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.
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:
Turn-of-the-century bayside villages, quiet rural settings, country club communities, comfortable urban neighborhoods and secure retirement enclaves are all part of Bradenton and Manatee County. Bordering the Gulf of Mexico between Tampa and Sarasota, Manatee County has earned the reputation of being one of the friendliest communities in on the Gulf Coast, in addition to its diverse neighborhoods and Florida charm. The agents of our Bradenton office proudly serve the residential opportunities throughout Manatee County and beyond.
Manatee County Sales Reports
Pam Ali, branch manager of Michael Saunders & Company’s Bradenton office, is pleased to report significant activity in home sales throughout Manatee County. In the Multiple Listing Service (MLS) for Manatee County, there were 243 single-family homes that sold in the last 30 days. The average sales price was $230,488. (more…)
As many homeowners continue to struggle with making their home mortgage payments and fear of losing their homes, there is help available. The government program and websitewww.MakingHomeAffordable.gov provides homeowners with home mortgage information from both Freddie Mac and Fannie Mae as well as contact information for the mortgage servicers who have committed to assist eligible homeowners with either refinance or modification options which may provide them with the opportunity to stay in their homes. The Making Home Affordable site also shares some great “how to’s” to guide homeowners through these challenging times and help them avoid pitfalls when reaching out for assistance. I’ve attached a flyer which provides an overview of some of the support options available – please feel free to share this with homeowners you may know who could use this information.
Click on the document below to open and save as a PDF.
With stricter qualifications and more scrutiny than previous years for securing a home loan, preapproval letters provide piece of mind for sellers in knowing that the buyer is capable of handling the purchase. The following article lends some helpful tips for homebuyers in today’s market.
Today, the first step in landing a home loan is obtaining a letter of preapproval. This means a mortgage lender has verified that you’re approved for a mortgage of a certain amount over a fixed timeframe.
Preapproval letters are prepared even before you’ve picked out your home. They remove some of the uncertainty in the home-buying process. In the current housing market, real estate agents and sellers won’t want to work with buyers unless they have one.
“Before you even get in my car, you want to get preapproved,” says Gerry Bourgeois, a real estate broker and president of Towne & Country Realtors in Leominster, Mass.
With a letter in hand, buyers know exactly how much they can borrow – and therefore how much house they can afford. A preapproval letter shows the seller and the seller’s agent that the buyer is capable of buying their house. “For most sellers, the issue is not whether they can get an offer, but whether they can close the deal,” says Tara-Nicholle Nelson, a real estate broker in Oakland, Calif.
Agents see preapproved buyers as more serious (and more valuable) because they’ve taken proactive steps to secure a preapproval. When it’s time to make an offer, a preapproved buyer will be in a better position to negotiate.
Here’s what home buyers need to know about the new rules of mortgage preapproval.
