Monthly Archives: August 2012
USDA = 100% Financing
USDA Offers 100% Financing on Purchase and Refinance Loans
On a purchase loan, the loan amount can be increased above 100% to include closing costs if the appraised value exceeds the sales price.
USDA refinances are limited to existing USDA loans. Streamline refinances are available without appraisals and are limited to paying off the balance of the loan only and closing costs cannot be rolled in. Regular refinances allow for rolling in of closing costs based on the appraised value.
The property must be in a eligible zone and the household income must be at or below the limit for the area.
Give Nick or Jennie Garofalo a call at (410) 414-7334 for more information on USDA loans. Funding for refinances is exhausted for this fiscal year but is expected to be replenished for FY13 in October. Loan applications can still be submitted and underwritten but just cannot close until funding is available.
Does Fannie Mae Own Your Loan?
If Fannie Mae owns your loan, you may be eligible for the HARP program. The HARP program has helped many homeowners refinance to market rates that have not been able to refinance in the past due to declining real estate values. Find out if Fannie Mae Owns Your Loan here: http://www.knowyouroptions.com/loanlookup
Homeowners are Taking Advantage of Low Interest Rates to Shorten their Mortgage Terms
Many homeowners are refinancing and opting for shorter term, 15- and 20-year mortgages. Almost 30% of all refinances are shorter amortization products, up from just 5% in 2007. This is very good news because it means homeowners will be building equity at a much faster rate than if they opted for 30-year mortgages.
If you are interested in information on a shorter term mortgage, give us a call at (888) 891-8353 or fill out the form below and we will contact you.
USDA Refinance Funds Exhausted for FY2012
On August 17, 2012, the United States Department of Agriculture (USDA) announced that Guaranteed Rural Housing (GRH) refinance funds will be exhausted by August 20, 2012. Funding for these loans will be restored when Fiscal Year 2013 funding has been received by the USDA. In prior years this has occurred in mid to late October.
Refinancing A Home That’s Been On The Market
The general rule from most lenders is that a home has to be off the market for 6 months before being eligible to refinance it. A few lenders have relaxed this rule and will allow a home to be refinanced if it has been off the market for just 1 day. This is a tremendous help for homeowners that have been unsuccessful in selling their homes and have decided to take their property off the market and take advantage of refinancing to a lower interest rate.
A Reverse Mortgage Can be Used to Purchase A Home
A Reverse Mortgage can increase purchasing power and flexibility when buying a primary residence. It can help seniors 62 years or older purchase their next home without monthly mortgage payments and with a lower cash investment than a cash purchase
USDA Purchase Loans Allow Closing Costs to be Rolled Into the Loan
The USDA loan program allows for closing costs to be rolled into the loan if the appraised value is greater than the sales price. This is a great benefit for borrowers with limited cash reserves. Under other loan programs, the maximum loan amount is limited to a percentage of the lower of the appraised value or the sales price.
Streamline Refinance – No Income Verification
If you currently have an FHA or VA loan, you can refinance to a lower interest rate without verifying income. This program is called a streamline refinance and as long as employment or self employment can be verified, no income is required to be listed on the loan application.
HARP Appraisal Waiver Option
Homeowners refinancing under the HARP program may be eligible for an Appraisal Waiver Option. This allows homeowners to bypass the appraisal process saving around $450 in out of pocket costs. In lieu of the appraisal, an automated valuation is used to underwrite the loan.
Reverse Mortgages for Homeowners Turning 62 this year
Homeowners don’t have to wait until their 62nd birthday to begin the process for a reverse mortgage. If they are turning 62 this year, they can begin the process and settle once they turn 62. This way they can fill out the paperwork and get their counseling done ahead of time!
My Mortgage Advisors 