I've been in the mortgage business for over 20 years and I'm pretty sure that I've never seen a time when home ownership was more affordable than it is right now. These are interesting times with a lot of distressed real estate flooding the market but these properties provide unique opportunities for home buyers. The availability of rehab money through Fannie Mae Homepath, NH Housing and FHA, means that you can get the money to replace the roof or the heating system or reside the house or remodel the kitchen or replace the flooring. You can buy a distressed property at a low price, get the money to fix it up and fix it up the way you want it. What a deal!
Just closed a loan for a nice guy who purchased a single family home for $110,000. Because the house appraised for more than the sales price, we were able to roll in the cost of some repairs that needed to be done. The borrower's only out of pocket expense for the loan was the cost of the appraisal -- $400! He even got back his $1000 deposit at closing! And the best part is his monthly payment is only $916/month including property taxes & insurance! That's way better than rent. And he owns a 3 bedroom home with a yard for his children!
There's another one where the house was listed for $129,900. The borrower offered full price with the seller paying $7000 toward closing. This resulted in the borrower needing just under $1500 total for down payment and closing costs. She was able to get $30,000 in rehab funds to freshen up the house and remodel the kitchen. Her monthly payment -- including tax & insurance - just $1,159/month.
Rates are low - House prices are low - required down payments and cash needed to close is very low (sometimes zero) - now is the time to be considering a purchase of real estate. If you believe in the old adage 'Buy low and sell high then you have to be thinking that now is the time to buy. Once the excess inventory of distressed properties is aborbed, the real estate market will be able to start to gain in value. Do your part to keep things rolling. Consider buying a distressed property today. Call me or write to find out more about the opportunities available.
Visit my website at www.NHmortgages.com for more mortgage facts and figures.
Friday, October 22, 2010
Friday, October 15, 2010
It's so easy to fall in love...
You will fall in love with Sherwood Glen as soon as you visit this awesome 55+ condominium. And now to make things sweeter, Sherwood Glen approved for FHA financing thanks to the Amazing Loan Lady, Renee Duval. FHA loans have a low down payment of only 3.5% ! FHA is not limited to first time buyers and there is no income limit for this program.
When a condo is FHA approved, it also qualifies for RD (Rural Development) financing which means you can purchase the home with no down payment! So now that Sherwood Glen is approved by FHA, buyers can also use RD financing to purchase with no down payment at all! RD does have income limits.
Now that Sherwood Glen is FHA approved, a first time buyer could purchase a home here using NH Housing which offers low, low interest rates! Currently they offer 3.5% fixed rate (1 point paid at closing). NH Housing does have income limits.
If you are over 55 and would the convenience of condominium living in an excellent location, Sherwood Glen may be the place for you!
If you live in a condominium neighborhood that is not currently approved by FHA (Federal Housing Administration) or if you are a REALTOR who has a listing in a condo that is not FHA approved, contact Renee Duval to get approval process started.
When a condo is FHA approved, it also qualifies for RD (Rural Development) financing which means you can purchase the home with no down payment! So now that Sherwood Glen is approved by FHA, buyers can also use RD financing to purchase with no down payment at all! RD does have income limits.
Now that Sherwood Glen is FHA approved, a first time buyer could purchase a home here using NH Housing which offers low, low interest rates! Currently they offer 3.5% fixed rate (1 point paid at closing). NH Housing does have income limits.
If you are over 55 and would the convenience of condominium living in an excellent location, Sherwood Glen may be the place for you!
If you live in a condominium neighborhood that is not currently approved by FHA (Federal Housing Administration) or if you are a REALTOR who has a listing in a condo that is not FHA approved, contact Renee Duval to get approval process started.
Saturday, October 2, 2010
203Ks rehab loans in New Hampshire
Merrimack Mortgage Company will be offering, through NH Housing Finance Authority, an FHA rehab program. If you are considering the purchase of a home that is in need of repair, this may be the program for you. The program will allow you to receive up to $35,000 after the closing to complete repairs. With nearly 25% of all home sales being properties that are considered distressed, this is an awesome opportunity!
The benefit of this combination is that a borrower can now purchase a home and receive rehab funds with an initial investment of as little as 1.5% of the acquisition cost of the property (acquisition cost is the sales price + the requested rehab funds). In order for this to occur, the borrower will take advantage of a 2% grant available through the state and use that money for down payment (the required down payment for FHA is 3.5% but the 2% grant can be used for down payment leaving the borrower to need only 1.5%) and the borrower needs to negotiate for the seller to pay all of his/her/their closing costs. Another benefit is that NH Housing offers a lower interest rate than the regular FHA program. Please contact us at AmazingLoans@NHmortgages.com for more details. We would be happy to forward full program specifications.
NH Housing does have income and sales price limits and is restricted to first time buyers in most communities (but not all). These limits are posted on our website for your review (look under programs and then under NH Housing).
For buyers who are not eligible for NH Housing, FHA does not have income limits nor is it limited to first time buyers.
WWW.AmazingLoanLadies.com
The benefit of this combination is that a borrower can now purchase a home and receive rehab funds with an initial investment of as little as 1.5% of the acquisition cost of the property (acquisition cost is the sales price + the requested rehab funds). In order for this to occur, the borrower will take advantage of a 2% grant available through the state and use that money for down payment (the required down payment for FHA is 3.5% but the 2% grant can be used for down payment leaving the borrower to need only 1.5%) and the borrower needs to negotiate for the seller to pay all of his/her/their closing costs. Another benefit is that NH Housing offers a lower interest rate than the regular FHA program. Please contact us at AmazingLoans@NHmortgages.com for more details. We would be happy to forward full program specifications.
NH Housing does have income and sales price limits and is restricted to first time buyers in most communities (but not all). These limits are posted on our website for your review (look under programs and then under NH Housing).
For buyers who are not eligible for NH Housing, FHA does not have income limits nor is it limited to first time buyers.
WWW.AmazingLoanLadies.com
Friday, January 29, 2010
Love that dirty water! Recycling waste water...
Private septic systems are a way to recylce waste water and reintroduce it, all cleaned up, into the ground water. There's a science to it. I grew up in a neighborhood where all the houses had private septic systems and it never was a problem for us. Many of the homes I finance for people today have a private septic system. This blog is meant to provide info to potential homeowners considering a home with a private septic system. For info on mortgage programs and general information on the home purchasing process, check out my website at www.NHmortgages.com
If you are considering purchasing a home that has a private septic system, you need not be afraid. A properly functioning septic system will take waste water and recyle it into clean water. Never the less, it’s good to be cautious and have a septic evaluation to make sure the system is operating properly.
Unless there is obvious evidence that the septic system is failing, most lenders do not require a septic evaluation. Some mortgage programs do have requirements that a septic system and well be 100' apart from one another.
I have a business associate,Geoffrey Fossett, who is a GSDIA Certified Evaluator of septic systems and a NH DES permitted installer. He owns Downeast Construction Systems in New Hampshire and services the greater Concord area and the Lakes Region. Geoff's materials and workmanship are guaranteed unconditionally. His phone # is (603) 319-4533.
Buying a house with a septic system? Read about some of the things you should consider. Check out this link from the State of NH... http://des.nh.gov/organization/commissioner/pip/factsheets/ssb/documents/ssb-6.pdf
If you are considering purchasing a home that has a private septic system, you need not be afraid. A properly functioning septic system will take waste water and recyle it into clean water. Never the less, it’s good to be cautious and have a septic evaluation to make sure the system is operating properly.
Unless there is obvious evidence that the septic system is failing, most lenders do not require a septic evaluation. Some mortgage programs do have requirements that a septic system and well be 100' apart from one another.
I have a business associate,Geoffrey Fossett, who is a GSDIA Certified Evaluator of septic systems and a NH DES permitted installer. He owns Downeast Construction Systems in New Hampshire and services the greater Concord area and the Lakes Region. Geoff's materials and workmanship are guaranteed unconditionally. His phone # is (603) 319-4533.
Buying a house with a septic system? Read about some of the things you should consider. Check out this link from the State of NH... http://des.nh.gov/organization/commissioner/pip/factsheets/ssb/documents/ssb-6.pdf
Wednesday, January 13, 2010
Staying Warm in New Hampshire
It's cold out there this winter. If you'd like to stay warm this winter for less money, check out the website www.staywarmNH.org This Web site is designed to help you take practical steps to conserve energy so that you can lower your heating bills, and to connect people with assistance if you or someone you know needs help paying your heating bills.By using some of the energy-saving tips on this Web site, you can save on your heating bills now and into the future.There are also several programs that are available to help you upgrade your home to make it more energy efficient in cold and hot weather.If you are buying a home, it may be possible to finance the cost energy efficiency items like new windows, insulation, and/or a new furnace. Call us at (603) 225-LOAN (5626) or e-mail us at Blog@NHmortgages.com to inquire into these programs. If you already own a home, you may be able to refinance for similar types of improvements. Check out our website at www.NHmortgages.com and STAY WARM!!
Friday, December 11, 2009
FHA Changes that Affect Condos
Effective Feb 1, 2010, the way condos are approved by FHA will be changing. First, the lender will be required to recertify certain information on condos that are already approved by FHA and appear on the FHA approval list. Here are some of things lenders will need to verify: 1) no more than 10% of the units are owned by a single investor; 2) no more than 15% of the units are behind (in arrears) on their condo fee; 3) at least 50% of the units must be owner occupied; 4) no more than 30% of the units can have an FHA loan; 5) the budget must have adequate reserves 6) the condo must be properly insured; 7) there can be no pending litigation against the condo; 8) pending special assessments must be analyzed
For condos that have never been approved before, the process of getting a condo approved is actually simplified under the new rules. To get a condo approved by FHA the loan officer will have to gather the condo docs, budget and other supporting documentation and submit it to the HUD office in Philadelphia for approval. Items 1 - 8 mentioned in the previous paragraph all appy.
We are happy to assist in getting condos approved in our market where we are licensed to lend (NH, Mass & Maine). Call us with all of your condo questions.
Contact the Amazing Loan Ladies at NHmortgages.com
For condos that have never been approved before, the process of getting a condo approved is actually simplified under the new rules. To get a condo approved by FHA the loan officer will have to gather the condo docs, budget and other supporting documentation and submit it to the HUD office in Philadelphia for approval. Items 1 - 8 mentioned in the previous paragraph all appy.
We are happy to assist in getting condos approved in our market where we are licensed to lend (NH, Mass & Maine). Call us with all of your condo questions.
Contact the Amazing Loan Ladies at NHmortgages.com
Saturday, November 21, 2009
Higher Credit Scores on the Horizon
It used to be we could do a loan for anyone with a credit score of 500 or more. Currently the minimum required credit score for Merrimack Mortgage Company is 620. Most of the other mortgage companies in our area are also requiring a minimum score of 620 -- or higher! That's right some have already gone to a minimum of 640!
Rumor on the street is that a 640 minimum is just around the corner and will soon be the standard.
As it turns out, at least 50% of the people who inquire (at our branch) into a first time homebuyer loan do not currently meet the 620 minimum score. We have dozens of people/couples we are coaching to help them raise their scores to the minimum of 620. We have issued preapprovals to dozens more who have credit scores between 620 and 640. So if the minimum score goes up to 640, all of these files will need to be reworked.
The good news is that everyone can have a good score with a little work! So if you are below 620 (or even 640), do the things you need to do to get your score where it needs to be. Here are some helpful hints:
1) You should have a minimum of 3 open and good trade lines. If you don't then apply for credit now and get those 3 minimum tradelines on yoru report.
2) You should have no late payments on anything in the past 12 months. Been late recently? Do what you can to pay on time each and every month!
3) Keep your balances on credit cards close to 50% (or less) of the credit limit. That's how you get a better score. People who are maxed out have lower scores.
4) Do not open any new accounts -- unless you have less than three tradelines.
5) Do not close any accounts -- unless you have way too many. Try to close newer accounts in this case and keep older accounts open. The longer the account has been open, the higher your score is!
6) Pay off all non-medical collection debt, past due amounts, judgements, etc.
7) For medical payments, be sure to negotiate unpaid balances to a zero balance or make payment arrangements. You can't just leave outstanding balances hanging out there. You need to work with the providers so you don't have medical collections on your report. These drive the score down.
8) Contact the Amazing Loan Ladies at www.NHmortgages.com for more help with your credit report if you are in NH, Mass or Maine.
Rumor on the street is that a 640 minimum is just around the corner and will soon be the standard.
As it turns out, at least 50% of the people who inquire (at our branch) into a first time homebuyer loan do not currently meet the 620 minimum score. We have dozens of people/couples we are coaching to help them raise their scores to the minimum of 620. We have issued preapprovals to dozens more who have credit scores between 620 and 640. So if the minimum score goes up to 640, all of these files will need to be reworked.
The good news is that everyone can have a good score with a little work! So if you are below 620 (or even 640), do the things you need to do to get your score where it needs to be. Here are some helpful hints:
1) You should have a minimum of 3 open and good trade lines. If you don't then apply for credit now and get those 3 minimum tradelines on yoru report.
2) You should have no late payments on anything in the past 12 months. Been late recently? Do what you can to pay on time each and every month!
3) Keep your balances on credit cards close to 50% (or less) of the credit limit. That's how you get a better score. People who are maxed out have lower scores.
4) Do not open any new accounts -- unless you have less than three tradelines.
5) Do not close any accounts -- unless you have way too many. Try to close newer accounts in this case and keep older accounts open. The longer the account has been open, the higher your score is!
6) Pay off all non-medical collection debt, past due amounts, judgements, etc.
7) For medical payments, be sure to negotiate unpaid balances to a zero balance or make payment arrangements. You can't just leave outstanding balances hanging out there. You need to work with the providers so you don't have medical collections on your report. These drive the score down.
8) Contact the Amazing Loan Ladies at www.NHmortgages.com for more help with your credit report if you are in NH, Mass or Maine.
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