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Gilbert Homes Mortgage Borrowers to Get Reduced Payments

stay in your gilbert home

The start of July marked the beginning of relief for thousands of people who have been struggling to pay their  mortgage. Borrows of Gilbert Homes mortgages could get help getting back on track with their loan payments and save money in the process. Troy Reeves with the Troy Reeves Team has seen many homeowners able to recover from late mortgage payments already – making it easier to stay current with their loan or sell their Gilbert Homes properties and buy new. Learn about the new efforts to help homeowners who are struggling because they are behind on their mortgage payments of Gilbert Homes.

 

How Gilbert Homes Borrowers Are Getting Help

A new program known as Streamlined Modification Initiative is helping borrowers who have mortgaged backed by Fannie Mae and Freddie Mac. This program is intended to help borrowers of Gilbert Homes and other nationwide wide homes mortgages who are at least 90 days behind on their loan payments. The loan must be at least 1 year old and the borrower cannot be more than 2 years behind on payments.

 

These borrowers will behind to receive offers from lenders that will help to lower their mortgage payments. The Federal Housing Finance Agency, or FHFA, is the agency that oversees Fannie Mae and Freddie Mac – they have yet to release how many homeowners will receive mortgage payment modification offers, but the number is expected to be in the hundreds of thousands. Currently, around 1.1 million people are behind on their mortgage loans nationwide.

 

Why This is Better for Gilbert Homes Borrowers Than Programs of the Past

This process is set up to be easier for homeowners than previous programs set to help borrowers keep their homes. Unlike other similar efforts, this program will bypass filing any financial paperwork by the homeowners. Gilbert Homes borrowers and others from around the nation will get a three month trial period for the new payment until it becomes permanent.

 

Lenders will begin to lower monthly payments by extending the Gilbert Homes mortgage loan terms or reduce the interest rates. This program could equate to big savings for people who have high rate loans or those who haven’t qualified for refinancing to lower rates.

 

“by Troy Reeves” at Google

How Soon After Foreclosure Can You Buy A New Home?

This is a question facing many homeowners who may be considering a “voluntary foreclosure” that is, to simply stop paying the mortgage and give up the home because of how much negative equity has been accrued, this is also known as a strategic walkaway. From their perspective, to continue paying a $375,000 mortgage on a home that’s now only worth $220,000, is simply throwing good money after bad.

University of Arizona law professor Brent White argues that so-called “strategic defaults” can potentially save homeowners hundreds of thousands of dollars and are morally no different from a business deciding to cut its losses on a venture. He argues this is really the only option.

whether or not it is the smart move financially, family’s will still need a place to live, and many will want to return to home ownership eventually, particularly those who gave up their previous homes as an economic choice, rather than out of necessity.

Five-year wait for Fannie, Freddie mortgages

If you lose your home to foreclosure, voluntary or otherwise, you won’t be able to qualify for a Fannie Mae or Freddie Mac conforming loan for at least five years and perhaps seven. Same for an FHA loan. Because conforming and FHA mortgages account for the great majority of home loans made in this country, particularly in the middle and lower price ranges, that’s a pretty big obstacle to overcome.

Of course, you can always seek a nonconforming mortgage, but those lenders will have their own guidelines for how soon they’ll lend after a foreclosure. They’ll also be likely to demand a 20 percent down payment and charge a relatively high interest rate.

A short sale or deed-in-lieu of foreclosure may be better strategies than simply allowing your home to go into foreclosure. With a short sale, you can qualify for a Fannie Mae/Freddie Mac-backed mortgage in as little as two years, and three years on a deed-in-lieu. And while both have the same impact on your credit rating as a foreclosure, your credit can begin to recover in as little as two years after any of them.

Credit impacts decline after two years

That’s not to say you’ll get a great interest rate after two years, but you can at least get a decent one. Of course, the full effect of a foreclosure, short sale or deed-in-lieu will remain on your credit for seven years, but the impact does begin to tail off significantly after the first two.

As for the effect on your credit score of a foreclosure or short sale, many mortgage advisers say you can expect a drop of 200-300 points, with the biggest drop for those whose credit was previously unblemished. However, much of that decline is due to the accumulation of missed or late payments that precede a foreclosure or late score.   Put the impact of a foreclosure or short sale by themselves at about 100-150 points.

If you’re faced with the possibility of losing your home, either involuntarily or as a deliberate economic choice, you’re probably better off pursuing a short sale or deed-in-lieu instead of simply allowing the property to fall into foreclosure. The effect on your credit score may be the same, but if you want to get back into home ownership within a relatively short time, either a short sale or deed-in-lieu will provide the quicker route back, provided your lender is agreeable to them.

What is FHA 203k?

The fastest growing home loan on the market is the FHA 203k.  in 2008 there were 10,000 FHA 203k loans, this year there will be 80,000 and next year estimates are over 500,000 FHA 203k loans will be processed.  What is this loan? and do you qualify? read the FAQ below.

What is an FHA 203k Loan?

The FHA 203k renovation loan program provides the funds for both the purchase and renovation of a home packaged into one mortgage loan. Once the home purchase is closed, the funds are held in escrow to pay for pre-determined renovation work done by approved renovation contractors.

The purchase of a house that needs repair is often a catch-22 situation, because the bank won’t lend the money to buy the house until the repairs are complete, and the repairs can’t be done until the house has been purchased.

HUD’s 203(k) program can help you overcome this obstacle by enabling you to borrow funds for the purchase or refinance of a property plus the cost of making the repairs and improvements in one mortgage. The FHA-insured 203(k) loan is provided through approved lenders nationwide and is available to owners who will occupy the home themselves.

Down payment, credit qualification, loan limits and other requirements are the same as standard FHA loans. Additional guidelines are set forth specific to 203k loans to provide for renovation of the home.

How many types of 203k loans exist?

  1. The Standard 203k is intended for more complicated projects that involve structural changes, such as room additions, exterior grading and landscaping, or renovation that would prohibit you from occupying the residence. A Standard 203k is also used if your project requires engineering or architectural drawings and inspections.
  2. The Streamlined 203k is designed for less extensive improvements and for projects that will not exceed a total of $35,000 in renovation and related expenses. This version does not require the use of a consultant, architect, and engineer or as many inspections as the Standard 203k. As a result, when applicable, the Streamlined 203k generally becomes the simpler, less costly option.

Does the 203k program work for Single-family homes?

No. This program is eligible for use on 1 to 4 unit buildings only.

How does the appraisal work?
The appraiser is given a copy of the contractors bid documents to identify the repairs and remodeling to be done along with their costs. The appraiser then determines the value of the home after completion, “subject to” the improvements to be made. Up to 110% of this value may be used for loan approval purposes.


Can Investors Use a 203k?

A 203k loan is for use by owner occupants, local governments or  non-profits. However, an owner occupant can use a 203k loan to purchase and renovate up to a 4-unit building as well as multi-use building in some situations.

Is there a time limit for renovation of the property?

The renovation must begin within 30 days of the closing of the loan and must be completed within the time frame established in the loan agreement. The total time for renovation must not exceed six months.


Understanding Your Financing Options

financeIf there is one thing the media has made us aware of throughout the course of this morgage meltdown, its just how creative(and crazy) lenders were with the financing options.  As the credit from the banks tightened so did the lending options available for buyers.

While most of the exotic loans of the past are gone their are still many financing options available.  Below is a list of options and what it takes to qualify for the loan.

Conventional Loan: A conventional loan is a lender agreement that’s not guaranteed or insured by the federal government. At one point in our history, conventional loans were the only mortgage loans available and they were all made by local lenders such as banks, savings and loans, and credit unions. They kept and serviced these loans in their own portfolio until they were either paid in full or foreclosed on.

A Conventional loan typically requires a large down payment that may not be required when financing through the government, however it does offer more flexibility because you are working directly with a bank.

FHA: FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.  FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.

Required Documentation For FHA Loans

  • A two year history of employment in the same field is required
  • If you are a recent college graduate, your last two years of schooling can be used if you are currently working in your field of study
  • Credit Scores normally need to be above 620 for Conventional financing-580 for FHA and VA looks at a case by case basis
  • If no credit history exists-you may use cell phone bill, cable bill, previous rental history, etc. to establish a “pattern” of good credit payments
  • Proper ID as defined by the Patriot Act (State Driver’s License or Birth Certificate along with a copy of your Social Security card required)
  • Debt Ratios should be below 36/46

VA:  A VA loan is a mortgage loan in the United States guaranteed by the U.S. Department of Veterans Affairs. The VA loan allows veterans 100% financing without private mortgage insurance or 20% second mortgage. A VA funding fee of 0 to 3.3% of the loan amount is paid to the VA and is allowed to be financed. In a purchase, veterans may borrow up to 100% of the sales price or reasonable value of the home, whichever is less. Since there is no monthly PMI more of the mortgage payment goes directly towards qualifying for the loan amount, allowing for larger loans with the same payment.

The VA does not make home loans, they insure them.  We are VA approved and can help you with your VA loan request. Some VA benefits include:
– No downpayment is required in most cases
– Borrow up to 100% of purchase price
– Lower closing costs
– Mortgage is assumable
– No Private Mortgage Insurance (PMI)
– No penalties if you prepay the loan
– You may be eligible for waiver of VA funding fee
– VA support during temporary financial difficulties

GRH: A Guaranteed Rural Housing loan is a federal assistance mortgage loan in the United States insured by the RHS.

Some key features include:
–  No PMI. That’s right, no private mortgage insurance.  Like VA, this program has a Guaranteed fee that can be financed into the loan the same way VA loans have a Funding fee.
– 6% seller help/contribution is allowed
– No minimum contribution from your own funds.  FHA has a 3% requirement.  There are also no cash reserves required, as is the case with your typical conventional loan.
– This program only offers a fixed rate option for primary 1 unit residences.  Current maximum loan amount is $417,000.

requirements for loan:

  • 1-unit primary residences, including single-family dwellings, condominiums, planned unit developments (PUDs) and eligible manufactured homes.
  • Non-farm
  • Leasehold and rehabilitated properties
  • Property must meet the rural designation as defined by RHS

Good Neighbor Next Door Loan: Good Neighbor next door program is made available by HUD so law enforcement and Teachers may purchase a Hud home at half price.  If the police officer or Teacher uses fha financing for this purchase he/she will only need a downpayment of $100 and can finance the closing costs into the loan.

Interest Only and Adjustable Rate loans are still available but given the current market situation they are not used often.

Mortgage Relief Program – We’ll Make Your House Payments For You

This Arizona Real Estate Agent Follows Car Company Promise

Real Estate veteran and community advocate, Troy Reeves, of RE/MAX Alliance Group, is now offering a Mortgage Relief Program, to new homeowners who may be worried about losing their jobs. Home buyers who purchase a home from Troy Reeves and The Reeves Team, in 2009, will find peace of mind when they learn that this real estate professional is offering to make your house payment for you – for up to 120 days – if you lose your job over the next year!

“After 15 years in East Valley real estate, this is my way of giving back to our community. With unprecedented prices and historically low interest rates, we have removed the last obstacle keeping buyers from becoming homeowners. This promise only helps in this uncertain time.” says Troy Reeves.

Troy Reeves and The Reeves Team are real estate industry innovators with over a decade of experience and hundreds of satisfied clients. Troy Reeves has created industry firsts, like:

One Hour Return Call or Dinner For Two Is On Us

The 90 day Sale program

“If you are not happy with the home you purchase with us, we will sell it for you FREE”

Troy Reeves was also one of the first REALTORS® in Arizona to create a “team” concept in the real estate market.

The following Terms & Conditions Apply:

  • One or both spouses lose* their job over the next 365 days.  (person whom loses job must be primary mortgagee).
  • Person or persons must purchase home with RE/MAX & The Reeves Team in 2009 and Troy Reeves & Team must receive 3% co-broke upon purchase of that home.
  • If new home owner, at any time replaces or starts new job within 120 days of losing it, mortgage relief package (MRP) does not apply.

* Lose means laid off  (does not mean fired or quit)

Should I talk to a lender before I look for a house?

prequalify1Should I talk to a lender before I look for a house? When a new buyer starts talking to us, one of the first things we will always ask is have you talked to a lender yet? The biggest reason? We want to save time… time for us, time for you and time for sellers.

Most buyers when they start looking for a home will jump to a website with a mortgage calculator and plug in how much they want their monthly payments to be and hit calculate to produce that magic number. Now they have a selling price they think they should be looking for houses in. That only paints half the picture though. A professional lender is someone who will calculate into your purchase price taxes, insurance. lenders fees, HOA fees and closing costs for a house and will be able to figure that into your price range. Knowing this information going into the home buying process can save you a lot of time and heartbreak if you were to be looking at homes not in your price range.

Another reason to speak to a lender before house shopping is the lender may run across misinformation on your credit report which you will need to clear up. When the lender does find misinformation they can tell you who to talk to about the erroneous report and help you to get it cleared up. Getting your credit cleared up is something you will need to do before you can get the loan anyways, so better to start now.

Getting pre-approved will also help in determining what houses to look at. You may be approved for a VA, FHA or USDA loan, but not all homes will qualify for these loans. Knowing this information ahead of time will save you and your Realtor time in the home search process. It is very important that your Realtor knows these things so they can do their best job for you.

Some bank owned properties and even some private sales will require your Realtor to have a pre-qualification from your lender before they are allowed to show you the house. And when we submit your offer for that dream house when it is found, we just must submit an LSR (Loan Satisfaction Requirement) with the offer showing you are prequalified for a loan on that house.

Some may think it is a waste of their time talking to a lender first, but the truth it talking to a lender first can save you time and money in the long run.