HomePath Loans in Arizona

With the number of REO properties increasing, HomePath financing is becoming more common compared to a year ago.  HomePath financing.  HomePath financing is available for Fannie Mae REO's (Real Estate Owned/ Bank Owned properties) by searching if the property is located on HomePath.com property search tool. 

The more REOs hit the market, the more questions we are being asked about the program.  I hope that this will provide you with some clarity or information that you can use to take advantage of this great program.  However, there are distinctions between the two types: HomePath Mortgage and a HomePath Renovation Mortgage.  The difference being, the HomePath Renovation Mortgage will allow minor fixes to the property. 

Here is a quick example of the HomePath Mortgage:

• Minimum 3% down for primary residence. (5% seems to be the prevalent outcome).
• 10% down investment property
• Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
  • Check with your local lender to determine if they have overlaying guidelines.  
• NO APPRAISAL NEEDED
• NO MORTGAGE INSURANCE
• High balance (jumbo) and interest only products available
• Seller contributions
  • up to 6-9% on primary residence (the larger the down payment, the larger the allowable contribution)
  • maximum of 2% on investment property
• The HomePath Loan tends to be higher in rate and at times, higher in cost when compated to a standard 30 year fixed conforming loan. 
  • If you want an equivalent rate to the going 30 year fixed, the loan will price with an additional (approx) 1% to 3.50% discount points.  However, these costs are often covered by the seller and there is no mortgage insurance.  In lieu of the discount points, one can just opt for the higher rate in lieu of the discount points.
• Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing, small wall patchwork, etc..) does not present problems with the financing.

--->>>Click here to learn more about HomePath Loans

Academy Mortgage serving Maricopa County (Chandler, Mesa, Phoenix, Tempe, Gilbert, Glendale, Scottsdale, Queen Creek and the greater Phoenix Metro Area)

USDA Home Loans Are Available

I have had many people contact me in the last couple of months requesting information or inquiring whether or not USDA Home Financing is available.  There have been stories of Loan Originators using stalling tactics to hold back their prospective clients from going to "THE OTHER LENDER" who claims to have available USDA financing. 

Today I am happy to say that USDA Home financing is indeed available, however with Congress yet to commit a new round of appropriation/ funding to the USDA Program, many lenders have decided to add a set of overlays (additional self-prescribed guidelines) that protect the lender against any liability.  Most lenders are manually underwrting these loans, so that means the requirements are a bit more strict. 

USDA Loans are available at Academy Mortgage, however with the following requirements:

1. Loan must have a 1st payment date of October 1st, 2010 (or later).

2. Borrower's first mortgage payment must be collected at closing. Academy will submit payment to investor.

3. Minimum FICO score for product (until further notice): 680 (no exceptions)

4. No Bankruptcies in past 36 months

5. Ratios limited to 29/41 (no exceptions)

 For more information, please contact me at 480.344.3671 or you can visit me at www.tedcanto.com

HomePath Financing is Available at Academy Mortgage, Arizona

If you are thinking about buying a home and FHA is not an attractive or viable option or better yet, the property does not meet FHA's stringent requirements, you might want to think about using HomePath Financing by Fannie Mae.   For a while many lenders and brokers remained at a distance from this program due to very few investors actually approving this program.  However, Academy Mortgage is now one of those lenders. We are well known for our efficiency and detailed customer service thus making the process as painless as possible.

Here is a quick synopsis of the HomePath Mortgage:

• Minimum 3% down for primary residence, 10% down investment property
• Borrower can own up to 10 financed properties (but need 25% down if they own more than 4)
• NO APPRAISAL NEEDED
• NO MORTGAGE INSURANCE
• High balance (jumbo) and interest only products available
• Seller contributions can be 6-9% on primary residence (the larger the down payment, the larger the allowable contribution), only 2% on investment property
• This loan does price with a higher rate than your average 30 year fixed conforming loan.  If you want an equivalent rate to the going 30 year fixed, this loan would price with an additional approx 1% to 3.75% discount points.  Keep in mind, much of this can be covered by the seller and there is no mortgage insurance.  Of course one can just opt for the higher rate in lieu of the discount points.
• Same basic underwriting requirements of a conforming loan, but without the property issues (appliances missing - no problem)

HomePath Renovation Loan

This will allow for light renovations to the property that can be included into the loan.  Information about this specific product is scarce.  In general, renovation and construction type of products work like this:

• An appraisal is done "subject to" the completion of the repairs.  The value will typically be the appraised value or the cost of the house plus renovations, whichever is lower.   The down payment is based on this value (hence, most of the renovation work gets financed into the loan).
• The loan closes and the repairs are completed by a licensed contractor within a specified amount of time
•  There is more involved with these types of loans, such as: bids, inspections, draw schedules, etc. 
• The interest rate is typically higher than your general conforming 30 year fixed

With the streamlined process, we at Academy Mortgage make it easier with our Ten Day Close Guarantee, call us and ask for more details.

www.tedcanto.com

www.academymortgage.com/tedcanto

Credit Cards are Causing Damage to Your Credit Score

A new survey from the Federal Reserve shows that, despite how consumers are being hurt in the current economy, banks continue to raise the interest rates and lower credit limits with most credit cards.  Not good for those who are already struggling,, since studies consistently show that the single source that causes more people problems with their credit reports are their credit cards.  Specifically, the person uses his Visa or MasterCard to get out of a financial crunch, but when that crunch does not abate, he finds himself unable to make the card payments. The result:  one hit after another to his credit score.

Consider the situation:

* In the U.S., 54 percent have either already increased or plan to soon increase the credit card APR, even on their good customers.  And 74 percent have or will increase it on those with poor credit.

* More than half of all banks intend to cut, or have already cut, the credit limits of credit card holders.

A few in Congress have taken note of the situation and plan to introduce legislation to provide relief for credit-card users.  However, it's likely that any legislation, if it passes, will be months or years before offering any real relief.

In the meantime, there are things the consumer can do to minimize the damage that credit cards to his credit score:

1) If you learn of coming rate hikes with your card, find out of there is an "opt out' option. If so, take it and leave the account open.  this will allow you to pay off your current balance at your current interest rate.  This will ensure that the card does not negatively impact your credit score.

2) If you are only able to "opt out" by closing the account, it's still better to go ahead and do that. This way you'll still be getting the lower interest rate on the balance. And if you have other cards with no balance, closing one of them might not do that much damage to your credit score.

3) If you know that your credit score is still fairly high, then it might be time to shop for another card.  There might still be time to get one, and the new card's available credit could cancel out issues with an account that you're force to close.

4) If your credit card has already done some damage, then it's time to put normal credit-repair strategies into play.  This means first of all, getting a free copy of all three credit reports and scanning them for any inaccurate entries.  Contact the credit bureau and contest the inaccuracy (They will then be forced to either delete the entry or prove its legitimacy).   Next, your number one goal is to get all past-due amounts reported as "current," so as soon as possible, work with debt-collectors to bring the accounts up to date, and pay off any charge-offs. And of course, bring any credit cards that are maxed-out down below your credit limit (since a maxed-out limit takes points off your score). Continue working to pay of these card balances.

Your credit score won't be fixed overnight, but if you act responsibly, you can be sure that there is "credit light" at the end of the financial tunnel.

Direct lender and licensed in most states across the U.S.

Ted Canto

Sr. Mortgage Consultant

Direct: 480.650.8602

Visit www.tedcanto.com

Ted's Blog:  www.thecantoteam.com

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