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…)
With today’s real estate market remaining on the side of the buyer, it makes perfect sense to do what it takes to qualify for a mortgage and begin the exciting journey of homeownership. However, one of the biggest concerns of becoming a new homeowner is the rejection of a loan application and subsequent missed opportunities at securing the right home. Fortunately, we are here to help.
While lenders have various reasons for which they may reject the loan application, here are our top tips for getting your finances in order and on your way to fulfilling the American dream: (more…)
The good people of the IRS have proven their gracious generosity by extending this year’s tax deadline by three days, giving us all until Monday, April 18 to file our taxes. With this extra time, homeowners throughout the country have a bit more time to fully reap the benefits of tax breaks and incentives designed specially for them. This time of year, it’s important to know how your tax situation changes with every real estate move you make. (more…)
Now is the best time to make the "American Dream" a reality.
For those considering whether or not to purchase a home, there are number of factors indicating that now is a great time to buy. Despite the media chatter declaring real estate a risky endeavor, we are actually experiencing what could be one of the best buyers’ markets in recent history. So, for means of investment or residency, property searchers are taking note and experiencing the advantages of favorable conditions.
Still on the fence about taking the plunge? Here are the top 10 reasons why now is a good time to buy that home:
1. Low Interest Rates – Mortgage rates are historically low for conforming loans. With lower rates, a buyer’s financial power is significantly increased. Even half of a percent can make a noticeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year. Buyers can get more home for the money, which is a perfect scenario for families looking to upsize.
2. Choices, Choices – There is a tremendous selection of properties currently available and more and more buyers are seeing the opportunities that exist. Remember, as more purchasers enter the market, many of the best values will be gobbled up first. This is an opportunity for you to purchase that dream house your family has always relished. You can find it HERE.
3. Rent vs. Buy – Think it may be a better idea to rent instead? When you rent a home, all of the money you pay in rent goes to your landlord to pay their mortgage. It does not allow you to accumulate any type of asset for yourself. However, when you buy a home, the money for the mortgage payment actually goes toward something that is tangible and belongs to you.
4. Negotiation Room – Due to the large number of homes on the market, sellers are far more willing to negotiate in terms of price as well as many other concessions. Some sellers are even willing to pay a portion of the buyer’s closing costs; a real boon to first-time home buyers.
5. Prices Scraping Bottom – It’s difficult to know whether prices are as low as they’ll go, but the housing market is showing signs of life. This is your opportunity to find the areas best values. For help, check out our Best Opportunities section for the most aggressively priced homes in the area.
6. Tax savings – Renting a home does not provide you with any opportunities to save on your taxes, but owning a home certainly does. The interest you pay on your mortgage payment every month is tax deductible.
7. Equity Forthcoming – Sure, prices are scraping bottom right now, which means when prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.
8. More Space – You may very well find that in today’s buyer-friendly market you can afford a larger home for the same—or less—as what you are currently paying every month in rent. If you dream of having a home office, starting a family soon or expanding your family, now could be the best time to get the additional space that you need for the right amount of money.
9. Move-in Condition – Homeowners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. Homeowners who have been holding back kept their houses in good shape while they waited. As those houses enter the market, they are in marked contrast to tattered foreclosures.
10. Home Pride – Home ownership gives you and your family a sense of stability and security. It’s making an investment in your future.
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
Your dream home is out there. Be sure to take the right steps to get it. Courtesy of positiverealestateprofessionals.com
With any significant purchase, it is always important to have everything in order to ensure a smooth, stress-free transaction. From planning to payment, the smallest discretion can lead to a nightmare of results and regret. Buying your next—or first—home deserves the same close attention and scrutiny.
As anyone who has ever bought a home or property can attest, the process involves many decisions to be made and even more documents to be signed before the purchase is complete. Along the way, you want to be confident that you took the right steps to protect your best interests. So, if you are about to take the plunge, here are some mistakes to avoid that could mean the difference between a satisfied new homeowner and an unhappy climber on a mountain of debt:
1. Not checking your credit report and score - Review your credit report a few months before you begin your house hunt, and you’ll have time to ensure the facts are correct and dispute mistakes before a mortgage lender checks your credit. You can access a free copy of your credit report HERE once every 12 months. Remember, the cleaner your credit report and the higher your credit score, the more likely you are to be preapproved for a mortgage at a low interest rate. (more…)
Work with professionals to avoid purchasing a home too small for your family.
Buying your first home is the realization of the American Dream. This exciting, overwhelming and even frightening experience brings an array of emotions brought upon by feelings of achievement, apprehension and joy–all wrapped into the walled and roofed structure you now call home.
To make the most of this life-enhancing event, you need to be sure that every step you take is in the right direction and with your best interests in mind. Before you sign those closing papers, there are many things to consider. To help you along, here are the top 10 tips for new homebuyers who plan to get the most from their first home: (more…)
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.
Ann Stickel, Vice President of The Michael Saunders Division of Affiliated Services, discusses the changes in the mortgage industry over the past six months. These changes will help protect the consumer as well as give the consumer a better understanding of their mortgage product.
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.
