FHA Increase in MI and UFMIP for new loans after April 9. 2012

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Effective today April 9, 2012 the Monthly and Up-Front FHA Mortgage Insurance has gone up. On a $200,000 loan amount the payment goes up $24.65. Below is a chart that shows what the premiums are for your information. If you … Continue reading

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UTAH Housing Finance Agency – Now allows for 2nd Time Home-buyers with lower FICO Scores

Utah Housing Finance Agency has now published their guidelines which lowers FICO scores to 620. Below is a comparison chart for the current program and the new “HomeAgain” program. Many families who have owned a home are now eligible with up to 100.5% in total financing. We don’t believe there will be any other variance as far as UTHC underwriting guidelines.

Utah Housing Corporation Loan Programs

Utah Housing provides second mortgages to current and previous homeowners, as well as first time homebuyers, for the down payment and closing costs required to purchase a home. To see if you qualify, contact a Utah Housing Approved.

 

Program Comparison

FirstHome HomeAgain Score
Status First time homebuyer (exceptions for Veterans and Single Parent) Previous homebuyers and first time homebuyers
Down Payment Assistance yes 6%
of the first mortgage amount can be borrowed for down payment and closing costs.
yes 6%
of the first mortgage amount can be borrowed for down payment and closing costs.
yes 4%
of the first mortgage amount can be borrowed for down payment and closing costs.
Minimum Credit Score 660 660 620
Foreclosure borrowers with a previous UHC foreclosure are not eligible
Max Sales Price Limit $250,000 $320,000 $250,000
Annual Income Limits $57,300 $81,000 $81,000
Where to Qualify SOLARUS Lending / Marc Johnson
Ratios Lender discretion debt ratio not to exceed 45%
Term 30-year fixed rate FHA/VA approved mortgage
Rental Restrictions No portion of the property can be rented throughout the term of the UHC mortgage.
Multiple UHC Mortgages Borrowers are not eligible if they have an unpaid UHC mortgage.

 

Down Payment Assistance Second Mortgage

30-year fixed rate second mortgage Interest rate is 2% higher than the first mortgage rate

If you have any questions contact me at (801)792-7777
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How to Get a Mortgage Loan for Non-Citizen Borrowers (FHA)

FHA financing is available toborrowers who have legal residence in the U.S. 

The two categories of legal residents are:

  • Permanent Resident Aliens
  • Non-Permanent Resident Aliens

Permanent Resident Aliens

 

  • Provide valid Social Security Number
  • Provide copy of the Alien Registration Receipt Card (Resident Alien Card), I-551 OR

 

  • Unexpired foreign passport with an I-551 stamp

Non-Permanent Resident Aliens

  • Provide valid Social Security Number
  • Provide EAD (Employment Authorization Document) issued by the U.S. Bureau of Citizenship and Immigration Services (BCIS), formally the INS.  Typical EAD documents for non-permanent resident alienswould be a type of visa:
    • H1B – Specialty Occupations
    • H3 – Trainee
    • L1 – Intra Company Business
    • E3 – Specialty Occupations / Australians
    • O1 – Extraordinary Ability
    • O2 – Essential Support

NOTE:  Borrowers residing in the U.S. by virtue of refugee or Asylee/Refugee status granted by BCIS are automatically eligible to work in the U.S.  An EAD is not required.  


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6 Steps to Buying a Home

Are you ready to buy a home? Director Barry Zigas of housing policy for Consumer Federation of America suggests that if you’re a first time home buyer or an experienced owner, buying a house requires a “preflight check”, here is the list:

1. Strengthen you credit score. There is one rule that applies, the higher your credit score, the lower your down payment and monthly payments. The minimum FICO that lenders are looking at is a range of at least 640 to 680. Very few lenders will lend in the 580 to 640 range unless you are a first time home buyer and meet very ridged underwriting requirements. If you have a score of 700 to 720 you will get a good deal. 760 and above is where the best deals are. Improve your chances by pulling your credit at www.frecreditreport.com to see what is on your credit report. Do not open any new credit one year before you apply for financing and make sure your credit cards are near zero balance (not paid completely will give you a better score.)

2. Figure Home much house you can afford. I believe you should buy a home that you feel comfortable with the payment. There are various rules of thumb like your payment should be 31% of your gross income but with some mitigating factors you can go higher. FHA is the most lenient in this area and 1/5 of the buyers use this great program. For conventional loans it’s safe to use 28%. It’s a good idea to “try on your payment” by taking the old payment amount and putting the difference from the new payment in the bank. This also allows you to save some money but also allows you to “back away from it” or scale back your payments if it feels to high.

3. Save for a down payment and closing costs. Depending on your credit and financing you will have to save between 3.5% down to 20% down. If you are a Veteran you do not need a down payment and there are some other programs for first time home buyers. Generally these are specific but if you Google city name, county along with “down-payment assistance”, “first time home buyers”, you can find available funds for the down payment. Another expense is the closing costs which can range from 3% to 4% depending on your loan amount. Today sellers are willing to pay these costs but if you can pay costs yourself you can typically negotiate a lower overall price on the home.

4. Build a healthy savings account. This is over and above the money you will use to purchase your home. You can use money that is in a retirement account for this additional cushion. This will assist you in getting a higher loan amount and take care of unforeseen repairs that may catch you by surprise. It’s a good idea to plan on setting aside money for repairs and general maintenance of around 2%. So on a $200,000 loan, setting  aside $400 will generally take care of most costs.

5. Get preapproved for a mortgage. This is a must for home buyers. The best thing you can do is sit down with your mortgage advisor and get your financing in place. The approval process is much more intensive that it has been over the last 10 years but don’t be frightened, it’s not much different than it was 20 to 30 years ago. You will need to have documentation such as 2 months bank and savings account statements, 401k or retirement and investment statements, 2 years of tax returns and W2’s (if you’re self-employed or own a business there is more documentations you will need) and the last 30 60 days of current paystubs. If you have properly documented your loan from the beginning, you will find the approval process very easy.

6. Buy a house you like. It used to be you could buy a home and in 5 years sell it if your circumstances changed or your family grew or you just got tired of the neighborhood. As we have seen over the last 5 years, home prices have made it difficult to quickly sell your home. Make sure you really like the home you are buying!

For more information, please don’t hesitate to contact me.

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Beware of Facebook Hackers

I was sitting at my computer last Saturday and I got a pop up message form my good friend Brandi. She said she had gone to England, got mugged and could I send her 2000$ to 27 Henrietta St UK. WHAT….STOP….Is this real!!!! Then they tried to hijack my Facebook by having me verify the information on a page that looked as though it WAS from Facebook
It’s a scam!!! Somehow her Facebook page had been hijacked by scammers so here are 18 things to spot and avoid Facebook Scammers

  1. Change your password once a month
  2. If you think you’re being scammed, go to the ACTION tab and “report conversation”
  3. If someone posts a video on your wall and says “Is this you”? It usually is a hacker moving you away from Facebook to another page
  4. Watch out for pop ups that pose as fake login pages that suddenly ask you to verify you login and password – that’s how they hack into your Facebook.
  5. Don’t ever…ever give out personal information.
  6. Just be careful what you click on. Seems like a dumb idea but you can tell!!!!
  7. Avoid taking I. Q. Tests and entering your cell number…you’ll have a charge on your phone bill. If that happens call your service provider immediately.
  8. Watch out for cool videos – they can lead you to malware sites. Some versions impersonate Facebook pages
  9. Who view my Profile viewers and Profile Blocker are scams that promise to show you who’s been looking at your profile…don’t trust them!
  10. Free iPad & iPhones if you test and keep and iPad or iPhone. These are marketing gimmicks and if it sounds to be true I think it is. BEWARE
  11. Free Facebook Credit – these are for gamers of Farmville, Cityville, etc, Credit cost real money and when you send you credit card info – you receive nothing
  12. Shocking & Sexy Headlines – Anything that starts out with “OMG” or “Shocking” is best left alone on Facebook. They lure you into steamy or perverted messages.
  13. I’m stranded and need money (Like the one I had last Saturday). Double check with you friend.
  14. Make sure that your Browser is up-to-date…they can detect Phishing scams sometimes.
  15. Clickjackers on Facebook entice users to copy and paste text into their browser bar by posting too-good-to-be-true offers and eye-catching headlines.
  16. If you click on an ad or a link that takes you to a questionnaire on a site outside Facebook, it’s best to close the page. When you complete a fake quiz, you help a scammer earn commission. Sometimes the quiz may ask you to enter your mobile number before you can view your results. If the scammers get your number, they could run up charges on your account.
  17. Phishers go after your username, password and sometimes more, then take over your profile, and may attempt to gain access to your other online accounts. Phishing schemes can be difficult to spot, especially if the scammers have set up a page that looks just like Facebook’s login page.
  18. Malicious pages, groups or event invitations aim to trick the user into performing actions that Facebook considers “abusive.” For instance, a fake invite might offer a prize if you forward it to all your friends or post spammy content on their walls. Sometimes a scammer will set up fake pages as a front for a clickjacking or phishing scheme.

These are just a few things I’ve learned about Facebook security and I hope it help you.

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Did you Know – VA Loans Are Assumable and This Is Not Just for Veterans

Veterans Affairs loan assumptions are not restricted to veterans who have VA eligibility?
Anyone can assume a VA loan if they meet the occupancy, credit and income requirements required by the VA if-

• The new prospective homebuyer must apply for a loan assumption with the current “servicer” lender of the underlying mortgage.
• The servicing lender may charge a processing fee.
• The new borrower, if approved, will be charged a .5% funding fee on the balance of the current loan.
• If the assuming borrower is not a veteran, the current veteran borrower’s eligibility will remain with the loan to insure the VA Guaranty. The current veteran borrower will not be able to use that portion of their eligibility until that debt is paid off.
• If the assuming borrower is a veteran, they can substitute their own eligibility for the current veteran borrower’s, allowing the current veteran borrow to have their entire eligibility restored.
• If a non-veteran assumes a VA loan and defaults on that loan, the portion of the eligibility that was used to insure that loan will be unavailable to the original veteran borrower until the paid claim debt is paid off to VA.

This can be a great not-so-well known topic to mention w/ your agents… you might even want to ask them in this (or the next subsequent follow up- I call that “Columbo Style”) conversation to check their listings and offer the option as an additional way to generate leads. With interest rates HISTORIC LOWS there will likely be many VA loans with great rates out there, now and going forward.

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On a Short Sale…How long do I have to wait to buy a home?

I get asked that question all the time. Because a short sale is treated like a foreclosure. In most cases the waiting period is 3 years.

However there can be an exception of less than 3 years as long as there have been no late payments during the time the borrower had the loan (including during the short sale process). There is generally at least a 1 year minimum required.

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Great Window of Opportunity

You may have heard that home loan rates have improved and are back down to near historic levels. In fact, I’ve been slammed with emails and phone calls from people just like you who wanted to take advantage of this wonderful situation.

But you need to keep the following in mind…

While some people say good things come to those who wait, others say to strike while the iron is hot. In this case, the “iron is hot” with rates at exceptionally low levels. And while weak economic reports here in the U.S. and the economic crisis in Europe are two of the main reasons rates have improved recently, signs of inflation are beginning to creep into our economy–and that never bodes well for home loan rates. That’s why it’s more important than ever to act now.

It will only take a minute–give me a quick call so we can look at your situation. It doesn’t cost anything to check it out, and the choice of moving forward will be up to you. Don’t miss this window of opportunity to save significantly on your monthly budget.

I look forward to hearing from you!

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