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Gilbert Homes Mortgage Borrowers to Get Reduced Payments

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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

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.

In A Tight Market, Service Matters Most

The housing bust in recent years has not only driven prices down, but also substantially lowered the number of houses that are sold on a monthly basis.   In response to the steep decline in transactions real estate agencies are cutting back services and leaving more of the work to be done by the clients themselves.  However in its second annual study J.D. Power and Associates concluded services are actually more important to home buyers/sellers in a tight market.

J.D. Power’s polling results show that the importance of additional services has increased by 12 percentage points among buyers and by 8 percentage points among sellers from last year alone.  Simultaneously the survey reports that the use of these services has declined due to cutbacks among services offered by real estate agencies.

“In a tight market, every aspect of service offered will be scrutinized very closely,” Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates said. “For this reason, it is critical for real estate companies to promote the value that they bring to buyers and sellers, not only in any additional services they offer, but also in their agents and operations.”

Choosing and agent is a tough decision in the best of times, and can be downright daunting in hard economic times such as these.  Looking into the services offered by a prospective agency is a great place to start.  Not all companies are cutting services. In fact some are even offering new and creative options to help their clients such as the Mortgage relief Package.

Other findings in the study include:

  • The proportion of first-time home buyers has increased considerably — to 56% in 2009 from 44% in 2008.
  • For both buyers and sellers, the agent is still the most important driver of overall satisfaction.
  • Home sellers report that, on average, 3.2 open houses were conducted for their property in 2009, compared with 4.5 in 2008.
  • Approximately 64% of home sellers used a Web site listing to market their home in 2009, up from 61% in 2008.

“Your Way Home” Offers 22% Purchase Assistance

The Arizona Department of Housing (ADOH) has recently announced a plan it hopes will reduce the number of foreclosures on the market in Arizona.  The program has not generated much buzz yet, however word is spreading and it is set to help many area residents.

The “Your Way Home AZ” program will offer 22 percent in purchase assistance to qualified home buyers. The program has been tested in smaller counties since may, however it is set to go online statewide in July. The program provides purchasing assistance by offering a deferred second loan to qualified home buyers.

Qualifications for assistance:

1.) Household must have a gross income of no more than 120 percent of the average median income for the county wish to purchase in.

2.) If you own a residence, you must be leasing your primary residence one year before applying for the program.

3.) Your lender must be chosen from the ADOH participating lender list.

4.) An 8 hour Homebuyer Education Class must be completed.

5.) The Property purchased must be your primary residence.

6.) Your debt to income must be 31/43 or better.

7.) Two months PITI reserves are required.

8.) You must be AUS approved eligible.

If you are interested in qualifing for the “Your Way Home” program contact the Reeves Team today.  You can browse Unclaimed homes here.

Latest stimulus package and what it may mean to home buyers

im-just-a-bill-optWe can have a long debate about the latest stimulus package and whether it is a good thing of a bad thing. There are plenty of opinions on both sides and I will bite my tongue for now. There is one part of the bill that passed the United State Senate last night that I wanted to share with you as a potential home buyer.

You may have heard by now about the potential $15,000 tax credit for home buyers. The amendment will replace the current $7,500 tax credit for first time home buyers that is currently planned to expire in July of 2009. I have read the amendment two times, and being a former state representative you would think I could read a bill by now, but it is still somewhat confusing. Here is how I read it to be different from the current $7,500 tax credit.

  • The $7,500 tax credit is for first time buyers while the $15,000 is for any buyer who will use the house as a primary residence.
  • The $7,500 needs to be paid back, interest free, over 15 years while the $15,000 does not need to be paid back if you live in the home for 2 years.
  • The $15,000 is a maximum and based on 10% of your purchase prise. So if you purchase a home at $100,000 you will get a $10,000 credit.
  • The new amount will start on the day the bill is signed and be in effect for one year. It will not be retroactive.

Also likely to come some time before the stimulus package is finalized is an amendment that could greatly lower interest rates to as low as 4%.

*I am not an expert on this subject, this is my best understanding of the amendment from my reading of it. Also this has only passed the Senate and will need to pass the House and most likely a conference committee between the two chambers and could be changed at any one of those steps.