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To warranty or not to warranty?Lender411 regular Dr.+Michael Zuren argues they’ll help buyers rest easier:Buying a house can be very stressful, especially if there are unknown costs. Most costs are fixed, like down payment, closing costs, and homeowners insurance. But in addition to the known costs, there are more volatile costs like moving expense, necessities (appliances, lawn equipment, etc.), and any repair costs. Repair costs can be a significant expense, especially if the home you are buying is not new.  A home warranty can limit some of the unknown repair costs and give a new homeowner piece of mind.Some of the items covered in a component home warranty include:Heating/ ductworkHot water tankFurnaceAir conditioningElectrical systemPlumbingToilet bowlsSome of the items covered in an appliance home warranty include:Washer/dryerRefrigeratorStoveMicrowavesDishwasherGarage door openerGarbage disposalsRead on for stipulations and more:http://www.lender411.com/should-i-get-home-warranty/
 
To warranty or not to warranty?

Lender411 regular Dr.+Michael Zuren argues they’ll help buyers rest easier:

Buying a house can be very stressful, especially if there are unknown costs. Most costs are fixed, like down payment, closing costs, and homeowners insurance. But in addition to the known costs, there are more volatile costs like moving expense, necessities (appliances, lawn equipment, etc.), and any repair costs. Repair costs can be a significant expense, especially if the home you are buying is not new.  A home warranty can limit some of the unknown repair costs and give a new homeowner piece of mind.

Some of the items covered in a component home warranty include:

Heating/ ductwork
Hot water tank
Furnace
Air conditioning
Electrical system
Plumbing
Toilet bowls

Some of the items covered in an appliance home warranty include:

Washer/dryer
Refrigerator
Stove
Microwaves
Dishwasher
Garage door opener
Garbage disposals

Read on for stipulations and more:http://www.lender411.com/should-i-get-home-warranty/

Filed under Mortgage Loan real estate hot air balloon home warranty Buying a Home

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Are some borrowers putting off a rate lock because they’re too obsessed with little mortgage rate fluctuations?f you’re looking to buy a home in the near future, chances are that you’re keeping pretty close tabs on the mortgage rates. Doing so is perfectly natural: you want to get the lowest mortgage rate possible so you can save money over the long run. What some borrowers don’t know, however, is that watching mortgage rates like a hawk can be counterproductive and can actually lead to you driving yourself and your lender crazy. Here are some reasons why you shouldn’t watch mortgage rates like a hawk:1. Rates always fluctuate, and that means they can shoot up before they shoot down. When they’re at all-time lows, they’re more likely to spring up.2. The math shows that fluctuations of 0.01-0.02 do not significantly impact your spending over time. 3. You will want to lock your rate in conjunction with your home’s closing date. Therefore, if you will be closing in 45 days, see if you can lock your rate for 60 days. Just remember that the longer your rate is locked, the more it’s going to cost you over time. More details and examples:http://www.lender411.com/featured-article-why-you-should-not-obsess-over-mortgage-rates/
 
Are some borrowers putting off a rate lock because they’re too obsessed with little mortgage rate fluctuations?

f you’re looking to buy a home in the near future, chances are that you’re keeping pretty close tabs on the mortgage rates. Doing so is perfectly natural: you want to get the lowest mortgage rate possible so you can save money over the long run. What some borrowers don’t know, however, is that watching mortgage rates like a hawk can be counterproductive and can actually lead to you driving yourself and your lender crazy. Here are some reasons why you shouldn’t watch mortgage rates like a hawk:

1. Rates always fluctuate, and that means they can shoot up before they shoot down. When they’re at all-time lows, they’re more likely to spring up.

2. The math shows that fluctuations of 0.01-0.02 do not significantly impact your spending over time. 

3. You will want to lock your rate in conjunction with your home’s closing date. Therefore, if you will be closing in 45 days, see if you can lock your rate for 60 days. Just remember that the longer your rate is locked, the more it’s going to cost you over time. 

More details and examples:http://www.lender411.com/featured-article-why-you-should-not-obsess-over-mortgage-rates/

Filed under Mortgage Loan real estate hawk

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Understanding Investment versus Second PropertiesGrade for the kids in the pic: F-It is that time of year again: school has begun and winter vacation is already in our hearts and minds. But buying a log cabin in Aspen and buying and renting out a condo near University of Wherever do NOT require the same loan process! Investment properties:An investment property is a home that is not your primary residence but is purchased with the intent of generating income, reaping tax benefits, or profiting from appreciation.  Investment properties can be residential or commercial. Second homes: A second home is a home you buy that you will visit and/or occupy on a regular basis. Second homes are usually utilized as vacation homes, but some might choose to split their time between the second home and the primary residence.  In order to obtain a second home loan, the home must be located a certain distance from the buyer’s primary home or must be located in a vacation area. So what’s the biggest difference?Investment properties have larger down payment requirements and higher interest rates than second homes do. A second home can’t be rented out for any reason, but an investment home is encouraged and is expected to be rented out on a regular basis.Learn more, including how to finance each:http://www.lender411.com/featured-article-whats-the-difference-between-a-second-home-and-investment-property/

Understanding Investment versus Second Properties
Grade for the kids in the pic: F-

It is that time of year again: school has begun and winter vacation is already in our hearts and minds. But buying a log cabin in Aspen and buying and renting out a condo near University of Wherever do NOT require the same loan process! 

Investment properties:

An investment property is a home that is not your primary residence but is purchased with the intent of generating income, reaping tax benefits, or profiting from appreciation.  Investment properties can be residential or commercial. 

Second homes: 

A second home is a home you buy that you will visit and/or occupy on a regular basis. Second homes are usually utilized as vacation homes, but some might choose to split their time between the second home and the primary residence.  In order to obtain a second home loan, the home must be located a certain distance from the buyer’s primary home or must be located in a vacation area. 

So what’s the biggest difference?

Investment properties have larger down payment requirements and higher interest rates than second homes do. A second home can’t be rented out for any reason, but an investment home is encouraged and is expected to be rented out on a regular basis.

Learn more, including how to finance each:

http://www.lender411.com/featured-article-whats-the-difference-between-a-second-home-and-investment-property/

Filed under Mortgage Loan real estate school winter vacation fall

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Compensating factors for an otherwise unsavory mortgage applicationCompensating factors on your mortgage application do more than make your file look good. They are strong, positive aspects of a situation, which can offset other elements that are either negative or weak. Underwriting exceptions are likely to occur when compensating factors are present, and can make a difference between a borderline loan application’s denial or approval.Possible compensating factors:A 12-24 months documented ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage.Minimal increase in housing expenses. Note that payment “shock” (big increase in monthly payments) accounts for over 50% of all late payments in the early years of a mortgage loan!New home is closer to work than current one and/or has energy efficient improvements. This translates into potential savings for the borrower, and improvement of his/her financial situation.A down payment of 10% or more in the case of a home purchase, or a significant equity position in the case of a refinance transaction.There are quite a bit more: http://www.lender411.com/mortgage-compensating-factors/
 
Compensating factors for an otherwise unsavory mortgage application

Compensating factors on your mortgage application do more than make your file look good. They are strong, positive aspects of a situation, which can offset other elements that are either negative or weak. Underwriting exceptions are likely to occur when compensating factors are present, and can make a difference between a borderline loan application’s denial or approval.

Possible compensating factors:

A 12-24 months documented ability to pay housing expenses equal to or greater than the proposed monthly housing expense for the new mortgage.

Minimal increase in housing expenses. Note that payment “shock” (big increase in monthly payments) accounts for over 50% of all late payments in the early years of a mortgage loan!

New home is closer to work than current one and/or has energy efficient improvements. This translates into potential savings for the borrower, and improvement of his/her financial situation.

A down payment of 10% or more in the case of a home purchase, or a significant equity position in the case of a refinance transaction.

There are quite a bit more: http://www.lender411.com/mortgage-compensating-factors/

Filed under Mortgage Loan real estate pizza food

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Could the FHA Back to Work program help you?With extenuating circumstances, you can get a mortgage 12 months following:Chapter 7 or 13 bankruptcyForeclosureDeed-in-lieu of foreclosureLoan modificationForbearance agreementShort saleYou may qualify for an FHA mortgage if you are back to work, have reestablished credit, and can document the circumstance that led to the foreclosure or bankruptcy. Eligible borrowers must document:The financial hardship, including how it was caused and beyond your control.Household income declined at least 20% for a minimum of 6 months from the event.Rental payments have been on time for the past 12 months. Full recovery from any extenuating circumstances. There is a counseling requirement for this program. HUD counselors review borrowers’ total financial picture and make sure they understand the expenses of homeownership. More on eligibility: http://www.lender411.com/fha-back-to-work-program/
 
Could the FHA Back to Work program help you?

With extenuating circumstances, you can get a mortgage 12 months following:

Chapter 7 or 13 bankruptcy
Foreclosure
Deed-in-lieu of foreclosure
Loan modification
Forbearance agreement
Short sale

You may qualify for an FHA mortgage if you are back to work, have reestablished credit, and can document the circumstance that led to the foreclosure or bankruptcy. 

Eligible borrowers must document:

The financial hardship, including how it was caused and beyond your control.
Household income declined at least 20% for a minimum of 6 months from the event.
Rental payments have been on time for the past 12 months. 
Full recovery from any extenuating circumstances. 

There is a counseling requirement for this program. HUD counselors review borrowers’ total financial picture and make sure they understand the expenses of homeownership. 

More on eligibility: http://www.lender411.com/fha-back-to-work-program/

Filed under mortgage bankruptcy foreclosure fast real estate FHA

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Where Can I Find Funding for Manufactured or Mobile Properties? Lenders are pretty strict regarding funding for manufactured properties since their value depreciates so quickly. Many existing loan programs will let you buy a manufactured property, but you must find a lender willing to loan the manufactured home mortgage. For example, if you want to buy a manufactured home and are a veteran, you can talk to a VA lender and they will help you or at least refer you to a willing lender. Here are some specific programs that will give you funding for manufactured properties:VA Manufactured Home LoansUSDA Manufactured Home LoansHUD Manufactured Home Loans (FHA)VA, USDA, and HUD links, and article continued: http://www.lender411.com/featured-article-your-guide-to-manufactured-home-loans/

Where Can I Find Funding for Manufactured or Mobile Properties? 

Lenders are pretty strict regarding funding for manufactured properties since their value depreciates so quickly. Many existing loan programs will let you buy a manufactured property, but you must find a lender willing to loan the manufactured home mortgage. For example, if you want to buy a manufactured home and are a veteran, you can talk to a VA lender and they will help you or at least refer you to a willing lender. 

Here are some specific programs that will give you funding for manufactured properties:

VA Manufactured Home Loans
USDA Manufactured Home Loans
HUD Manufactured Home Loans (FHA)

VA, USDA, and HUD links, and article continued: http://www.lender411.com/featured-article-your-guide-to-manufactured-home-loans/

Filed under Mortgage Loan trailer park real estate

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Mortgages Made in Amurrica.Government-backed loans accommodate buyers far and wide and with credit and down payments great and small. Learn about each type in this overview:FHA LoansFHA loans are guaranteed by the Federal Housing Administration, and perhaps the most well-known out of the three types of government-backed loans. FHA loans don’t require a big down payment like other loan types do. In fact, you can put as little as a 3.5% down payment on your house with an FHA loan.A relative downside of FHA loans is that they have a mandatory mortgage insurance (MI) requirement with a monthly premium. This could equate to hundreds of extra dollars per month for borrowers paying for mortgage insurance. MI must be paid for the lifetime of the loan, not just until you have accumulated enough equity (unlike Conventional loans).USDA LoansUSDA loans are guaranteed by the United States Department of Agriculture and target borrowers in rural communities who are income eligible for their county. USDA loans can be used to buy a home, but they can also be used to renovate a home or perform home construction. USDA loans have very low interest rates and don’t have any loan limits. There isn’t a down payment requirement for USDA loans, but you are limited to purchasing a home that meets the USDA standards. USDA Loans do require MI, though USDA mortgage insurance rates are generally lower than those of FHA. VA LoansVA loans are guaranteed by the Department of Veteran Affairs and are generally limited to active duty military and veterans. Borrowers who qualify for VA loans can enjoy numerous benefits, such as no down payment requirement or no mortgage insurance requirement.  VA loan borrowers can also enjoy low credit standards and can even qualify for a mortgage after a foreclosure, short sale, or bankruptcy if the borrower’s credit has since improved. A possible downside of VA loans is that they require a VA funding fee when the loan finally closes, which is an amount that is equal to anything between 1.25 and 3% of the home’s cost. This represents a huge financial burden to those who may not have that money in cash reserves.How to qualify: http://goo.gl/CJ9Z84
 
Mortgages Made in Amurrica.

Government-backed loans accommodate buyers far and wide and with credit and down payments great and small. Learn about each type in this overview:

FHA Loans

FHA loans are guaranteed by the Federal Housing Administration, and perhaps the most well-known out of the three types of government-backed loans. FHA loans don’t require a big down payment like other loan types do. In fact, you can put as little as a 3.5% down payment on your house with an FHA loan.

A relative downside of FHA loans is that they have a mandatory mortgage insurance (MI) requirement with a monthly premium. This could equate to hundreds of extra dollars per month for borrowers paying for mortgage insurance. MI must be paid for the lifetime of the loan, not just until you have accumulated enough equity (unlike Conventional loans).

USDA Loans

USDA loans are guaranteed by the United States Department of Agriculture and target borrowers in rural communities who are income eligible for their county. USDA loans can be used to buy a home, but they can also be used to renovate a home or perform home construction. USDA loans have very low interest rates and don’t have any loan limits. There isn’t a down payment requirement for USDA loans, but you are limited to purchasing a home that meets the USDA standards. USDA Loans do require MI, though USDA mortgage insurance rates are generally lower than those of FHA. 

VA Loans

VA loans are guaranteed by the Department of Veteran Affairs and are generally limited to active duty military and veterans. Borrowers who qualify for VA loans can enjoy numerous benefits, such as no down payment requirement or no mortgage insurance requirement.  VA loan borrowers can also enjoy low credit standards and can even qualify for a mortgage after a foreclosure, short sale, or bankruptcy if the borrower’s credit has since improved. 

A possible downside of VA loans is that they require a VA funding fee when the loan finally closes, which is an amount that is equal to anything between 1.25 and 3% of the home’s cost. This represents a huge financial burden to those who may not have that money in cash reserves.

How to qualify: http://goo.gl/CJ9Z84

Filed under mortgage advice fha loan bald eagle america amurrica government stars

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Using Alimony or Child Support to Get an FHA MortgageHow to maintain a smooth transactionIf you receive alimony, child support, or maintenance income and want to buy a house there are advantages to securing financing through the Federal Housing Administration, or FHA. FHA regulations generally require evidence of the past 12 months’ receipts of on-time payments for child support or alimony. In certain circumstances, FHA may only require proof of as little as 3 months receipts of on-time child support or alimony payments. The automated underwriting available to approved lenders may issue recommendations for alimony, child support, and maintenance income requirements. According to FHA, alimony, child support, or maintenance income may be considered effective if:1. Payments are likely to continue for at least the first three years of the mortgage.2. The borrower can provide legal documentation of an agreement: divorce decree, separation agreement, court order, or voluntary payment agreement.3. The borrower can provide documentation that the income has been received on time for the past 12 months: cancelled checks, deposit slips, tax returns, or court documentation.Continued: http://www.lender411.com/mortgage-with-alimony-child-support
 
Using Alimony or Child Support to Get an FHA Mortgage
How to maintain a smooth transaction

If you receive alimony, child support, or maintenance income and want to buy a house there are advantages to securing financing through the Federal Housing Administration, or FHA. 

FHA regulations generally require evidence of the past 12 months’ receipts of on-time payments for child support or alimony. In certain circumstances, FHA may only require proof of as little as 3 months receipts of on-time child support or alimony payments. The automated underwriting available to approved lenders may issue recommendations for alimony, child support, and maintenance income requirements. According to FHA, alimony, child support, or maintenance income may be considered effective if:

1. Payments are likely to continue for at least the first three years of the mortgage.
2. The borrower can provide legal documentation of an agreement: divorce decree, separation agreement, court order, or voluntary payment agreement.
3. The borrower can provide documentation that the income has been received on time for the past 12 months: cancelled checks, deposit slips, tax returns, or court documentation.

Continued: http://www.lender411.com/mortgage-with-alimony-child-support

Filed under Mortgage Loan FHA divorce children real estate

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Own your own biz? Get these ducks in a row, get a mortgage.1. Flesh out your credit score. Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.2. Build a down payment. FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.3. Show stable or increasing income.Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.4. Contribute to reserves.Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.5. Organize business and personal debts.If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.6. Make sure your business is recognized by your state.Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Own your own biz? Get these ducks in a row, get a mortgage.

1. Flesh out your credit score. 

Depending on the loan type you intend to qualify for you will need to meet the minimum credit score standards. Federal Housing Administration loans (FHA) typically require at least a minimum 620 middle credit score whereas conventional loans typically require a minimum 660 middle credit score. It is always a good idea to check your credit report prior to entering in a contract to buy a house and correct any errors you find on your credit report.

2. Build a down payment. 

FHA requires a minimum 3.5% down and conventional financing requires a minimum 5% down payment. Although gift funds are acceptable for some or all of a down payment, using your own funds will make you a better risk. In either case, a larger the down payment may be considered a compensating factor.

3. Show stable or increasing income.

Lenders will use your last 2 years of tax returns to calculate your income. They will review your tax schedules and add back depreciation, amortization/casualty loss, and depletion to your net profit or loss. The lender will also ask for a year-to-date profit and loss statement to verify your income is stable and not decreasing. If your income is decreasing, a lender will likely use the worst case scenario as your qualifying income instead of your last 2 years’ average income.

4. Contribute to reserves.

Most loans require 2 months or less of mortgage payments (principal & interest, taxes, insurance, and private mortgage insurance) left in the bank at the time of closing. The greater amount of mortgage payment reserves you have in your bank the better risk you will be in the eyes of the lender.

5. Organize business and personal debts.

If you have debts that are paid directly through your business, you must have separate business bank account to be able to prove with debts are paid through the business, thereby not counting them in your personal debt ratio. Lenders will require a copy of the last 12 months of cancelled checks to verify the debt is being paid directly out of the business account. If you intend to buy a house avoid any new business debt for the 12 month period prior to purchasing a house. New business debt (where you cannot provide 12 months of cancelled checks from your business account) will likely be counted as personal debts by your lender.

6. Make sure your business is recognized by your state.

Lenders will need to verify you have officially been in business for at least 2 years. A business license is typically required but a letter from your CPA is often accepted.

Full article: http://www.lender411.com/getting-a-mortgage-while-self-employed/

Filed under Mortgage Loan mortgage advice SelfEmployed glasses blonde real estate home