Help for more home buyers to achieve their home ownership dreams have been initiated by First Home Mortgage by loosening the credit guidelines. The decision was made after a review of borrowers that may have been held out from buying due to higher ratios or lower credit scores. Most of these buyers do not necessarily represent a substantial increased lending risk. First Home Mortgage made these changes to help more buyers achieve the goal of home ownership.First Home Mortgage is lowering the minimum credit score to 581 for FHA and VA loans. The loan will have to receive an automated underwriting approval and follow investor guidelines. A credit score of 581-599 does require two compensating factors. USDA loans can now go to 581 with an automated approval from Rural Housing Authority. A credit score between 581 - 599 does require two compensating factors. First Home Mortgage have expanded ratio guidelines on FHA, … [Read more...]
A True Grant of $1,500 to Help Buyers
A true grant of $1,500 to help buyers with their closing costs is now available from the State of Maryland that adds a little more sizzle to their loan products.The grant assistance runs from June 28th to September 30th 2017 in EVERY County throughout Maryland. A buyer wishing to use the grant must have their loan registered during that time period. The grant funds can only be used for closing costs and cannot be used for the down payment, but it can be combined with the other State of Maryland down payment programs. It also must be used for conventional loans only which require a minimum 640 credit score.Scenario #1: A buyer wants to purchase a home for $200,000. The minimum the buyer has to contribute is 3% for the down payment. The Grant Assist program will cover the ENTIRE down payment. The closing costs are approximately $9,000 and the seller has agreed to give 2.5% or $5,000. The Grant Assist program gives an additional 1% or $2,000 … [Read more...]
The State of Maryland Supersized their Grant Assist Program
The State of Maryland supersized their Grant Assist Program - This new program will help many buyers throughout the State of Maryland. Initially the program was rolled out to help with ONLY the closing costs. But, they have just changed it so that the 4% can be used towards down payment and/or closing costs. This is HUGE news - if you are a buyer with a minimum 640 credit score. You could have your entire down payment covered by using this program, instead of the flat $5,000 the State offers through the CDA program.Example: If you are a buyer who wants to purchase a home for $300,000. The minimum you as a buyer have to contribute is 3% for the down payment. The Grant Assist program will cover that ENTIRE down payment. The seller agrees to give 3% for closing costs. The program will also cover another 1% towards closing costs for a total contribution of $12,000. And viola, you are in with no money out of your pocket!Grant Assist Funds - The Grant … [Read more...]
First time home buyers purchasing in Montgomery County
First time homebuyers purchasing in Montgomery County could be eligible for a new home ownership program. Here are the details of the Montgomery County Homeownership Program:Down payment assistance will be 40% of the total household income with a maximum total of $40,000 per home. These funds can be used toward down payment and/or closing costs. Example: A buyer has total household income of $85,000 so they would be eligible to receive $34,000 in assistance. The down payment assistance is in the form of a loan at zero percent and will appear as a 2nd lien on title. Funds will have to be repaid back if the buyer ever sells their home. First time homebuyers program is available to all first time homebuyers in Montgomery County. First time home buyer is defined as someone who has not owned a home in the last 3 years or more. First time home buyer requirement will be waived if property is in a targeted area or if buyer is an honorably discharged veteran who has not used … [Read more...]
Buy HUD Home for $100 Down Payment
Buy HUD Home for $100 Down PaymentThe HUD incentive program is designed to attract home buyers in the buying market to move excess housing inventory. Do not wait - this incentive program will only run for a short time! If you are looking to purchase a home with minimum cash requirements this program could be the answer!To find a list of the available homes for this program, go to hudhomestore.com, select the State of Maryland and Buyer Type as All.Buy HUD Home for $100 Down payment Requirements: Home buyer must offer the full asking price for the homeHome buyer must live in the property for a minimum of 1 year (investors are not qualified for this HUD incentive program) Home buyer should use a FHA loan for the purchase of the home, e.g. (FHA 203b, 203k loans are acceptable)The home must be a HUD owned homeThe home buyer must use a HUD registered real estate agent or broker to qualify for this incentive … [Read more...]
First Time Home Buyers
First Time Home Buyers can now take advantage of the MY HOME II and Maryland Preferred Rate Loan - effective immediately. This is a special partnership with Prince George’s County. The collaboration pairs the Maryland Preferred Rate loan which offers the lowest rate available through the Maryland Mortgage program (MMP). Now, you take advantage of a generous down payment assistance provided by the Prince George’s County MY HOME II program. The two programs require separate applications.Maryland Preferred: A Maryland Mortgage loan at a very attractive interest rate (shown on our website and effective as of time of reservation). Application is made through an approved MMP lender. For more information, please see the fact sheet available on mmp.maryland.gov/PrinceGeorges. MY HOME II: A home buyer assistance program administered by the Redevelopment Authority of Prince George’s County. Only lenders approved by both MMP and MY HOME II can offer both programs. MY HOME II … [Read more...]
Interest Rates for 30 year Conventional Fixed Rate
Interest rates for a 30 year conventional fixed rate mortgages are currently at 3.47% according to Freddie Mac's latest Primary Mortgage Market Survey. For the past 16 weeks, rate have remained historically low at or below 3.5%.The interest rate the borrower secures when buying a home not only greatly impacts their monthly housing costs,but also impacts their purchasing power. Purchasing power, simply put, is the amount of home they can afford to buy for the budget they have available to spend. As rates increase, the price of the house they can afford will decrease if they plan to stay within a certain monthly housing budget.The chart below shows what impact rising interest rates would have if they planned to purchase a home within the national median price range and planned to keep the principal and interest payments at or about $1,100 a month.Buyer's Purchasing … [Read more...]
The Basics of Mortgage Financing
The basics of mortgage financing for each type of mortgage financing as it relates to credit, income and assets follows. We have included helpful tips that will help home buyers in situations that are unique and do not follow cookie cutter conventional financing.Credit score: Currently, the lowest credit score is 620 if no mortgage insurance is needed. And, 640 if mortgage insurance is required. Loan officers cannot manually underwrite conventional loans. They must have an Approve/Eligible in the automated underwriting system.Unlike Federal Housing Authority (FHA) loan - Conventional loans carry risk based pricing adjustments so the lower the credit score the higher the rate and mortgage insurance rate. Typically, a buyer with low credit scores will be much better served using FHA financing because the rate and Mortgage Insurance (MI) will cost less for them.Income:The maximum debt to income ratio is typically 45%. However, a Loan Prospector with good … [Read more...]
Maryland Mortgage Program (MMP)
Maryland Mortgage Program (MMP):Maryland Mortgage Program (MMP) DROPPED their credit score requirement to 640 on conventional financing up to 97% LTV.Now - Home buyers who qualify for a Federal Housing Authority (FHA) mortgage loan can easily go conventional under this program because the MMP sets the debt to income limit at 45% which follows conventional guidelines exactly. The MMP program also have a flat interest rate for all buyers. It is not credit score dependent when determining the interest rate as traditional conventional loans. This means a lower score buyer will still receive a great rate! And, buyers only have to put 3% down instead of 3.5% under FHA requirements. Be mindful that the seller can only contribute up to 3% of the closing costs if the LTV is above 90%.Here is a quick look at the Maryland Mortgage Program (MMP)...If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you are … [Read more...]
Are you Ready to Make the Leap into Home Ownership?
Are you ready to make the leap into home ownership? Are you still living at home? Renting a home to own? While everyone moves at their own pace now is the time to take advantage of the historically low interest rates. In addition to, local and federal programs available to first time home owners. Here are some a few signs to observe to determine if it is time to own your own home. Let's take a look at some of the reasons you should consider to justify your home buying decision.Are You Sticking Around? If you plan on moving soon for a job transfer. Or, plan on moving in the future for other family reasons - it may be better to rent. However, if you are thinking about living in the same city, town or within the same county for years to come - it is time to put down roots! You will appreciate the stability that comes with home ownership. Home ownership can make you more prepared for a marriage and/or a family if that's the lifestyle you prefer. The stability of home … [Read more...]
First Time Home Buyers Credit
First time home buyers credit - The State of Maryland has a great program to help home buyers obtain home ownership and now first time home buyers can qualify for the the Maryland Mortgage Program!If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you will will be eligible for assistance of $5,000 at a MINIMUM. And, even if you have owned a home in the past three years, there are targeted areas where you can buy again without the 3 year wait. For example, the entire City of Baltimore is classified as targeted so anyone can get $5,000 in assistance as long as they don't own any other property when they go to settlement.The Maryland Mortgage Program offers $5,000 in assistance or potentially more depending on the your employer for down payment or closing cost assistance. So, if are purchasing a $200,000 home and you need 3.5% of the purchase price ($7,000) as a down payment, this program will … [Read more...]
Making Home Affordable (MHA) Program
WHAT IS MAKING HOME AFFORDABLE (MHA) ALL ABOUT? Making Home Affordable (MHA) Program is a critical part of the Administration's broad strategy to help homeowners avoid foreclosure and stabilize the nation's housing market.Eligible homeowners can lower their monthly mortgage payments and get into more stable loans at today's low interest rates. And for those homeowners for whom ownership is no longer affordable or desirable, the program can provide a way out that avoids foreclosure. There are also options for unemployed homeowners and homeowners who owe more than their homes are worth.ABOUT SERVICERS HOME AFFORDABLE REFINANCE PROGRAM (HARP)I'm current on my mortgage. Is it possible to refinance my loan under HARP? Yes. Eligible homeowners, who are current on their mortgages but have been unable to take advantage of lower interest rates because their homes have decreased in value, may have the opportunity to refinance. Through HARP, Fannie Mae and … [Read more...]
Ask the Experts – Should we wait to buy a home?
Ask the Experts – Should we wait to buy a home? By all means - No, the time to buy a home is now!With below market interest rates and the below average market inventory today maybe the opportune time for buyers to make the move to a new home. The Federal Reserve has delayed increasing the interest rate for fear of disrupting the future growth of the economy. Mortgage lenders eager of offer a variety of mortgage loan programs to suit your family financial status. In this current market the greatest risk to potential home buyers is to wait to jump into the market to buy a home. Buyers should always be actively looking to buy a home at bargain or below market price. A mortgage lender will determine your buying power by retrieving your credit report, reviewing your credit score and debt ratios compared to gross income. Here are some facts to consider: Home prices in the DMV have risen 3 to 8%. Prices nationwide are projected to appreciate by more than 18 percent by … [Read more...]
Interest – Only Mortgages
Interest - Only mortgages received a lot of bad press during the aftermath of the housing bust, but they have stuck around as a viable mortgage alternative to home buyers who meet rigorous lending guidelines enacted by the federal government in recent years. Interest - Only mortgages can lower monthly mortgage payments by allowing borrowers to delay paying principle on their loan for several years. The down side of this mortgage program is the increase in mortgage payments when interest-only period comes to the end. At that time, borrowers begin to pay a combination of principal and interest until the loan is paid off. The shock of the increase in monthly mortgage payments as a result of higher interest rates on adjustable-rate interest only loan loans have caused many borrowers to default on their loans in the past. This shock in monthly payments is often accompanied with a higher interest rate which results in many borrowers falling behind in their monthly … [Read more...]
Update – Victoria Falls Third Quarter Market Watch
Update - Victoria Falls Third Quarter Market Watch – Single Family/Villa Styled Homes (SFH) summer issue summarizes the SFH and Villa styled homes market activity within the VF Resort Community through the quarter. This summer have shown a growing demand for SFH, villa styled homes and condos with an increase in sales prices during this same period. There were five Active listings and now there are only two active listing. This shows the improving market for this type of homes in VF. We’ve noticed a steady increase in the SFH close prices since our last blog in July. The recent sale of 7401 Forests Edge Ct.a SFH took over the top spot for the highest sales price at $490,000.Now, to the latest data regarding Single Family/Villa Styled Homes…… New to Market - 13202 Rabbit Chase Rd. - List Price: $359,900. This villa townhouse features three bedrooms, three full baths and attached garage. Tax living area: 1,464. Days on market - 13. New to Market - 7211 … [Read more...]
Home Buyers Assistance – State of Maryland
Home Buyers Assistance - State of Maryland have a great program to help home buyers obtain home ownership. And now, first time home buyers can get a tax credit too!If you have not owned a home in the past three years in the State of Maryland, there is an EXCELLENT chance you will be eligible for assistance of $5,000 at a MINIMUM. And, even if you have owned a home in the past three years, there are targeted areas where you can buy again without the 3 year wait. For example, the entire City of Baltimore is classified as targeted so any buyer can get $5,000 in assistance as long as they don't own any other property when they go to settlement.The Maryland Mortgage Program offers $5,000 in assistance or potentially more depending on the buyer's employer for down payment or closing cost assistance. So, if a buyer is purchasing a $200,000 home and they need 3.5% of the purchase price ($7,000) as a downpayment, this program will give them $5,000. If they then receive a full seller … [Read more...]
MY HOME PROGRAM SUSPENDED
MY HOME PROGRAM SUSPENDED AS OF JANUARY 28 Nearly 1,300 Prince George's Homebuyers Have Been Assisted My Home Program suspended due to the overwhelming demand for down payment and closing cost assistance for first-time home buyers, the Redevelopment Authority of Prince George's County (RDA) has suspended the "My HOME" home buyer assistance program effective January 28, 2015, due to funding depletion. Completed applications received by January 28, 2015 that are pending approval, will be funded on a "first completed" basis, as additional funds become available.Since 2009, the Redevelopment Authority has assisted nearly 1,300 homebuyers purchase a home in Prince George's County. In 2014 alone, the RDA provided 267 loans to first-time, moderate income homebuyers which generated over $2,133,300 in property, recordation and transfer taxes for the County. "My HOME provided hundreds of families the opportunity to begin building family wealth, as well as stabilizing county neighborhoods by … [Read more...]
First Time Home Buyers
First time home buyers in Prince George's County have easy access to money to buy a home through the MyHome Programs. And, these grant programs can also be used with 203k streamlines loans so it helps when the property is in need of repair.Here are some highlights of the program:MY HOME II * Loan amount up to $20,000 based on 120% area median income* Zip codes restricted to 20706, 20737, 20743, 20744, 20745, 20746, 20747, 20748, 20772, 20774, 20784 and 20785* Loan is given at 0%, deferred payment. Buyer must pay back in full if the house is sold, transferred or ceases to be their primary residence, regardless of tenure in property.* No maximum sales price if buyer is between 81% to 120% of the area median income, limited to same restrictions as MyHome if median income is up to 80%* Debt to income ratios of 33%/43%And, this program can be combined with The Maryland Mortgage program as long as the loan does not need a 203k streamline for another … [Read more...]
First Time Home Buyers
First time home buyers in Prince George's County have easy access to money to buy a home through the MyHome Programs. And, these grant programs can also be used with 203k streamlines loans so it helps when the property is in need of repair. In addition there is a MY HOME II program available to first time buyers.Here are some highlights of the MYHOME program: MY HOME PROGRAM:* Loan amount up to $20,000 based on 80% area median income* Loan amount up to $60,000 based on 50% area median income* Entire county is eligible* Loan is given at 0%, deferred payment. Buyer must pay back in full if the house is sold, transferred or ceases to be their primary residence in 15 years. After 15 years, the loan is fully forgiven.* Maximum sales price of $295,000 for resales and $370,000 for new construction* Debt to income ratios of 33%/43%* Foreclosures require 1% discount from appraisal completed within 60 days … [Read more...]
Buying a Home
Buying a home gets easier! The latest market news - Federal Home Loan Bank (FHLB) replenished their funds for 2015. Funds are limited and will go very fast because the grant is very popular and easy to obtain for buyers.Federal Home Loan Bank is offering $5,000 to first time homebuyers if they contribute a minimum of $1,250 into buying their home. And, those monies can actually be gifted as well. Buyers can actually contribute less monies but their grant will be reduced because it is based on a 4:1 ratio. For example, if a buyer wanted to obtain $2,500 of grant monies then they would only have to contribute $625 or half of the $1,250. And, the fees they pay upfront can be used to meet their contribution so the earnest money deposit and appraisal fee can be used towards their minimum contribution.The reasons why this grant is better for buying a home over other programs if a buyer's income qualifies: • The grant is forgivable after 5 years entirely. If a buyer vacates the … [Read more...]
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