No Minimum Fico Score Required On VHDA loans

 

No Minimum Credit Score Required

With most lenders requiring a Minimum Credit Score of at least 620 or above on FHA, Conv and VA loans most borrowers are finding it difficult to find financing if they score below 620.

Not everyone who scores low on fico scores should not disqualifiy based on low scores alone.  If you show a good track record in paying bills on time and can prove that you are credit worthy regardless of credit score you should be approved.

Even though FHA & VA still follow these guidelines, most lenders are capping the credit scores to 620+ to be approved.

There is one program out there that still holds a TRUE NO MINIMUM FICO SCORE regardless of what the lender will approve.

THE VHDA program will honor the no minimum fico score in the following conditions.

• 31/43 Debt-to-income ratios
• No late payments in the last 12 months over 30 days.

That’s it!  Simple as that, a True no minimum fico score requirement!

Enjoy the 103% Financing!

 

REBarcamp Virginia Beach – A Real Estate Event Expo Free!!

Virginia Beach - http://rebarcamp.com/vabeach/

I will be helping out an amazing event that is coming down to Virginia Beach.

The event is geared towards the Real Estate Professional community and all other industry niches geared towards Marketing, Technology and Social Media.  If you are a business professional in the Tidewater Area, you might want to come register to reserve your spot in this great event. 

The Skinny

• Who: Any Real Estate Professional and industry experts who have a DRIVEN desire to LEARN and SHARE
• What: Open session gathering of experts in Real Estate, Marketing, Technology and Social Media. This event is FREE
• When: 10am – 4pm Thursday, July 16th, 2009
• Where: Buffalo Beach Hilltop Plaza

  1725 Laskin Road, # 501

  Virginia Beach, VA 23454

  757-422-WING (9464)

  *Free Wi-Fi*

• Why: REBarcamps are great events where industry experts around the nation gather to participate in Learning, Sharing, Networking and Motivating. Expect a highly anticipated Engaging and Fun event to improve our overall success in our business.

Register and Reserve your spot here for free http://rebarcamp.com/vabeach/?page_id=7

Review & Giveaway – The Skinny on the Housing Crisis (What Every Homeowner & Homebuyer NEEDS TO KNOW!!!)

Review:

Jim Randel has created a brilliant and super simple book called the The Skinny on the Housing Crisis.  The book talks simply about how we came about this mess of a Housing Crisis we like to call it.  The story is told from a young couple’s viewpoint on buying a home with a mortgage and getting foreclosed on a year later.

If you ever wanted to know the WHOLE process from the very beginning of finding a home with a Real Estate agent to the nuts & bolts reasoning behind Wall-Street and the Finance World to the end result of the Bubble, then this is the book for you.  Even if you already are a homeowner or thinking about buying a home, this book brilliantly displays the whole concept in a super simple format to understand.

The great concept behind this book is that is beautifully illustrated in this 168 page book with 2/3rds in Stick-Figure picture format making this an easy concept to grasp that even a 5th grader can understand.

This reminded me of the Sub-Prime Stick figure video that was being passed around the net talking about how Sub-Prime came about, the same concept is applied here and was actually inspired from the famous Japanese Manga stips they have out there.

The housing and finance industry can be very boring and dull to most of the world but Jim’s book really makes it in layman terms so that everyone can understand the concept of the housing crisis.  Simplicity is key and I believe because of this successful recipe the book is a must own to everyone who is looking to buy a house or anyone who has a home currently.

 

Giveaway

It’s quite SIMPLE, just leave a comment on this post and just make sure you fill in your e-mail address and name.  I will use a computer generated randomizer to pick a random comment and send the lucky blog commenter the book….

There’s a bonus!!!

Jim Randal’s latest book the The Skinny On:™ Credit Cards – How to Win the Credit Card Game will also be given away too!

This book is amazing and has taught me a few things I didn’t know about the credit card industry and provided me insight on how to not get caught up in the credit card game!

So comment away and enjoy!!

American Recovery and Reinvestment Act of 2009 Passes Tax Credit of $8,000 For Home Buyers

 

 

The Real Estate world was hoping for the $15,000 tax credit that was provisioned in the Stimulus Bill of 2009 set forth by President Obama.  Unfortunately, the House has negotiated to remove the $15,000 tax credit and replace it with a more moderate provision instead.

The 2009 Tax Credit is an $8,000 tax credit for First Time Home Buyers just like the previous tax credit fo $7,500 but even better mainly due to that you don’t have to repay this credit back.

Friday February 13th 2009, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early this week.

$8000 tax credit highlights include:

• The $8000 tax credit is available only to first-time home buyers and primary residence only.   (A first-time home buyer is considered a person who has not any ownership interest in a property in the last 3 years)
• This is a tax credit and not tax deduction. It is a true dollar for dollar reduction on taxes owed. 
• The credit can result in a true tax refund! If, for example, you were to get back zero on your 2009 taxes and you qualify for the full $8,000 credit, you would then receive a tax refund for $8,000. 
• The $8000 tax credit is available only to first-time home buyers buying a primary residence between January 1, 2009 and December 1, 2009
• The tax credit is not a loan and does not have to be paid back if owned more than 3 years 
• Single taxpayers with an Adjusted Gross Income (AGI) up to $75,000 and married taxpayers with a joint AGI of up to $150,000 are eligible for the full $8,000 credit. A lesser tax credit is still available if your income is above these amounts.

This is Great News for First-Time Home Buyers in 2009!

If you are on the fence or need to borrow money from a family member who needs reassurance they will be paid back, this is a great resource to take advantage of.

For more information or if you want to get pre-qualified to buy a home feel free to contact me for more details

Justin Williams

Home Mortgage Consultant

757-692-3464

Justintimeloans@gmail.com

*I am not a tax preparation firm and the above information does not represent formal tax advice; please seek council from a tax professional for details on your personal situation.

The New FHA Reverse Mortgage For Purchase – January 2009

Reverse Mortgage For Purchase

January 2009 HUD instituted a new program for Seniors (Age 62 or older) to purchase a new principal residence and obtain a reverse mortgage within a single transaction by eliminating the need for a second closing.

The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, one level properties, ramps, wider doorways, etc

A Reverse Mortgage main concept is to have NO MORTGAGE PAYMENT.  Now HUD is saying that Senior Citizens can buy homes or downgrade to a smaller home without ever making another mortgage payment as long as they live.

The Benefits

• The Housing and Economic Recovery Act of 2008 gives Unprecedented Consumer Safeguards With No Credit or Income Qualifications.
• Lower Fees than before
• Never Give Up Title to Home!
• Never Owe More than Home’s Value!
• Never Have to Move
• Never Make a Payment aslong as you live or sell/move the house!

An Example

Senior has $125,000 in equity but wishes to move.  REALTOR lists and sells departure home.  REALTOR writes contract on new $350,000 home by combining $125,000 down payment with $225,000 reverse mortgage purchase money:

SENIOR HAS NO MONTHLY PAYMENT!!!

Reverse Mortgages are now becoming more and more suitable for Seniors and with the New Reverse Mortgage for Purchase, A Senior Citizen doesn’t ever have to worry about losing the house or making another mortgage payment.

Guideline Change – FHA Refinances Cashout Require Two Appraisals now in 2009 over 85% LTV

FHA Refinances Cashout Require Two Appraisals now in 2009 over 85% LTV

Starting January 1st 2009 , Loans with FHA case numbers assigned on or after will require a Second Appraisal to be done for cash-out refinances greater than 85% LTV.

If you are refinancing two mortgages into one then its considered a Cash-out.  The only exception is when the 2nd mortgage was used as a purchase and not as a cash out or HELOC.

Reverse Mortgages are the only exception to this guideline change.

Below are highlights to the changes.

• A 2nd appraisal is required regardless of loan amount or property location.
• The 2nd appraisal must be still be completed by a FHA approved appraiser.
• If 2nd appraisal is lower than 5% of 1st appraisal, the maximum mortgage amount will be based on the lowest appraisal.
• This does not change the current requirement for two appraisals on loans greater than $417,000 and LTV greater than 95%.

Please consult with a mortgage expert regarding these changes.

Update to 2009 FHA Refinance Guidelines

 

Update to 2009 FHA Refinance Guidelines

 

 

Mortgagee Letter 08-40 communicates changes to FHA refinance transactions and are effective January 1st, 2009. Although this update includes guidelines that have not changed, I have listed the unchanged ones anyway as a review for those of you already familiar with FHA guides.

Here are the 10 things you need to know about these changes:

1.  The maximum Loan To Value for rate & term refinances (including streamlines WITH an appraisal) is 97.75%*

2. The maximum Loan To Value for cash-out refinances is 95%* for loan amounts less than the conforming limit and 85%* for loan amounts at or above the conforming limit. (Must have 12 months seasoning and no 30 day late payments)

3. Two appraisals will be required for all cash-out refinances with an LTV above 85%.

4. The mortgage must be current for the month due.

5. New or current 2nd mortgages are eligible with no maximum CLTV.

6. Loan amount for streamline refinances WITHOUT an appraisal cannot exceed the original loan amount.

7. UFMIP rates: 1.75% for all rate & term and cash-out refinances AND 1.5% for all streamline refinances.

8. The FHA Secure refinance will be terminated.

9. Refi loan amount CAN include: Closing costs, discount points, current interest, prepayment penalties, prepaids, late charges, and escrow shortages.

10. Cash back on rate & term and streamline refinances CANNOT exceed $500.

*All LTVs are before adding the UFMIP

Virginia State Mortgage VHDA Increases To 50% DTI Change 2009

 

VHDA Changes to Maximum Qualifying Ratios

New Changes to the Maximum Debt to Income Ratio 50.00% for all VHDA Loans which was upped from 43%.  This will allow more people to qualify with limited income.  This is great news! Below are the official changes taking place Feb 2009.

All VHDA loans (including FHA, VA, RHS, PMI or uninsured loans) will be limited to a maximum of 50.00% debt to income ratio when using an automated underwriting Approve/Eligible Decision.

Stated program ratio guidelines will apply for manually approved loans. This new restriction is effective for loan reservations made beginning February 1, 2009.

FHA Plus: (103% Financing)

VHDA will continue to accept FHA Total Scorecard approvals for FHA Plus with the following limitations:

Loans may exceed FHA’s standard ratio requirements of 31% payment to income and 43% debt to income (to a maximum of 50% debt to ratio) only if the applicable credit score is 620 or above.

Credit scores below 620 and non traditional credit must adhere to the maximum 31%/43% FHA program ratios. 

This new requirements are effective with loan reservations made beginning February 1, 2009. 

Reminder: FHA Changes Effective Jan 1st 2009 Highlights

Reminder: FHA Changes Effective Jan 1st 2009 Highlights

Changes

• Maximum LTV Financing: The required cash down payment will be 3.5% of the appraised value or the sales price (whichever is less). Closing costs may not be used to meet the minimum 3.5% cash down payment requirement.
• Maximum base mortgage amount: For purchase loans, the maximum base mortgage loan amount will be 96.5% of the appraised value or the sales price (whichever is less). (Upfront Mortgage Insurance Premiums (UFMIP) may still be financed in the loan)
• Maximum refinance LTV amount*: the maximum refinance LTV will be 97.75% of the appraised value. This LTV will replace the High-Cost/Low-Cost Factors in the maximum loan calculations. 

Note: although a Mortgagee Letter has not been published as of the deadline for this article, the FHA previously indicated that 97.75% LTV will be published and effective on Jan 1, 2009. Any other changes announced in the Mortgagee Letter will be analyzed and communicated as soon as possible.

Note:At this time, the revised LTV does not impact: 203(h) for disaster victims & HUD 184 for Native American loans

Virginia Fannie Mae and Freddie Mac Loan Limits for 2009

 

CONFORMING LOAN LIMIT FOR U.S. TO REMAIN $417,000 IN 2009.

Other Loan Limits vary by different counties. 

 

Below are the major limits for the State of Virginia.

Alexandria $625,500

Williamsburg – $458,850

Richmond – $535,900

Hampton – $458,850

Newport News – $458,850

Portsmouth – $458,850

Suffolk – $458,850

Chesapeake – $458,850

Norfolk – $458,850

Virginia Beach – $458,850

 

Bottom line is that if you have a higher loan amount than these loan limits then its kicked over to classification “Jumbo or Non-Conforming” status which is usually more stricter mortgage guidelines and higher rates normally.