Sunday, April 17, 2011
VA Home Loans - Why they are the BEST home loan program available in today's market.
VA – Veteran’s Administration Loan. With so many people in the armed services and reserves today it is no wonder that this home mortgage loan is as popular as ever. Who is eligible for a VA loan? Veterans - Active duty personnel - Reservists/National Guard members Surviving spouses of Veterans who died in service or as a result of service Qualified candidates will need to have a Certificate of Eligibility. This form is needed by the lender to determine Eligibility of the Veteran. If the Veteran does not have a COE they can get one by completing VA Form 26-1880, Request for a Certificate of Eligibility. In some cases your lender can assist you with this. If you are my customer I can assist you with these forms. The VA loan has many advantages over other low down payment programs. The biggest advantage is the ZERO down payments required. This is a huge boost to this program. But the advantages do not end there. No monthly mortgage insurance is another positive afforded by this program. Most loans under 20% down today require mortgage insurance. Some programs such as the FHA has monthly mortgage insurance and an amount added to the loan. The VA does have an up-front VA funding fee added to the loan. This is how VA pays for the VA program and helps off set the lenders risk of the zero down option. This fee is waived for disabled veterans. VA does not set the rate on the loan. The rates are set by the market. You will usually find a low fixed rate. VA loans do not have pre-payment penalties. They are a safe, great 30 year fixed rate program. The seller is allowed to pay the closing costs for the borrower. The lenders require good credit, job stability and the demonstrated ability to re-pay the loan. There is a misconception that the Veteran can get a VA loan with out good credit. Being a veteran is not an automatic approval. The paperwork for the approval process is not that different from other loan programs available in today’s market. The reality today is that the paperwork process today is a little longer. But that is why I am here. I will guide you through the mortgage maze to a successful closing. Overall this program is one of the very best programs available in today’s market.
Saturday, August 7, 2010
A look at the differences between mortgages around the globe
A more in depth look at the differences between mortgages around the globe.
The 30-year fixed rate mortgage model with the backing of the secondary market is only in the United States. France comes close and has a 30-year fixed rate loan program. ALL other countries use an adjustable rate model. Other countries offer a hybrid of a 5 -10 year fixed period than converting to an adjustable rate for the remainder of the term.
Here is an interesting article I saw that explains this a little further. Also at the end of the article I summarized the various types of mortgage program in major counties.
The World of Mortgages
Buying a home is usually a very overwhelming and big event in a person or a couple's life. It takes lengthy considerations and life searching to find out if you are ready to do so. One thing people will most definitely need is the money to buy a home which in terms of home prices, people don't generally have that much saved up.
Everyone wants to own a house, it doesn't matter what country you live in. What most middle class type people will need is a home loan, and home loans are different in each country. If you think you know a lot about home loans in America, you could go over to the United Kingdom or Germany and expect to know everything but come to find out that everything isn't the same over there.
In each country around the world, a mortgage is usually different. In the United States, to get a loan you must have a down payment, which is a percentage of what you are borrowing that is regulated by the company you get the loan from. In Germany, the borrower has to have at least 15 - 20% of the entire loan amount with him to take a loan.
One of the main things that differentiate the United States and other countries is that the U.S. mortgage market is backed up by a very well maintained secondary market in which global investors keep local lenders aware of money. They do this most through large secondary entities like Fannie Mae and Freddie Mac. These are government-sponsored enterprises to make sure lenders always have money to lend, even during periods of high interest rates, and private conduits that perform the same function.
In Great Britain, they have variable-rate mortgages, or a floating rate mortgage. A mortgage loan where the interest rate on the note is periodically adjusted based on an index. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate.
In the UK, Germany, and the States, citizens pay interest on top of what they owe back to the lender. In Muslim countries, Muslims mortgages get a little tricky. The Sharia law of Islam prohibits the payment or receipt of interest, which means that practicing Muslims cannot use conventional mortgages. Because real estate would be way too expensive to just use regular cash. Islamic mortgages solve this problem by having the property change hands two times. An example would be as if the bank bought the house and act that the existing landlord to the person who wants to live in the house. The person will pay rent and in addition will pay contribution towards the purchase of the property. When the last payment is made, the property changes hands.
No matter where you are in the world, getting a mortgage will always be a struggle. When that house is finally yours, the feeling of having the house will be worth it.
------------------------
Article written and distributed by Steve Cancel.
Source: http://www.submityourarticle.com
Reprinted with permission
Australia – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
Britain – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
Canada – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
France – Fixed rate loans up to 30 years. ARMs are also available.
Germany – Fixed rate loan for up to 15 years. ARMs and interest-only loans also
available.
Japan – Fixed rate loans up to 20 years. ARMs are also available.
Saudi Arabia - is just starting a mortgage law. They are in the midst of its creation.
The 30-year fixed rate mortgage model with the backing of the secondary market is only in the United States. France comes close and has a 30-year fixed rate loan program. ALL other countries use an adjustable rate model. Other countries offer a hybrid of a 5 -10 year fixed period than converting to an adjustable rate for the remainder of the term.
Here is an interesting article I saw that explains this a little further. Also at the end of the article I summarized the various types of mortgage program in major counties.
The World of Mortgages
Buying a home is usually a very overwhelming and big event in a person or a couple's life. It takes lengthy considerations and life searching to find out if you are ready to do so. One thing people will most definitely need is the money to buy a home which in terms of home prices, people don't generally have that much saved up.
Everyone wants to own a house, it doesn't matter what country you live in. What most middle class type people will need is a home loan, and home loans are different in each country. If you think you know a lot about home loans in America, you could go over to the United Kingdom or Germany and expect to know everything but come to find out that everything isn't the same over there.
In each country around the world, a mortgage is usually different. In the United States, to get a loan you must have a down payment, which is a percentage of what you are borrowing that is regulated by the company you get the loan from. In Germany, the borrower has to have at least 15 - 20% of the entire loan amount with him to take a loan.
One of the main things that differentiate the United States and other countries is that the U.S. mortgage market is backed up by a very well maintained secondary market in which global investors keep local lenders aware of money. They do this most through large secondary entities like Fannie Mae and Freddie Mac. These are government-sponsored enterprises to make sure lenders always have money to lend, even during periods of high interest rates, and private conduits that perform the same function.
In Great Britain, they have variable-rate mortgages, or a floating rate mortgage. A mortgage loan where the interest rate on the note is periodically adjusted based on an index. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate.
In the UK, Germany, and the States, citizens pay interest on top of what they owe back to the lender. In Muslim countries, Muslims mortgages get a little tricky. The Sharia law of Islam prohibits the payment or receipt of interest, which means that practicing Muslims cannot use conventional mortgages. Because real estate would be way too expensive to just use regular cash. Islamic mortgages solve this problem by having the property change hands two times. An example would be as if the bank bought the house and act that the existing landlord to the person who wants to live in the house. The person will pay rent and in addition will pay contribution towards the purchase of the property. When the last payment is made, the property changes hands.
No matter where you are in the world, getting a mortgage will always be a struggle. When that house is finally yours, the feeling of having the house will be worth it.
------------------------
Article written and distributed by Steve Cancel.
Source: http://www.submityourarticle.com
Reprinted with permission
Australia – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
Britain – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
Canada – No fixed rate loans. ARM and hybrid ARM with rate fixed up to 10 years.
France – Fixed rate loans up to 30 years. ARMs are also available.
Germany – Fixed rate loan for up to 15 years. ARMs and interest-only loans also
available.
Japan – Fixed rate loans up to 20 years. ARMs are also available.
Saudi Arabia - is just starting a mortgage law. They are in the midst of its creation.
Monday, July 12, 2010
Appraisals in Today's Market
Appraisals – The Ins and Outs of Appraisals today.
The following blog is from information I have collected and my own thoughts on appraisals for today’s market. The need for appraisals has changed dramatically with the falling real estate markets in the last several years. Additionally the industry and the government now require tighter standards.
What is the importance of a professional real estate appraisal today?
In the lending process borrowers often think of appraisals are done for the borrower. After all - the borrower is required to pay for the appraisal. In fact the appraisal is really for the lender. The lenders need to ensure the appraisal is adequate collateral for the loan. This idea that the appraisal is for the lender surprises most. But actually usually the buyer of a home has not negotiated through a buy sell agreement that the home must appraise for the sales price. The lender must ensure the home (thus the offer) is not over valued possibly affecting the security and integrity of their loan.
With today’s regulations the lender is required to give the borrower a copy of the appraisal whether the lender approves or denies the loan. Under the Equal Credit Opportunity Act, your lender must provide you with a copy of the appraisal report upon your written request. But under today’s HVCC (Home Value Code of Conduct) regulations the lender is required to provide you a copy of the appraisal report regardless if you ask for one or not.
HVVC was implemented May 1, 2009. This new federal regulation has dramatically changed the rules in which appraisals are handled both for the lender and for the borrower.
The idea of HVCC is to protect consumers from appraisers over valuing a home. Why might an appraiser over value a home? To help the lenders lend you more money or to help cover the loan requested. There are many reasons this could happen. The big component of the code is to bar any production staff, such as loan officers and processors from ordering or selecting appraisers. The regulators want a “Bright Line” between those who are compensated on closed loans. Prior to the HVCC regulation loan officer or their staff would order an appraisal directly from an appraiser.
The appraiser is an expert in real estate valuation. They are an important impartial third party that’s serves as the lenders “check” in the lending process. The idea is that since the appraiser has extensive training, knowledge and expertise the appraiser will arrive at a professional opinion of the properties value with out any undue or overt influence.
Appraiser must adhere to state qualifications either being sate licensed or state certified. Additional there are many educational and experience requirements that must be complete. Appraisers agree to industry standards and a professional code of ethics.
Appraisers follow USPAP which is the Uniform Standards of Professional Appraisal Practice. This helps appraisers to legally complete a report with integrity and uniformity. Today most of the ‘standards’ that you see are driven by the lenders that order the reports. Most appraisals are done under the Comparable approach. This compares recent sales of similar homes in the area. Other methods of appraisals include the cost approach or the income approach. Some investors want to see all sales within 6 months and within a certain geographical radius. Different lenders have outlines that they give the appraiser to complete. These outlines are all different and vary from lender to lender. These out lines change based on the market, internal criteria and the area that is being appraised.
The appraiser looks to complete the best possible report and provide the lenders underwriter with additional criteria if they request it, which seem to be more often in today’s market.
Typically, at a minimum the appraiser will use 3 sales with in a 12 months period. In this market, if sales are available, they will utilize the most recent. Ideally, the sales will fall within 6 months and 1 of those sales should be within 3 months. If there is a lack of data, the appraiser may include active listings to further support your market findings. There may be additional requests by the lender if the property is a 2 – 4 unit, berm home, new construction or other varied scenarios.
Then the lender may run valuation models. There are several available services. These AVMs (Automated Valuation Models) provide support of value for the property. These reports can confirm the appraisers’ value or provide additional questions that will need to be answered. If they see multiple contradictory data in the market the underwriter will ask the appraiser to make clarifications to support the value conclusion.
If you have any questions in regards to appraisals please contact me.
The following blog is from information I have collected and my own thoughts on appraisals for today’s market. The need for appraisals has changed dramatically with the falling real estate markets in the last several years. Additionally the industry and the government now require tighter standards.
What is the importance of a professional real estate appraisal today?
In the lending process borrowers often think of appraisals are done for the borrower. After all - the borrower is required to pay for the appraisal. In fact the appraisal is really for the lender. The lenders need to ensure the appraisal is adequate collateral for the loan. This idea that the appraisal is for the lender surprises most. But actually usually the buyer of a home has not negotiated through a buy sell agreement that the home must appraise for the sales price. The lender must ensure the home (thus the offer) is not over valued possibly affecting the security and integrity of their loan.
With today’s regulations the lender is required to give the borrower a copy of the appraisal whether the lender approves or denies the loan. Under the Equal Credit Opportunity Act, your lender must provide you with a copy of the appraisal report upon your written request. But under today’s HVCC (Home Value Code of Conduct) regulations the lender is required to provide you a copy of the appraisal report regardless if you ask for one or not.
HVVC was implemented May 1, 2009. This new federal regulation has dramatically changed the rules in which appraisals are handled both for the lender and for the borrower.
The idea of HVCC is to protect consumers from appraisers over valuing a home. Why might an appraiser over value a home? To help the lenders lend you more money or to help cover the loan requested. There are many reasons this could happen. The big component of the code is to bar any production staff, such as loan officers and processors from ordering or selecting appraisers. The regulators want a “Bright Line” between those who are compensated on closed loans. Prior to the HVCC regulation loan officer or their staff would order an appraisal directly from an appraiser.
The appraiser is an expert in real estate valuation. They are an important impartial third party that’s serves as the lenders “check” in the lending process. The idea is that since the appraiser has extensive training, knowledge and expertise the appraiser will arrive at a professional opinion of the properties value with out any undue or overt influence.
Appraiser must adhere to state qualifications either being sate licensed or state certified. Additional there are many educational and experience requirements that must be complete. Appraisers agree to industry standards and a professional code of ethics.
Appraisers follow USPAP which is the Uniform Standards of Professional Appraisal Practice. This helps appraisers to legally complete a report with integrity and uniformity. Today most of the ‘standards’ that you see are driven by the lenders that order the reports. Most appraisals are done under the Comparable approach. This compares recent sales of similar homes in the area. Other methods of appraisals include the cost approach or the income approach. Some investors want to see all sales within 6 months and within a certain geographical radius. Different lenders have outlines that they give the appraiser to complete. These outlines are all different and vary from lender to lender. These out lines change based on the market, internal criteria and the area that is being appraised.
The appraiser looks to complete the best possible report and provide the lenders underwriter with additional criteria if they request it, which seem to be more often in today’s market.
Typically, at a minimum the appraiser will use 3 sales with in a 12 months period. In this market, if sales are available, they will utilize the most recent. Ideally, the sales will fall within 6 months and 1 of those sales should be within 3 months. If there is a lack of data, the appraiser may include active listings to further support your market findings. There may be additional requests by the lender if the property is a 2 – 4 unit, berm home, new construction or other varied scenarios.
Then the lender may run valuation models. There are several available services. These AVMs (Automated Valuation Models) provide support of value for the property. These reports can confirm the appraisers’ value or provide additional questions that will need to be answered. If they see multiple contradictory data in the market the underwriter will ask the appraiser to make clarifications to support the value conclusion.
If you have any questions in regards to appraisals please contact me.
Sunday, November 15, 2009
Rural Developement Loans - ZERO DOWN
Get them while you can. An official from the USDA told me they may soon eliminate or greatly curtail the ZERO down - NO monthly MI mortgage program. The Rural Development (RD) program is ZERO down. This is a great program with no sales price limits and generous income limits. The program currently offers NO MONTHLY mortgage Insurance as required with other programs. This program works in Rural areas. What is a "rural area"? You would be surprised. Allendale and Rockford are considered rural. As well as parts of Cascade, Lowell and Byron Center. Hudsonville and Zeeland are NOT considered rural. 80% of Kent County is NOT considered Rural and 80% of Ottawa county IS considered rural. All of Allegan and Barry County qualifies. Need a map? Let me know. I am the expert in RD loans.
Here are the the top 10 reasons to use or recommend the RD program.
10. Customer may borrow up to 102% of the appraised value of the home
9. Generous income limits
8. Large rural area for loan availability
7. No max sales price limit
6. Low fixed rates
5. Seller can pay all closing costs and pre-paids
4. No monthly mortgage insurance
3. as low as a 640 Credit Score allowed
2. NO RESERVES REQUIRED
1. and NO pre-payment penalty
This program allows the NEW state MCC (Mortgage Credit Certificate) program, This program is made available only through approved Lenders and is available for a limited time. It is available to eligible borrowers on a first-come, first-served basis throughout the State of Michigan. Eligible borrowers must meet MSHDA income and sales price limits and in some cases, prior homeownership restrictions.
Homebuyers taking advantage of the MCC Program may qualify for 20% of their annual mortgage interest paid to be credited against their year-end tax liability. This is not a one time tax credit, but can be taken advantage of each year until the original mortgage is paid in full as long as the property remains the home-buyer’s primary residence. The home-buyer must apply for the MCC through a participating lender.
The RD program along with the MCC program is a GREAT 1 -2 punch. With today's LOW interest rates, LOW home prices AND the LOW interest rates available this is the PERFECT time to buy, For more information on these and other great programs feel free to contact me.
Here are the the top 10 reasons to use or recommend the RD program.
10. Customer may borrow up to 102% of the appraised value of the home
9. Generous income limits
8. Large rural area for loan availability
7. No max sales price limit
6. Low fixed rates
5. Seller can pay all closing costs and pre-paids
4. No monthly mortgage insurance
3. as low as a 640 Credit Score allowed
2. NO RESERVES REQUIRED
1. and NO pre-payment penalty
This program allows the NEW state MCC (Mortgage Credit Certificate) program, This program is made available only through approved Lenders and is available for a limited time. It is available to eligible borrowers on a first-come, first-served basis throughout the State of Michigan. Eligible borrowers must meet MSHDA income and sales price limits and in some cases, prior homeownership restrictions.
Homebuyers taking advantage of the MCC Program may qualify for 20% of their annual mortgage interest paid to be credited against their year-end tax liability. This is not a one time tax credit, but can be taken advantage of each year until the original mortgage is paid in full as long as the property remains the home-buyer’s primary residence. The home-buyer must apply for the MCC through a participating lender.
The RD program along with the MCC program is a GREAT 1 -2 punch. With today's LOW interest rates, LOW home prices AND the LOW interest rates available this is the PERFECT time to buy, For more information on these and other great programs feel free to contact me.
Sunday, October 25, 2009
FHA – the life support loan of the industry
FHA has become a very popular loan program. It is now 45% of all the loan business in the United States. It has become 80% of our business at Exchange Financial Mortgage. In recent years past FHA saw their business shrink to just 2% of all the mortgage production in the US. It looked like FHA was certain to become extinct. Conventional loans were offering 3% down even zero down loans. With the extreme tightening of the conventional loan underwriting criteria in recent months borrowers and lenders have gravitated to FHA. It is now the program of choice.
What does FHA offer? Here are the ten top reasons FHA is now the preferred program.
10. Minor REPAIRS NOT REQUIRED UNLESS HEALTH OR SAFETY ISSUES
9. MAXIMUM LOANS $271,050 for 1 UNIT HOMES
8. 100% GIFTED DOWN PAYMENT ALLOWED FROM A RELATIVE
7. 6% SELLER CONTRIBUTION ALLOWED FOR CLOSING COSTS AND ESCROW ITEMS
6. NO DOWN OPTIONS (FOR INCOME QUALIFIED MSHDA BUYERS)
5. GREAT LOW FIXED RATE
4. LOW MONTHLY MORTGAGE INSURANCE
3. NO RESERVES REQUIRED
2. LOW DOWN PAYMENT REQUIREMENTS
1. AND NO PREPAYMENT PENALTIES
FHA is also more flexible on credit than other current loan programs in the market today. FHA is still looking for borrowers with good credit but it is more forgiving of those with some spotty credit histories.
Who shouldn't use FHA? Those with a healthy down payment or those that can use a Rural Development loan.
What does FHA offer? Here are the ten top reasons FHA is now the preferred program.
10. Minor REPAIRS NOT REQUIRED UNLESS HEALTH OR SAFETY ISSUES
9. MAXIMUM LOANS $271,050 for 1 UNIT HOMES
8. 100% GIFTED DOWN PAYMENT ALLOWED FROM A RELATIVE
7. 6% SELLER CONTRIBUTION ALLOWED FOR CLOSING COSTS AND ESCROW ITEMS
6. NO DOWN OPTIONS (FOR INCOME QUALIFIED MSHDA BUYERS)
5. GREAT LOW FIXED RATE
4. LOW MONTHLY MORTGAGE INSURANCE
3. NO RESERVES REQUIRED
2. LOW DOWN PAYMENT REQUIREMENTS
1. AND NO PREPAYMENT PENALTIES
FHA is also more flexible on credit than other current loan programs in the market today. FHA is still looking for borrowers with good credit but it is more forgiving of those with some spotty credit histories.
Who shouldn't use FHA? Those with a healthy down payment or those that can use a Rural Development loan.
Saturday, August 22, 2009
How Housing Could Lead the Economy Out of Recession
Great article on how the housing market is directly tied to the rebound of the US economy. We in the industry help lead the charge for positive growth; what we do every day helps turn the economy around. Also, at the end there is a blurb about how popular the FHA loan product is these days. FHA will have a record year in 2009. This has become the MOST important loan product out in the market place. Without this program, we would be in a terrible real estate slump.
How Housing Could Lead the Economy Out of Recession
By Mark Fogarty / National Mortgage News 8-21-09
The American economy may have bottomed out, but that doesn't mean a recovery is imminent, unlike in a couple of European countries that have already seen positive growth in their GDP. So, what can this country do to jumpstart the recovery? It can boost the housing and mortgage sectors even more than it has.
Why would the government want to do this, when housing and mortgages were the biggest factors in the downturn that has hobbled the U.S. economy for almost two years now?
Because, historically, housing (and mortgages) have tended to lead the economy both into, and out of, recessions. The sectors certainly led the national economy into recession this time, with real estate (2006) and mortgages (2007) both cratering before the national economy did in early 2008. But an anemic housing sector is not now poised to lead anything out of anywhere. So the government should consider a strategic and short-term further stimulus.
National Mortgage News 8-21-09
FHA Officials See Strong Demand for SF Loans
Federal Housing Administration officials expect to insure over two million single-family loans in fiscal year 2009, which ends September 30, and 2.25 million in FY 2010.
How Housing Could Lead the Economy Out of Recession
By Mark Fogarty / National Mortgage News 8-21-09
The American economy may have bottomed out, but that doesn't mean a recovery is imminent, unlike in a couple of European countries that have already seen positive growth in their GDP. So, what can this country do to jumpstart the recovery? It can boost the housing and mortgage sectors even more than it has.
Why would the government want to do this, when housing and mortgages were the biggest factors in the downturn that has hobbled the U.S. economy for almost two years now?
Because, historically, housing (and mortgages) have tended to lead the economy both into, and out of, recessions. The sectors certainly led the national economy into recession this time, with real estate (2006) and mortgages (2007) both cratering before the national economy did in early 2008. But an anemic housing sector is not now poised to lead anything out of anywhere. So the government should consider a strategic and short-term further stimulus.
National Mortgage News 8-21-09
FHA Officials See Strong Demand for SF Loans
Federal Housing Administration officials expect to insure over two million single-family loans in fiscal year 2009, which ends September 30, and 2.25 million in FY 2010.
Saturday, August 1, 2009
Mortgage Credit Certificate (MCC)
Mortgage Credit Certificate (MCC)
MSHDA began the MCC program in 1986 and ran up until December 2006, when the program was suspended due to inadequate availability of Bond Cap. Due to changes in the financial markets, the Authority currently has available Bond Cap that can be used for this purpose. The MSHDA MCC program will be re-activated on a temporary basis to assist low to moderate homebuyers with another tool to enhance the growth of homeownership in the State of Michigan.
MSHDA starting taking reservations for the program JULY 13th. NOT all lenders will or can offer this program. This will be a GREAT program that will assist most new home buyers and existing home buyers in targeted areas. This program has generous income limits and sales price limits.
The MCC program gives a credit back to the borrower based on the mortgage interest that they pay. This credit is 20% of the interest the borrower pays. This credit is given to the borrower on their federal tax returns. This program effectively lowers the borrowers interest rate by 20%.
What a wonderful program. This is on top of the federal tax credit available to new home buyers.
dan@exchangefinancial.com
MSHDA began the MCC program in 1986 and ran up until December 2006, when the program was suspended due to inadequate availability of Bond Cap. Due to changes in the financial markets, the Authority currently has available Bond Cap that can be used for this purpose. The MSHDA MCC program will be re-activated on a temporary basis to assist low to moderate homebuyers with another tool to enhance the growth of homeownership in the State of Michigan.
MSHDA starting taking reservations for the program JULY 13th. NOT all lenders will or can offer this program. This will be a GREAT program that will assist most new home buyers and existing home buyers in targeted areas. This program has generous income limits and sales price limits.
The MCC program gives a credit back to the borrower based on the mortgage interest that they pay. This credit is 20% of the interest the borrower pays. This credit is given to the borrower on their federal tax returns. This program effectively lowers the borrowers interest rate by 20%.
What a wonderful program. This is on top of the federal tax credit available to new home buyers.
dan@exchangefinancial.com
Subscribe to:
Posts (Atom)