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.
Sunday, November 15, 2009
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
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