Archive for the 'Mortgage Help' Category
Why Did Fannie Mae Fail?
October 10th, 2008 categories: Mortgage Help, Real Estate News
With all that is going on in the mortgage and banking world right now, don't you wonder WHY? Why did this mess begin? What started it? Didn't anyone see it coming?
Yes - someone saw it coming. The New York Times actually reported it coming back on September 30th in 1999. How many years ago is that? Maybe it was while Clinton was President, not George Bush....
In 1999 Steven Holmes from the New York Times wrote that Fannie Mae was under extreme pressure from the Clinton Administration to expand mortgage loans to low and moderate income people. In doing this "Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times.... but may run into trouble in an exonomic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's".
Do you remember the 80's when WE bailed out the savings and loan industry? Often times we forget our past, our history and with that we repeat it over and over. Bailout - something new? NO WAY! We do it over and over and over. As much as I
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Reverse Mortgages: Things You May Not Know
August 8th, 2008 categories: Buying Real Estate, Mortgage Help
Here are some interesting items from the new housing bill that you may not have heard yet....
When reviewing an article on www.BankRate.com, I noticed an article on More Regulations on Reverse Mortgages. A reverse mortgage is an advance against home equity. It's for homeowners age 62 or older, and the reverse mortgage doesn't have to be repaid until the borrowers die or move out.Because reverse mortgages are elderly borrowers, there is concern that dishonest lenders and brokers take advantage of borrowers. Borrowers are required to get counseling first, to learn the pros and cons of reverse mortgages. The law will result in strengthenend qualifications for counselors.
The law limits origination fees on reverse mortgages. They cannot exceed 2 percent of a reverse mortgage of up to $200,000. For a reverse mortgage amount above that, the limit is $4,000, plus 1 percent of the loan amount above $200,000. Origination fees cannot exceed $6,000 in any case. In future years, this upper limit is indexed to inflation.
Thanks to Graham Stiles at www.GrahamStiles.com for sharing this article.
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Changes coming to FHA cash investment requirements!
August 4th, 2008 categories: Buying Real Estate, Market Trends, Mortgage Help, Real Estate News
Have you been thinking about buying a home in the near future? You might want to do that sooner rather than later. A friend of mine in the mortgage business told me today that there will soon be a change in the cash investment required for FHA loans. Currently, a minimum 3 percent cash investment is required for FHA loans. Soon, (more...)| Discussion: 1 Comment »
$7,500 Tax Credit for First-Time Home Buyers in the new Housing Stimulus Bill
July 31st, 2008 categories: Buying Real Estate, Market Trends, Mortgage Help, Real Estate News
Among the many items in the Housing and Economic Recovery Act of 2008 that are designed to help real estate and the overall economic market is a temporary $7,500 tax credit for first-time homebuyers. Here is a fact sheet prepared by Gregory S. Brown, Assistant Staff Vice President for Government Affairs of (more...)| Discussion: 1 Comment »
New Fannie Mae Guidelines for Second and Investment Homes
July 14th, 2008 categories: Buying Real Estate, Market Trends, Mortgage Help, Real Estate News
I received a note yesterday from a friend of mine named Tony Varisco. He is an associate of Laraby Financial Group, Inc., a mortgage lender with offices in Bryan, Texas. His note had an attachment from one of his investors regarding new guidelines from Fannie Mae on the conversion of principal residences or investment properties. I called him to ask some questions, and here is what he said.
It seems that Fannie Mae, the private, shareholder-owned, NYSE-listed financial services company that serves the American home mortgage industry, has recommended new guidelines for lenders. These guidelines deal with buyers who are seeking to purchase a new primary residence while converting their old one into a second home or an investment property.
While this is only from one investor and not an official publication from Fannie Mae, he said that most other investors will fall in line or close to it on these new guidelines because they come from Fannie Mae. These guidelines are meant to ensure a borrower’s financial stability and help prevent future mortgage default and foreclosure.
While these new guidelines are not yet in effect, they could go into effect at any
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Why FHA Loans?
July 14th, 2008 categories: Buying Real Estate, Market Trends, Mortgage Help
Many buyers are being approved for FHA loans. It leaves a lot of you asking, "What is this?" Many others are not applying because they say "I already have/had a FHA loan" or "I am not a first time home buyer." What does this new era of FHA loans mean?
It means the days of the "dreaded" FHA loans are over! FHA loans are loans that are backed by the government. The Federal Housing Administration (FHA) has taken notice and now they are easier to get, have higher loan limits and are faster to process.
If you have already had an FHA loan, THAT IS OK! You can have however many FHA loans you want, but only one at a time. You cannot use FHA loans for investment properties, they are meant for owner occupied properties. They are NOT for first time buyers only. You can be on your 5th home and still have an FHA loan. (more...)
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