There’s been a lot of rhetoric coming from both sides of the congressional aisles these days; from Democratic and Republican parties and even a few in between. But recently the media has begun reporting government shutdown fallacies as facts. I’ve stayed out of this very heated political discussion for obvious reasons, but when a client recently sent me this article Shutdown impact: Tourists, homebuyers hit quickly from of all places the Associated Press, I just had to respond.
A lot of clients want to know why they should get pre-qualified for a mortgage? It’s a good question! Hi, my name is Jenny Miller with AES Lending. Let’s look at pre-qualification another way.
What Is an FHA 203k Loan?
This loan can help you buy and repair a fixer-upper or what is sometimes called a Handyman special
FHA 203k loans are loans that are insured by the Federal Housing Administration The federal government designed these loans to encourage lenders to fund seemingly risky home purchases. Risky, because they are homes that either don’t meet HUD standards for occupancy and are in need of major renovation or simply need some updating but the updates are causing the homes to fall short of market expectations.
There are two types of FHA 203(k) Rehab loans.
Private Mortgage Insurers leading the way in housing recovery
One of the earliest indicators of the housing meltdown which began in 2007 was that issuers of Private Mortgage Insurance (PMI) began to contract their underwriting guidelines for issuing PMI policies. In fact, so bad was the meltdown that many PMI companies either stopped issuing policies altogether while some were even forced file for bankruptcy protection. Continue reading Private Mortgage Insurance helps lead the way in the Housing Recovery
Market Commentary – Tue, Feb 14 – 10:46 AM ET The Commerce Department reported this morning that consumers spent a little … More Market Commentary Feb 14 – 2012
What Private Mortgage Insurance and why do I have it?
Years ago when your grand parents bought a home they saved each extra penny they could until they had enough for a down payment that was equal to at least 20% of the price of their dream home.
More likely your grand father was likely was returning veteran of WWII or the Korean War and then they used their entitlements benefits under the GI Bill and probably bought their firs home with a VA loan with no money down.
For the rest of us who can’t put together a tidy sum of 20% in cash for a down payment on a home which in Raleigh could be as much as $35,000 there’s Private Mortgage Insurance (PMI).
Private mortgage insurance exists in a variety of forms.
Here is an example of just a the most common;
Because of the plethora of natural disasters across the country it occurred to me that there may be a lot of Buyers and Sellers whose purchase or sale or mortgage refinance has been delayed for reasons they simply do not understand.
This post is intended to be an overview of what additional inspections and verification a homeowner or seller can expect in the mortgage application process for a home in a declared disaster area. Continue reading FEMA Declared Disaster Area – Loan Application in Process
FHA – Requires terms of withdrawal on all 401K funds that are provided even if the funds are not … More Underwriting Tip – Verification of 401(k) funds