FHA VA Blog

A recent HUD study shows that HUD-approved housing counseling significantly improved the likelihood homeowners remained in their homes. Both pre-purchase counseling and foreclosure counseling, HUD found that 35% of the participants became homeowners within 18 months of the pre-purchase counseling and only one of those buyers fell behind in their mortgage payments.  The foreclosure counseling study reveals that with a counselor's help, nearly 70% of those counseled obtained a mortgage remedy to retain their home and 56%  cured their defaults and became current on their mortgage.

We work with many clients who need down payment assistance and with all down payment assistant programs you need to do a first time home buyer education. Going to the class is extremely helpful, it helps not only to prepare you for the home buying process but it helps you learn to budget for a mortgage and prepares you for what is involved in homeownership.  Knowing that these classes are proving to be helpful I'm not sure why more people aren't attending them.  Buying a home is one of the most if not the most important financial decision you will make, why wouldn't you want to get educated. 

Click here for the full HUD article with survey.  And if you are interested in taking a homeowner course please check out CHFA's link for all the homebuyer classes available. (Note: you don't have to be applying for a CHFA loan to attend these classes).

If you are wanting and ready to get pre-approved please click here for a secured online loan application and if you have any questions please feel free to call or email me, home buying can be confusing and overwhelming, I am always here to help!

Sincerely,

Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

I don't know why! I just attended a loan closing today for a Veteran in Denver, who was told she couldn't qualify for a VA loan. When I started working with her, I had to reassure her everything would be fine. And wallah, she closed on her first home today.

Sure enough, I was called by a different Veteran in Denver last week who was told the same thing. So I am in the process of helping him finalize his mortgage pre-approval on his VA home loan.

Why are Veterans being told they can't get a VA loan? I assume it is because most lenders in Denver aren't familiar with certain key components of the VA home loan process. If you overlook very important aspects, the Veteran will suffer.

Don't work with an unqualified mortgage lender on your home loan. Work with a Veteran, who understands the sacrifice you made for your country, since I did as well. Go Navy!

If you need a VA home loan , apply here or call me 303.779.0591 x101

Ray Williams, Branch Manager, Summit Home Mortgage, Denver

So if you are self-employed, you are usually busy running your business. Many of you have learned that you have to align your taxes with your real estate needs. That way when you go to qualify for home loans, business lines of credit, or other financing, you can get approved.

One recent change to FHA will be of interest to all self-employed borrowers. Did you know you will now have to have a profit and loss statement prepared for your mortgage lender going forward ? Now that the 1st quarter has passed in 2012 be prepared and let your bookkeepers know, or keep yours up to date once you think you'll be taking out a mortgage. Here is the link tot he FHA mortgagee letter that outlines the new requirements.

In a nutshell, be prepared to have a current profit and loss for your mortgage lender when you are self-employed.

If you are self-employed, and need an experienced lender to guide your mortgage application, let me know , or apply here for your next mortgage.And make sure you are working with a mortgage lender in Denver, who knows how to read your tax returns because otherwise you may be told NO!

To your success~

Ray Williams, Branch Manager, Summit Home Mortgage, Denver

303.779.0591 x101

Many of us struggle with saving our money, we live paycheck to paycheck.  We say in "this" economy how can anyone save?  But the truth is in "any" economy how do we save.  The more we earn the more we spend, I'm a true believer in that.  It is hard to be disciplined with our money.  I come across singles, couples, and families that all struggle with this.  

It is important to learn how to manage our money and be disciplined.  I came across a great article "5 Critical Financial Planning tips for 20-somethings" and realized this isn't just for "20-somethings" this is for everyone, no matter how old you are.  It laid out the 5 ways we can start putting money aside and preparing for your retirement.  Home ownership is one of the best ways to prepare for retirement if done correctly.  It is one of the most important investments you will make for your financial future. 

Included in this article is advice I give everyday to my clients, family and friends.  Such as one, "live below your means", live on less than you earn.  This is important, if you start this before buying a home then it helps once you are ready to buy a home.  You don't want to be house poor.  Don't try to get into a home that all your money goes to your mortgage and home bills.  You want to be able to have room to save, invest and have "play" money. 

Another key point is "pay down your debt"!  Organize your debt in order of interest rates and begin paying down the outstanding balances with the highest interest rates first.  It might even be worthwhile to consider consolidating all loans under one – particularly if a lower overall interest rate can be negotiated.

Here is the full article to see all 5 Critical Financial Planning Tips.  Please email me or call me if you have any questions. 

Click here to complete a secured loan application.

Thanks,

Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

One of many improvements have been made in helping to get our veterans in homes.  U.S. Housing and Urban Development announces that HUD will provide $72.6 million to public housing agencies in all 50 states and district of Colombia to supply housing and case management for more than 10,000 veterans.

This funding is in effort to help prevent and end homelessness among veterans.  This is the first of two rounds of the 2012 HUD-VASH funding.  Hud expects to announce the remaining funding by the end of this summer. 

"It's a national disgrace that one out of every six men and women in our shelters once wore a uniform to serve our country" said HUD Secretary Donovan.  "But by providing housing assistance and case management services, we can significantly reduce the number of veterans on our streets.

Click here to read the full press release from HUD

~Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

Came across a great, great article from MSN Money stating it is a great time to buy, now really I don't need a great article to come my way to tell me it's a great time to buy.  Everyday I am getting a new client with a purchase contract, or a prospect completing an online loan application wanting to see if they can get pre-approved.

This article explains how now with not only with housing prices lower and rates at record lows it is the time for those that have been on the fence its time to get serious about it. It has even been on our local news that since there are more renters, landlords are raising rents because there is such a high demand for rental properties.  With rents at all time highs and mortgage rates at all time lows, now more then ever the best time to get qualified to buy a home.  The amount of your rent very likely is higher than what it would cost to have a mortgage!

If you are serious about wanting to buy a home the first thing you need to do is get informed before you do anything.  Learn about the mortgage process, know what you can afford, shine up you credit, get a down payment together, get pre-approved and build your team.  Building a team means working with a lender and real estate agent that will work well together, build people around you that you trust.  Your agent should know about the housing market and where you are wanting to buy, your lender should be able to assist you with any credit hurdles, look into your financial situation and make sure you won't be house poor and finding the right mortgage for you.

This MSN Money article goes into some great detail and has some great links, I highly recommend you read the full article here.

Please give me a call or email me if you have any questions.  Click here if you would like to complete a secured loan application.

~Cheers

Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

When I come across a client who is in need of credit repair many of them have medical bills that are in collections.  Now with FHA's new guidelines (effective July 1st) regarding collection debt and disputes requiring anything above $1,000 to be paid, you will need to pay close attention to your medical bills.  More often than not many medical bills that get sent to collections could have been avoided.  Most peoples instinct when they are unable to pay a medical bill is the avoid the continuous calls and push them aside.  Here are some basic rules to help you.

Number one rule, just call the provider, let them know your situation, most providers will work with you on payment.  Some even offer financial assistance programs.  Some will even agree to take off 50% of the bill if you can pay when due, or if you have cash on hand you can even get up to 75% taken off the original bill.  Medical bills can be the most flexible of all your bills with NO interest!  

Number two rule, don't rush to pay your medical bills with a credit card!  This only puts interest on the original cost when you could have been able to haggle your medical bill down and agreed to a payment agreement with no interest.  Also if you are unable to pay your credit card on time this will could against you on your credit.  Your provider will not report to a credit agency (unless you let it go to collections). 

Number three, double check your bill because many times there can be errors.  You will want to ask for an itemization bill, this way you know what you are paying for and can determine if there are any discrepancies. The newest identity theft is for medical purposes, so you want to be sure that the procedure was in fact for you!  See video from CBS news on April 30th with more on medical identity theft.

Number four, ask your provider to take back a collection account.  Most times if the bill is not too old (two years or more) than they can recall your collection account and deal with your directly.

Number five, if you are considered lower income you can not only get big discounts but could also be able to qualify for getting your entire bill erased!

For more info please see full article.

Sincerely,

Ray Williams

Branch Manager

Summit Home Mortgage

303-779-0591 ext. 101

rwilliams@summit-mortgage.com

I know there are many of you out there that are trying to rebuild your credit or just establish credit and secured credit cards are always one of the things I highly suggest to my clients.   

A secured credit card works just like a credit card with one major difference; a secured credit card required a security deposit in which your credit limit matches your security deposit amount.  Your are able to increase your credit limit at anytime, they usually start secure credit cards with a minimum of $200.  You are able to get them at your bank or could compare different companies that you can find online but you will want to do your homework as to which ones is best for you due to some having annual fees or set up fees. 

Secured credit cards are used for those who need to establish credit, wether they have no credit or are rebuilding their credit.  They report to all three credit bureaus and even if you don't actively use them they show "in good standing"  which reflects positively on your credit and this can help improve your fico scores.

We have recommended many of our clients in getting these because of either having NO credit or if they are in need of rebuilding positive credit due to bankruptcy, foreclosure, past credit debt, etc.

For more information please visit:  www.myfico.com

If you have any questions please give me a call or send me an email. If you would like to apply online please click here

Sincerely,

Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

Notice came out that there will be a delay in current FHA changes, this could mean some of you have a little more breathing room! This delay is regarding the following:

• Handling of disputed accounts (need to be dismissed or paid)
• Paying off collections and judgements (if the total of collections on your credit is >$1,000 (sum) then you will need to pay them off or have shown 3 months payment history to the collection agency on a payment agreement.)

This was suppose to be in effect as of April 1, 2012 but has now been delayed until JULY 1, 2012!!!

If either of these apply to you and would effect your chances of qualifying then don't wait to get pre-approved.

Click Here if you would like to complete a loan application.

Please call me if you need further clarification or have any questions,

Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

Everyday I have to deal with new guideline changes, usually just one more hurdle to jump in order to help someone get a mortgage.  The hardest thing for me is when I have to ask a client to provide a document and then I don't get the document for another 3-5 days.  Now on a clients side they feel they have already provided enough documentation in the first visit in order for them to qualify.  But what they don't usually realize is I am only the first step of the loan process, after me it goes to the processor who reviews all the documents, then the file goes to the underwriter.  At this point the underwriter ALWAYS asks for more documentation.  Then I become the middle man, trying to make sure we get all that the underwriter needs. 

This is were the PERFECT LOAN FILE makes all the difference.  It is no longer about who has the best credit score anymore, or if you have sufficient funds in the bank for a down payment.  It is now more about can you prove your financial status on paper.  Can you document that down payment, can you prove that you can pay this mortgage over 15-30 years? That is what underwriters want to know. 

When your lender asks for a document, no matter how silly it may seem or how it may feel like you have been over documented, well sorry to say, you just need to do it!  Remember when your parents would say "Because I said so" well this is the mentality you need to go into when applying for a loan.  So when your lender asks you, you say "ok" and get it to them as soon as possible.  You can be your own worst enemy in the loan process if you take too long or never provide the needed documents.  Just trust that you have chosen this lender for a reason, they are on YOUR side and they are working to help you get this loan, they are not out to torture you or make this more difficult than it already is.  They are your own personal boxer in your corner!

The article I read from Forbes.com "The Perfect Loan File" is the best article I've read in a long time.  It lays out the loan process and explains the "because I said so" mentality needed. It explains why we are in this "over documentation" loan process and how because of the loose guidelines in the past have put us into a tighter, under the microscope underwriting.   I highly recommend for you to read. 

Please click here to complete a loan application.

If you have any questions please contact me. I'm always available to help.

~Ray Williams

Branch Manager

Summit Home Mortgage

rwilliams@summit-mortgage.com

303-779-0591 ext. 101

I can't tell you how many clients I talk to a day regarding credit issues, high debt balances or lack of money in savings.  All these make a big impact on buying a home.  Well, now is the time to use some money that will be coming your way soon to help.  Real this article today and it just said it all. Here are 7 ways to use your tax refund that were suggested on MSN Money today, and the eight option I added in!

1. Pay down debt- This helps to not be spending monthly on high interest credit cards, which takes more of your money over time.  And when you pay down you help your debt ratios!

2. Create an emergency fund- Having a nice little pot of savings helps you from living paycheck to paycheck (which most of us do).  This way you don't have to borrow money or rack up more credit cards. And then you have the money in the bank to fix your car when it breaks down, or repair your water heater, etc.

3. Save on insurance- If you pay your insurance in a 6 mo plan or 1 year upfront you save a great deal on your insurance (whether it be automobile, home or combined).  This way you could even get a better plan with a lower deductible!

4. Get a bigger refund next year- Make energy efficient home improvements, pump up your retirement plan or donate to a charity

5. Start a business- Using the funds to start up a small business which in the long run could help you bring in extra money next year by selling your services or products!

6. Thing Big!- If going to spend on a vacation, make it a big vacation, go to the places you've always wanted and promised you would go and get all the memorabilia you can get!  Don't waste it away on little things you would never remember.

7. Invest- Think long term, start a college fund, or open a retirement account or a money market, earn interest on the money you have!

8. Use for down payment on a home!- Last but not least, using the money for a down payment on a home will be the first big investment you will ever make!

For more info here is the full article from MSN Money.

Click here if you would like to complete an online loan application.

~Ray Williams

Summit Home Mortgage

303-779-0591 ext. 101

rwilliams@summit-mortgage.com

FHA Mortgage Insurance is increasing again on April 9, 2012.  This increase will impact many buyers, it can take them from qualifying to not qualifying very quickly. 

What is Mortgage Insurance and what does it cover?  Mortgage insurance is provided by the Federal Housing Administration, or FHA, it is intended to make buying a home easier for buyers who may not have a lot of money available for a down payment. The FHA is able to do this because it insures the repayment of your loan in the event of your default. Because this removes much of the risk to the lender, FHA loans typically offer the smallest down payment requirements for a mortgage. 

Check out the full article here. As always please give me a call if you have any questions or should need any assistance.  If you would like to get pre-qualified please fill out my online application.

Ray Williams, rwilliams@summit-mortgage.com, 303-779-0591 ext. 101

As of April 1st, 2012 FHA is changing a few potentially important things to you. This could affect your ability to qualify for a mortgage.

If you have accounts you are disputing or collections that are unpaid , pay attention!!

Even though in the past you could get away with not paying off old collections, you may need to now. If the total of collections on your credit is >$1,000 (sum) then you will need to either pay them off, or have shown 3 months payment history to the collection agent on a payment arrangement.

To apply for an FHA mortgage , click here

Call with questions Ray Williams, Branch Manager Summit Mortgage, 303-779-0591 x101

 HUD Press Release

So that would make FHA Mortgage insurance structure:

UFMIP 1.75% on ALL loans (currently 1%) - This is the amount financed into your loan as upfront mortgage insurance on all FHA mortgages

+"Annual" (paid monthly):

terms > 15 years

LTV > 95: 125 bps

=<95LTV: 120 bps

terms =< 15 years

LTV > 90: 60 bps

=<90LTV: 35 bps

This still leaves the 90% (Loan To Value) 15-year fixed rate as the best of FHA structures. As an average estimated increase to your monthly payment on a $200,000 mortgage will be about $20-$25 per month.

Call now or apply online to get in before the change occurs. Grandfather yourself in!

Ray Williams, Branch Manager, Summit Home Mortgage, Denver

303-779-0591 x101, rwilliams@summit-mortgage.com

Word on the street is if you call Bank of America to refinance your home, you will be put in a "queue". Not sure I would want to wait 60-90 days to begin my refinance process, but that is what homeowners are being told.

The interesting thing is I just had a client tell me that Bank of America pushed them off, which led them to calling our office instead. This type of service doesn't just happen there, it seems most people complain about walking into retail big box banks and trying to work with their mortgage departments.

You can check out the full story here, courtesy of  Bloomberg Businessweek

If you want to apply for a refinance or qualify to buy a home , click here

Ray Williams, Branch Manager, Summit Home Mortgage, rwilliams@summit-mortgage.com, 303-779-0591 x101