Helpfull information with Atlanta Purchasing Foreclosures and Refinance Information

I want to know if this policy of increasing the scores - will it hurt or help  homeowners or the economy . In regards to both - it seems that now it has drastically limited the borrowers ability to purchase a home.

It seem that they first took away the down payment assitance program that did reduce the buyers of home at least by half, but now thet have made it more difficult to sell and buy.

try

http://www.usmoneysource.com/rates

Hope this helps

I was asked this question time and time again. Should we use a Covnetional financing instead. Howeer,  with the new law that took effect Feb 1st 2009,  Mortgage insurance is becoming the thing of the past.

Why choose an FHA-insured loan?

There are lots of good reasons to choose an FHA-insured loan, especially if one or more of the following apply to you:

• You're a first-time homebuyer.
• You don't have a lot of money to put down on a house.
• You want to keep your monthly payments as low as possible.
• You're worried about your monthly payments going up.
• You're worried about qualifying for a loan.
• You don't have perfect credit.

If any of these things describe you, then an FHA-insured loan may be right for you. Why? FHA-insured loans offer many benefits and a level of security that you won't find in other loans including:

Low cost: FHA-insured loans have competitive interest rates because the federal government insures the loans for lenders.

Smaller downpayment: FHA-insured loans have a low 3% downpayment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify.

Less than perfect credit: You don't have to have perfect credit to get an FHA-insured mortgage. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA-insured loan than a conventional loan.

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults - it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. These programs operate through FHA-approved lending institutions which submit applications to have the property appraised and have the buyer's credit approved. These lenders fund the mortgage loans which the Department insures. HUD does not make direct loans to help people buy homes.

The Section 203(k) program is the Department's primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities. Since these are the primary goals of HUD, the Department believes that Section 203(k) is an important program and we intend to continue to strongly support the program and the lenders that participate in it.

Many lenders such as Networkfunding, Mortgage lender ( http://www.usmoneysource.com/203k have successfully used the Section 203(k) program in partnership with state and local housing agencies and nonprofit organizations to rehabilitate properties. These lenders, along with state and local government agencies, have found ways to combine Section 203(k) with other financial resources, such as HUD's HOME, HOPE, and Community Development Block Grant Programs, to assist borrowers. Several state housing finance agencies have designed programs, specifically for use with Section 203(k) and some lenders have also used the expertise of local housing agencies and nonprofit organizations to help manage the rehabilitation processing.

Loan Modifications - Can I qualify?

As you might have learned recently, if you are currently behind on your mortgage and you have had something drastic happen either personally or financially , a Loan modification might be your answer to saving you from Home foreclosure.

How does it work you may ask? First lets talk about why the lender would even consider such a thing. It may cost the lender tens of thousands of dollars to foreclose on your home and in the mean time not getting any monthly payments or ( interest) from you while they process your foreclosure. Your lender might consider to restructure your loan so you will make your monthly payments. lets not kid ourselves, they will not chop off 50% off your current mortgage but they will either take up to 15% off the mortgage plus a few basis points off your rate. Not bad if you can qualify.

So what they will need is look at your complete current financial condition and make sure that a loan modification makes sense for you and most importantly the lender. They will have you complete a PFS ( personal financial statement ) and some other documents so when they go into "commitee" they will have a complete picture on your current financial status. Does it make sense?

The most asked question we get are 

 " I got my loan as a stated Income loan program. I can afford a mortgage payment but not the payment I have now, I just need a break, can a get a loan modification?" the answer is yes. But , you must show the ability to repay the loan.

"I have bad Credit" the quick and down and dirty answer is "Sooo" - Just as long you have nothing on your home title except your current mortgage(s)  ie: No - tax Liens, No - Judgements etc.. that have attached to your current homes title . You should be fine.

The process can take 30 to 120 days to process depending on the lender.

Are you?

• In a adjustable rate loan
• Current behind on your mortgage?
• Or Is your Loan "upside down" ( loan amount exceeds your value)
• Loss of Income from one of the Borrowers.

Ok , Maybe all you want is to do is downsize but can't sell your home because there is no room for realtor fees , closing costs and repairs - that's when a short sell comes in handy.

What’s shocking about today’s market is that not only have prices retreated, but they have gone so far that in many cases you can now buy a home for less money than the cost of building a new home, even if the dirt were FREE.  For example, you can buy a million dollar plus Buckhead home for $850,000, sometimes lower. And, in the very popular Brookhaven area, million plus homes are being sold as low as $300,000. That doesn’t mean your new abode doesn’t have work to be done, but you can buy a home now in very desirable areas for a fraction of what you might expect to pay.

What’s even more amazing is how accommodating sellers are in regards to what is happening with the market. There are times that after I’ve submitted my offers on behalf of my buyers and the seller’s accept it without change, that I’m sitting there scratching my head going “How did I just do that?”

Still, the most SHOCKING aspect of it all is that many Atlanta Home buyers still do not recognize this.  Wall Street corporate raiders made fortunes buy buying companies below their replacement cost.  It was only a few short years ago that buyers lined up early in the morning and got into bidding wars to buy property!! Now when shown a home that can be bought for 10%, 20% and as much as 30% below the cost of building it new (with the home site thrown in for free) they are unsure if they are getting a good deal or worse would like to “wait” to see what happens with the market.

NO ONE RINGS A BELL AT THE BOTTOM!! The Atlanta real estate market is experiencing this in record numbers.  Because of the large number of institutional sellers (banks), whether it be an Atlanta foreclosure or Atlanta short sale have chosen to reduce the selling price so substantially to get these properties off their books that anyone looking to build a new home in the sub $400,000 price range should find it next to impossible not to take advantage of one of these amazing values. And, don’t worry YES, there is still money available for qualified buyers.

As you move up the price scale this becomes less common with Atlanta homes for two reasons. First, there are less bank-controlled properties in the $1 million price range and secondly the land values are holding steady.

BRC (Below Replacement Cost) Properties won’t last forever.  When they are gone, they are gone and then everyone will wish that had one. Isn’t that always the case?  We all want what we can’t have.  A couple of years ago everyone wanted one.  Today you can have it, you can have MANY of them if you choose to take advantage of it.  When this market cycles back around you will be very glad you took massive action. While the others will be sitting at the “shoulda, woulda, coulda” table.

The mortgage lender with the lowest interest rate is not guaranteed that they will win the sale.  The retail mortgage industry has been pre-conditioned that the lowest rate wins, but loan costs really only matter if your focus is on rates and fees.

In truth, the mortgage lender  who best serves the borrower’s needs gets the business.  As you provide excellent service, the rate issue will drop on the borrower’s priority list, whether they realize it or not.

Remember that while you’re interviewing the borrower, they are also interviewing you.  When a potential mortgage client doesn’t feel they’re getting enough information from you, they will find someone else to ask.

The powerful need to validate or expand their knowledge base will cause them to shop - even when they actually prefer to buy.

Answer this question - Does your presentation create questions, or answer them?  Are you relieving anxiety or are you creating more?

Down payment Assistance programs or No Down payment loans

Many borrowers are having a tough time getting qualified for a home loan since Congress took the DPA away to purchase a home.Even if you do not have a lot of money to use as a down payment, you still may be able to purchase a home. More and more borrowers are taking advantage of low down payment mortgages and becoming homeowners with as little as 3.5 percent down. With these loans, however, you may be required to carry Private Mortgage Insurance (PMI) or MIP ( Mortgage Insurance premium) - Has eliminating these DPA programs stoped you from buying a home or do you think that borrowers should have some "skin in the game"