Real Estate Financing – First Time Home Buyers and FHA Mortgages – RealEstateMarketingThisWeek.com

September 2, 2010 by admin  
Filed under Real Estate Financing

realestatemarketingthisweek.com – 80% of homes can be purchased with FHA Financing – Part 4 – You also talked about this graph you put together, it talks about the month of November was a 25% increase over the previous year. Obviously prices have gone down and it looks like it then has gone back up, and so once we finish selling off this inventory there is a good chance that were going to be finding or hitting the bottom. I think just in that region of $150000 to $200000 region that prices have really stabilized at this point, they may go down a little bit more, but I think for the most part, because that is where the financing is right now, with the FHA and the conforming loan limits, anybody in that price range can still get a loan. If youre looking to buy something over $400000 youre going to have a lot more trouble just because the financing is not available. Well the financing is a lot more difficult over the $417.000 loan amount number. Luckily Velocity Financial still has some of the interim small jumbo financing available, still with decent rates and the larger jumbos there is still financing available but nothing like this median home price of $275000 and below. Well and I think what that goes back to, specifically with the FHAs, because, what percentage of the closing costs can be contributed by a seller on an FHA loan? Its pretty high right? FHA financing, the Federal Housing Administration has had a standing rule for quite some time that the seller can

Read more

Real Estate Financing : How to Get a First Time Home Buyers Grant

September 2, 2010 by admin  
Filed under Real Estate Financing

To get a first time home buyers grant, contact a local government development program, fill out a grant application, take the paperwork to a mortgage lender and using the grant to help with the house down payment. Find out the terms of a home buyers grant with advice from amortgage specialist in this free video on real estate. Expert: Stetson Lowe Contact: stetsonlowe.typepad.com Bio: Stetson Lowe is a credit repair expert. Known as the “mortgage insider,” Lowe assists increasing credit scores for the most challenging of clients. Filmmaker: Paul Kersey

Read more

Real Estate Financing – Seller paid Closing Costs with Low Down – RealEstateMarketingThisWeek.com

September 2, 2010 by admin  
Filed under Real Estate Financing

realestatemarketingthisweek.com – How having the Seller pay your closing costs can quadruple your money – Part 2 – On the other hand if you roll that into the loan it’s going to take you 160 months to break even on that. 160 months which is a little over 13 years, that is the antithesis of the Velocity of Money that we talk about on the show every week, so I am not convinced that its the right deal for the masses, but something that should be considered is what is the opportunity cost of taking the money out of Account X and the type of account you taking it out of has some impact too. If it’s from a brokerage account then you experience the market loss in that account and youre selling at these low price levels, I think the markets are going to turn and the opportunity costs over 160 months, youre talking about a substantial amount of money. And the additional mortgage payment is insignificant. Obviously no one is going to allow you to pay more than the house is worth, that’s not what were suggesting. What were suggesting is merely to look at instead of simply making a lower offer than you would normally make, I’m suggesting that you consider the closing costs and what the real closing costs are in this example. Assuming that the house is already attractively priced, one of the things that this buyer in this example should consider instead of making a lowball offer on a house that’s already priced rather attractively in this marketplace, it might make sense to consider

Read more

Real Estate Financing : About HUD Homes

September 2, 2010 by admin  
Filed under Real Estate Financing

HUD homes are homes that have been acquired by a secured HFA loan, when the homeowner defaults on the loan and the house becomes the property of Housing and Urban Development. Find a real estate agent familiar with HUD housing using advice from amortgage specialist in this free video on real estate. Expert: Stetson Lowe Contact: stetsonlowe.typepad.com Bio: Stetson Lowe is a credit repair expert. Known as the “mortgage insider,” Lowe assists increasing credit scores for the most challenging of clients. Filmmaker: Paul Kersey

Read more

Non Conventional Real Estate Financing

September 2, 2010 by admin  
Filed under Real Estate Financing

Unquestionably real estate is a big money business. If you are a quick turn real estate entrepreneur determined to be in the game for the long haul, it should not involve your money, however. Understanding financing is an important part of playing the game of real estate well and of designing an enduring business.


The most commonly conceived mode of real estate financing is conventional. This typically means a 30 year mortgage acquired through a mortgage broker or institutional lender. This subject is mainly important for your buyers, or for you if you also work as a loan officer.


There’s really no good reason you should use conventional financing yourself, with all of the tricks you should know. The exception might be if you are a portfolio investor and are refinancing your properties, or if you are purchasing commercial properties. Generally, the best way to take out conventional financing is any way but in your own name. Qualification is based on the borrower’s income, assets, and credit profile, and requires a personal guarantee of repayment. There are much better positions you could be in as an investor.


The alternative financing methods might be referred to as nonconventional. These would include the methods of raising cash traditionally used by investors, generally known as hard money and private money. Hard money is typically intended for the acquisition of rehab properties. It has a high interest rate, a low loan to value ratio, and usually a short term balloon note of six months or a year.


Private money just means money borrowed from a private individual, and can come from a person’s savings or retirement fund, according to whatever terms you negotiate. Qualifying for these types of financing doesn’t necessarily involve your credit profile or financial status, but rather the terms and quality of the deal and your relationship with the lender. To acquire them you will have to present a deal to the lender that they will feel safe investing in.


There is a third category of financing, which might be called creative financing and which consists of other types that don’t fit into the previous two categories. One example is subject to financing, which is just the lingo for taking over the existing payments when you take control of a property.


You will acquire the property by deed and bring and keep the mortgage payments current, but the loan will stay in the name of the original borrower. This is basically the safest form of financing ever invented.


A second type of creative financing is seller financing, where the seller of the property carries back a mortgage. This may only be used to partially fund the transaction, perhaps as a second mortgage, or the seller may carry everything but the down payment. And finally, some investors now teach about how to obtain and use business lines of credit for real estate investing purposes. Capital in the form of business lines of credit and business loans is readily available to all new businesses with effective leadership.


Don’t consider this article exhaustive, because new techniques of financing are always waiting to be invented. This is an area of real estate where cleverness and creativity can unlock many doors.

Omar Johnson is a successful real estate investor and author of the home study course “Secrets To Making Big Money In Real Estate With Little Cash and No Credit” For more info visit http://www.gettingrichinrealestate.com

Real Estate Financing – FHA Mortgage and First Time Home Buyers – RealEstateMarketingThisWeek.com

September 2, 2010 by admin  
Filed under Real Estate Financing

realestatemarketingthisweek.com – The old rules no longer apply and Suze Ormond should know that. – Part 7 – We have Dan Havey the author of Real Estates Future in the studio today. Michael, I was just curious, back when I got into the industry many, many years ago there used to be a rule of thumb that if you were going to refinance you had to lower your interest rate by at least two percent and I know as time went along and products changed that really became unnecessary, but I am just curious in todays mortgage market its a lot different than we were dealing with even two years ago. Is that still true that there is a 2% rule? Whats going on now? I happened to catch Suze Orman on television and she was talking about mortgages, the caller who called in to the program, the question became I believe similar to what Dan just asked, her comment was that basically if you’re in 6% interest rate or above now is the time to re-fi. That is what she said, a blanket recommendation. I know a lot of people put a lot of credence into what she says, maybe you could speak to that, the lowest interest rates you’ve seen in your career, you have been doing this for a while. I have, and they are. You know there was a lot of speak the last couple weeks about the Fed, the Fed funds rate by the way is the lowest it’s ever been in history. As of this week the discount rate is to the point that banks are lending money to each other at nothing, the Fed funds rate for intrabank lending is at zero

Read more

Los Angeles real estate financing

September 2, 2010 by admin  
Filed under Real Estate Financing

www.lendinguniverse.com Los Angeles real estate financing , hard money lending and refinancing mortgage In Los Angeles and the cities of Bell Gardens, Calabasas, Commerce, Glendale, Huntington Park, La Habra Heights and Lawndale. Also mortgageand home loan combine with hard equity loans,…

Read more

Real Estate Financing : How to Sell a Timeshare Property

September 2, 2010 by admin  
Filed under Real Estate Financing

When selling a timeshare property, understand that sellers rarely recover more than 35 percent to 55 percent of the original price, and be sure to price the timeshare competitively. Find out what similar timeshares are selling for with advice from a mortgage specialist in this free video on timeshares.Expert: Stetson Lowe Contact: stetsonlowe.typepad.com Bio: Stetson Lowe is a credit repair expert. Known as the “mortgage insider,” Lowe assists increasing credit scores for the most challenging of clients. Filmmaker: Paul Kersey

Read more

Real Estate Financing – What You Need to Know About Home Mortgages Before You Commit

September 2, 2010 by admin  
Filed under Real Estate Financing

One of the first steps before you start looking for your dream home is to ask yourself what you can afford to spend on a monthly house payment. Real estate financing has its secrets and you’ll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates; get quotes too. If you have monthly obligations such as car payments, credit card payments, personal loan payments, student loan payments, etc., make sure to take all these into account when you’re determining your bottom-line affordability figure.


A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes may change. Most adjustable rate mortgage programs offer “rate cap” protection, which limits the amount the rate can be increased, both each year and over the life of the loan; all adjustable rate mortgages are amortized over 30 years. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage; if the market is good, you can benefit from locking in a lower rate for the full term of the loan.


15-year mortgages are an ideal option if you think you can handle the higher monthly payments and if you’d like to have the loan paid off in a shorter period of time, for example, if you plan to retire. Loan programs for down payments of 20% or less require you to buy Private Mortgage Insurance (PMI). The disadvantages of a fixed-rate mortgage include a possibly higher cost; these loans are usually priced higher than an adjustable-rate mortgage.


If you’re buying a second home or property, you will need to identify the sources for your down payment, since you’ll not be selling your current house and using the proceeds, and you’ll need to expect larger monthly payments for housing or any other expenses too. Check with your CPA or accounting professional, you may be able to deduct the interest you pay on the mortgage loan and some of the financing costs of the home, such as points on your income tax return. The interest rate for an adjustable rate mortgage may be adjusted up or down at predetermined times; the monthly payments will then increase or decrease.


15-year fixed-rate mortgages mean consistent monthly payments for all 15 years that you have the mortgage; you build equity even more quickly than with a 30-year or 20-year loan, and paying less in interest, you save money in the long run. The 30-year loan is your best choice if you’re looking for a long-term stable loan; for instance, if you’re planning to stay in your house for a long time. A mortgage application can be resubmitted several times; it’s not uncommon for this to happen either, I’ve seen it many times.


Be careful when working on your real estate financing; if you make too many loan inquiries, with applications, it may look like you’re shopping for credit; this can be a glaring red flag for many lenders. Borrowers can submit information about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system. The real estate financing situation for each buyer is unique.


If you’re a first-time home-buyer it’s possible that you may qualify for a lower down payment or lower interest rate; check with mortgage brokers, online mortgage companies, your county housing department or your employer to see if they know of any programs available. Advantages of adjustable rate mortgages include: lower costs – because they are usually priced lower than fixed-rate mortgages so you can increase your buying power and lower your initial monthly payments and if the interest rates go down, you’ll have lower payments.


You have to be careful to not assume you can cut back on your expenses and stretch yourself into a house payment; you don’t want to be cutting into good, healthy eating habits by eating fast food or junk food for a house that you may not be well enough to live in for a long time; make sure to consider this when you first start out searching for the best real estate financing. You also have to feel comfortable with the reality of the amount of the monthly payment on your house or other real estate. Try not to get overwhelmed with all the different investment, commercial and home loan and mortgage choices available.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Real Estate Financing – Tips For New Or Not-So-New Home Buyers

September 2, 2010 by admin  
Filed under Real Estate Financing

This year alone, Americans are expected to borrow about $1.33 trillion in acquiring 7.4 million houses, condominiums and co-ops. Real estate financing has its secrets and you’ll gradually learn them by continuing to research everything you can find online and offline about home mortgages, mortgage loans, commercial mortgages or investment mortgages, current interest rates and get quotes when you can too. Before you apply for any real estate financing, if you have a lot of bad credit because of consumer debt for credit cards or personal loans, you’ll want to try to eliminate or reduce this debt. It may affect your ability to qualify for a home mortgage and make the estimated monthly payment.


An adjustable rate mortgage may be a good choice if the market is good or appears to be good for a few years, because on the average, most people move or refinance within seven years. But interest rates can go up if a rosy picture is painted that the economy is flourishing – like more jobs being available. This can lead to inflation, which will send the interest rates up. Finding the best loan program for your needs depends on a number of factors, including: how long you think you’ll stay in the home, how much money you have to put down, how you’ll finance the closing costs.


When financing real estate it’s important to know that a low FICO credit score does not always mean you won’t qualify for a home loan or home mortgage. 30-year fixed-rate mortgages offer consistent monthly payments for all of the 30 years you have the mortgage and if the market is good, you can benefit from locking in a lower rate for the full term of the loan. If you’re having a problem getting a home mortgage and the seller still owes money on the home, you can check with your lender and see if you can get a wraparound mortgage. Although it’s not legal in all states, it will allow you to pay the monthly payment on the existing mortgage and an additional payment to pay the difference, but make sure that a wraparound mortgage will not trigger a due-on-sale clause.


An adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to terms that are specified ahead of time. If you’re having a problem getting a loan or home mortgage why not consider a lease-option on a property. A lease-option on the real property will allow you to set a good purchase price now, and then apply a portion of the rent each month toward your down payment, building up equity in the process.


Borrowers can submit information to the lender about income, assets and equity to determine how much a down payment should be, which is usually processed through an automated underwriting system.


And keep in mind that adjustable rate mortgages are best for homeowners who aren’t planning on staying with a property for a long time. A fixed-rate mortgage means the interest rate and principal payments remain the same for the life of the loan but the taxes will probably change. People usually are not aware that they may be able to customize their loans. Just ask the mortgage broker or lender if this is possible. Although lenders advertise 15-year loans and 30-year fixed rate mortgages, applicants can ask for 20 years, 25 years or any other number of years that may be more suitable. This may allow borrowers to build up equity faster but keep their monthly payments affordable.


The 30-year loan could be your best choice if you’re looking for a long-term stable loan, for instance, if you’re planning to stay in your house for a long time. Some lenders may impose limits on how much of your down payment can come from money borrowed from other sources. The disadvantages of a fixed-rate mortgage compared to an adjustable rate mortgage include a possibly higher cost. These loans are almost always priced higher than an adjustable-rate mortgage.


A range of mortgage options are available. Some home loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.


Also keep in mind that low credit scores do not mean you cannot buy a home or other real property. Continue to explore the options and you’ll come up with the best real estate financing. And thinking positive about real estate financing is important but so is being realistic. Make sure you can make the mortgage payments for a reasonable length of time to build up plenty of equity, so if you do get sick or lose your job you can easily sell your house or any other real property before you get into a foreclosure situation; try to plan ahead.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to http://www.Real-Estate-Financing-Tips.com a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Next Page »