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Ways Buyers Can Save Money at Close

by Group One Realty Team - Real Estate One

Seller Concessions:

Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).

 

In addition to concessions, sellers can pay for the following:

1. Seller can waive tax pro­-rations from the buyer on the purchase agreement.

2. Disburse Use and Occupancy fee's (if any) to Buyer at clos­ing.

3. Pre-­pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.

Conventional

Down Payment

Allowable Concession

0 - ­10%

3%

11 - ­24%

6%

25% or more

9%

FHA and Non­-Conforming

Down Payment

Allowable Concession

3%

6% for costs/3% for down­payment (through 3/31-­2008)

VA

Down Payment

Allowable Concession

0%

6%

Investment Properties

Down Payment

Allowable Concession

All down payments

2%

Struggling with your ARM mortgage payments?

by Group One Realty Team - Real Estate One

SUBJECT:    The FHASecure Initiative

                       

 The Federal Housing Administration is pleased to announce an initiative that will enable homeowners to refinance various types of adjustable rate mortgages (ARMs) that have recently “reset.”  This mortgagee letter describes how lenders and homeowners may refinance mortgages that, due to the increased mortgage payment following the reset, have become delinquent.  The mortgagee letter also reiterates guidance to lenders about making objective decisions regarding the underlying collateral in declining markets. The FHASecure initiative, which is a temporary program designed to provide refinancing opportunities to homeowners and to increase liquidity in the mortgage market, requires that the loan application be signed no later than December 31, 2008.

 

Refinancing Non-FHA Adjustable Rate Mortgages Following Resets 

 

FHA is currently doing a significant business in refinancing non-FHA mortgages for borrowers who are current under their existing mortgage.  This mortgagee letter extends eligibility to borrowers who became delinquent under their current mortgage following the reset of the interest rate. 

 

FHA recognizes that many lenders are engaged in a variety of loss mitigation activities to keep borrowers in their homes, and applauds these efforts.  This mortgagee letter explains credit policies for refinance transactions involving non-FHA adjustable rate mortgages where the homeowner’s mortgage payment history during the 6 months prior to the reset showed no instances of making mortgage payments outside the month due.

 

These instructions are designed to permit homeowners, who previous to their reset, demonstrated an ability to meet their mortgage obligations, an opportunity to refinance into a prime-rate FHA-insured mortgage.  In many cases homeowners may be permitted to include mortgage payment arrearages into the new loan amount, subject to existing geographical mortgage limits and the loan-to-value limit shown below. 

 

 

 

 

 

Eligibility Highlights of the FHASecure Initiative

 

·        The mortgage being refinanced must be a non-FHA ARM that has reset.

 

·        The mortgagor’s payment history on the non-FHA ARM must show that, prior to the reset of the mortgage, the mortgagor was current in making the monthly mortgage payments, i.e., the homeowner’s mortgage payment history during the 6 months prior to the reset showed no instances of making mortgage payments outside the month due.

 

  • If there is sufficient equity in the Home, under additional eligibility instructions provided below, FHA will insure mortgages that include missed mortgage payments.  

 

·        Under certain conditions explained below, FHA will insure first mortgages where (1) the existing note holder writes off the amount of indebtedness that cannot be refinanced into the FHA insured mortgage; or (2) either the FHA-approved lender making the new mortgage or the existing note holder may take back a second lien that includes closing costs, arrearages or previous secondary financing if the indebtedness exceeds FHA prescribed LTV and maximum mortgage amount limits. 

 

·        Mortgagees must determine, as part of the underwriting process, that the reset of the non-FHA ARM monthly payments caused the mortgagor’s inability to make the monthly payments and that the mortgagor has sufficient income and resources to make the monthly payments under the new FHA-insured refinancing mortgage.

 

Additional Information About the FHASecure Initiative

 

·        Maximum FHA loan-to-value ratios 

 

The maximum loan-to-value limits are shown below and are applied to the appraiser’s estimate of value, exclusive of any upfront mortgage insurance premium.  

 

Maximum Loan-to-Value Ratios

 

States with Average Closings Costs At or Below 2.1 Percent of Sales Price

 

·        98.75 percent:  For properties with appraised values equal to or less than $50,000.

·        97.65 percent:  For properties with appraised values in excess of $50,000 up to $125,000

·        97.15 percent:  For properties with appraised values in excess of $125,000.

 

States with Average Closings Costs Above 2.1 Percent of Sales Price

 

·        98.75 percent:  For properties with appraised values equal to or less than $50,000

·        97.75 percent:  For properties with appraised values in excess of $50,000


Please let Tom know if you need a good lender referral.  Also, if you are wanting to list your home please contact our office at (734) 996-0000.  Or for those who need help with a property search click the link to get started. 

Saline Makes CNN Money Magazines Best Places to Live List

by Group One Realty Team - Real Estate One

Saline Area residents and business people are celebrating today the fact that Saline has been named to CNN Money Magazine's annual list of "Best Places to Live:  Saline is ranked #59 on their "Top 100 in the United States" list.  The tally represents extensive demographic research that examines areas like financial performance, housing, education, quality of life, leisure and culture, and health.  See a complete list of their choices at this website.

Saline is located in the heart of Washtenaw County in Southeast Michigan and is one of three communities in the State to make the list.  The other two were Plymouth Township and Farmington.  This is the second time Saline has made the list, the last time being in 2005.

The Saline Area Chamber of Commerce is planning an award presentation honoring this outstanding recognition and accomplishment.  "Considering the study looks at tens of thousands of communities in the United States, the list is narrowed down to 3,500, and then the final cut is made down to a scant 100, making the list is a real honor", said Larry Osterling, Executive Director of the Saline Area Chamber of Commerce.  "Everyone who calls Saline Home can take pride in their contribution and that includes our folks in the surrounding areas of Pittsfield, Lodi, York, Bridgewater, and Saline Townships.  We have some really terrific small towns in Washtenaw County and it's great to see this type of recognition come our way." 

More community information is available at Saline Chamber of Commerce.  If you are interested in moving to Saline Michigan you can click this link to search  for Saline Houses and other real estate.  Neighbor city Ann Arbor also made it onto a few lists lately, notably MSNBC's Smartest Cities List and in Bert Sperling's Best Places, Ann Arbor ranks 5th best in the 2007 list of the top places to live.

Displaying blog entries 11-13 of 13

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