VA Mortgage Cash Out Refinance 100% 411

 

VA Mortgage Cash Out Refinance 100%

VA Mortgage Cash Out Refinance 100%

Veterans’ Benefits Improvement Act of 2008 Changes recently signed by President Bush on 10/10/2008 implement 4 major changes below.

The official Bill Circular is found  HERE

1.)  Mortgage Loans allow Cash Out Refinances to 100% changed from 90%.

2.)  The VA ARMs (Adjustable Rate Mortgages) are good through 2012. 

3.)  The Temporary Extended Loan Limit Amounts are extended through Dec 31st 2011

4.)  Guaranty of refinances from $36,000 to the same guaranty for purchase deals.

FHA Sweat Equity – Alternative to FHA Down Payment Assistance 411

FHA Sweat Equity

Labor performed or materials furnished by borrower before closing may be considered as the equivalent of a cash investment.

Believe it or not FHA Sweat Equity Program has been around forever.  The idea behind Sweat Equity is a way to have the Seller Credit for Purchaser’s Down Payment through Labor or Materials being put forth into the house.

Sweat equity may be gifted subject to both gift requirements and additional requirements. 

• Existing construction – only the repairs or improvements listed on the appraisal are eligible for sweat equity. Any work completed or materials provided prior to the appraisal are not eligible.
• Proposed construction – the sales contract must indicate the tasks to be performed by the borrower during construction.
• Borrower’s labor may be considered as the equivalent of cash if the borrower can demonstrate his/her ability to complete the work in a satisfactory manner.
• Lender must document the value of the labor through either the appraiser’s estimate or through a cost estimating service. 
• Delayed work (on-site escrow), clean up, debris removal, and other general maintenance cannot be included as sweat equity.
• There can be no cash back to the borrower in sweat equity transactions.
• Sweat equity on a property other than the subject property being purchase is not acceptable. Compensation for work performed on other properties must be in cash and properly documented.
• Sweat equity credit cannot exceed the estimated cost of the work or the materials.
• Verification of source of funds used to purchase materials and market value of materials must be provided on any materials furnished by borrower.
• Paid receipts for the materials should be obtained. 

1. Buyers to get with the Contractors after an appraisal is done to lend “LABOR” to compensate for “Credit” towards down-payment.
2. Buyers to paint the house or do some side jobs to help earn “Credit” for the “Labor”
3. The Sellers will pay for the credit and can raise the sales price in order to compensate for the credit.

 

FHA Cash to Close Savings Plan – Alternative to FHA Down Payment Assistance 411

 

FHA Cash to Close Savings Plan

 

FHA Cash to Close Savings Plan – Alternative to FHA Down Payment Assistance 411

Borrowers are eligible to save cash to close during the construction period. The following criteria and documentation must be adhered to:

• Borrowers must provide a written statement as to how they intend to save the funds to close.
• A monthly savings plan that identifies the borrower’s savings plan for the funds needed for closing must be completed in its entirety.
• This form must be included in the file submitted to Underwriting. The underwriter has the final decision of the borrower’s eligibility for this program.
• The funds saved must be held by a disinterested 3rd party. The funds cannot be held by Wells Fargo, but can be held by Wells Fargo Bank.
• Credit approval will be subject to the completion and verification of the approved savings plan.
• Gift funds are not allowed after Underwriting has issued a credit approval; however, exceptions to this may be allowed on a case-by-case basis.
• The underwriter must document the file accordingly. All funds must be saved in accordance with the approved savings plan.

The Cash to Close 411!

The FHA cash to close savings plan is a way to get pre-approved for a Construction loan being built without having the liquid assets at the time of application.  This is a great way to Buy Now & Save Later.

FHA Bridal Registry Account – Alternative to Down Payment Assistance 411

FHA BRIDAL REGISTRY

HUD allows couples who are planning to get married to establish a bridal registry savings account to help them accumulate the down payment necessary to purchase first home together.

Bridal Registry Account is also available for other situations where an individual or individuals typically receive gifts.

The following documentation and procedures should be adhered to when using bridal registry funds to document assets:

*The borrowers must open an interest bearing savings account with a financial institution supervised by a federal or state agency

*The borrowers are responsible for providing information regarding the bridal registry account and how it works to friends and family

*The borrowers must provide a register showing the names of all donors and the dollar amount that has been deposited into the bridal registry account

*There is no requirement that the bridal couple be married prior to closing the mortgage loan

*The borrower must provide bank statements verifying all deposits into the bridal registry account

*All donations were from friends and relatives that they do not have a financial interest in the transaction; and No donations made from participants with a financial interest in the transaction. (Participants include the seller, Home Mortgage Consultant, builder, real estate agent, etc.)

THE FHA 411

This is just another creative way to find financial assistance to the downpayment of future homebuyers.  What better way to ask for a donation towards your new house rather than getting another Blender or Toaster that you won’t need!  Perfect for First Time Home Buyers!

  

FHA Streamline Refinance 411 – The Quick & Easy Loan – No Cost – No Appraisal – Bad Credit OK!

No Cost, No Appraisal, Quick and Easy

FHA Streamline Refinance 411 – The Quick & Easy Loan – No Cost – No Appraisal

FHA Streamline 411:  FHA has permitted streamline refinances on insured mortgages since the early 1980’s.  This is a way to “Gurantee Refinance” regardless of certain requirements.  This is an excellent choice if you want to ..

1.)  Convert your ARM to a FIX regardless of past credit and upside appraisal issues.

2.)  Refinance to a lower rate, quick and easy without the headache of new loan process.

FHA Streamline Requirements:

• The mortgage to be refinanced must already be FHA insured. 
• The mortgage to be refinanced should be current (past late payments OK)
  
• No Fico Score Required
• Must lower the borrower’s monthly principal and interest payments to qualify. 
  
• No Cash out over $500 on refinance.
• No termite report is required
  
• Appraisal not required
• Income documents not required

 

FHA Streamline Process: The Streamline process is by far the most Fastest and Easiest to qualify.  Heres how it works

1. Check to make sure your loan is a FHA loan
2. Call me to complete a 5 minute application
3. Sign and Complete disclosure forms to get Payoff from your current company.
4. Wait 48 hours
5. Close Loan
6. That was easy!!

FHA First Time Home Buyer Cosigner Kiddie Condo Loan

FHA Mortgage Allows Non-Occupying Co-Borrowers or Co-Signers to help with the loan

The reason why this is a GREAT loan is because normally a  Co-Borrower must state that he/she will occupy the property with the Borrower on the loan therefore eliminating the potential of having co-signers due to the fact that the co-signers do not want to move.

FHA Mortgages although, allows a Non-Occupying Co-Borrower (Cosigner) to help in the loan process to help strengthen the loan and provide credit support and Income support as a co-borrower who does NOT HAVE to occupy the residence with the borrower.

*(Non-OCC’s)(Co-signers) can be on Refinances too but limited to 75-85% LTV rate/term & cashout)

• The Co-Signer can be ANYONE from a family member to a long time friend.

• 1 unit subject property

• Having a Co-Signer can help Qualify the borrower to Appoved Status, keep in mind though the co-signer’s credit does not replace the borrower’s credit though.

• The Borrower can do a FHA Streamline down the road to put the loan back in just their name to help ease the peace and mind of the co-signer.  The FHA streamline doesn’t require an appraisal and any income documents normally.

Why this is GREAT for your children

• The parents want to help his son establish credit and provide housing for his son. What better way to do that than getting a home to help establish credit, become an investment, tax-writeoffs and of course provide housing for the son.

• A lower, owner-occupied interest rate on the mortgage Vs the higher investment property interest rate.

• Whether in College or after College, if you need to help out your children getting a kickstart in life, please consider an FHA Mortgage to help jumpstart his life rather than throwing money away renting.

• Even better with the current market condition, you can probably snatch up a steal in a small beginner house with plenty of equity built in already.

Happy House Hunting!

New Construction Down Payment Assistance Program – Builder Grant 100% LTV

The Down Payment Assistance Program that has been here forever and is not going anywhere

Worried about the economy? Worried about Down Payment Assistance Programs are gone or on the rocks?

I still can provide Down Payment Assistance Programs STILL and FREE through our FREE Builder Grant Loans.

The way it works is just like any Down Payment Assistance Program you have used in the past (Nehemiah, Ameridream or Genesis)

Quick Recap for those who haven’t:

• A Way for the Seller to contribute towards the down payment which is normally not allowed on Government or Conventional Concessions. Normal concessions only contribute towards Closing Costa dn Pre-paids.

Builder Grant Program Perks:

1. Can contribute up to 6% of the Sales Price
2. NO TRANSFER FEE (unlike most DAPS which charge between $300-$400 dollars)
3. Transferred on the HUD at closing
4. Less Paperwork and Less Stressful

So if you are a Builder or a Home Buyer looking for a new alternative to Financing New Construction Homes without giving away the bank and still want to take advantage of 100% LTV loans then contact me today for further information.