Real Estate Financing – First Time Home Buyers and FHA Mortgages –

September 2, 2010 by admin  
Filed under Real Estate Financing – 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: 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

Is it a Good Time to Buy a House?

September 2, 2010 by admin  
Filed under Buying A House

It’s a constant question now in the real estate market: Is it a good time to buy a house? Of course it is difficult to answer in an article since you may be reading this years after it is written, when conditions have changed. But whenever you find this article, the following three crucial factors are what you’ll want to look at to answer the question for yourself.

Home Values

At the moment, the first thing most people are wondering when they ask if it’s a good time to buy a house, is whether prices have finally stopped falling. Since a home is seen as an investment of sorts, we all like the idea of buying when values are rising. I am writing this in early 2009, and no, home values not only are not rising in most areas, but they don’t seem to have stopped falling.

We just bought a home anyhow, and there are several reasons why we felt comfortable doing so. The first is that prices don’t seem to be falling much in our area (Canon City, Colorado). Apart from the various foreclosures that are dragging prices down a bit, the market here is much more stable than in other parts of the country. A stable job base and the fact that prices never rose too far too fast during the “boom times” helps.

The real estate market does not act the same everywhere in the country. So to see if a bottom is near or if prices are rising, pay close attention to what is happening where you are. On the other hand, we did not buy counting on rising prices, because that is not the only determining factor. In fact, it is possible that the problems in the country will get worse and drive prices down 10% or 15% even here. So what else made us decide that for us it was a good time to buy a house?

Interest Rates

At the moment you can get fixed rate 30-year mortgage loans at about the lowest interest rate in your lifetime (no matter how old you are). Our own rate is 4.5%. That’s not a variable or “teaser rate.” It is fixed for the thirty years of the loan.

Let’s look at why this matters so much – as long as you plan to stay in the house for a while, as we do. Suppose you pass on a house that is selling for $200,000 and waited a couple years while prices fall another 10%. But suppose that at that time interest rates were up around 7.5%. You buy the house for $180,000. The payment (assuming you have a 10% down payment and borrow $162,000) is $1,132 each month for principal and interest.

But what if you had bought at $200,000 and put 10% down? Then your payment on the $180,000 loan would have been $912. That’s right, you would be paying $220 more each month if you waited and bought at the lower price. That amounts to $77,200 more that you would pay over the thirty years if you stayed in the house that long ($79,200 more in payments, but you saved $2,000 on the down payment). This demonstrates the importance of the interest rate in determining your true cost.

Personal Situation

Is it a good time to buy a house, then? That depends not only on prices and their direction, and not just on interest rates, but on where you are financially. How secure is your income? If you lost your job, could you make the house payments for six months while you looked for another? Can you count on finding another job that will provide enough income to pay for the house? Are you going to be staying in the area long enough to justify buying (renting can often make more sense if you will be moving within a few years)? These are the more difficult questions to answer, but perhaps the most important in determining if it is a good time for YOU to buy a house.

Copyright Steve Gillman. For more on whether this is a good time to Buy a House, and for a free real estate investing course and ebook on how to buy cheap homes, visit:

Real Estate Financing – FHA Mortgage and First Time Home Buyers –

September 2, 2010 by admin  
Filed under Real Estate Financing – 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

Real Estate Financing – Home Mortgages – Time Tested Tips

September 2, 2010 by admin  
Filed under Real Estate Financing

You don’t want to jump into anything blindly or sign a real estate contract or home mortgage loan contract or any type of contract without giving it some serious thought. Watch out for anything that appears to be vague. You want to keep in mind when financing real estate that lenders will be able to tell you only what you might be able to afford based on your current not future salary and level of debt including your credit card debt. First of all you’ll need to find a lender for your real estate financing and potential residential, home or other type of investment.

The real estate financing situation for each buyer is going to be different of course. A 20-year fixed rate mortgage term will mean higher payments, when compared to a 30-year fixed-rate mortgage. The advantages of a fixed-rate mortgage include consistent principal and interest payments, which will make this loan stable – your rate won’t change; a good choice if you’re likely to stay in the house for a long time.

And if you have less-than-perfect credit or a ‘bad credit’ credit report don’t be too concerned about it. The disadvantages of an adjustable rate mortgage include the possibility of increasing monthly payments if interest rates go up and over the years this has happened many times and people have lost their homes. If you’ve applied to several lenders, when you finally do select a good lender you may have to explain why there are other inquiries from lending institutions on your credit report.

The disadvantages of a fixed-rate mortgage include the possibly higher cost. These loans are usually priced higher than an adjustable-rate mortgage. With adjustable rate mortgages the initial interest rate is usually lower than with a fixed-rate mortgage so the monthly payment would also be lower. An adjustable rate mortgage could be a good choice because on the average, most people move or refinance within seven years, but be aware of the fluctuating interest rate.

If the rates in the current market are high, you’ll probably get a better price with an adjustable-rate loan. Any money you receive from a lending institution will show up on your credit report and your payments will factor into your debt-to-income ratio. And a good or bad FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans.

Reminder – an adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to the terms specified ahead of time. Your income and debts will typically play the biggest roles in determining what price range you can afford when buying a house. Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender – it could be fluctuations in the market, good or bad economic news, any other of a dozen reasons, but interest rates can change even throughout the day.

A range of mortgage options are always available and some 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.

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. Ask other homeowners what real estate and mortgage problems they’ve encountered – everyone has stories to tell. Rates can change fast, one way or another, day by day; this is true for residential, commercial and investment real estate financing. Always get the most current interest rate quotes. The rate won’t last long.

For more information on bad credit real estate financing and finding the best home or commercial loan or mortgage go to a real estate broker’s website specializing in real estate financing tips, help, quotes and resources including refinancing and creative financing

Real Estate Financing : First Time Home Buyer Checklist

September 2, 2010 by admin  
Filed under Real Estate Financing

A first time home buyer should have a checklist that includes obtaining a credit report, gathering income documentation, finding a mortgage broker and identifying a loan scenario. Find a Realtor that has worked with first time buyers using advice from amortgage specialist in this free video on real estate. Expert: Stetson Lowe Contact: 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