An FHA loan is a loan insured against default by the Federal Housing Administration. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults—the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans. In fact, it is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Nevertheless, they are a great help to some borrowers.
FHA loans are more popular than ever and may be right for you, whether you are looking to buy your first home, next home, or refinance a home you already own. To help you along, here are the top 10 facts about FHA loans: (more…)
Originally from Lowell, Massachusetts, Roger relocated to Orlando, Florida, immediately after serving in the U.S. Navy in 1986.
Roger began his career in the financial services industry and transitioned into the mortgage and real estate business in 1997. Having spent over 14 successful years in the mortgage industry, he brings a wealth of experience and knowledge to every transaction. His extensive background working with banks, Realtors, builders and foreign national clients serves as a formidable resource to those he assists. He takes great pride in helping people and focuses on establishing great rapport and trust while providing financial solutions.
Roger has developed client sources from Realtors and builders, and has become very efficient in the purchase market. Through consistent hard work and dedication to his clients, he has earned numerous awards and recognition among his peers.
SARASOTA, FLORIDA – (January 2011) – Michael Saunders & Company is pleased to announce Bob Lambert of MSC Mortgage has earned recognition as a Wells Fargo Home Mortgage Leaders Club qualifying member for exceeding volume and customer service benchmarks in 2010.
Wells Fargo Home Mortgage annually recognizes team members who provide exceptional customer service and rank among the company’s top sales producers. Considered the best of the best for mortgage services, Leaders Club members have achieved the highest level of success in the mortgage industry for satisfying the financial needs of customers.
Qualifying for Leader’s Club has been one of Lambert’s goals since joining MSC Mortgage in the spring of 2006. After years of experiencing a perpetually challenging market environment with lowering real estate sales prices and tightening lending credit guidelines, meeting this goal in 2010 is a remarkable feat.
Lambert will be honored with formal recognition at Wells Fargo’s 2010 Sales Conference on February 10-13, 2011 at the Desert Springs JW Marriott Resort and Spa.
For more information, contact MSC Mortgage at 941.308.2222.
Our FHA adjustable-rate mortgage (ARM) provides many advantages:
This is a great time to be a homebuyer! Interest rates are historically low. There are plenty of homes to choose from. And with a government-insured FHA 5/1 adjustable-rate mortgage (ARM) (1):
• The initial interest rate (start rate) is very attractive and principal-and-interest payments are fixed for the first five years
• There are built-in safety nets, because the interest rate can only go up or down 1% per year or 5% over the life of your loan
• High loan amounts up to $729,750 are available in certain metropolitan areas with high housing costs. (2)
Benefits within an ARM’s reach:
• Buyer-friendly — Flexible credit and income qualifying guidelines
• Cost-effective — Down payments as low as 3.5%
• Attractive rates — initial ARM interest rates are typically lower than fixed rates, but can adjust in the future
• Accommodating — Gift funds accepted toward your down payment
• Fully assumable — Future qualified buyers may be able to take over the loan under its original terms
Credit Card Reform impacts millions…
With an average count of nine credit cards per American household, the new credit card regulations that went into effect on Feb. 22 will have sizeable impact on our country.
The provisions – part of the Credit Card Act signed into law by President Obama on May 22, 2009 – call for credit card companies to give consumers 45 days advance notice of significant changes in the terms of their accounts and the right to ‘opt out’ of the account if they disagree with the new terms. Issuers are required to send bills to consumers at least 21 days in advance of the payment due date, and the due date must be the same every month.
Also, card issuers can no longer:
~ raise interest rates on existing balances unless the card has a variable interest rate and the underlying index increases, a temporary rate for a specified period of time, or the customer is more than 60 days late on a monthly payment;
~ raise rates on new accounts for a period of 12 months;
~ charge a fee when a consumer exceeds a credit limit, unless the customer opts in to being charged the fee;
~ charge extra for certain payment channels, such as pay by • phone, unless the payment is expedited and representative of the creditor assists;
~ engage in the practice of double cycle billing.
In addition, card issuers are now required to provide more insight to customers about how much it costs to carry a balance on the card by paying only the minimum payments each month and how much the consumer will need to pay to eliminate the balance in three years.
We asked Ann Stickel-vice president of Affiliated Services for Michael Saunders & Company Mortgage, LLC-what government programs are available for distressed homeowners? Also, how these government loans help keep people in their homes and the foreclosure rate at a minimum.
If you have questions for Michael Saunders, email AskMichael@michaelsaunders.com.
Consumer Protection Act of 2009
In December, the U.S. House of Representatives approved – by a vote of 223 to 202 – the Wall Street Reform and Consumer Protection Act of 2009, otherwise known as H.R. 4173. This bill proposes sweeping reforms that have the potential to profoundly impact how financial companies operate and what consumers can be offered in terms of products and services.
A culmination of many months of work, the authors of the bill sought a way to protect consumers and the economy through stronger controls. While many agree that the legislation does introduce new means to achieve these goals, concern remains about the unintended consequences this bill may produce.
In its Dec. 17, 2009 public statement, the American Bankers Association said it “supports broad reform of the banking regulatory system and has expressed this view in testimony before Congress; (this includes)…the formation of a council charged with overseeing systemic risk, creation of a mechanism for the orderly resolution of systemically important non-banks, and ending too-big-to-fail. Although some improvements were made (in the bill), ABA remains opposed to this legislation as passed by the House.”
The Senate is expected to propose comparable reform legislation with some significant changes.
Financial Services Oversight
Currently, H.R. 4173 covers a comprehensive number of issues including the creation of an interagency Financial Services Oversight Council that would identify and regulate financial institutions that pose systemic risks to the country.
The bill supports heightened oversight and regulation for financial institutions and a process to dissolve firms that fail. This includes publicly identifying and subjecting financial companies to stricter standards if it is determined that the company’s performance or mix of activities could pose a threat to the financial stability of the economy. The council would be responsible for imposing a special assessment on financial companies that fail to pay for any shortfall in TARP that would add to the national debt.
By Gino Blefari, President and CEO – Intero Real Estate Services, Inc.
For many years, the Federal Housing Administration, by virtue of its policies designed to help people with lower incomes or those just starting out, made it possible for millions of Americans to purchase their own homes. They made it possible for these people to take part in the American Dream.
Fast-forward to 2006, at the height of the “boom” real estate market, and the FHA found itself backing just 3 out of 100 home loans, as “non-conforming” loans were being given to, pretty much, whoever asked for them, and their requirements were virtually hassle-free when compared to those that the FHA had in place.
Today, the FHA backs 3 out of every 10 new home loans, because, as other lenders have tightened restrictions, FHA has followed the status quo, keeping things fairly liberal.
The result of all of this? Problems. Big ones.
On December 2, 2009, the Secretary of Health & Urban Development, Shaun Donovan, stood before Congress and announced that the FHA’s cash reserves have fallen well below the Federally-mandated level of 2%, to a staggering .53%.
To try to alleviate the FHA’s problems and raise reserves to their legally-required levels, Mr. Donovan indicated sweeping changes would be coming to the FHA’s loan process. Here’s some of what you should expect:
Refinances and first-time homebuyer property sales largely contributed to third quarter volume
Consumers were active in the housing market during the third quarter with refinance and purchase applications. Existing homeowners fueled the refi activity, and first-time homebuyers accounted for 43% of home purchases in August, according to the Sept. 18 issue of Inside Mortgage Finance.
In a September 2009 Wells Fargo Home Mortgage survey, 56% of first-time homebuyers cited the $8,000 tax credit for their reason to purchase. Low interest rates drove 66% of these borrowers, and 74% attributed the decision to low home prices.
In the same survey, renters shared their reasons for intending to purchase their first home within six months. Roughly 84% said low home prices were the reason, 74% cited low interest rates, and 72% referenced the tax credit as the key deciding factor.
As of the publication date, there is still debate in Congress about whether the first-time homebuyer tax credit will be extended beyond the Nov. 30 deadline.
When will local housing markets recover?
Recent news released from the National Association of REALTORS® showed that pending home sales have increased for seven consecutive months based on contracts signed in August. In addition, the S&P/Case-Shiller Home Price Indices demonstrated that the annual decline in home price values continues to slow and that many markets have experienced some sustained monthly increases.
Rising energy costs have consumers thinking about energy conservation and the green must-haves for their home.
The Energy Efficient Mortgage (EEM) is federally recognized and has benefits for both buyers and sellers. Buyers can stretch their dollar with the energy-saving measures in the home that will help save on utility bills. Sellers who use an EEM to make improvements on their home will make older homes more comfortable and more attractive to buyers looking to go green. Homeowners looking to remodel or refinance also gain benefits from EEM by making improvements that will help save on utility costs and potentially increasing the resale value of the home down the road.
According to the Energy Efficient Mortgage Home Owner Guide on the Housing and Urban Development Web site, buyers who qualify for a home loan may also qualify for the EEM. The guide also says that availability is not limited by location, home price or utility company. When applying for an EEM, a Home Energy Rating System report must be completed on the house. An energy appraisal is done by an inspector and the results are certified. More information about EEMs and case study examples are available at www.hud.gov.
Tax credits also are available for energy-saving home improvement products placed in a home in 2009 and 2010. For specific details visit http://www.energystar.gov/index.cfm?c=tax_credits.tx_index.
Does refinancing fit your situation?
Whether you're buying a home or refinancing, MSC Mortgage provides valuable online tools
and resources to help you make the decisions that are right for you.
For the best service with any of your home financing needs,
talk to one of our private mortgage bankers today.
An FHA loan is a loan insured against default by the Federal Housing Administration. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults—the FHA will pay. Because of this guarantee, lenders are willing to make large mortgage loans. In fact, it is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created. Nevertheless, they are a great help to some borrowers.
