People looking to buy a first home this year in Dakota County can consider applying for a First-Time Homebuyer Loan offered by the Dakota County Community Development Agency.
With interest rate of 4.99% and up to $10,000 in downpayment assistance, buyers will be able to maximize their purchasing power and at the same time have a stable, fixed rate first mortgage.
Dakota County is the only county in the state of Minnesota offering such a program this year after recieving special bonding authority from the U.S. Department of Treasury from a new program called the New Issuance Bond Program.
Interested buyers apply for the loans and downpayment assistance through qualified participating mortgage lenders (a list is available online at www.dakota.org/homebuyers.htm). Home buyers may also recieve the one-time $8000 federal tax credit for first time home buyers in addition to this program as long as they meet the requirements and deadlines for the tax-credit.
First-Time Homebuyer Loan terms and requirements are:
* Homebuyers must be first-time homeowners or someone who has not owned their primary residence in the last three years.
* Loans must be 30-year amortizing fixed-rate FHA or VA mortgage loans.
* Income limits are: One-or twon-person households: $83,900; three or more person households: $92,290
* Maximum purchase prices: are $276,683 for single family homes, townhomes or condominiums and $389,205 for duplexes (duplexes are eligible for the first time homebuyer loans, but not downpayment assistance)
Home Stretch Homebuyer Education class certificate is required prior to loan closing. Home Stretch classes are offered by the CDA and other metro area providers. For a list of CDA Home Stretch class dates, visit www.dakotacda.org/homebuyers.htm.
For more information, call the CDA's First Time Homebuyer Hotline at (651) 675-4442. Free pre-purchase counseling sessions are also available with trained CDA's Homeownership Counselors. To schedule a pre-purchase appointment call (651) 675-4472.
Thursday, February 18, 2010
Monday, February 15, 2010
New Good Faith Estimate
Recent guidelines from Washington have forced a change to the way that loan originators will disclose closing costs for all homebuyers. The purpose of the new Good Faith Estimate is to level the playing field for borrowers comparing loans to be able to make apples to apples comparisons for loan scenarios.
In essence, HUD is working to bring all lenders up to the same standard of excellence in reporting closing costs that they have always adhered to, estimating realistic fees that a buyer should expect to pay at closing with no last minute surprises.
What are the important facts you should be aware of in having conversations with homebuyers? Below are some important points to know:
1. All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.
2. In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower's ease of comparison to other loan programs.
3. Estimates for fees from government recording charges and third party settlement providers suggested are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.
4. Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner's insurance, and initial deposits for an escrow account.
As always, I will strive to explain to you with an accurate estimate of closing costs and funds to close.
In essence, HUD is working to bring all lenders up to the same standard of excellence in reporting closing costs that they have always adhered to, estimating realistic fees that a buyer should expect to pay at closing with no last minute surprises.
What are the important facts you should be aware of in having conversations with homebuyers? Below are some important points to know:
1. All fees paid to the lender/broker are to be consolidated in one line, including processing fees, origination fees, etc. These charges cannot change from the original estimate without a material change to the loan requested.
2. In the event fees are being charged to obtain a lower rate, these are to be broken out and itemized for the borrower's ease of comparison to other loan programs.
3. Estimates for fees from government recording charges and third party settlement providers suggested are to be itemized and the lender is held to a tolerance of 10% for their accuracy. In the event the estimated charges exceed the amount listed by the allowable tolerance, the lender will be responsible for making up the difference.
4. Estimates for services that the buyer can shop for and do choose can change at settlement without the lender being held accountable. This can include title charges, homeowner's insurance, and initial deposits for an escrow account.
As always, I will strive to explain to you with an accurate estimate of closing costs and funds to close.
Wednesday, February 10, 2010
Fixer Upper Homes
How many times you have gone out looking at a home that you liked but it needed so much work that you didn't think you could afford to fix all the items that needed fixing. Your agent told you to go and look at another home. You listened and looked at other homes and every home you looked has some kind rehab that needed to be repaired before you can move in. This is very common in this in market. Areas like Burnsville, Eagan, Apple Valley, Bloomington to name a few. The market is saturated with bank-owned properties that require repairs. The three main rehab items are the floors, the walls and there are no appliances. There are of course other big buck items such as the furnace, roof, windows and siding to name a few. As a first time homebuyer, you probably don't have a lot of money to invest into your first home. There is a solution. The solution is a FHA 203K streamline loan. With a streamline 203K mortgage, the rehab cost is calculated into the original loan balance, resulting in one loan. The appraiser or home inspector will compile a list of recommended repairs/improvements. The streamline 203K eliminates the need for a consultant and consultant's fees.
Eligible Borrowers:
* Owner occupant-Purchase & refinance
* Non profits
* Investor not allowed
* Maximum mortgage amount is $365,000 including all repair costs
FHA Streamline 203K Highlights
* May be used for purchase or refinance of one-to-four (single family), owner-occupied residences
* For less complex projects that require no plans or specs
* Maximum $35,000 total rehab cost
* Fixed-rate mortgage available
* No minimum loan balance required
* Work must commence within 30 days from closing
* Work must be completed within six months
Ineligible Repairs & Improvements
* Landscaping or yard work
* Major remodeling
* Moving a load-bearing wall
* Room additions
* Fixing structural damage
Eligible Repairs and Improvements
* Roofs, gutters, and downspouts
* HVAC systems (heating, venting, and air condition)
* Plumbing and electrical
* Minor kitchen and bath remodels
* Flooring: carpet, tile, wood, etc.
* Interior and exterior painting
* New windows and doors
* Weather stripping and insulation
* Accessibility improvements for persons with disabilities
* Energy efficient improvements
* Stabilizing or removing lead-based paint
* Decks, patios, porches
* Septic or well sytems
* New kitchen appliances
How is this going to help you? The buyer?
* The buyer can do the updating without using their own money
* The buyer saves time by using professional realtors, mortgage consultant, and contractors
Eligible Borrowers:
* Owner occupant-Purchase & refinance
* Non profits
* Investor not allowed
* Maximum mortgage amount is $365,000 including all repair costs
FHA Streamline 203K Highlights
* May be used for purchase or refinance of one-to-four (single family), owner-occupied residences
* For less complex projects that require no plans or specs
* Maximum $35,000 total rehab cost
* Fixed-rate mortgage available
* No minimum loan balance required
* Work must commence within 30 days from closing
* Work must be completed within six months
Ineligible Repairs & Improvements
* Landscaping or yard work
* Major remodeling
* Moving a load-bearing wall
* Room additions
* Fixing structural damage
Eligible Repairs and Improvements
* Roofs, gutters, and downspouts
* HVAC systems (heating, venting, and air condition)
* Plumbing and electrical
* Minor kitchen and bath remodels
* Flooring: carpet, tile, wood, etc.
* Interior and exterior painting
* New windows and doors
* Weather stripping and insulation
* Accessibility improvements for persons with disabilities
* Energy efficient improvements
* Stabilizing or removing lead-based paint
* Decks, patios, porches
* Septic or well sytems
* New kitchen appliances
How is this going to help you? The buyer?
* The buyer can do the updating without using their own money
* The buyer saves time by using professional realtors, mortgage consultant, and contractors
Monday, January 25, 2010
Having trouble paying your mortgage
You know anyone that is having trouble paying their mortgage payment? Maybe they lost a job or been through a divorce. We can help. There must be three qualifications for a Short-Sale Homeowner. While the misconceptions of what qualifies a seller for a short sale are many, the reality is actually very simple. Following is an explanation of the three major items that most lenders are looking for to see if
you will qualify.
1. FINANCIAL HARDSHIP
First and foremost a lender will want to see that you have a ‘financial hardship’. A financial hardship is a verifiable issue that has or will cause you to miss payments or have financial difficulties. Almost every lender will want to see that you cannot afford to pay your current mortgage. The way that this is demonstrated is on a financial worksheet that your agent will provide. This is essentially a monthly profit and loss statement. While this may sound difficult in reality determining whether you have monthly shortfall or not is actually relatively easy.
2. MONTHLY SHORTFALL
While a short sale is an involved process, this is an excellent place to begin.
Financial hardships can be issues such as:
• Mortgage Payment Adjustment
• Job Loss
• Too Much Debt
• Business Failure
A simple definition for ‘financial hardship’ is:
A material change in-between the day the mortgage was signed and today that has affected your ability to pay.
The Shortfall equation is:
Total Monthly Income – Total Monthly Expense = Monthly Shortfall
The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
In order to qualify for a short sale, you must not have the means to pay down
your mortgage. This means that the mortgage company wants to see that you owe
more than you have in cash (known as being insolvent). You do not however have to be completely broke ― this is a common misconception, the lender will want to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses is common and will not disqualify you. In order to go through these issues it is recommended that you sit down with your agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one. Take action and make an appointment with us today and get yourself startedon the path to financial recovery. Our team has specialized training on helping homeowners who may be facing foreclosure. Please call us today for a no cost confidential consultation. We can be reached at:
A mortgage modification involves the reduction of one of the following:
the interest rate on the loan, the principal balance of the loan the term
of the loan or all or any of the above. This typically results in a lower
payment to the homeowner and a more affordable mortgage.
3. INSOLVENCY
In order to qualify for a short sale, you must not have the means to pay down
your mortgage. This means that the mortgage company wants to see that you owe more than you have in cash (known as being insolvent). You do not however have to be completely broke ― this is a common misconception, the lender will want to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses is common and will not disqualify you.
In order to go through these issues it is recommended that you sit down with your
agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one. Take action and make an appointment with us today and get yourself startedon the path to financial recovery. Our team has specialized training on helping homeowners who may be facing
foreclosure. Please call us today for a no cost confidential consultation. We can be reached at 952-994-6988. A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan the term of the loan or all or any of the above. This typically results in a lower payment to the homeowner and a more affordable mortgage.
Phong Cao, Agent Referral Network
10663 165th St W, Burnsville, MN 55337
(952) 994-6988 | phong@mnrealestateteam.com
http://distresshousesales.com/
you will qualify.
1. FINANCIAL HARDSHIP
First and foremost a lender will want to see that you have a ‘financial hardship’. A financial hardship is a verifiable issue that has or will cause you to miss payments or have financial difficulties. Almost every lender will want to see that you cannot afford to pay your current mortgage. The way that this is demonstrated is on a financial worksheet that your agent will provide. This is essentially a monthly profit and loss statement. While this may sound difficult in reality determining whether you have monthly shortfall or not is actually relatively easy.
2. MONTHLY SHORTFALL
While a short sale is an involved process, this is an excellent place to begin.
Financial hardships can be issues such as:
• Mortgage Payment Adjustment
• Job Loss
• Too Much Debt
• Business Failure
A simple definition for ‘financial hardship’ is:
A material change in-between the day the mortgage was signed and today that has affected your ability to pay.
The Shortfall equation is:
Total Monthly Income – Total Monthly Expense = Monthly Shortfall
The above brokerage assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
In order to qualify for a short sale, you must not have the means to pay down
your mortgage. This means that the mortgage company wants to see that you owe
more than you have in cash (known as being insolvent). You do not however have to be completely broke ― this is a common misconception, the lender will want to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses is common and will not disqualify you. In order to go through these issues it is recommended that you sit down with your agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one. Take action and make an appointment with us today and get yourself startedon the path to financial recovery. Our team has specialized training on helping homeowners who may be facing foreclosure. Please call us today for a no cost confidential consultation. We can be reached at:
A mortgage modification involves the reduction of one of the following:
the interest rate on the loan, the principal balance of the loan the term
of the loan or all or any of the above. This typically results in a lower
payment to the homeowner and a more affordable mortgage.
3. INSOLVENCY
In order to qualify for a short sale, you must not have the means to pay down
your mortgage. This means that the mortgage company wants to see that you owe more than you have in cash (known as being insolvent). You do not however have to be completely broke ― this is a common misconception, the lender will want to see that over time you will not be able to pay your mortgage obligation. Having money in the bank for living expenses is common and will not disqualify you.
In order to go through these issues it is recommended that you sit down with your
agent and examine each one in detail. While a short sale may seem like a difficult process the right agent can make it a relatively simple one. Take action and make an appointment with us today and get yourself startedon the path to financial recovery. Our team has specialized training on helping homeowners who may be facing
foreclosure. Please call us today for a no cost confidential consultation. We can be reached at 952-994-6988. A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan the term of the loan or all or any of the above. This typically results in a lower payment to the homeowner and a more affordable mortgage.
Phong Cao, Agent Referral Network
10663 165th St W, Burnsville, MN 55337
(952) 994-6988 | phong@mnrealestateteam.com
http://distresshousesales.com/
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