Government Loan Broker

Government launches plan to help “underwater” borrowers
The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to…

Read more on Deseret News

Gov’t launches plan to help “underwater” borrowers
The Obama administration is trying to jump-start its sputtering attempts to tackle the foreclosure crisis with an effort to assist homeowners who owe more on their properties than their homes are worth. Starting Tuesday, the Federal Housing Administration… Foreclosure – Federal Housing Administration – Presidency of Barack Obama – Jump start – Business

Read more on San Francisco Chronicle

FHA Loans back in style for “Credit  challenged Borrowers” & high LTV financing

With Subprime Lenders options now more limited some are rediscovering FHA loans are the only way to get approved for a Florida FHA Mortgage.  Here’s why:

PROS:

Better pricing and lower interest rates than most subprime programs Virtually NO  FICO or Credit score Requirement Only 3% down for 1-4 units (O/O – required) Down payment can be gifted from seller to approved not for profit payable to buyer @ close Sellers may directly contribute up to 6% closing costs & ppd interest – (not down payment) Rental income payments valued @ 85% – (10% more than most cov financing) Cash Out Refinance up to 95% LTV Rate & Term Refinance up to 97.75% LTV No Income Cap No Cash Reserves Required DTI borrowing ratios up to 31/43% – manual underwriting can exceed w/compensating factors No Prepayment Penalties Non-occupying co-borrower income allowed Permanent disability income allowed

FHA loan Advantages Include:

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price Gift for down payment and closing costs allowed. No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

Minimum FICO credit score of 540. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure. 

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

Apply now at  http://www.fhamortgagefhalon.com/

CONS:

Full Doc Program – Income must be verifiable Lending limits vary by county & lower than (some) other options – see below. Requires lump mortgage insurance Premium (MIP) payable @ close. Property tax escrows required on all loans – no waivers Must use FHA approved appraiser

Are Million-Dollar Borrowers More Likely to Default?
Are million-dollar homeowners more likely to default on their mortgages? It depends who you ask.

Read more on Wall Street Journal Blogs

When economy slows down, Federal Reserve tries to encourage growth by lowering rates. Therefore, when you see yields bonds go down and interest rates on mortgages drop, it is a sure sign of recession. The year of 2009, besides bringing record unemployment and negative economic growth, also brought record low mortgage rates, the lowest since 1971. Many borrowers, including VA borrowers, want to know whether the rates have hit the bottom. With the worst housing market since the Great Depression, one may guess that the rates would continue to drop, as U.S. Government would try to make effort to revive the depressed market. However, it is rather questionable that the rates would pass the 4.5% mark. This way or another, VA borrowers have several advantages over other borrowers.

VA Borrowers Have Unparallel Advantages

Non-VA borrowers see many factors affect their mortgage rates, such as credit score, household income, and so forth. VA borrowers, on the contrary, are protected against the impact of such factors, as they get low rates, as long as they meet relaxed criteria for VA loans. Even with less-than-perfect credit scores VA borrowers are able to enjoy lower rates, and are able to bring them further down by paying discount points upfront, like regular borrowers would. Therefore, it is a win-win situation for VA borrowers. Another important advantage that VA borrowers have is no need for large down payments that other borrowers have to come up with in tight economy and dropping housing market. In fact, most do not have to come up with any down payment at all, as most VA loans do not require any.

VA Loan Terms Are Better Than Ever

Therefore, anticipation of rates dropping further should not be a decisive factor for VA borrowers whether to get a loan now or wait a bit. With excellent features that VA loans are packed with, such as no money down and 100% refinancing, the difference of a couple tenths of a point is not as important. VA loans are perfect for eligible veterans, and are an excellent choice no matter how good or bad the economy is. VA loans feature many valuable benefits, making them better than traditional loans, to include the following:

· No need for down payment;

· 100% refinancing of existing mortgages;

· No PMI required;

· No penalties for prepayment;

· Generous loan amounts of up to $417,000, and even higher in some states;

· Streamline program eligibility.

No Need to Worry About Rates with Refinancing Options

Another important factor veterans should consider is that Streamline program allows refinancing at a lower rate any time the rates go down. Refinancing is quick and easy, as many bureaucratic procedures are waived, and allows for further money saving. If you are eligible for a VA loan and are looking to purchase or refinance, it is time to act while the rates are at historic minimum. If your concern is that rates may go down in the nearest future, then you do not need to worry, as you may be able to refinance any time with most appraisal and qualifying requirements waived under Streamline refinance program. All you need to show is the history of making timely mortgage payments.

The changes on FHA loans and how they will affect borrowers and sellers
Upfront insurance premium What is it? A fee the Federal Housing Administration collects from borrowers that can be paid in cash at the closing table or rolled into the loan. Federal Housing Administration – Business – United States – Mortgage – Financial Services

Read more on Washington Post

The Seven Things All Borrowers Should Know About FHA Loans
Experts from FHA Pros Dispel the Top Myths Concerning FHA Loans

Read more on PRWeb via Yahoo! News