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!

Reverse Mortgages to Reclaim Home in Tax Sale

Did you know that a reverse mortgage can be used to reclaim a home in tax sale?  If the title to the property has not been transferred, a reverse mortgage can be used to pay the taxes in arrears and save the homeowner from foreclosure.  There is a small window of opportunity where this can be done so it is important to start the reverse mortgage loan process as quickly as possible before foreclosure proceedings begin.

Welcome to our Mortgage blog!

Welcome to our Mortgage blog!  We have created this blog to answer your mortgage questions and keep you up to date with industry changes.  The mortgage industry has gotten much more complex with new rules and guidelines being written every day.   We look forward to helping you!

For more information, give Nick & Jennie Garofalo a call at 410-414-7334 or 888-891-8353.

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