $1178 in P&I&MIP
• Reduced Price: $180,000, rate 5.25% w/0 points, Down Payment of 3.5% = $1060 P&I&MIP at a cost of $20,000 to the seller
• Listing Edge: $193,000, rate 4.625% w/4 points, Down Payment of 3.5% = $1064 in P&I&MIP at a cost of only $15,000 to the seller
• Listing Edge 5/1 ARM: $200,000, rate 3.25% w/1.5 points, Down Payment of 3.5% = $914 in P&I&MIP at a cost of $3,500

Have a Condo to Sell , but no one knows How to Finance Them ?

• Up to 80% LTV and 95 % CLTV with seller held financing
• If you have issues with delinquent HOA dues, reserves, or Fidelity Bond , you can do a Streamline at 75% LTV primary or 70% second home

Your Local Wells Fargo Home Mortgage Consultant can help you, contact one today!

After a week of intensive training I now can navigate Colonial Bank's mortgage software and loan guidelines. It is a different world at Colonial Bank from where I came from (Wells Fargo). I made a comment on my last blog that we need to go back to basics.

Well that's what I did. With my move to a small regional bank it has opened up programs that I have not had with a national lender. There is also a higher desire to assist customers with their financial goals. I see it in the attitudes of the managers all the way down to the support staff.

Here's what I can offer to my clients:

Conventional loans in Alabama, California, Colorado, Florida, Georgia, Idaho, Louisiana, Mississippi, New Mexico, North Carolina, Nevada, Tennesee, Texas and South Carolina.

FHA loans in Alabalma, Florida, Georgia, and Mississippi.

VA loan in Alabama, Colorado, Florida, Georgia, New Mexico, Nevada, Tennessee, and South Carolina.

Portfolio loans in Alabama, Florida, Georgia, Nevada, Tennessee, and Texas.

Products I can offer to my clients;

FHA, FHA Renovation (both Streamline and Full 203k), Foreign Nationals, Condos & Non-Warrantable Condos, Homes with Excess Land, Investment Properties, Manufactured Homes, Construction-To-Permanent and Jumbo Loans.

Over the next several days I will breakdown each program and give a brief overview on what a customer needs to qualify for these loans.

If you want to know more now, just give me a call.

Qualify for $15,000 To Purchase a Home in Clearwater, FL

It is now time to purchase a home! However, the average American does not have the savings to make the minimum required down payment. So, where do they turn to? They must turn to local or state agencies for assistance. With the down turn in the economy, down payment assistance funds are becoming harder to find, either because the agencies are running out of funds or their rules have changed based on the Housing Stabilization Act passed by the US Government. But there is a beacon of light available.

I'm excited to announce that I've recently been approved to participate in "Making Pinellas Home". This program will lend up to $15,000 towards your down payment and closing costs. "Making Pinellas Home" is funded by the Housing Finance Authority of Pinellas County. This program is designed to help low to moderate homebuyers purchase a home within Pinellas County.

Of course nothing is free or without conditions. Here's what you need to know:

• The assistance is in a form of a no-interest, 15 year second mortgage. Payments are deferred for the first five years. The repayment of the second will start on the 61 month at $83.33 per month for the next 180 months.
• There are income limitations based on household size (all persons living in the home) and the income used is based on all persons over the age of 18 living in the household whether or not they are actually qualifying for the first mortgage. Example: If a husband and wife with two children are living in the home you would have a household size of 4. If both work but only one is on the first mortgage you still have to use both incomes to determine if you are eligible for the $15,000 assistance. The income calucation for qualifying is different than what we, as a lender, traditionally use. The qualifying income used for this program forecasts income for the next 12 months. So don't rely on your past income to determine if you qualify for the $15,000. We have to look towards your future income to make the determination. Here's the Income Chart:

Household Size <--> Maximum Income

1 <--> $33,150

2 <--> $37,900

3 <--> $42,600

4 <--> $47,300

5 <--> $51,150

6 <--> $54,950

7 <--> $58,700

8 <--> $62,500

• This program can be done in conjunction with FHA and VA loans
• The maximum combined loan to value is 105%:

Example: $150,000 - Sales Price

$ 6,000 - Closing Costs and Pre-paid Expenses (taxes and insurace)

$156,000 - Total Costs to purchase home

$141,000 - First Mortgage

$ 15,000 - Second Mortgage*

$156,000 - Total Combined mortgages

Cash required to close out of buyers pocket ZERO.

*The second Mortgage covers both the down payment plus the closing costs and pre-paid expenses.

• Maximum sales price $240,158
• Property Types: 1 unit single family homes, Condominiums, Townhomes, and Manufactured Homes with DCA Labels
• To meet compliance on the closing only one title company is allowed: First American Title Company (Pat Stobie), 727-442-2200. This may be an issue with REO/Foreclosures but I am sure that if it is disclosed up front they may be willing to allow the closing to take place with First American instead of their title company.

While there are some restrictions to this program, it is a fantastic opportunity for buyers and sellers. Also if you've haven't own a home within the past three years, you also qualify for the $8,000 IRS Tax Credit.

Call me for information or to see if you qualify for "Making Pinellas Home".

FHA Approves the Use of the Homebuyer Tax Credit!!

HOLD ON!!

NOT SO FAST!!

IT'S NOT THAT EASY!!

THERE'S MORE TO BE DONE!!

It was announced today at the National Association of Home Builder's Spring Board of Directors Meeting that FHA will now allow homebuyers to apply the new $8,000 first-time homebuyer tax credit towards down payment or closing costs. U.S. Housing and Urban Development Secretary, Shaun Donovan said "We believe this is a real win for everyone. Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."

There will be two ways for the homebuyers to obtain the $8,000 first-time homebuyer tax credit: Option One: through government agencies or non-profit agencies; Option Two: FHA approved mortgagees (Lenders), non-profit organizations as well as Federal, State, and local government agencies.

Option One:

• Eligible government agencies or "instrumentalities" of government will be allowed to offer a tax credit advance with a second lien. These funds can be used towards the down payment and closing costs. Based on what I read on the announcement the borrower doesn't have to contribute the minimum 3.5% down payment requirement.

Conditions:

1. The borrower will not be allowed any cash back at closing when utilizing the tax credit and a FHA insured mortgage.

2. The second lien may not exceed the total amount needed for the down payment, closing costs and prepaid expenses

3. The second mortgage may be a silent (no payments) or require a monthly payment.

4. If payments are required, they must be included within the qualifying ratios and, when combined with the firs mortgage, cannot exceed the borrower's reasonable ability to pay.

(See mortgagee letter for more details: www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-15ml.doc )

Option Two:

• FHA-approved lenders, non-profits and government agencies may purchase the tax credit up to the amount anticipated by the homebuyer. However, the buyer would still need to bring in the minimum down payment of 3.5% and the tax credit would be used towards additional down payment and closing costs.

Conditions:

1. The proceeds of the sale of the tax credit may not exceed the anticipated tax credit due the homebuyer based on computations from form IRS 5405

2. The borrower must submit a certification that the tax credit is not subject to any other indebtedness (outstanding tax liens, student loans etc).

3. A copy of the borrower's tax refund and/or IRS 5405 must be collected and retained in the file.

4. Any additional fees to purchase the tax credit must be nominal and must be deducted from the anticipated tax credit. The cost should not exceed more that 2.5% of the tax credit. (Example: $6,000 to be refunded, with all fees subtracted, borrower should receive $5,850 for sale of tax credit).

5. The proceeds of the sale of the tax credit to FHA approved lenders, seller or any party that financially benefits from the transaction, may not be used to meet the 3.5% minimum down payment, but may be used as additional down payment, buying down of interest rate or other closing costs.

FHA also expects entities purchasing tax credit assets to employ appropriate due diligence measures:

1. Require the homebuyer to draft and provide the IRS form 5405 "First-Time Homebuyer Credit."

2. Contact the borrower's employer and review pay stubs to confirm that there are no outstanding garnishments.

3. Review the homebuyer's credit report to ensure there are no unpaid student loans, or other obligations that could reduce the amount of the tax credit.

4. Validate that all the eligibility requirements for the tax credit are fulfilled

5. Review previous tax returns and IRS tax assessment letters, if any, to determine that the borrower does not have unsettled obligations to the IRS.

This will be a great opportunities for first-time homebuyers once we have clear guidance from all parties. As with anything new, lenders, government agencies and non-profit organizations will need a few weeks to absorb the new ruling from FHA and determine the appropriate implementation of the guideline. Some will choose not to participate. Some will participate. Lenders must make certain that they fully understand the new ruling so that there will be no issues that could cause FHA not insure their first mortgage loan.

Right now we have to wait and see where the lenders, government agencies and non-profit organizations stand. We all want to help homebuyers with their dream of homeownership. As a Realtor, if you really want to start writing contracts with the hope of using the tax, you will probably need to write a 90 day contract with the contingency of the buyer qualifying for the "First-Time Homebuyer Tax Credit". The question is, will the seller or REO Company accept a contract with this type of contingency. Would you?

I personally think, this is my opinion, that you should wait until the dust settles and we have clear answers before writing or accepting an offer with this type of contingency. Until all the pieces of the puzzle are put together, you don't have a clear picture. You really don't know if the buyer will qualify for the tax credit. Do you want to take the chance?