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Fannie Mae offers HomePath Buyers up to 3.5% closing cost assistance

Posted on April 28, 2011 by Neil Sweren

Fannie Mae announced is offering up to 3.5% in closing cost assistance for new contracts closing before June 30, 2011.

The HomePath property buyer must meet the following qualifications to be eligible:

  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer’s total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.
More information about the HomePath program available here:
http://www.lowrateloan.com/homepath_mortgage_financing

Filed under: Mortgage | Leave a comment »

One billion dollars in 0% interest mortgage help to unemployed

Posted on January 25, 2011 by Neil Sweren

According to Housing Wire, the Department of Housing and Urban Development will release $1 Billion in mortgage assistance this spring to unemployed homeowners at a zero percent (0%) interest rate for up to 24 months.

The full story is here: http://www.housingwire.com/2011/01/25/hud-to-release-1-billion-in-mortgage-help-to-unemployed-this-spring

Filed under: Mortgage, Real Estate | 1 Comment »

Relocating Seniors Worrying About Financing New Home

Posted on January 24, 2011 by Neil Sweren

Financial concerns top the list for homebuyers 55 and older says Origination News.  Housing starts for 55+ communities expected to rise 30% over 2010 levels…

Origination News – Relocating Seniors Worrying About Financing New Home.

Filed under: Mortgage, Real Estate, Reverse Mortgage, Seniors | Leave a comment »

What I can find out about you for $25… if I pull the trigger.

Posted on November 23, 2010 by Neil Sweren

Did you know that the major credit bureaus sell your personal information? It’s true! Known as “trigger leads”, the files of borrowers applying for a home loan are immediately flagged, packaged, and sold by the credit bureaus to the highest bidders.

For $25 to $100, your name and certain specifics about your credit report, including your address, phone number, mortgage history, and even your FICO score range, are sold to mortgage companies which then blindly solicit your business. This results in numerous unwanted phone calls and junk mail offers which are in no way associated with your real estate agent or loan professional.

Unfortunately, no legislation presently exists to prevent the credit bureaus from profiting at your expense. As a trigger lead, you are simply at the mercy of any number of too-good-to-be-true offers designed specifically to try and discredit the mortgage professionals you know and trust.

Don’t be fooled! Ultimately, there are only a limited number of sources where lenders may turn to obtain mortgage money, and it’s unlikely that you will find an unbelievably low rate without an unbelievably high cost. That’s why, prior to taking an application for any loan program, I always encourage my clients to opt−out of credit bureau solicitations by visiting www.optoutprescreen.com. For new home buyers, this is the simplest way to avoid the problem altogether.

As you embark on what could be the largest financial transaction of your life, it is very important to have a professional mortgage specialist on your team who has your best interests at heart.

Please call me with any questions.

Filed under: Credit, Mortgage, Real Estate | Leave a comment »

Fed unveils new consumer’s guide to credit reports and credit scores

Posted on November 22, 2010 by Neil Sweren

The Federal Reserve recently unveiled a new Consumer Guide to Credit Scores and Credit Reports.  The guide is an excellent online resource for consumers with straight forward facts on credit scoring, how it is used and the importance of protecting your credit history.  The guide also includes 5 Tips: Improving your Credit Score.

More information and resources are available on the Fed’s main consumer web page.

Filed under: Mortgage | Leave a comment »

Quantitative Easing Explained… the best economics lesson you will ever have

Posted on November 18, 2010 by Neil Sweren

The best economics lesson you will ever have… you MUST watch this!

Filed under: Mortgage | Leave a comment »

Maryland Rolls Out the Red Carpet for BRAC Families with Lowest Maryland Mortgage Program Rates Ever

Posted on July 9, 2010 by Neil Sweren

Lt. Governor Anthony Brown says Maryland will set aside $100 million in mortgage loans for homebuyers in 10 counties most impacted by military relocations.  Southern Trust Mortgage is proud to be among the network of lending institutions across the state issuing the loans at a record low of 4.5%

More information on the program on the Department of Housing and Community Development (DHCD) blog and on the Maryland Mortgage Program (MMP) web site.

Filed under: Mortgage, Real Estate | Leave a comment »

First time homebuyer grant funds

Posted on May 12, 2010 by Neil Sweren

Southern Trust just announced it has $1,000,000 in first time home buyer grant funds available.  Eligible buyers will get a 5 to 1 match on funds up to $7,500 toward the purchase of an owner occupied home in Maryland or Virginia.  A qualified buyer with $1,500 would get the full $7,500 in assistance.  There are income and other restrictions and homebuyer counseling is required.

For purposes of this program, a first time buyer is defined as someone who has not owned a home in the last three years.  More information available at http://www.lowrateloan.com/down_payment_assistance.  Contact me directly with any questions and to discuss qualifications.

Filed under: Mortgage, Real Estate | Tagged: , , , , | Leave a comment »

Fannie Tells Lenders to Get Microscope

Posted on March 16, 2010 by Neil Sweren

Fannie Mae Loan Quality Initiative

Fannie Mae (FNMA) released an update earlier this month that will make committing loan fraud even tougher.  Under the new guidelines, lenders will be required to dig a little deeper when verifying a borrowers identity, credit information and occupancy of the subject property. 

Following is a summary of the changes that will impact most of us:

  • Verification of each borrowers Social Security Number
    Lenders must now verify each borrowers Social Security number with the Social Security Administration (SSA).  If your SSN can’t be verified with the SSA your loan won’t be eligible for a Fannie Mae loan.
  • Verification that all parties involved in the transaction are not on “the list”
    Lenders must now verify for every transaction that all parties (Lender, Loan Officer, Real Estate Agent, Real Estate Company, Appraiser and Appraisal Company) are NOT on the HUD or GSA excluded list.  Offenders are essentially being removed from participation in any part of the transaction. 
  • Occupancy Verification
    Borrowers with multiple properties and/or conflicting addresses will be required to provide sufficient documentation to justify the new transaction.  This has been a particular issue in instances where a borrower is purchasing as a primary residence a property with lesser value than the current residence.
  • Undisclosed Liabilities
    All credit inquiries UP TO THE DAY OF CLOSING must be addressed and all debts must be disclosed on the final application.  Borrowers that apply for other credit during the loan process (for example to buy appliances) will most certainly face closing delays.

It is fully expected that these measures will be adopted industry wide to include other loan types.  Borrowers should be forwarned that the government is putting significant pressure on lenders to report instances of fraud to the appropriate authority.  Omission of a material fact is fraud.  

Implementation of the new guidelines will occur over the next several months.

Filed under: Mortgage | Tagged: , | Leave a comment »

2008 Farm Bill Could Cut Social Security For Some Seniors

Posted on March 15, 2010 by Neil Sweren

Social Security Benefits are currently off-limits to Banks, credit card companies and other lenders but the US Government can go after a Seniors benefits to repay delinquent debt.  Now they can reach back a little further to get back their money.

The Wall Street Journal is reporting that a provision in the 2008 Farm Bill lifted the ban that prevented the US Government from “offsetting” benefits to pay for debts owed to the US Govt for defaulted loans and other debts more than 10 years old. 

The change only impacts debts more than 10 years old and allows the Government to withhold up to 15% of the benefit as long a the benefit does not drop below $750/mo.  It is feared that Social Security recipients will bear much of the impact of the additional collection efforts which are estimated to bring in an additional $10,000,000 per year on unpaid non-tax delinquent debt.

Not that they shouldn’t be held accountable like everyone else to repay money owed but the government certainly picked an interesting time to go after the finances of the nations struggling senior population.  Some of those impacted are already living on a limited fixed income barely able to make ends meet.  A 15% pay cut will certainly prove painful.

Filed under: Reverse Mortgage | 3 Comments »

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