Maryland Mortgage Program offers buyers down payment assistance throughout Maryland, Virginia and the District of Columbia. There is some confusion about this program though because there are different monies available underneath the umbrella of the Maryland Mortgage Program. One of our preferred lenders is providing details about the different programs so you can have a better understanding of what programs are available for buyers as it relates to the MMP program only.* SELP (Settlement Expense Loan Program) - This is the staple of the Maryland Mortgage Program and offers $5,000 to first time home buyers unless they are buying in a targeted area and then they can be second time home buyers. If a buyer is working for an employer on their House 4 Keys list they will be eligible for more down payment assistance. And, if they live within 10 miles of the house they are buying they are eligible for even more money through the Smart Keys program. All money received through this … [Read more...]
Help for More Home Buyers
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...]
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...]
Veteran Buyers
Veteran buyers will be faced with several changes in the coming months when applying for a VA loan. As of now, the Senate is reviewing a law that has already passed The House of Representatives to make two big changes to VA loans.The first change is to get rid of VA loan limits entirely so buyers do not have to come up with a down payment. Right now, a buyer can purchase up to $417,000 with no money down at all. If they go above this amount - they have to come up with some money for the down payment. Let's say it is 25% of the difference of the sales price over $417,000. As an example, if a buyer purchases a $500,000 house then they need to come up with $20,750 ($500,000-$417,000=$83,000 x 25%). Under the new law - they would not need any money for the down payment if they purchased over $417,000. This will have a huge impact on the cash needed for high end veteran buyers. The second change is in regards to VA non - allowables. Right now there are … [Read more...]
New Home Buyers Due Diligence and Vigilance
New Home buyers due diligence and vigilance should be addressed by buyers or their agent prior to a successful closing especially when purchasing a newly constructed home. The following points of interest should be on your agents’ radar:Ask for a sample of the builder’s contract. Most builders have their own distinct forms and contracts contrary from company to company. Ask for clarification on the mortgage processing options and discounts. Determine whether you have the option to select your own mortgage company. And, what are the consequences if you decide to seek financing elsewhere. Ask for clarification of home warranty coverage. Home warranty contract are often issued by several third party companies, e.g. HMS and AHS. Obtain a list of costs. Determine what is standard versus upgrade. And, the cost of each upgrade. Inspection for defects. New homes are not flawless. The builder may offer a final walk through inspection with the staff. Request an inspection from a … [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...]
Helping Military Veterans and Active Duty Military Buy a Home
Helping Military Veterans and Active Duty Military buy a home has gotten a bit easier. Now, CDA offers the Maryland Home front program which provides military veterans and active duty military with a special interest rate discount of 0.25% for a 30-year, fixed rate mortgage. This program can also be used in combination with the $5,000 plus or more down payment and closing cost monies that are offered through the program. A refresher course on CDA loans...if you have not owned a home in the past three years in the State of Maryland - there is an EXCELLENT chance that you will be eligible for down payment monies and/or closing cost help 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 CDA down payment monies and or closing cost help as long as they don't own any other … [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...]
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...]
What is PMI? Ask the Experts – Adolphus Hawkes Realtors
What is PMI? When you buy a house there are four key cost components that are included into your monthly mortgage payment. The four components are commonly referred to as “PITI”. PITI includes the (P) - principal amount of the mortgage, (I) Interest on your new mortgage, (T) county taxes and (i) insurance. Now, we will now explain how… and when PMI is added to your monthly mortgage.If you cannot afford to make a 20 percent down payment on a conventional loan - PMI, or private mortgage insurance protects your lender from loss in case of default. Having private mortgage insurance will allow you to make a significantly lower down payment than the required 20 per cent, and still obtain a traditional conventional financing.You could be eligible to cancel your PMI coverage if specific lender guidelines are met, e.g., having no late payments and the overriding factor - having built at least 20 percent equity. You build equity quickly when… and if your property value increases or, if … [Read more...]
First Time Home Buyers with bad credit
First Time Home Buyers with bad credit should know their FICO score early on in the home buying process. This is one of the most important steps when investing in a home. Understanding your FICO score and obtaining a pre-approval letter from a reputable lender will greatly enhance your chances of obtaining loan approval or commitment....Your lender will determine your buying power and maximum loan amount! A mortgage lender will first start with a preliminary credit check. This process could be added to an automated underwriting system to determine any loan conditions prior to determining your buying power. Your estimated loan amount will then be computed based on your credit worthiness.First Time Home Buyers with bad credit - As a first time home buyer should talk to a mortgage lender or search online for your FICO credit score early in the process. A free credit score can be obtained from www.annualcreditreort.com. This site will provide your credit score and a report for a fee. … [Read more...]
April – 2014 Housing Trends eNewsletter
The April - 2014 Housing Trends eNewsletter ....Welcome to the most current Housing Trends eNewsletter. This eNewsletter is specially designed for you, with national and local housing information that you may find useful whether you’re in the market for a home, thinking about selling your home, or just interested in homeowner issues in general. The Housing Trends eNewsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.Please click here to view the APR-2014 Newsletter Housing Trends eNewsletter.If you are interested in determining the value of your home, click the Home Evaluator link for a free evaluation report. … [Read more...]
Shopping for a Mortgage
If you are shopping for a mortgage be aware of scrupulous loan officers. Shopping for a mortgage can be a very tricky and stressful situation without the right information and guidance from a professional Realtor to assist you in your search or offer a referral contact. When shopping for a mortgage always inquire about any hidden costs or fees that may be associated with the mortgage and charged to you at closing. According to an article by Mr. Kenneth R. Harney posted under the “The Nations Housing” article in the Washington Post on August 3, 2013, there is another issue you must protect yourself against. It’s called upselling, where the mortgage lender steers you into higher cost loan programs with terms that increase the lender’s profits and cost you more at closing. Although mortgage lenders used upselling during the housing boom years, they have been dormant until recently.Mortgage lenders usually charge discount points, loan origination, or other hidden fees to process your … [Read more...]
Cash Short Buyers
Mortgages News for cash short buyers.....Cash short buyers can look to the United States Department of Agriculture (USDA) - Rural Housing. The USDA – Rural Housing for 100% financing to purchase a home. This is a terrific program for cash short buyers to consider when buying a home....it is truly 100% financing.The #1 item to keep in mind is that the property does not have to be in a rural area at all in order to be eligible – the property does not have to be “way out in the country” somewhere. For instance, in Prince George’s County, most or all of the Marlton community is eligible…..also, parts of Brandywine and pockets of Accokeek.To see if a particular home is eligible for this program, click on the link below, and simply type in the full address of the property and, in a matter of seconds, it will tell you if the house is eligible or not.http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.doSellers - if you have a home that is located in an area that might be … [Read more...]
Mortgage News
Mortgage News you can use to help you purchase a home ! BB& T announced changes to Community Homeownership Incentive Program (CHIP) – The latest mortgage news updates this program that now requires a 3% down payment. Private mortgage insurance is waived. First-time home buyers and previous homeowners are eligible; however, income cannot exceed 80% of county median income.Wells Fargo Programs - Community Development Mortgage Program (CDMP) is 2% down payment (including gifts and funds from approved sources). No mortgage insurance required. Income must be below 80% of area median and borrower does not have to be a first-time buyer. Seller contributions up to 3%.Neighborhood Community Development Mortgage Program (NCDMP) require a 5% down payment (includes gifts and funds from approved sources). No mortgage insurance required. Borrower does not have to be a first-time buyer, but must purchase in a low-to-moderate income census tract. Reserves required … [Read more...]
Streamlined Loan Modification
Freddie Mac has announced a Streamlined Loan Modification that should provide an efficient way for borrowers to avoid foreclosure and remain in their home. The Freddie Mac Streamlined Modification program is a temporary initiative that provides severely delinquent, eligible borrowers an opportunity to avoid further stages of delinquency quickly and without documentation. The Streamlined Loan Modification enables Freddie Mac Servicers to modify a borrower’s mortgage by adjusting interest rates, extending payment terms to 40 years, and providing principal forbearance for certain underwater borrowers.Some of the key features of the Streamlined Loan Modification include the same terms as the Freddie Mac Standard Modification program. Freddie Mac introduced an alternative to foreclosure that targets severely delinquent borrowers and eliminates the requirement for borrowers to submit a Borrower Response Package. The Streamlined Loan Modification offers a trial period plan in … [Read more...]
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