The Negative Equity Carryover Model: A Practical and Effective Solution to Our Housing Crisis and the Epidemic of Negative Home Equity

Negative home equity for America’s Homeowners has become an epidemic problem. Nationwide, homeowners are chained to their homes unable to sell due to the shackles of negative equity. This lack of mobility comes at a cost to society and at a time when the public’s need for mobility is at its greatest.

Industry needs this mobility to balance labor requirements, labor needs this mobility to find and create job opportunities, families need mobility to consolidate households and care for aging relatives and others to simply downsize into homes that they can manage and afford financially.

Banks are resistant to negotiate short sale settlements for the fear that the losses on these mortgages will spiral out of control and bring the banks to their knees. Many borrowers are choosing to strategically default in an effort to break the chains of negative equity in order to get on with their lives.

Negative equity, short sales and foreclosures have become a lose-lose situation for both homeowners and lenders.

The Federal Government needs to create legislation making it practical and feasible for banks to offer a safe and equitable alternative.

The “Negative Equity Carryover Model” proposes that negative equity be carried forward to the purchase of a subsequent home purchase or as a personal loan to the homeowner after the property sale.

Homeowners and banks won’t need to negotiate the loss of equity as is currently being done through short sales and foreclosures. Negative equity can be “carried” by a homeowner as a second lien into the purchase of another home or onto a credit report as a personal line of credit. The Model suggests that rather than write the loss off at time of sale through a short sale or foreclosure, the negative equity can be carried into the future as an independent debt/lien and slowly forgiven over an amortized timeframe. The homeowner’s credit would be saved and we as a nation could avoid the wholesale destruction and lockout of a future homeownership class due to damaged credit. Lenders could amortize the negative equity over years while still maintaining some lien position just in case homeownership equity returned.

Gil Kerbashian (847) 873-7295

Posted by gilkerk ( Government Home Loans, Homeownership, Housing Bottom, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, Gil Kerbashian ) :: Permalink :: Trackbacks (0)

National Housing Data Statistics

Posted by gilkerk ( Homeownership ) :: Permalink :: Trackbacks (0)

May House Prices Show Highest Increase Since 2006

May House Prices Show Highest Increase Since 2006
by JON PRIOR
 
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Wednesday, June 2nd, 2010, 11:00 pm

House prices climbed 6.8% in May 2010 from last year, the largest yearly increase since July 2006, according to a report from real estate data provider Clear Capital.

In June 2009, Clear Capital reported a 19.3% drop in May house prices, a "far cry" from the increase shown in this report a year later, said Alex Villacorta, senior statistician at Clear Capital. The rolling quarter-over-quarter number, which measures houses prices against those three months ago showed a 1.8% decline, an improvement from the 5% drop in April.

"We continue to see sustained price growth throughout much of the country with yearly price gains reflecting the housing recovery off of last year's lows," Villacorta said. "The expiration of the tax credit at the end of April has certainly contributed to the growth of prices we are observing and as more sales close before the June 30 deadline we expect that markets across the country will continue to see strengthening of prices."

The amount of REO properties on the market seems to be dropping, too, according to Clear Capital.  The national REO saturation rate dropped to 27.8%, down from 41.7% last year.

"This dramatic shift in price trends reflects the unprecedented volatility over the last couple of years and the delicate state of local real estate markets around the country," Villacorta said.

While quarterly prices in three of the four regions remained below levels from three months ago – the 0.3% increase in the West being the only exception – prices should maintain positive momentum heading into the summer, according to the report.

Prices in Dallas, Texas increased 3.4% from the end of 2009, the highest jump for all markets over the last quarter. The REO saturation rate dropped to 36.6% from 41.1% there as well, but the largest reduction in REO saturation came in San Jose, Calif. There, the amount of REO on the market fell to 19.6%, and helping prices gain 2% from the previous quarter and 20.2% from last year.

The worse performing market in May was Detroit. There, prices dropped 10.7% from the previous three months, but it's an improvement from the 14.4% drop seen in the previous month. The REO saturation rate in Detroit reached 48.9% in May.

Posted by gilkerk ( Homeownership, Housing Bottom, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates ) :: Permalink :: Trackbacks (0)

Tips for First Time Home Buyers

Tips for First Time Home Buyers

Before first time buyers begin looking at properties, they need to make sure they can qualify for a mortgage. The first thing any soon to be homeowner should do is obtain a credit report. Once a credit report is in hand, analyze it and determine what the monthly expenditures are.

Most banks and lenders allow borrowers to have a total debt-to-income ratio up to 45% or higher with strong compensating factors (or 41% max with private mortgage insurance).

By taking the total liabilities and adding it to a monthly housing payment, then dividing that number by the monthly gross income a home buyer can come up with a debt to income ratio.

Let’s use the numbers for and example:
$10,000 monthly gross income
$1,500 total monthly liabilities

We know from the above example that total monthly payments can’t exceed $4,500 or 45% DTI based on $10,000 gross monthly income.

So if the home buyer already has $1,500 in total monthly liabilities, the buyer can add a housing payment of $3,000 a month. $1,500 plus $3,000 equals $4500 or 45% of income

There are a number of mortgage calculators out there that will give the buyers a better idea of what they can qualify for. They can google Freddie Mac mortgage calculator to find an easy to use payment calculator.

Now that the home buyer has their credit profile in check and they know what they can afford, they'll need to show or secure verifiable seasoned assets for at least the down payment.

Funds to close can be gifted to first-time homebuyers using the FHA or VA program. Make sure the homebuyer has an account with at least the down payment available- a seller can pay for closing costs in most cases. Also, make sure the money in the savings account has been there for at least two consecutive months to ensure that it is seasoned (NO UNSOURCED CASH SHOULD BE USED). Banks and mortgage lenders don’t give much weight to unseasoned or cash assets because any friend, relative, Realtor or loan officer can easily dump assets into the buyers account before they apply for a mortgage to boost their net worth.

With all this preparation done, the loan flow will be a comfortable process with few surprises. It might not be perfect, but if the home buyer follows these steps they will definitely save money and reduce stress!

Let’s review the tips for first time home buyers in a condensed format:

- Order a credit report
- Review credit and clear up any derogatory accounts
- Do NOT open any new credit accounts or make any large purchases
- Calculate total monthly liabilities
- Figure out DTI and what can be afforded
- Make sure the homebuyer has a seasoned asset account with at least the down payment (for FHA a gift can be utilized as long as it can be fully sourced)
- Find the dream home and secure the purchase
- Lock your interest rate

Please call me at (847) 873-7295 to discuss nuances regarding the above information. Here to help you get homes financed. 

Posted by gilkerk ( Home Loan application, Credit Scores, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates ) :: Permalink :: Trackbacks (0)

Freddie Mac Important Internet Links

Freddie Mac Email Subscriptions

http://www.freddiemac.com/news/alerts/newscenteremail.html

Choose the Freddie Mac Bulletins, Announcements

and Publications you would like to receive notifications

of via email

Freddie Mac Forms & Guide Access

http://www.freddiemac.com/sell/guide/

Access Freddie’s Single Family Selling & Servicing

Guides as well as forms

Freddie Mac Learning Center

http://www.freddiemac.com/learn/

This website includes links to Quick Reference

Summary Charts on LP, Condominiums, Residency

and Citizenship, Various products, LTV/CLTV/HLTVs,

Refinances, New Construction, Income/Assets,

Collateral., Credit, and Super Conforming- just to name

a few!

Single Family Mortgage Products Page

http://www.freddiemac.com/singlefamily/mortgages/

This website includes links to Product Summaries,

Overviews, Marketing Materials, Affordable Income &

Property Eligibility Lookup Tool, FAQs, Links to live

product training opportunities and much more!

Training Events Page

http://www.freddiemac.com/learn/edu/train/

This page provides links to Live and Web Training

Events on LP, Underwriting, Product, Selling, Servicing

and Delivery-Related topics.

Loan Prospector Main Page

http://www.loanprospector.com/

This is the home page for all things LP! Features,

Benefits, documentation requirements, products, credit

report vendors, LOS vendors, news & highlights, best

practices, as well as login access to LP itself!

Loan Prospector Functionality Page

http://www.freddiemac.com/learn/uw/

This page provides resources and training associated

with documentation and underwriting-related topics

Loan Prospector Helpful Tips & Best Practices

http://www.loanprospector.com/getthemost/bp.html

This page provides links to guides that are very

detailed and well-written for originators, processors,

underwriters and quality control functions within an

organization. These are great reads for everyone!

Loan Prospector Training Page

http://www.loanprospector.com/learn/index.html

This page provides links to recorded training sessions

divided out by topic and category. These short

sessions are excellent educational resources that new

and even experienced LP users can benefit from!

Fraud & Quality Control

http://www.freddiemac.com/learn/uw/qc.html

This page provides links to Quick References

regarding predatory lending, property flips, appraisal

underwriting, documenting citizenship and residency,

rental income, standard income, Freddie’s

Exclusionary List, and standard quality control best

practices

Freddie Mac Homebuyer/Homeownership Page

http://www.freddiemac.com/corporate/buying_and_owning.html

This page includes various resources, tools and

information for both homebuyers and homeowners

Freddie Mac Loan Look-Up

https://ww3.freddiemac.com/corporate/

Determine if Freddie Mac currently services your own

or your borrower’s existing mortgage

Freddie Mac Marketing Kits & Materials

http://www.freddiemac.com/singlefamily/kits.html

Freddie offers excellent marketing materials in the form

of fillable flyers, mailers, post cards, door hangers,

brochures, and stuffers and some are even offered in

languages in addition to English! These are some of

the most professional-looking materials out there! Very

easy to sign up for access and easy to use!

Posted by gilkerk ( FHA, Home Loan application, Home Appraisals, Refinance, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, Mortgage Buydowns, 2-1 buydown, FHA 2-1 Buydowns, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Gil Kerbashian, Home Affordable 125%, FHA Gift Letter, Condominiums ) :: Permalink :: Trackbacks (0)

Cities Covered by My Mortgage and Home Loan Services

Addison IL., Algonquin IL., Alsip IL., Arlington Heights IL., Aurora IL., Barrington Hills IL., Barrington IL., Bartlett IL., Batavia IL., Bellwood IL. Belvidere IL.,Bensenville IL., Berwyn IL., Bloomingdale IL.,Bolingbrook IL., Burr Ridge, Carol Stream IL., Carpentersville IL., Chicago IL.,Chicago Heights IL.,, Chicago Ridge IL.,, Cicero IL.,, Clarendon Hills IL., Country Club Hills IL., Countryside IL., Crest Hill IL., Crestwood IL., Darien IL., Deerfield IL., Des Plaines, IL. Dolton IL., Downers Grove IL., Dundee IL., Elgin IL., Elk Grove IL., Elmhurst IL., Evanston IL., Elmwood Park IL., Evergreen Park IL., Flossmoor IL., Forest Park IL., Forest View IL., Frankfort IL., Franklin Park IL., Geneva IL., Gilberts IL., Glen Ellyn IL. Glendale Heights IL., Gurnee IL., Hampshire IL., Hanover ParK IL.,Hazel Crest IL., Crystal Lake IL., Hickory Hills IL., Hinsdale IL., Hillside IL., Hodgkins IL., Hoffman Estates IL., Homer Glen IL., Homer Township IL., Hometown IL.,, Indian Head Park IL., Itasca IL., Joliet IL., Justice IL. LaGrange IL., LaGrange Park IL., Lake In The Hills IL., Lansing IL., Lemont IL., Libertyville IL., Lisle IL., Lockport IL., Lombard IL., Loves Park IL., Lyons IL., Markham IL., Matteson IL.,, Melrose Park IL., Mchenry IL., Midlothian IL., Mokena IL., Morton Grove IL., Mount Prospect IL., Naperville IL., New Lenox IL., Niles IL., North Aurora IL., Northbrook IL., Northfield IL., Northlake IL., North Chicago IL., Oak Brook IL., Oak Forest IL., Oak Lawn IL., Oak Park IL., Oak Brook Terrace IL., Olympia Fields IL., Orland Hills IL., Orland Park IL., Oswego IL., Palatine IL., Palos Hills IL., Palos Heights IL., Palos Park IL., Park Forest IL., Park Ridge IL., Phoenix IL., Pingree Grove IL., Plainfield IL., Prospect Heights IL., Richton Park IL., River Forest IL., River Grove IL., Riverside IL., Robbins IL., Rockford IL., Rolling Meadows IL., Romeoville IL., Roselle IL., Rosemont IL., Sauk Village IL., Schaumburg IL., Schiller Park IL., Shorewood IL., Skokie IL., South Elgin IL. South Chicago IL., St. Charles IL., Steger IL., Stickney IL., Stone Park IL., Streamwood IL., Summit IL., Sugar Grove IL., Sycamore IL., Thorton IL., Tinley Park IL., Villa Park IL., Warrenville IL., Wauconda IL., Waukeegan IL., Wayne IL., West Chicago IL., Westchester IL., Western Springs IL., Westmont IL., Wheaton IL., Wheeling IL., Willow Springs IL., Willowbrook IL., Wilmette IL., Winfield IL., Winnetka IL., Wood Dale IL., Woodridge IL., Woodstock IL., Worth IL., Yorkville IL., Dupage County IL., Cook County IL., Will County IL., Kane County IL., Grundy County IL., Boone County IL., Lake County IL., Illinois, Indiana, Wisconsin.

Posted by gilkerk ( Homeownership ) :: Permalink :: Trackbacks (0)

Understand Home Buyer Closing Costs

Understanding Home Buyer Closing Costs:

Processing Fee Estimate: $350
This fee is charged by us to pre-approve, pre-underwrite and make sure the home buyers loan fits program guidelines prior to us submitting the loan to an underwriting unit for full approval. We will review all documents, submit the package, insure compliance, attend closing and maintain support all the way to closing. Fee paid directly to us at closing. This fee also includes credit reports, approval certificates and document gathering expenses.

Discount Points to Buydown Rate:
Normally not charged unless a buyer requests or needs to buydown an interest rate in order to qualify for the loan.

Appraisal Fee Paid to Independent Appraisal Company Estimate: $275-$450 Upfront Cost
This fee is paid directly to an independent appraiser to determine the maket value of the property. The appraiser is chosen by a neutral third party and you must pay this fee at the start of the loan process once a property is determined.

Underwriting Fee Paid to Independent Undewriting Unit Estimate: $600-$800
This fee is paid by the home buyer directly to the loan underwriting entity at loan closing. Once we have pre-underwritten the loan and we have determined the best lender able to actually fund the loan, we submit it to them for review, approval, legal documents and funding.

Homeowners Insurance Paid to Your Insurance Company Estimate: $300-$600 Upfront Cost
The home buyer will contact their personal insurance provider two weeks prior to the closing date to determine the cost of a homeowners insurance policy. This will be paid in advance of closing directly by the home buyer to the company they have picked. A one year policy must be paid for in advance of closing. If the property is in a flood zone, the home buyer will also be required to get flood insurance also.

Mortgage Interest Payment at Closing Estimate: Depends on closing date.
Depending on the day of close, the home buyer will pay for the days of homeownership from the day of closing to the last day of the month. Example: if we close on the 15th of the month home buyer will pay from the 15th to the last day of the month for each day they own the home.
 
Tax Escrow Paid Directly to Lender Estimated: Monthly property taxes times two. Most loans require borrowers to have the lender pay the property taxes on behalf of the buyer. Unless the home buyers are putting in 10-20% downpayment, expect to "escrow" for taxes. Lenders typically require a 2 month cushion placed into an escrow account. Ex: $500x2=$1000

Homeowners Insurance Escrow Paid Directly to Lender Estimated: $60-$120
Like taxes above, lenders will want to pay for the homeowners insurance when it comes due. Most lenders will require a 2 month cushion placed into the escrow account at closing.
 
Settlement Costs- Closing Attorney, Title Insurance, Closing Company, County Recording
Fees Paid Directly to Providers Pre-Chosen by Others Estimate: $1500-$2500
These are standard fees required to purchase a home. Refinances are much lower. These fees are not chosen by us but rather chosen by the sellers attorney.

Home Purchase Transfer Tax Stamps Estimated: Call the city to see if buyers pay these
Most common in the city of Chicago and a few others. Not all cities or villages charge buyers a transfer stamp tax. Usually a sellers expense. Can be expensive for buyers if they are charged.

**** In a home purchase transaction the home buyer may have the Seller of the Property pay for some, most, or possibly all of the above expenses. This is called a "Seller Paid Closing Contribution". This is highly recommended if the home buyer is short on funds to close or currently only has the downpayment and no other funds available. Seller can pay up to 3% of the purchase price towards closing costs.

If the Seller picks up yclosing costs, any monies paid up front other than the home inspection (appraisal and homeowners insurance up front) will be applied to the downpayment commitment.
Please call me at (847) 873-7295 to discuss nuances. Here to help you get homes financed.

Posted by gilkerk ( FHA, Government Home Loans, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

FHA FAQ's

FAQ's
1 How can FHA help me buy a home?
2 How can I buy a HUD Home?
3 What is the H4H Program and how can it help borrowers avoid foreclosure?
4 How can my company obtain the co-branded marketing materials being developed by FHA?
5 How do I calculate a 203(k) or Streamline K loan to meet the new cash investment and refinance requirements?
6 How can the Making Home Affordable Program help me avoid foreclosure on my conventional loan?
7 How can the Making Home Affordable Program help me avoid foreclosure on my FHA loan?
8 Does FHA allow dug wells?
9 Is it true that FHA no longer accepts applications from state- licensed appraisers and I must upgrade to state-certified general or residential to qualify for placement on the FHA Appraiser Roster?
10 Why are licensed appraisers not grandfathered to stay on the appraiser roster?
11 Can you tell me when more HERA information will be available for licensed roster appraisers?
12 Must I upgrade to certified general or residential to be placed on the FHA appraiser roster?
13 What if the appraiser roster system does not recognize the user ID that was provided to me?
14 How can I reset my appraiser roster password?
15 How can I resolve a sanctions issue and become eligible for placement on the FHA appraiser roster?
16 How can I get help applying or maintaining my appraiser listing on the FHA roster?
17 Can you tell me how the HERA law effects licensed appraisers on the FHA roster?
18 How do I become a state-certified appraiser?
19 Can I perform appraisals in one state if I am sanctioned in another?
20 How can I become an active appraiser if I allowed my status to lapse?

Posted by gilkerk ( FHA, Government Home Loans, Home Loan application, Home Appraisals, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter, Condominiums ) :: Permalink :: Trackbacks (0)

FHA Foreclosures Rising

Rising FHA default rate foreshadows a crush of foreclosures

David H. Stevens
David H. Stevens (Andrew Harrer - Bloomberg)

Washington Post Staff Writer
Tuesday, February 2, 2010

 

The share of borrowers who are falling seriously behind on loans backed by the Federal Housing Administration jumped by more than a third in the past year, foreshadowing a crush of foreclosures that could further buffet an agency vital to the housing market's recovery.

About 9.1 percent of FHA borrowers had missed at least three payments as of December, up from 6.5 percent a year ago, the agency's figures show.

Although the FHA's default rate has been climbing for months and eating into the agency's cash, the latest figures show that the FHA's woes are getting worse even as the housing market shows signs of improvement. The problems are rooted in FHA mortgages made in 2007 and 2008. Those loans are now maturing into their worst years because failures most often occur two to three years after a mortgage is made.

If the trend continues and the FHA's cash reserves are exhausted, the federal government would automatically use taxpayer money to cover the losses -- a first for the agency, which has always used the fees it charges borrowers to pay for its losses.

As these loans from 2007 and 2008 go bad and clear off of the FHA's books, agency officials said, losses are expected to taper off, aided by the housing market's anticipated recovery and an influx of more creditworthy borrowers, who have flocked to the FHA's home-buying program in the past year.

Agency officials said they have cracked down on poorly performing lenders and announced higher qualifying fees for borrowers. On Monday, the agency projected that the fees should generate $5.8 billion in fiscal 2011, up from $2 billion this year. That would fatten the FHA's cash cushion, used to cover unexpected losses.

Posted by gilkerk ( General, FHA, Government Home Loans, Home Loan application, VA, Home Appraisals, Downpayment, Homeownership, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, FHA Gift Letter, (847) 794-5000, Condominiums ) :: Permalink :: Trackbacks (0)

FHA HUD Links

• www.hud.gov - HUD Home Page

• www.fha.gov - FHA Home Page

• http://www.hud.gov/offices/hsg/sfh/ref/hsgregst.cfm - Subscribe to HUD’s Single Family Mailing List

• http://hud.gov/offices/hsg/sfh/events/events.cfm - HUD Single Family Events & Training Page

• http://hud.gov/offices/hsg/sfh/talk/parc/phiarch.cfm - Phili HOC Recorded Webinar Archives

• http://www.hud.gov/groups/lenders.cfm - HUD Lenders Page **NEW**

• http://www.hud.gov/offices/hsg/sfh/lender/mtgeekit.cfm - Title II Mortgagee Starter Kit of HUD Handbooks

• http://www.disasterhousing.gov/offices/adm/hudclips/handbooks/hsgh/ - Complete List of Handbooks

• http://www.fhaoutreach.gov/FHAHandbook/prod/contents.asp?address=4155-2 - Link to Home Page for new 4155.1 and 4155.2 Searchable Handbooks

• http://www.hud.gov/offices/hsg/sfh/ref/hsgrcont.cfm - HUD/FHA HOC Reference Guide

• http://www.hud.gov/offices/hsg/sfh/faqs/faqsmenu.cfm - HUD/FHA FAQ by Category

• http://www.hud.gov/faqs/faqbuying.cfm - HUD Common Questions Page

• http://www.nls.gov/offices/adm/hudclips/letters/mortgagee/ - HUD Mortgagee Letters

• https://entp.hud.gov/idapp/html/hicostlook.cfm - FHA Mortgage Limits Search

• https://entp.hud.gov/idapp/html/condlook.cfm - FHA Condominium Search

• https://entp.hud.gov/idapp/html/apprlook.cfm - FHA Appraiser Roster Search

• http://www.hud.gov/groups/appraisers.cfm - FHA Roster Appraiser Home Page

• http://www.hud.gov/offices/hsg/sfh/reo/reohome.cfm - HUD REO Home Page

• http://www.hud.gov/offices/hsg/sfh/owning.cfm - HUD Owning a Home Consumer Info Page

• http://portal.hud.gov/portal/page/portal/HUD/states - Links to State-Specific HUD Home Pages

• http://www.hud.gov/library/index.cfm - HUD Online Library-Links to Various Common Topics

• http://portal.hud.gov/portal/page/portal/HUD/webcasts/archives - HUD Webcast Archives-Recorded Webcasts

• http://portal.hud.gov/portal/page/portal/HUD/webcasts/archives/sinfamily - HUD Single Family Housing Webcast Archives

• https://entp.hud.gov/clas/index.cfm - FHA Connection

• http://portal.hud.gov/portal/page/portal/HUD/program_offices/administration/hudclips/forms - HUD Forms Search

• http://www.hud.gov/offices/hsg/sfh/fharesourcectr.cfm - FHA Resource Center Home Page

• http://www.fhaoutreach.gov/FHAFAQ/ - FHA Resource Center Searchable FAQ

• http://www5.hud.gov:63001/po/i/netlocator/ - HUD Employee Locator-Online Search Engine

• http://www.hud.gov/offices/adm/dds/ - HUD Direct Distribution Center- Order Publications!

• http://www.hud.gov/library/bookshelf11/hudgraphics/fheologo.cfm - Equal Housing Graphic/Logo for Printing

• http://www.hud.gov/offices/hsg/sfh/sys/caivrs/caivrs.cfm - HUD CAIVRS Home Page

• https://www.epls.gov/ - Excluded Parties Listing System Home Page (EPLS)

• http://www.hud.gov/offices/fheo/promotingfh/928-1.pdf - Fair Housing Poster-English Version

• http://www.hud.gov/offices/fheo/promotingfh/lep.cfm - Booklets HUD Materials in English and Other Languages

• http://www.hud.gov/offices/hsg/sfh/buying/homebuyingguide.pdf HUD Homebuying Guide for Consumers

• http://www.hud.gov/offices/hsg/sfh/buying/loanfraudfaq.pdf HUD Smart Consumer Fact Sheet

• http://www.hud.gov/offices/hsg/sfh/ins/hoctenyr.pdf - HUD Approved 10 year Warranty Plans

• http://www.hud.gov/assist/webpolicies.cfm - HUD Web Policies

Posted by gilkerk ( FHA, Government Home Loans, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

Cash / Mattress Money is a Deal Killer

- Cash / Mattress Money is a Deal Killer-

AHEAD OF THE CURVE ARTICLE BELOW

Below is a list of my top programs that should be in every agents resource
folder:

-FHA closed on time: [http://www.realestateloans.com/fhadonewell.pdf]
[http://www.realestateloans.com/fhadonewell.pdf]
www.realestateloans.com/fhadonewell.pdf

-100% Rural Development: [http://www.realestateloans.com/usda.pdf]
[http://www.realestateloans.com/usda.pdf] www.realestateloans.com/usda.pdf

-$100 down for HUD owned homes:
[http://www.realestateloans.com/100hudhome.pdf]
[http://www.realestateloans.com/100hudhome.pdf]
www.realestateloans.com/100hudhome.pdf

-Deferred maintenance homes:
[http://www.realestateloans.com/uglyhomes.pdf]
[http://www.realestateloans.com/uglyhomes.pdf]
www.realestateloans.com/uglyhomes.pdf

-100% pre-approval to closing ratio:
[http://www.realestateloans.com/concierge.pdf]
[http://www.realestateloans.com/concierge.pdf]
www.realestateloans.com/concierge.pdf

-VA 100% financing:  [http://www.realestateloans.com/va.pdf]
www.realestateloans.com/va.pdf

-Home Buyer job protection mortgage:
[http://www.realestateloans.com/rainydays.pdf]
www.realestateloans.com/rainydays.pdf

CASH IS KILLING DEALS:

I recently had a borrower call me and state she deposited $6000 into her
bank account from an unsecured loan. Without telling the Realtor or myself
she used this money for the contract deposit. Some form of outside monies
has been interjected into four of the last ten deals I've done and the
borrowers did it after reading
[http://gilkerk.realestateloans.com/condominiums/2009/05/07/i-need-to-make-a-home-loan-application-help.html]
my home purchase introduction link which clearly states that cash and large
deposits should be avoided.

Why isn't cash allowed into a transaction? It's the borrowers money right?
Several obvious reasons: Patriot Act/Banking Laws, Drug Money, Cash
Laundering, Straw Buyer considerations, Under the Table Seller Concessions,
Realtor or Loan Office contribution, Unsecured/unreported loan, Gift from
an unacceptable source, etc..

Loan officers and Realtors should never allow or encourage customers to
deposit or use cash for ANY part of the transaction nor turn a blind eye if
they know a client is borrowing money from credit cards or personal loans.
This type of mistake will certainly cause problems and create needless
tension. Now more than ever, loan files are being looked at with a fine
tooth comb. More and more careful verifications are being done a day before
closing- be prepared and don't let your deal die for dumb reasons.

Remember, FHA case numbers follow these loans. If one underwriter declines
a loan, the disposition will follow that loan. Realtors and Loan Officers
must work closely to prevent problems from day one.

Please call me at (847) 873-7295 to discuss nuances. Here to help you get
homes financed.

Is your loan officer less responsive than you'd like? Cut yourself free
from bad service, poor communication and start enjoying incredible support
today.

Could your team use an updated presentation to get agents up-to-speed on
loan program changes? Lending is a huge part of transactional business,
consider  scheduling my lunch and learn for your team.

Gil Kerbashian

Mortgage Lending Since 1997

Gil's Loan Answer Hotline: (847) 873-7295

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

FANNIE MAE'S NEW DEBT TO INCOME RATIO'S

Ahead of the Curve
For Active Real Estate Marketing Professionals...
Fannie Mae has implemented the new debt to income ratio for borrowers in conventional loans: Starting December 1st or thereabouts for most lenders, conventional loan total debt to income ratio's have been brought down to 45%. Up to this point the average TDTI has averaged in the low 50's.
NOW: 45% is the guideline for borrowers that put down 20% or more. For conventional loans with less than 20% down the ratio is restricted to 41%. Please see my above article on debt to income ratios for clarification of what a DTI is.
Why is this change important to real estate professionals? You have pending offers, pre-approvals and deals in the pipeline that currently have ratios above 45%. These deal may have problems closing. Take a moment to inquire about these offers or pre-approvals and make sure the home buyers will be able to close.
Please call me at (847) 873-7295 to discuss nuances. Here to help you get homes financed. 

Posted by gilkerk ( General, FHA, Lender Gossip, Government Home Loans, Home Loan application, VA, Home Appraisals, Credit Scores, USDA Loan, Credit Repair, Tax Credits, Refinance, Downpayment, Homeownership, Housing Bottom, Closings, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Treasury, Federal Reserve, Fannie Mae, Freddie Mac, Housing Recovery, TARP, FHA Appraisals, FHA Appraisers, HUD Owned Homes, Fannie Mae 105%, Fannie Mae Refi Plus, HUD Homes, HUD Foreclosures, McNeil Financial Group, Lake in the Hills Mortgage, McHenry Home Loans, Home State Bank IL, Harris Bank IL, realestateloans.com, mcneil financial group, (847) 458-8700, Integra Mortgage Schaumburg Illinois, Mortgage Buydowns, Mortgage Modifications, 2-1 buydown, FHA 2-1 Buydowns, Consumer Financial Protection Agency, Mortgage loan application, mortgage application, fnma 1003, HVCC, 203ks, fha 203ks, 203k, Donald Brewer, Gil Kerbashian, Crystal Lake IL Teachers, Northwest Suburbs Il, Northwest Young Scholars Foundation, Home Affordable 125%, FHA Gift Letter, (847) 794-5000, OFAC, Condominiums, Allied Mortgage Capital Corp, Allied Mortgage ) :: Permalink :: Trackbacks (0)

FHA Discount Points

Discount Points

Discount points fill the gap between interest rates and allowing the lender to make the loan at a lower rate. A lender has a choice of making a loan at 7 percent or at 7½ percent interest rate. Points allow lenders to lower rates while maintaining their profit margins. One point is equal to 1 percent of the amount of a loan. For a $150,000 mortgage loan, one point would be equal to $1,500.

The value of points can vary depending on current financial markets, lenders generally consider that it takes roughly 1 point to lower a loan's interest rate by .25 percent.

If the lender offers an option of paying points for a certain rate of interest, the borrower must consider several important factors. One of the main issues to regard is the length of time that the borrower will own the property and keep the mortgage. At some point in time during the loan, the points will have paid for themselves and begin to save the homebuyer money.

Posted by gilkerk ( FHA, Government Home Loans, Home Loan application, VA, Home Appraisals, USDA Loan, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, Mortgage Buydowns, 2-1 buydown, FHA 2-1 Buydowns, Mortgage loan application, mortgage application, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter ) :: Permalink :: Trackbacks (0)

USDA Homeownership Website Links

Subscribe to receive Single Family Housing News for GUS & GRH: http://www.rdlist.sc.egov.usda.gov/listserv/mainservlet

USDA Rural Housing Home Page: http://www.rurdev.usda.gov/RHS/

Rural Development Contacts Page: http://www.rurdev.usda.gov/RHS/Admin/contact.htm

Rural Development Regulations Page: http://www.rurdev.usda.gov/regs/

Rural Development FAQ Page: http://www.rurdev.usda.gov/rd/faqs.html

Rural Development Income & Property Eligibility Site: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Single Family Housing Guaranteed Loan Income Limits: http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm

Loan Application Package Checklist: http://www.rurdev.usda.gov/regs/an/an4470.pdf

Rural Development Regulations: http://www.rurdev.usda.gov/regs/

Rural Housing Origination Handbook 1980-D: http://www.rurdev.usda.gov/regs/regs/pdf/1980d.pdf

GUS Lender User Guide 2008: https://usdalinc.sc.egov.usda.gov/docs/rd/sfh/gus/lender/GUSLenderUserGuide.pdf
GUS Login Page: https://pws.sc.egov.usda.gov/login/login.aspx?TYPE=33554433&REALMOID=06-f8405ea7-471f-474d-8a4e-731f76f1e536&GUID=&SMAUTHREASON=0&METHOD=GET&SMAGENTNAME=-SM-S3%2fpukYCkOnlZ%2feImVktFvcBZTmcxsBEbQyvAIf2sN6XculadBu%2f5WF4TmWxHg2x&TARGET=-SM-HTTPS%3a%2f%2fgus.sc.egov.usda.gov%2faus%2findex.jsp%3fcallingPath%3dusdalinc.sc.egov.usda.gov%2fRHShome.do

Administrative Notices for Loan Origination and Underwriting: http://www.rurdev.usda.gov/wi/programs/rhs/sfhg/handbook/originating/ans.htm
USDA Rural Development Forms Library: http://www.rurdev.usda.gov/regs/formstoc.html

Rural Development State Office/Service Center Locator: http://www.rurdev.usda.gov/recd_map.html

USDA Live WebEx Training Schedule: https://rurdev.webex.com/mw0305l/mywebex/default.do?siteurl=rurdev&service=7

USDA LINC Training and Resource Library: https://usdalinc.sc.egov.usda.gov/USDALincTrainingResourceLib.do
Guaranteed Rural Housing Consumer Marketing Brochure: http://www.rurdev.usda.gov/RHS/sfh/GSFH_Information/Common/09_2009_Website_%20Hooray%20For%20Housing%20GRH%20Brochure.pdf

Guaranteed Rural Housing Consumer Marketing Booklet: http://www.rurdev.usda.gov/rd/pubs/pa1501.pdf

Rural Development Lender Information Page: http://www.rurdev.usda.gov/rhs/sfh/GSFH_Information/lenders.htm

Digital Rights and Copyright

Most information presented on Rural Development's website is considered public domain information. Public domain information may be freely distributed or copied, but use of appropriate byline/photo/image credits is requested. Attribution may be cited as follows: "USDA Rural Development."
Some materials on the Rural Development site are protected by copyright, trademark, or patent, and/or are provided for personal use only. Such materials are used by Rural Development with permission, and they have made every attempt to identify and clearly label them. You may need to obtain permission from the copyright, trademark or patent holder to acquire, use, reproduce or distribute these materials.

Posted by gilkerk ( FHA, Government Home Loans, Home Loan application, Home Appraisals, Credit Scores, USDA Loan, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgages, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, Mortgage Buydowns, 2-1 buydown, FHA 2-1 Buydowns, Mortgage loan application, mortgage application, fnma 1003, 203ks, fha 203ks, 203k, Gil Kerbashian, FHA Gift Letter, Condominiums ) :: Permalink :: Trackbacks (0)

IHDA.ORG Down Payment Assistance

Two down payment assistance programs: There are two down payment assistance programs that I currently offier: IHDA and ADDI. Many of you have heard about CAHMCO which is really an extension of IHDA.
Here are the highlights to the most popular one- IHDA. As of this writing ADDI has ceased taking any more applicants due to volume. They expect to be back on line in January.
-Income limits
-$6,000 down payment assistance in the form of a second mortgage
-45 days typical to process through IHDA
-Homebuyer classes must be taken
-Additonal $300 to underwrite the second
-First time home buyers only-Veterans exempt from the first time buyer rule
-Purchase price limits are lower than current FHA limits
-Debt ratios are 31/41
-Income from everyone over 18 in the household will be counted (must provide 3 years tax returns)
-640 min fico
-Buyer must contribute 1% to the transaction
Please call me at (847) 873-7295 to discuss nuances. Here to help you get homes financed. 

Posted by gilkerk ( FHA, Government Home Loans, VA, Downpayment, Homeownership, Crystal Lake Real Estate Agents, Agonquin Real Estate Agents, Cary Illinois Real Estate Agents, Mortgage Interest Rates, Fannie Mae, Freddie Mac, FHA Appraisals, FHA Appraisers, HUD Owned Homes, HUD Homes, HUD Foreclosures, Lake in the Hills Mortgage, McHenry Home Loans, realestateloans.com, 2-1 buydown, FHA 2-1 Buydowns, 203ks, fha 203ks, 203k ) :: Permalink :: Trackbacks (0)
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