Posts Tagged ‘mortgage’

FHA Mortgage News for the New Year

January 12, 2015

fha_loan_limitsGreat news! FHA loan limits for the major counties in Georgia increased from $320,850 to $342,700 for all new FHA sales contracts written on or after Jan. 1, 2015. This gives homebuyers the opportunity to buy a home with a 3.5% down payment (all from a gift) and FHA has relaxed qualifying guidelines on homes $21,850 more expensive than last year.

The bad news is that the FHA Anti-Flipping Waiver expired on Dec. 31, 2014. Some folks might say, “What Anti-Flipping Waiver?” Many thought a seller had to have owned the home for 90+ days before selling it to a new buyer using FHA financing.

Well, you’re not totally right or wrong. Even though HUD introduced the Anti Flipping Waiver in February 2010 and extended it to December 2014, many FHA lenders and banks ignored the waiver guidelines and continued to require that the seller hold title to the home a minimum of 90 days before re-selling it to a buyer using FHA financing. Since HUD (FHA) only insures loans and FHA approved Lenders actually lend the money, FHA Lenders often have different guidelines than HUD’s guidelines for FHA Insurance purposes. (more…)

How to Avoid the Grinch Stealing Your Closing!

November 10, 2014

mortgage_grinchThe holiday season is upon us and the temptations that come out this time of year make the home buying and mortgage process even more hectic and tricky than normal. A common misconception that homebuyers have is that the mortgage approval is complete when the loan officer gives them a pre-qualification letter or when they receive the telephone call that they have been approved in underwriting.

What most consumers don’t realize is that the mortgage approval process occurs in stages and continues to the day of closing. The changes they make to their income, asset, debt or credit profile can change an approval to a decline very quickly. (more…)

Rent It or Sell It?

October 27, 2014

rent_or_sellWhat should I do with this property? This is a pressing issue in today’s real estate environment in many circumstances. Owners and agents alike are posing this question every day.

The market has begun its journey toward recovery and home prices are rebounding. The recovery has made it possible for an increasing number of previously underwater sellers to become equity sellers again. While the recovery is in PROCESS, there are many agents and sellers that remain frustrated with the rate of PROGRESS. (more…)

Good News: Mortgage Debt Tax Relief Extended!

January 7, 2013

fiscal_cliffWhen lawmakers dodged the “fiscal cliff” last week, they also decided to extend the tax break for forgiven mortgage debt that was set to expire on Dec. 31, 2012. The Mortgage Forgiveness Debt Relief Act of 2007 has been especially important with the current glut of short sales and foreclosures, and it’s truly a “relief” that it has been extended until the end of 2013.

The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on Dec. 20, 2007. The Act protects homeowners from paying income taxes on the deficiency difference between what they sell their home for and what they owe. Whether the home is sold in a short sale or foreclosed upon by their lender, these distressed homeowners are protected by the Debt Relief Act of 2007. (more…)

D-I-V-O-R-C-E and Real Estate, Part 4

March 7, 2011

clue reportContinued from “D-I-V-O-R-C-E and Real Estate, Part 3”.

Even a friendly, uncontested divorce can have nasty consequences at a later time. I’ve already blogged about being “too nice” and simply subtracting the (known) mortgage(s) from an appraised value of the family home to determine the value of the equity asset. Too little Due Diligence is usually done to determine all of the financial liens against the home and the true value of the home in its current condition. 

I feel fairly certain that NO Due Diligence is done to determine how risky the marital home is. Risky? What does that mean? And why should the in-spouse or out-spouse be concerned? (more…)

Preparing to Buy a Home

May 6, 2009

credit diceIf you’re ready to buy a home, you probably have a lot of questions. The first and most important one being – How much can I afford?

Lenders use your credit score, a ranking based on your bill paying history, to determine the risk of lending you money and the likelihood you will repay the loan on time. If you have a lower credit score (below 650), you’re considered a higher risk and may have a harder time obtaining a mortgage, at the rate you want, than other buyers with a high credit score (above 700).

The first step in the home buying process is to find out what your credit score is, fix any errors and take steps to improve your credit if necessary. Here are some tips to help get you started.