BANK LOAN OFFICERS REQUIRED TO REGISTER
Loan officers at banks will now be required to register, and provide their names and fingerprints to a national loan officer database as part of an effort to crack down on shady operators who were part of the mortgage meltdown.
The new requirements were actually mandated by a bill passed in congress over two years ago, but Federal regulators just approved them yesterday (Wed July 28th). The rules apply to employees of banks regulated on both the state and federal level. Mortgage brokers and non-bank lenders are already required to be licensed by the system.
The new bank registration requirement stills leaves a major gap in loan officer licensing. While banks, brokers, and non-bank lenders will all now be registered in the system, only brokers and non-bank lenders (typically called "Direct Lenders") are also required to also have mandatory education, including pre-license education and yearly continuing education.
Mortgage brokers and non-bank lenders are also currently required to take mandatory federal and state tests to obtain their individual license, have criminal background checks, and their personal credit reports reviewed, while bank loan officers do not.
The banking industry fought hard to avoid having their loan officers meet the education and testing requirements, while the broker industry has applauded the requirements, pointing out how brokers will clearly be the lender of choice for smart shoppers wanted good information from educated loan officers.
The gap in knowledge and education between banks, brokers, and non-bank loan officers is expected to grow even greater, as non-bank and brokers who are unable to pass the stringent new testing requirement flee to positions at banks that do not require education and testing. All loan officers perform the same tasks.
The registry is expected to start accepting bank loan officer applications by the end of January 2011.
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We lend in MN and WI ONLY
(c) 2010 - Joe Metzler - Mortgages Unlimited, St Paul, MN: National Loan Officer Lic#274132
Mortgage Interest Rates Hit New Lows
St Paul, MN: Mortgage interest rates fell again last week to the lowest point since the early 1950's, when long-term loans were for just 20 or 25 years, not the 30-year loans that are so popular today.
The rates listed below are the average for last week, and are the lowest since Freddie Mac began tracking rates in 1971.
LAST WEEKS National Average Mortgage Rates WITH POINTSAs compiled and reported by: Freddie Mac
For Week Ending: 07/08/2010
IMPORTANT: Don't automatically trust lender paid web sites like Bankrate.com and Interest.com for accurate rate information. It is very biased information. Rates are uploaded to the sites directly by lenders who PAY to post rates. Rates there are designed to capture your attention with little to no regards to being factual or applying to your exact personal situation.
TOP REFINANCE MISTAKES
Minneapolis, MN: Mortgage interest rates are great, and everyone is thinking "should I refi" my home mortgage loan? For most people, a home is the biggest investment they will ever make. However, few people do the research necessary to make a good buying decision. The home-purchase process is extremely confusing for most people. With a little bit of homework, and some advice from family and friends who have been through the process before, you can make this a little easier on yourself. There is no substitute for taking the time to educate yourself before you buy or refinance a house, which typically costs you 25% to 40% of your gross income!
#1 Mistake: Refinancing with your current lender without shopping around. Your current lender may not have the best rates and programs. There is a general misconception that it is easier to work with your current mortgage company. In most cases, this is NOT the case, and your current mortgage company will require the same documentation as other companies. This is because most loans are sold on the secondary market and have to be approved independently. So even if you have been very good at making payments to your existing lender, they will still have to do their verifications all over again. Your current servicer / lender also knows you automatically think they are a good place to call, and probably didn't shop around. They clearly take advantage of that. Every single customer I talk with today, I can offer them a better deal then their current lender.
Also be aware that your current lender may appear to cost less because they say they have no, or very low closing costs. When you calculate the higher interest rate vs. closing costs with a new lender, the new lender with lower rates almost always wins. Remember that there is no such thing as a free lunch. Click Here for Closing Cost Information
#2 Mistake: Choosing a lender just because she/he has the lowest "quoted" rate or cost. Quoting is easy. Anyone can quote. Actually being able to deliver on that quote is something completely different. While rate is important, you have to look at the overall cost of your loan. This includes looking at the APR, the loan fees, as well as the discount and origination points. Some lenders include origination points in their quoted points, while other lenders add an origination point in addition to their quoted points. So when one lenders says 2 points they mean 2 points, whereas another lender means 2 points plus 1% origination. Click HERE for closing cost information.
Other Mistakes:Not doing a break-even analysis. Find out what the total cost of the refinance is, then figure out how much you will save every month. Divide the total cost by the monthly savings to get the number of months you will have to stay in the property to break-even on your refinancing costs. Example: if your refinance costs $2000 and you save $50/month your break-even is 2000/50=40 months. You should refinance if you plan to stay in the house for at least 40 months. Use our Mortgage Refinance Breakeven Calculator
Note: The break-even analysis only works if you are refinancing to save money. If you are refinancing to switch from an adjustable to a fixed, get cash out, or from a 30-year loan to a 15-year loan, it is much more difficult to perform a break-even analysis.
Thinking you don't qualify: Many people think they can't qualify, and I don't blame them with all the news about today's lender requirements. Take a few minutes, fill out an online mortgage application, and let a professional Loan Officer make that determination. I do this full time 50-hours a week for 20-years, and even I have a hard time keeping up with the rules!
Thinking the county tax assessor's value is the market value of your house. Mortgage companies do not use the county tax assessor's value to determine whether they will make the loan. Instead, they use a market-value appraisal which may be very different from the assessed value.
The cost of the mortgage, however, cannot be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. Learn how to Pick a Good Lender. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what he/she promises. Often, the company that has the absolute lowest quoted rate (far from everyone else) may not be telling you something. It is hard to compare apples to apples, when someone is slipping you an orange. Also, be sure to read our article "Beware of the BAD, Good Faith Estimate"
Effective January 1, 2011 all Mortgage Bankers and Mortgage Brokers across the county will be require to meet new strict standard, and to be licensed according to the S.A.F.E. Act, UNLESS they work at one of the big banks!
An exemption in the consumer protection laws allows Loan Officers at the big Interstate Chartered Banks to NOT have to follow the same rules! Who are these banks? All the big names (Wells Fargo, US Bank, Chase, Bank of America, etc.), plus plenty of smaller ones.
Now I am not trying to make this into a David versus Goliath story, but I am trying to emphasize the huge differences and implications this change will have on the consumer. As the new requirements have been rolling out across the country, many of the current Loan Officers who have been unable to meet the new requirements, and especially those who have failed the new tests, have simply gone to the large banks to work.
Calling "1-800-Big-Bank" to get a loan??? YIKES
Here is a chart to show the differences:
I think the choice is clear. Who would YOU rather be working with on the largest financial transaction of your life? A fully trained, licensed, fingerprinted, and background checked Loan Officer - or the Loan Officer at the bank?
CHECK YOUR LOAN OFFICER OUT on the
Nationwide Mortgage Licensing System and Registry
http://www.nmlsconsumeraccess.org
If they are NOT on this list, be very cautious about using them.
My NMLS # is 274132
The funny part is the cost for the service based on rates and fees are usually about the same, if not slightly cheaper in both rate and costs. Plus non-bank lenders usually close the loans faster, and have more knowledgeable and experienced Loan Officers.
The best S.A.F.E. ACT Loan Officer (non-Bank) analogy I can use is having a choice of working with an experienced CPA to do your taxes vs. you using Turbo Tax to do it yourself, but paying the same price.
Finally, THIS IS A CLEAR REASON why people should follow my #1 mortgage shopping rule: GOOGLE THE NAME OF YOUR LOAN OFFICER before allowing them to handle the largest financial transaction of your life!
Minneapolis / St Paul, MN: - Mortgage rates were supposed to go up this spring, but they're doing just the opposite.
Six months ago, nearly all the experts thought mortgage rates would climb this year once the FED Stopped artificially holding up the market by buying mortgage backed securities. But the opposite is happening. The average 30-year fixed-rate mortgage charges a mere 4.78%, according to the May 27, 2010 weekly survey from Freddie Mac. The European debt crisis and other economic troubles have sparked a flight to safety in the bond market that is driving investors to U.S. Treasury securities, driving up bond prices and thus reducing interest long-term fixed mortgage rates.
How long can they stay this way?
After all these years of pretty low mortgage rates, you’d think that everyone who could save money by refinancing would have done it. But no, refinancing continues to account for a very high level of overall mortgage applications.
If you’ve thought about refinancing but put the idea on hold for a while, you’ll need to start pay attention. Mortgage expert Joe Metzler, of Mortgages Unlimited in St Paul, MN says refinancing is starting to explode again as "rate are at a six month low." He says that more than offsets the drop in home sales caused after the federal homebuyer tax credit expired.
Purchase applications are down. New construction applications are also down since the expiration of the first time homebuyer tax credit. So, if we do see rates drop to 4.5 percent, we could see that make up real easily in refinance applications versus the purchase applications.
Low rates give homeowners a chance to reduce their monthly payments. But rates have been below 6% for a very long time. Why hasn’t everybody refinanced already?
Some homeowners have procrastinated, others figured they couldn't refinance based on all the things they thought they knew about today's mortgage lending market. According to Joe Metzler, "it is worth it for most people to refinance", and that "many people can drop to a 20-yr, or 15-yr loan, with payment similar to their existing loan." He also says "that while the mortgage industry has changed, lenders are still lending, and everyone should at least inquire."
Refinancing always can make a lot of sense for the homeowner expecting to have the new mortgage loan long enough to pay off the costs of taking out a new loan. Using a Refinance Breakeven Calculator can help with that decision if you’re thinking of moving from one fixed-rate loan to another.
Joe Metzler of Mortgages Unlimited, is a Certified Minnesota Mortgage Specialist, and originated home loans in MN and WI only. Visit him online at www.JoeMetzler.com for all your home financing needs
There is a horrible marketing trend called "trigger lists" that the Credit Bureaus are selling to invade your privacy!
The credit bureaus have found another way to increase their revenue at your expense, and WITHOUT YOUR PERMISSION.
It is sad. Within just hours of us pulling your credit report, you will start getting bombarded with phone calls and letters in your mailbox. Who are these people? Well, the vast majority of the time it is NOT the lender you would have picked on your own!
If you have questions about the process for homes in MN or WI ONLY, please call 651-705-6261, or APPLY ONLINE 24-hours a day via our secure application. There are no costs or obligations.
Joe Metzler is a Certified MN Mortgage Specialist (MMS). He and his team at Mortgages Unlimited are proud to provide home mortgages loans for First time home buyers in Minnesota and Wisconsin.
The new Good Faith Estimate does NOT level the lender playing field
Minneapolis, MN: On January 1, 2010, HUD (Housing and Urban Development) mandated all mortgage lenders use a new three page "Good Faith Estimate" with the intent of eliminating low quote practices, to provide clarity to customers shopping for mortgage rates and home loans, and to make comparing lenders easier.
While the intent was admirable, many articles have been written disparaging the new Good Faith Estimate form, and the new rules that accompany it. Simply put, the new estimate was designed to help shop for mortgages. HUD envisioned the document to easily allow borrowers to compare competing lender interest rates and closing costs. HUD is quickly finding out that simply changing a form really hasn't done anything to help anyone. Rather, it has become even more confusing than it was before.
The two main complaints seem to revolve around the lack of giving a customer the bottom line of what they'll need for money out of pocket. The new estimate is designed to ONLY SHOW all closing costs, no matter who pays them. It does no bottom line calculations of down payment, earnest money, seller paid closing costs, or upfront fees that are normally rolled into the new loan (FHA MIP, and VA Funding fee for example).
The other main issue, is that borrowers are NOT helped at all by requirements that they essentially must complete a full application with each lender to learn how much the lender will charge for their services. Lenders are under no obligation to provide a Good Faith Estimate until seven mandatory application criteria items have been presented to the lender. This includes a full application, including social security numbers, and on purchase transaction, this includes the property address. Because the new estimate is binding in terms of costs, lenders are hesitant to provide a binding document until all the details are known.
Until all the mandatory seven items criteria is met, lenders have been providing clients all sorts of custom forms to give these borrowers an idea of what their bottom line costs might be. These custom forms are NOT the binding Good Faith Estimate, and even if all the estimate criteria is met and a Good Faith Estimate is given, the lenders STILL NEED to give the client some sort of custom disclosure form to show them their bottom line. Hard to compare lender-to-lender when the forms are all different!
SHOP EXPERT VS COSTS: While all these new rules and disclosures are an attempted step in the right direction, it still leaves a big hole in the process. The rules are designed to help shop costs, not mortgage experts. The largest financial transaction of the average persons life is too important to place in the hands of someone who simply has the lowest quote, but is not capable of advising you properly and troubleshooting the issues that may arise along the way. Getting a quote on the wrong product can cost a homeowners thousands of dollars, and just because someone refers a lender to you, or you have your checking account at the bank, does not mean you should use that lender. Be sure to get a second opinion.
UNDERSTAND THAT INTEREST RATES AND CLOSING COSTS GO HAND IN HAND. This means that you can have any interest rate that you want - but you may pay more in costs if the rate is lower than the norm. On the other hand, you can pay discounted fees, reduced fees, or even no fees at all - but understand that this comes at the expense of a higher interest rate. Either of these balances might be right for you, or perhaps somewhere in between. It all depends on what your financial goals are. A professional lender will be able to offer the best advice and options in terms of the balance between interest rate and closing costs that correctly fits your personal goal.
UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY, EVEN HOURLY. This means that if you are comparing lender rates and fees - this is a moving target on an hourly basis. For example, if you have two lenders that you just can't decide between and want a quote from each - you must get this quote at the exact same time on the exact same day with the exact same terms or it will not be an accurate comparison. You also must know the length of the lock you are looking for, since longer rate locks typically have slightly higher rates
THE BOTTOM LINE: Stop shopping interest rates and closing costs and learn how to start shopping lenders. Once you find a good lender, you won't have to worry about the slight variations in quotes from lender to lender. You already know you'll be well taken care of.
s you can imagine, we wouldn't be encouraging you to shop around if we weren't pretty confident that we feel that we can give you a great value and serve you the very best. More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life but we do this every single day. It's your home and your future. It's our profession and our passion. We're ready to work for your best interest. Apply online with us for a top mortgage lender in Minnesota or Wisconsin experience, and thank you for giving us the opportunity.
Dangerous Home Buyer Misconception Misconception: If you pay list price, you're paying too much. If you don't know what the current market value is for homes in the area and whether the market is appreciating or depreciating, you don't know what a fair price is and you're likely to miss out on a great deal by trying to low ball a house that's already priced well. If the house meets your goals, is within your budget, and is priced competitively, it's a bargain and you should make a strong offer. Get assistance from a professional to help you recognize a good deal and grab it before it's gone. Misconception: Foreclosures and short sales are the best buys. Many buyers find out the hard way that foreclosures and short sales are full of headaches, may need extensive repairs, require great patience over an extended period, often don't have the criteria that's most important to you, and may never close. Short sales are everywhere and many people are starting to avoid them because the pain isn't worth the gain. Foreclosures can be less troublesome, but often in poor condition with challenges that may take longer than normal to resolve. Market prices have corrected in many places, including Minnesota and Wisconsin, and it's possible to find great deals in homes that are priced like short sales, but don't have the headaches. Misconception: You get a better price if you buy directly from the owner. Bargain hunters sometimes avoid Realtors, thinking that they will get a better price if they buy directly from a FSBO. Meanwhile, the sellers are also trying to save on the commission, so they're not getting expert advice either and often price their homes above market value. The end result is often that a buyer pays too much or the FSBO is unable to get the house sold. Botton Line: A savvy Realtor working on the buyer's behalf, armed with market data and great negotiation skills, is much more likely to get a great deal than buyers can by negotiating for themselves. If you're buying a house, it's a great idea to find a good Realtor and listen to their advice. If you'd like a referral to a proven qualified MN or WI Real Estate Agent, just let us know. Of course the same general theory hold true for your Loan Officer, so be sure you are working with experienced, knowledgable, and dedicated Loan officers like us.
Dangerous Home Buyer Misconception
Misconception: If you pay list price, you're paying too much. If you don't know what the current market value is for homes in the area and whether the market is appreciating or depreciating, you don't know what a fair price is and you're likely to miss out on a great deal by trying to low ball a house that's already priced well. If the house meets your goals, is within your budget, and is priced competitively, it's a bargain and you should make a strong offer. Get assistance from a professional to help you recognize a good deal and grab it before it's gone.
Misconception: Foreclosures and short sales are the best buys. Many buyers find out the hard way that foreclosures and short sales are full of headaches, may need extensive repairs, require great patience over an extended period, often don't have the criteria that's most important to you, and may never close. Short sales are everywhere and many people are starting to avoid them because the pain isn't worth the gain. Foreclosures can be less troublesome, but often in poor condition with challenges that may take longer than normal to resolve. Market prices have corrected in many places, including Minnesota and Wisconsin, and it's possible to find great deals in homes that are priced like short sales, but don't have the headaches.
Misconception: You get a better price if you buy directly from the owner. Bargain hunters sometimes avoid Realtors, thinking that they will get a better price if they buy directly from a FSBO. Meanwhile, the sellers are also trying to save on the commission, so they're not getting expert advice either and often price their homes above market value. The end result is often that a buyer pays too much or the FSBO is unable to get the house sold.
Botton Line:
If you're buying a house, it's a great idea to find a good Realtor and listen to their advice.
If you'd like a referral to a proven qualified MN or WI Real Estate Agent, just let us know.
Of course the same general theory hold true for your Loan Officer, so be sure you are working with experienced, knowledgable, and dedicated Loan officers like us.
The Homebuyer Tax Credit is about to expire. Should you still buy a home? Are you’re better off waiting?
St Paul, MN: In case you've had your head buried in the sand, Washington will give you money for buying a home and stimulating the economy. Up to $8,000 for first-time homebuyers and up to $6,500 for move up buyers who have owned their existing home at least 5-years. With the Federal Homebuyer Tax Credit set to expire April 30th, many potential homebuyers are wondering if they should rush to buy a home or forget about buying a home altogether without the benefit of free government money.
The answers vary depending on who you ask, but three major items need to be understood.
First: Not a single buyer "needs" the tax credit to buy a home. The credit is given to buyers AFTER the purchase as part of your tax refund. You must file your taxes and ask for the refund. You still must come up with your down payment and closing costs to buy the home.
The vast majority of my clients are saying they would be buying anyway. The only reason they are rushing to do it now, is to get the free money. Who can argue with that? The tax credit can be used to replenish savings used to buy the home, fix up the home they just bought, or for whatever the buyer desires.
Second: The tax credit is driving prices up. Sales on quality home in the most affordable under $200,000 bracket have been brisk. Many of these homes have been selling in just days, thousands of dollars above asking price, with multiple offers as people desperately try getting in before the tax credit expires. It makes no sense to me to pay $10,000 more for a home to get an $8,000 tax refund. We saw this same phenomena last fall when the initial tax credit was about to expire. By December, prices dropped dramatically, and then slowly picked up again as we get closer to the new tax credit expiration date. Many of my clients have been outbid 5, 6, 7 or more times on houses
Third: Prices will fall after the tax credit expires: Many experts believe home prices will fall without the artificial tax credit demand currently effecting the market. Once the credit expires, fewer people will be in the market and prices should drop, at least for the short-term, as sellers and bank lower asking prices to sell homes.
Should you still buy a home? Are you’re better off waiting? Hard to say, but one thing is for sure. If you plan on living in the home at least four years, home ownership has many advantages!
FED Just Raised the Discount Rate - What does it mean to you?
Minneapolis, MN: Yesterday, the Federal Reserve Board announced an increase in the "Discount Rate" up to .75%. This is seen as a small step and signal that the super low rates and propping up of the financial system is slowly coming to an end. This move was not unexpected, and is part of the normal and expected gradual withdrawal of the high reserves already in the system, and a nudge by the Fed's for banks to borrow from private equity sources to reduce reliance on the Fed for low cost funds necessitated by the housing crisis.
The discount rate is the rate at which member banks can borrower money from the Fed. The Discount Rate is not the same as the Fed Funds Rate, which is the rate banks charge each other for overnight borrowing, and which impacts the Prime Lending Rate that credit cards and home equity products are usually priced off.
The move will not directly effect home mortgage loans
As a Minnesota Mortgage Lender, we are more concerned with inflation, excessive supplies of government bonds and the major game changing event with the end the the Fed's purchase of Mortgage backed Securities by March 31st. This action by the FED will clearly drive home mortgage interest rates higher.
If you are on the fence about buying or refinancing a Minneapolis, St Paul, all of Minnesota or Wisconsin home, you should do it now.
If you have questions about the home buying process, call 651-552-3681, APPLY ONLINE 24-hours a day via our secure application. There are no costs or obligations.
Joe Metzler is a Certified MN Mortgage Specialist (MMS). He and his team at Mortgages Unlimited are proud to provide many of the Minnesota First Time Home Buyer Programs. Call him today or click HERE to apply for your Dakota County MN First-time Homebuyer loan and to make your home buying dream come true!
City Living Program in St Paul and Minneapolis, MN
River walks, people, fine dining and concerts. And that’s just the beginning. From condos and lofts in downtown to charming homes in historic residential neighborhoods, the Twin Cities area has much in the way of housing options that allow you to enjoy all that major cities have to offer. With City Living’s loan programs, the reality of urban living and home ownership is not far away.
Homebuyers accessing this First Time Homebuyer Loan may qualify for a below market interest rate may also be eligible for Down payment and Closing Cost Assistance. As a borrower, you can choose from two market mortgage interest rates; one rate comes with a Down Payment Assistance Grant (DPA) of either 2% of your new homes purchase price, while the other rate is without the grant (Non-DPA). This program is made available by the cities of Saint Paul and Minneapolis, and is available for homes within the Minneapolis and St Paul City limits.
First Time Home Buyer money NOW AVAILABLE. Apply online and be ready to go!
The Home Stretch Program teaches potential homebuyers about the entire home buying process and the responsibilities of homeownership. Topics covered in these monthly seminars include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.
Home buyer education is taught by professionals in the home buying field. Home Stretch ® is a nine-hour course that is held monthly. Either over three days from 6 to 9 p.m. each night, or an all day Saturday class. Participants must attend all three nights or the single all day session full day to complete the course. A small cost of $15-$25 per household may be required. The workshops are offered in English, Spanish, Hmong and Cambodian. Bilingual counselors or interpreters are also available for other languages. Call 651-552-3681 to register.
Most Minnesota city, and county mortgage and down payment assistance funds are limited, and on a first-come, first-serve basis, including the City Living Program. Contact us as early as possible in the home buying process to be sure you are qualified. If you have questions about the home buying process, call 651-552-3681, or APPLY online 24-hours a day via our secure application. There are no costs or obligations.
To apply for a City Living Loan contact a participating mortgage lender like us. The lender will review your income and credit history to determine whether or not you will qualify for the loan. It is important that you know not all lenders are able to offer the City Living Program. We are proud to be a provider of many of these loans.
Ready?
Down Payment & Closing Cost Loans Income Limits
Household Income Limits (These limits are determined by HUD and subject to change in March 2010).
If you have questions about the home buying process, call 651-552-3681, or
The FULL DETAILS:
2010 Minnesota Home Buyer Program Announced
Dakota County First Time Home Buyer Loan Program with Down Payment AssistanceWhether you are buying an existing home or building a new one - a Dakota County First Time Home buyer Loan may help you make homeownership a reality. Homebuyers accessing a First Time Homebuyer Loan may qualify for a below market interest rate may also be eligible for Down payment and Closing Cost Assistance.
2010 Dakota County First Time Home Buyer money NOW AVAILABLE. Apply online and be ready to go!
Up to $10,000 also available in down payment and closing cost assistance to those who qualify
Most Minnesota city, county and state mortgage and down payment assistance funds are limited, and on a first-come, first-serve basis. Contact us as early as possible in the home buying process to be sure you are qualified.
If you have questions about the home buying process, call 651-552-3681, or APPLY online 24-hours a day via our secure application. There are no costs or obligations.
Dakota County Basic Program Guidelines & Details
Loans are 30-year fixed rate mortgages and can be FHA, VA insured mortgages.
Income Limits are $83,900 for a one or two person household and $92,290 for households with three or more persons.
Maximum Purchase Price = $276,683
Eligible properties include single family homes, townhomes and condominiums located in Dakota County, Minnesota.
Buyers must be a first time homebuyer or someone who has not owned their primary residence in the last three years.
Traditional down payment and closing cost requirements apply.
Home buyers must put a minimum of $750 down
Buyers must occupy the home as their primary residence after purchase.
First Time homebuyer funds are reserved on a first-come, first-serve basis
Buyers MUST attend Home Stretch Home Buyer Education Classes
To apply for a Dakota County First Time Homebuyer Loan, contact a participating mortgage lender like us. The lender will review your income and credit history to determine whether or not you will qualify for the loan.
It is important that you know not all lenders are able to do MHFA, City, County, Bond loans, FHA or VA loans. We are proud to be a provider of many of these loans, including the Dakota County First-time home buyer down payment assistance program.
Knowing your full exact situation will help us determine if a government assistance loan programs are right for you. Being pre-approved also gives you ultimate buying power and the upper hand in negotiating.
Ready? There are no costs or obligations to get started!
Down payment & Closing Cost Assistance ProgramIn addition to mortgage financing, eligible buyers using a Dakota County First Time Home buyer Loan can access funds through the CDA's Down payment and Closing Cost Assistance Program to help with the initial costs of owning a home. The CDA offers two types of down payment and closing cost assistance. Each may be used individually or in combination with each other.
In addition to grant assistance, income eligible buyers may access down payment and closing cost assistance loans of up to $10,000. These loans are zero interest, deferred loans that are paid back at the end of the 30-year mortgage term or when the home is sold or refinanced. Eligibility is based on the buyer's gross household income adjusted for family size and the successful completion of a Housing Quality Standards Inspection.
DPA Assistance Amounts
There are three levels of assistance, based on household income:
Level 1. Households earning at or below 50% of median income are eligible for 10% of the base first mortgage amount, up to $10,000.
Level 2. Households earning 51-80% of median income are eligible for 5% of the base first mortgage amount, up to $7,500.
Level 3. Households earning more than 80% of median income up to the program limits are eligible for 2.5% of the base first mortgage amount.
Household Income Limits (These limits are determined by HUD and subject to change in March 2010). The “household” income includes all persons living in the property, regardless of family relation or whether they are a party to the first mortgage. Income from all members of the household age 18 years and older must be included when determining which level of assistance applies to the household
Down payment and closing cost assistance funds are reserved on a first-come, first-serve basis. At the time you apply for a First Time Homebuyer Loan through a participating mortgage lender, you will also apply for down payment assistance.
Home Stretch ® Homebuyer Education ProgramThe Home Stretch Program teaches potential homebuyers about the entire home buying process and the responsibilities of homeownership. Topics covered in these monthly seminars include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.
Home buyer education is taught by professionals in the home buying field. The classes are typically held from 6 to 9 p.m. each night and you must attend all three nights to complete the class. The cost to attend the class is varies depending on exact class taken, but is very small ($10- $20 per household).
Pre-registration is required. Call 651-552-3681
Pre-Purchase Counseling ProgramThe CDA's Pre-Purchase Counseling Program provides free individual counseling to Dakota County homebuyers and can be accessed anytime during the home buying process, whether you are buying a home now or in the future.
This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a down payment on a home, identifying mortgage loan products that best meet the household's needs and/or examining and answering questions about loan documents.
Eligible Properties include:Existing single family homes, townhomes, FHA approved condominiums or duplexes in Dakota County (Duplexes can be no more than 5% of the program. Duplexes are limited to existing homes that are at least 5 years old.)
New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
Homes are considered new if never previously occupied.
Joe Metzler is a Certified MN Mortgage Specialist (MMS). He and his team at Mortgages Unlimited are pround to provide this Minnesota First Time Home Buyer Program. Call him today or click HERE to apply for your Dakota County First-time Homebuyer loan and to make your home buying dream come true!
"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.
In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.
Visit our website for FHA Home Loan Financing in the Minneapolis, St Paul, Duluth, Rochester, Madison, and Milwaukee areas, or all of MN and WI
Delivering Value Added Home Loan Solutions in Minnesota Since 1991
651-552-3681 - Apply Online
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Via Elvin Lorenzo:
During the Christmas and New Year's Holiday I got a chance to catch up with a lot of my old friends and family and of course we got to talking about the mortgage and lending industry! Yes, believe it or not, this is still a very popular topic these days! : ) We got to talking about horrible loans and the dishonest practice that took place in the past and other not so great experiences that they themselves and their co-workers experienced. I allowed them to vent and express their thoughts and opinions. After a good 30 minutes or so of people just taking turns of bashing the lending industry, the Obama Administration and all this bailout hooplah, I told them these magical words that caught everyone's attention: "In today's lending environment and the many reforms that have taken place in the industry, I couldn't give you a bad loan if I even wanted to!" This statement opened up a great discussion and informing everyone of how mortgages are done today and why people who are thinking of getting a new home or a new mortgage, should not be so scared. Here are a few key reasons why getting a mortgage today is not only safe but to your advantage: You have a choice of vanilla, vanilla and....vanilla! Would you like vanilla sprinkles with that? Mortgage Programs today are pretty straight forward - 30 Year Fixed, 15 Year Fixed and a few other terms in between. There are still a few ARM Programs hanging around but they're definitely not the exotic programs of the previous years and are actually a bit tougher to qualify for in some cases. Interest Rates are still at all time lows! I really didn't want to use this line because it sounds so generic and "salesy" but I'd be lying if it wasn't true! Interest rate are still very low. How long will they last for? If I knew, I sure as heck wouldn't be doing this for a living! But take advantage of them while they're here! The NEW FORMAT of Disclosing to Consumers. Folks, with the new disclosures and rules implemented with them, there are no more surprises at closing (and if there are you will know about it and you will be given time to think about it). Whatever amount of fees are disclosed to you up front (from the very begining), that amount has to stay the same or if it is different you will be given up to 7 days to think about it! Tax Credit for Homebuyers has been extended! As the media has done a very good job informing everyone of this, the tax credit for homebuyers has been extended - just in time for tax season!!! Today's homebuyers will not only enjoy the benefits of buying a home at a very low price, enjoy tax benefits of being a homeowner but also have an additional tax credit of $8,000, too! (ask your tax advisor for further details). Implemented Investor and Lender Overlays = Stable, New Generation of Homeowners and Mortgage Industry! Though this can be extremely annoying to the customer and everyone involved in the transaction, the good news in the midst of all the mayhem and scrutiny is that it does 2 things: (1) minimize risk for the lenders and investors which keeps the flow of lending, credit and cash throughout the whole system and (2) If you're able to get through all the scrutiny of underwriting, approvals, re-approvals and hoops required to jump through to obtain a loan - not only do you deserve to have that loan, YOU DESERVE A MEDAL!!! You're a solid and ideal customer to get a home and chances are, everyone else who got their home about the same time as you are solid and ideal JUST LIKE YOU! This is a start to what we all hope will be a stable, new generation of homeowners in America! Again, for more specific information on your situation, please contact your tax advisor and local real estate and mortgage professional.
During the Christmas and New Year's Holiday I got a chance to catch up with a lot of my old friends and family and of course we got to talking about the mortgage and lending industry! Yes, believe it or not, this is still a very popular topic these days! : )
We got to talking about horrible loans and the dishonest practice that took place in the past and other not so great experiences that they themselves and their co-workers experienced. I allowed them to vent and express their thoughts and opinions. After a good 30 minutes or so of people just taking turns of bashing the lending industry, the Obama Administration and all this bailout hooplah, I told them these magical words that caught everyone's attention:
"In today's lending environment and the many reforms that have taken place in the industry, I couldn't give you a bad loan if I even wanted to!"
This statement opened up a great discussion and informing everyone of how mortgages are done today and why people who are thinking of getting a new home or a new mortgage, should not be so scared.
Here are a few key reasons why getting a mortgage today is not only safe but to your advantage:
Again, for more specific information on your situation, please contact your tax advisor and local real estate and mortgage professional.
6 Reasons to TRADE UP TODAY, because this IS the best market to trade up!
Have you thought about getting that bigger, better house in a better neighborhood?
NOW IS THE TIME!
St Paul, MN: Whether you need more space, want to upgrade your location, or for any other reason, the current real estate market presents a unique opportunity to capitalize by trading up!
1) You will make money NOW on the trade!
Here's how this works. You currently own a house that was worth $300,000 three years ago, and now it's worth $210,000 (that's right, it's gone down 30%!). You may be thinking, I've lost $90,000, right? Wrong!
What you do is go out and sell your old home and purchase the new home of your dreams for $450,000. That house, three years ago, was worth $750,000 and you probably couldn't have afforded it. By buying it now, what you've just done is bought your new home at a $250,000 discount! Just like that, on the trade, you've MADE $160,000! This doesn't even take into account the money you'll save on property taxes because you're paying taxes on a $450,000 house, and not on a $750,000 house.
2) AND you will make money LATER when you sell your new home!
OK you've listened to my advice, bought that new home of your dreams and traded up. YES! Fast forward five years and the real estate market has gone up 20%. Let's take a look at what has happened. Your old house is now worth $250,000, for a $50K gain over today's value. Your new home is worth $540,000, or $90,000 more than when you bought it today. Just like that, you've made another extra $40,000 on the trade!
3) You can likely buy a house you otherwise could not have afforded, and may not be able to afford again!
Going back to my example above, you probably couldn't have afforded that $750,000 house three years ago when you bought your old house. You also may not be able to afford it again in 3 - 5 years when the market rebounds. If you've been dreaming about a bigger home or one in a nicer area, now is really the time to capitalize.
4) It's much easier to trade up in a down market than in an escalating market!
Many people say that they will trade up when the market "goes back up." Let's take a close look at that. Let's say that 5 years from now, the market is back up 20% from today's values. You then sell your current home for $252,000 and your dream home is now worth $540,000. You've gained $40K on your current home (from today's values) BUT your dream home is now worth $90,000 more! That means that, by waiting, you've now spent an extra $50K to buy that house, plus you lived in the OLD smaller house 5-years longer than necessary.
5) You'll probably get a better house by trading up in a down market!
The current market presents some very unique opportunities. In most areas, inventory is pretty high and buyers have a lot of great choices. By shopping in this market, you can really get the home of your dreams and take your pick of all the inventory available. In most cases, you can get a good deal on a great property in a terrific area.
6) $6500 tax credit for move up buyers!
Take advantage of this special offer from Washington. If you've owned your existing home at least 5-years, you can move up and take advantage of free money! Learn more about the $6500 Tax Credit with Mortgages Unlimited
The bottom line is that if you can afford it, now is a terrific time to upgrade! Interest rates remain at historic lows and there is plenty of financing available.
Start your Minnesota Home For Sale Search Today
8000 Tax Credit Extended For Military Personal??
No news yet about the possible extension of the $8,000 Federal Tax Credit beyond November 30, 2009 for all first time home buyers, but the House of Representatives has voted unanimously to extend the first time buyer tax credit to active military personnel, foreign service and intelligence officers. The bill (HR3950) would extend the existing tax credit to this group only until November 30th, 2011. The bill now goes to the Senate, and is expected to pass with the same ease.
The bill was brought up because it was thought that military personal serving oversees this year did not have the same opportunity to take advantage of the tax credit as other future home owners. The extension applies to military personnel who spent at least 90 days of the current calendar year oversees. It also does not require borrowers to payback the tax credit if they are deployed after receiving it. The current tax credit requires borrowers payback the tax credit if they do not occupy the home within three years of receiving the tax credit.
THIS IS NOT LAW as of the time of this posting, but should be soon.
Combining the $8000 federal tax credit with a VA 30-year fixed loan is something I as a loan officer and Mortgages Unlimited are proud to be able to offer all military personal, both active and discharged, for properties located in the Minneapolis St Paul area, and all of Minnesota and Wisconsin.
FHA Changes Streamline Refinance Rules - makes it harder!
FHA streamline refinance has always been a great tool for home owners. In the most simple format, a person who currently has an FHA loan could fill out some paperwork, and close a new loan shortly thereafter with a new lower rate (payment), and with no out of pocket closing costs.
As long as the person had made their past 12 FHA loan payments on time, and had a job, you were approved. There was no appraisal, no credit score requirement, and no income or asset documents required. The client still has normal closing costs, but they could be rolled into the new loan.
The new rule revises current procedures for streamline refinance transactions to establish new requirements for loan seasoning, payment history, income verification, and demonstration of net tangible benefit to the borrower. It also provide for collection of credit score information; and to cap maximum loan-to-value at 125 percent.
A BIG CHANGE IN THE RULES will be that in order to roll in the closing costs, an appraisal will now be REQUIRED. If the loan-to-value is UNDER 125%, this shouldn't be an issue other than they now have the added cost of an appraisal. If the customer wishes to pay closing costs out-of-pocket with cash at the closing, then an appraisal will NOT be required. This rule alone will effectively kill FHA streamline refinances as we know them today as EVERYONE rolls closing costs into their new loan.
These revisions also bring NEW documentation standards for streamline refinance transactions in line with other FHA loan origination guidelines, ensures the borrower's capacity to repay the new mortgage, and prohibits the dangerous practice of loan churning, where borrowers raise cash through successive cash-out refinancing that put them further in debt.
These new rules are in part due to the increasing level of FHA foreclosures. FHA doesn't actually provide loans, rather, it guarantees loans for lenders in exchange for lenders taking on higher risk, lower credit score, and small down payment home buyers according to FHA guidelines. FHA foreclosures have increased steadily recently as the mortgage industry no longer offers sub-prime and exotic loans, leaving many potential home buyers with no other option BUT FHA.
Worried about the changes? Apply now before they go in effect!
MORTGAGE INTEREST RATES ARE GREAT TODAY. BUT WHAT ABOUT TOMORROW?
Let's face it, mortgage interest rates have been averaging in the low 5% range, and that is great for the real estate market. But do you know where mortgage interest rates come from and why they change?
Lenders don't just make up rates! Long-term interest rates are based on Mortgage Backed Securities, also known as Mortgage Bonds. As money flows in and out of the bond market, the bond "yield" changes and the corresponding interest rate goes up or down.
May people think the 10-year Treasury Note is the correct index to "follow rates" with. While this note usually trends in he same directs as Mortgage Bonds, it is not unusual to see them move in completely opposite diretions. Be careful not to work with a Loan Officer who has their eyes on the wrong indicators.
This is a bit simplistic, but you can look at Fannie Mae and Freddie Mac as a clearing house which "buys" loans from lenders based upon rules they make, then package those loans into Mortgage Bonds, which the public buys on the bond market.
With everything going on in the mortgage world, bond players ramped DOWN the purchase of Mortgage Backed Securities. If no one buys Mortgage Bonds, there is no money for Fannie and Freddie to buy loans from lenders. If lenders can't sell the notes, they run out of money, the supply dries up, and consumers can no longer get a mortgage loan.
With no confidence in the mortgage market, bond players simply stopped buying mortgage back securities, creating a huge liquidity problem in 2007 and 2008.
In order to calm, and ease the strain on the markets, the US Treasury Department started buying up to $1.25 trillion worth of Mortgage Backed Securities which would help keep money flowing to the mortgage markets. By spring 2009, the Treasury Department was buying 2/3rds of all mortgage bonds, which has kept 30-year fixed mortgage rates artificially low.
The overall mortgage bond market has started to improve, and confidence is starting to return because "new loans" are being written to more traditional safer and strictor guidelines. Traditional private sector bond players have started to again purchase mortgage bonds, which is good, as the money pledged by the Treasury to buy bonds in expected to run out over the next few months.
Once the Treasury Department stops buying bonds, all bets are off as to what interest rates will do. If the private market continues to increase their rate of buying bonds, interest rates should continue to stay low, or increase slightly. If the private-sector doesn't carry the load, expect to see mortgage interest rates climb.
While it is too early to know exactly what is going to happen, but if you are on the fence about buying a new home or refinancing an existing home, I'd suggest you take advantage of today's mortgage interest rates RIGHT NOW.
By far, the #1 Mistake is choosing a lender simply because they are recommended by your Realtor, or using the Realtor's affiliated companies. While your real estate agent has basic mortgage knowledge, your Realtor is not a mortgage finance expert! They are trained & licensed to help you buy & sell homes. They are NOT trained in mortgage financing! They may not know what's the best loan for you. The Realtor only gets a commission when your house closes. As a result, the Realtor may refer you to a lender that is sure to close the loan, but not necessarily the lender that has favorable rates or fees. Also, many Realtors refer you to their friends in the loan business––who again may not be able to get the best loan for you. Even if the Realtor is very professional and looking out for your best interest, you should still do homework on your own.
WARNING: Be wary of "affiliated companies" (Example: XYZ Realty Company, XYZ Mortgage, and XYZ Title Company). Usually all in the same building, and all owned by the same people. Although it is very convenient to use the affiliated lender and title company across the hall, you typically PAY for that convenience with higher rates and fees than you could find elsewhere. Sometimes the Realtor makes it sound as if you have to use their affiliated companies. YOU DON'T.
A very large portion of my business comes from Realtors referring clients to us (and we appreciate it!) But if you are already approved with a lender, and your Realtor or Builder is now 'pushing', 'forcing' or speaking negatively about your choice while pushing hard for you to use their lender or title company, it almost always means you pay more!
If your Realtor walked you across the hall to get approved with their in house lender, and you haven't gotten a SECOND OPINION, call me right now! You are entitled to a second opinion, even if you have already been pre-approved for your mortgage with them!
Federal Law Requires Choice of Title Insurers & Lenders The Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. 2600, requires that all Buyers and Borrowers be given the choice of title insurance providers and lenders. Many people working in the sale, purchase, or construction of real estate have a financial interest in the title and mortgage company and are receiving compensation for settlement and lending services.
I recently took a loan away from a large local Real Estate Company that very aggressively twists their real estate agent's arms to get them to get you to use both their title company and mortgage company. I beat their mortgage company by $1500 in closing costs and 1/2% in interest rate. The title company I suggested using was cheaper by $400. Their purchase agreement VERBIAGE even goes as far as making is sound like your loan won't close if you use someone else.
We recommend shopping for a loan with at least 2 mortgage companies before you make a decision, maybe the one your Realtor suggested, and someone else! Remember to GET A GOOD FAITH ESTIMATE IN WRITING. There are countless stories of consumers who wind up paying higher rates or getting a loan program that was not right for them because they blindly followed their Realtor's mortgage advice.
Choosing a lender just because she/he has the lowest "quoted" rate or cost, or not getting a written good-faith estimate is also another major mistake. While interest rate is important, you have to look at the overall cost of your loan. This includes looking at the APR, the loan fees, as well as the discount and origination points. Some lenders include origination points in their quoted points, while other lenders add an origination point in addition to their quoted points. So when one lenders says 2 points they mean 2 points, whereas another lender means 2 points plus 1% origination. Click HERE for closing cost information.
The cost of the mortgage, however, cannot be your only criteria. There is no substitute for asking family and friends for referrals and for interviewing prospective mortgage companies. Learn how to Pick a Good Lender. You must also feel comfortable that the loan officer you are dealing with is committed to your best interests and will deliver what he/she promises. Often, the company that has the absolute lowest quoted rate (far from everyone else) may not be telling you something. It is hard to compare apples to apples, when someone is slipping you an orange. Your mortgage company is required to provide you with a written good-faith estimate of closing costs within 3 working days of receiving the application. When you do receive one from each lender, CHECK THEM CAREFULLY! All lenders have basically the same fees and costs for doing your loan. If one lender is significantly lower, chances are they are not telling you something up front. Check the other Good Faith Estimates to see what is missing.
Call me at (651) 552-3681. I will be happy to go over a competitors Good Faith Estimate with you. Also, be sure to read our article "Beware of the BAD, Good Faith Estimate.
The new "Mortgage Disclosure Improvement Act" (MDIA) starts next week (July 30 2009) and will likely seriously delay closings - especially over the next few months as unprepared lenders everywhere drop the ball until they all get comfortable and familiar with the new APR (Truth-in-Lending) disclosures.
The Federal Reserve Board changes to consumer protection regulations for APR disclosure, while mandated with good intention, will certainly cause delays right at the last moment as FINAL numbers used to prepare the ACTUAL APR are not always known until the last moment. The new rules have such a tight tolerance that lenders will almost ALWAYS have to be redisclosed, and DELAY THE CLOSING while everyone waits for the 3 day waiting period to pass.
The Federal Reserve Board approved final rules that revise the disclosure requirements for mortgage loans under Regulation Z (Truth in Lending) . Regulation Z is a consumer protection regulation that requires lender disclosure of the cost of financing a home, and has been revised to provide greater consumer protection. The revisions are an amendment to the Truth in Lending Act (TILA) called the Mortgage Disclosure Improvement Act (MDIA) . The MDIA covers primary residences and second home applications made on or after July 30, 2009, and requires that lenders provide disclosures earlier in the mortgage process. The MDIA requires the following waiting periods:
The burden of proof is on the lender to deliver disclosures and most will not want to make exceptions in fear of closing a loan that is out of compliance. Responsible lenders have already been doing this disclosure/re-disclosure all along. On most transactions, the actual increased time required to process loans due to MDIA may be three to seven days.
Plan on additional delays in closing your next real estate transaction as lenders adhere to the new law.
We are ready and fully prepared for the changes. Remember the lender choice reflects heavily on your future referrals. Once a deal is on the table, time becomes a critical factor. Any delay or hiccup could mean that the deal doesn't get done. There's nothing more frustrating than having a deal on the table that falls apart because it doesn't seem to be a priority to the lender who is too busy for your deal while he works on some refinances, or hasn't figured out the new laws.
That's why I make it a habit to make your problems, my problems; your obstacles become my obstacles. And I work tirelessly to get your deals funded. For properties in Minnesota or Wisconsin Only, 7 days a week, call (651) 552-3681, or E-mail me your questions.
- Joe Metzler, MMS
WHITE HOUSE WIDENING MORTGAGE REFINANCE RELIEF PROGRAM
The Obama administration has made changes recently to the current homeowner bailout program available to homeowners who are underwater on their home mortgage loans in an effort to stem the foreclosure problem.
The program is designed to allow homeowners to refinance to today's lower interest rates when under normal and traditional underwriting guidelines, they would not be able to do so.
The current program would allow strapped borrowers with mortgages up to 105% of their homes value as long as they were not behind on their mortgages. The changes just made allow borrowers to now have up to 125% loan-to-value and still be able to refiance.
BUT HOLD ON. While this sounds great on the surface, and while there has been a lot of consumer interest, the program has not come even close to expectations, helping significantly fewer people than Washington anticipated. It is because of these failures that they have expanded the loan-to-value limits.
This programs failures comes on the heals of two previously highly announced homeowner bailout programs called FHASecure and Hope For Homeowners, which both failed miserably in helping consumers.
Why do they fail? A huge issue on the current program has been that so many people owe more than 105% of the current value of their home. So this change should help qualify more people.
With this and the other programs, there is no lender mandate forcing lenders to participate. Many lenders understand giving people 100% (or higher) loans were part of the original problem, and simply refuse to offer the loans.
Underlying guidelines, shall we say "the small print" is also preventing many people from taking advantage of these programs.
In the end, while this announcement should help a lot more people, I also see this program being labeled a failure.
For more information on the "Making Homes Affordable Program", simply follow this link:
http://www.metzlermortgage.com/makinghomesaffordablerefi
The Death of Private Mortgage Insurance Companies
Ahhh the ever hated PMI on your home loan. The necessary evil. Is it going away?
Private Mortgage Insurance (PMI)? It is (was) an insurance policy required by mortgage lenders on conventional loans when the borrower had a loan-to-value (LTV) greater than 80%. PMI was established to help borrowers with little cash buy or refinance houses. I always called it the necessary evil. The rules were simple. If you didn't have 20% down, you didn't get a loan.
To get the loan, lenders required an extra bit of insurance to protect them, but YOU had to pay for it. The less down payment, the more expensive PMI is as your risk as a borrower went higher.
Then along came 2nd mortgages and home equity lines of credit. With these loans, home owners attempted to skirt PMI by dividing up their loan into two. The first mortgage at 80% loan-to-value or less, and therefore no PMI, plus a second mortgage to cover the difference.
Terms such as 80/10/10, 80/15/5 and 80/20 became common and PMI became an afterthought as people thought they had beaten the lenders. The reality was that for many people, the perceived savings were false, as the second mortgages came at a dramatically higher rate, or with higher risk. I can tell you many stories of people caught with their pants down as the "great rate" on the second mortgage climbed higher and higher. The payments ended up far surpassing the "savings" of avoiding PMI.
OTHER HIDDEN COSTS ABOUND: Most first lien lenders charged you a higher rate on your first mortgage because they knew what you were doing, and you really not any less risky by having two loans. For example, if you had taken a loan WITH PMI, your rate may have been 6.00%, but by doing an 80/10, your first mortgage rate was 6.25%. Also, those second mortgages were never free in terms of closing costs. For many people, the extra closing cost of getting the second mortgage completely ate up all the benefits.
Of course each individual transaction is different, and while some truly gained benefit from two loans, few people ever did the real math to determined the true total cost of their loans over time. Plus, they almost never calculated in the fact that private mortgage insurance can be dropped once your loan-to-value reached 80%.
BEHIND THE MAGIC CURTAIN: Something few borrowers understand about the mortgage industry is who actually underwrites loans. For many, the underwriter is actually employed by the private mortgage insurance company, not the actual lender. In simplistic terms, this puts the PMI company on the additional hook for bad underwriting and adds another layer of protecting to the lender. Because of this, while the lenders typically follow Fannie Mae or Freddie Mac guidelines, the PMI company can add their own ADDITIONAL guidelines on top of Fannie and Freddie rules. These additional private mortgage insurance company add on rules have become a major lending industry issue recently, making getting a loan for many, much more difficult.
WHO CAN BLAME THEM? PMI companies are losing $ Billions of dollars to lender claims, and 2nd mortgages and home equity lines are a thing of the past, thrusting PMI companies back into the "only game in town" position as lenders look to reduce their risk. I would anticipate within a short-time, that the private mortgage insurance (PMI) companies will not exist as we know them today, throwing further turmoil into the housing market
NO PMI? NOW WHAT? If the PMI companies die, will you be able to get a loan with less than 20% down or equity in the future? Sure, but I would assume that instead of PMI on your loan, you will probably have some sort of lender self-insured policies which will probably come in the form of dramatically higher rates.
We shall see...What does this mean for homebuyers and homeowners wanting to get a loan with less than 20% equity in the property? MOVE NOW, and be sure working with a professional loan officer who can properly analyze your individual situation and explain current market conditions. This is almost never the guy quoting the lowest interest rate or the guy answering the phone on some big lender 800 phone number.
Call me with any questions you have concerning the current market.
Making Home Affordable Program Details
The Obama Administration unveiled the final details of its "Making Home Affordable Program," which is designed to help up to 9 million American families refinance or modify their loans to a payment that is affordable now and into the future.
One of the initiatives in this program is aimed at helping responsible homeowners "refinance" their loans to take advantage of historically low interest rates. Here are some common Questions and Answers about the Refinancing Initiative in the program.
REFINANCING INITIATIVE
Who is eligible? You may be eligible if:
How do I know if my loan is owned or controlled by Fannie Mae or Freddie Mac?
Simply call or email me. I'll help you determine if your mortgage is backed by Fannie Mae or Freddie Mac.
I owe more than my property is worth. Do I still qualify to refinance under the Making Home Affordable Program?
Eligible loans will include those where the first mortgage will not exceed 105% of the current market value of the property. For example, if your property is worth $200,000 but you owe $210,000 or less, you may qualify. The current value of your property will be determined after you apply to refinance.
If I am delinquent on my mortgage, do I still qualify for the Refinance Initiative?
No. But the good news is, you may qualify for the Modification Initiative. Contact me to discuss your situation and review your options.
I have both a first and a second mortgage. Do I still qualify to refinance under Making Home Affordable?
As long as the amount due on the first mortgage is less than 105% of the value of the property, borrowers with more than one mortgage may be eligible for the Refinance Initiative.
Will refinancing lower my payments?
That depends. If your interest rate is much higher than the current market rate, you would likely see an immediate reduction in your payment amount.
However, if you are paying interest only on your mortgage, you may not see your payment go down. BUT... you will be able to avoid future mortgage payment increases and may save a great deal over the life of the loan.
What are the terms of the refinance and what will the interest rate be?
All loans refinanced under the plan will have a 30- or 15- year term with a fixed interest rate.
The interest rate will be based on market rates at the time of the refinance. Currently, interest rates are at historical lows, which makes this a good time to examine your refinancing options.
Will refinancing reduce the amount that I owe on my loan?
No. Refinancing will not reduce the principal amount you owe. However, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.
Can I get cash out to pay other debts?
No. Only transaction costs, such as the cost of an appraisal or title report may be included in the refinanced amount.
How do I apply for the Refinance Initiative?
Call or email me today to discuss your specific situation and to examine your options. If this plan is right for you, we can begin working on your refinance immediately. PLEASE UNDERSTAND FULL DETAILS HAVE NOT YET BEEN RELEASED TO US, and while we will start taking applications, we will have to wait just a bit for full details and the program to be implemented internally.
As part of the discussion, we may need to look at the following information:
As always, if you have any questions or would like to discuss how this may specifically impact you, I'd be happy to sit down with you. Just call or email me to set up an appointment.
If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance.
Do I qualify for a Making Home Affordable refinance? Answer these questions:
IF YOU ANSWERED YES TO THESE FOUR QUESTIONS, YOU PROBABLY QUALIFY
Contact your local lender for more information
In MINNESOTA and WISCONSIN? You can Apply Online 24/7
FOR MORE INFORMATION, Visit www.FinancialStability.gov
If you snooze, you may lose. Helping you avoid costly mortgage mistakes.
The Fed's been at it again, offering words that sound encouraging at first blush, confirming that their buying program of Mortgage Backed Securities is in full swing and will continue as needed. Of course, the media will pick this up and offer their own interpretation, saying "Good news, the Fed's words on continuing their purchasing program mean that rates will continue to drop lower, and remain low into the summer..." But is this really what that means? Not so.
Here's the truth.
Yes, the Fed has been buying Mortgage Bonds, but if you look at what they are purchasing, they are buying a lot of FNMA 30-yr 5.5% and 5.0% Bonds...which won't have much of an impact on present interest rates. Why? First, see the Fed's purchases for yourself by hitting this link: Direct Link to View Fed Mortgage Bond Buying - http://www.newyorkfed.org/markets/mbs/index.html.
So why is the Fed buying these Bonds? Well if you think about it, it's very smart of the Fed...and maybe even a little sneaky...because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50%, which are precisely the loans being refinanced at today's great interest rates.
Stay with me here...
With rates at present low levels, many of the mortgages in these FNMA 5.5% pools being bought up by the Fed will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. And this is likely a big reason why the Fed said they could continue this purchasing program beyond June, if necessary. Bottom line, the Fed buying these higher rate coupons will not necessarily help rates to move lower, as their actions do not impact the loans being originated at today's low rates.
Here's the most important part.
Sometimes I talk to clients who are in a situation where it makes sense to refinance right now, and save $250 per month for example. But when they hear the media throwing around teases of lower rates ahead, they decide to hold off on making the decision to save the $250 per month right now, in the hopes of gaining another $30 per month in additional savings with a lower rate than where we stand presently. Now clearly, rates could turn higher, and this window of opportunity could pass them by entirely.
The clincher is this:
Even if those clients ultimately are correct in timing the market, and eventually grab that lower rate and save another $30 per month - think of what they have lost by waiting. While they delayed, they lost the savings they could have gained by taking action sooner - or in the example used, $250 - for every single month they waited. So even if they got lucky and obtained the rate they were looking for, it could take years to make up what they lost by waiting.
I don't want anyone to miss an opportunity by either waiting, or not understanding what is at stake. Let's talk further on this - call or email me and let's discuss what this might mean for you.
Better yet, apply online right now. You'll be closed and safely enjoying these low rates next month!
Protecting yourself against predatory lenders, mortgage scams, and Bad Loan Officer screw-ups
Mortgage rates are still great. That's great news for veteran loan hunters.
But for inexperienced shoppers who don't watch their backs, the mortgage business can be a scary place to travel.
The internet especially has make it easier for sly mortgage lenders and brokers to mislead and take advantage of naïve consumers using any number of tricks, from quoting bogus rates over the telephone to slipping gratuitous costs into their loans. To avoid these problems -- as well as other trip-ups posed by the confusing mortgage process itself -- consumers have to brush up on their shopping skills.
Market is ripe for tricks and trip-upsIn the past few years, when the market was hot, a lot of rookie Loan Officers and small brokers came into the market that may not have the experience level you're comfortable with. There was money to be made, and it was easy. Just sit back, and the phone will ring with customers wanting to refinance. The number of lenders and Loan Officers TRIPLED from 2001 to 2005. Lending volume also TRIPLED to the highest numbers in history!
Once that big refinance period ended, and mortgage volume returned to pre 2001 levels, these newer people are desperate to stay in the business. They will say and do anything to capture a deal. 80% of current Loan Officers came into the business AFTER 2002.
Now that we have great rates again in early 2009, here come the bad guys again!
The reality is that most lenders and brokers aren't out to fleece customers and the complexity of the home loan process -- rather than anyone's malfeasance -- takes the blame for some of the obstacles consumers face. Many trip-ups don't rise to the level of "predatory lending" either. Nevertheless, they can cost borrowers serious time and money, and guarding against them becomes even more important during the boom times.
There's kind of a range of games that get played and they're pretty broad, from fairly benign stuff to outright fraud.
Problems can pop up long before a borrower fills out any paperwork. Indeed, just finding out how much a mortgage costs can be confusing.
Sept. 2008: Once again, the Minneapolis / Saint Paul Business Journal has recognized Mortgages Unlimited as one of the top 25 locally owned mortgage lenders in Minnesota. Who are you thinking of doing business with?
Be as specific as possibleMany potential customers simply call lenders up and ask, "What's your rate?" But they fail to indicate what kind of loan they need, how long of a lock period they want, how many discount points they're willing to pay, how long the rate is good for or anything else. Consumers have to specify all of these things or lenders can pretty much say whatever they want, then provide different figures when the customers come in and blame the lack of specificity.
A loan with a lock period of just 15 days, for instance, usually has a lower rate than one that a consumer can lock in for 60 days. Most consumers opt for loans with longer locks because they need more than two weeks to close. But loan officers sometimes quote rates on their shortest-lock loans over the phone or in print just to sound cheap, knowing full well that many callers will never be able to obtain those loans. Companies can provide interest rates that include several discount "points" to make their rates look better, even though most of our customers either can't or don't want to put down several thousand extra dollars at closing for "points" to lower the interest rate.
In most of newspapers, once a week or more, they'll have a list of rates by lender. But frequently you'll find the rates they put in the paper were rates that were really never available. They kind of low ball their rate. When you come in, they'll tell you the market has moved and the rates are now higher. They get away with this because the rate they list in the Sunday paper is usually submitted on Thursday. You read the paper on Sunday, then call the lender on Monday...
Figure in the feesBorrowers often forget to ask about fees, and don't compare lenders based on their closing costs. That allows companies to pad their bottom lines by adding "processing fees" and other miscellaneous charges to the loan at closing. Lenders don't control certain fees for services provided by third parties, such as title searches and appraisals. But they can adjust their own fees.
Don't believe everything you readIt's a competitive business. Lenders understand this, so creative advertising is everywhere. Consumers need to watch out for advertising tricks, too. Companies have been plugging "no cost" refinance loans lately, but the tagline really means "no out-of-pocket costs at closing." Borrowers pay higher rates on these mortgages and lenders use the extra money to pay the costs themselves. There is no such thing as a no cost loan!
The annual percentage rate, or APR, found in advertisements can be misleading as well. Mortgage lenders don't always include all the fees they charge in the calculation that determines APR, so customers who use that figure to shop rather than an itemized breakdown of rates, points and fees may end up comparing apples to oranges.
Of course, it's difficult for borrowers to compare fees when they don't know what they are. By law, lenders and brokers don't have to give what's called the Good Faith Estimate document to customers until three days after they apply. But there's nothing preventing shoppers from asking for it before committing to anything. Reputable lenders will provide one. Please read my article- Beware of the Bad, Good Faith Estimate, so you know what to look for when you do get your estimate!
Banker, Broker, or Direct Lender. All are "Loan Officers", so who is best?When you're looking to get a mortgage loan, you may work with a loan officer, but where they work makes a difference! People often confuse the lender types even though all will glean the same results: a home loan. However, it is important to understand the difference between the three types of lenders so you know what to expect from them during the mortgage application process.
Currently the industry is seeing the biggest problems with loan officers exactly where most customers wouldn't expect. The big banks. Why? Most states have enacted strict guidelines for non-bank lender and brokers. These include criminal background checks, mandatory education, stricter underwriting guidelines, mandatory disclosures, and more. BUT, state banking laws can not trump federal banking law. Federally Chartered Banks (all the big bank names you know) only have to follow less restrictive federal law. Basically they get to do whatever they want! Thanks Washington!
Currently, bank employees are NOT required to get background checks, have any up-front or ongoing education, and do not have pass a test to get a license.
Know the scoreAfter customers apply and have their credit scores pulled by their lenders, they should ask for those too. Companies have no obligation to share them, but those scores often dictate whether borrowers get loans and how much they have to pay for them. Customers who obtain their scores can get rate quotes tailored to them, rather than receive quotes that may apply only to borrowers with better or worse credit.
If I would say at the application stage to my lender, "Hey, when you pull my credit report, will you tell me what my scores are?" and he said no, I think I would go somewhere else. Why not go with somebody who is willing to tell you? You need to know.
Last-minute maneuversCloser to closing, borrowers also have to watch out for counteroffers from their current mortgage lender. When borrowers refinance their loans, their new lenders request "payoff letters" from their old lenders. These letters spell out exactly how much the old lenders are entitled to at closing and are often the only indication that a borrower is refinancing.
To avoid losing customers, lenders who are about to get the boot sometimes swoop in and offer to lower their borrowers' rates or refinance them into new loans themselves. While the offer may sound competitive, they almost always are aren't so.
Another source of confusion is the assumption that your current lender can do a loan for lower fees. The vast majority of the time this is NOT true. Loans are 'packaged' to be resold. The vast majority of lenders resell their loans and therefore any changes to the original loan require a complete new package, new closing, new note, new closing costs, new appraisal, new everything, etc. Plus, they usually come very late in the process. Borrowers who accept them can end up having to forfeit application fees or other monies to the lenders they planned on using.
By learning about all of these miscellaneous traps, consumers can take advantage of today's lower rates and refinance without worrying about being taken for a ride. After all, experts say, preparation is the best defense against shady lending practices.
It comes back to education. If I've called five respectable lenders - I know about what rates and costs are. It's going to be pretty easy for me to know whether one lender is pulling the wool over my eyes.
How do you know if they are are respectable lender? Read "How to Shop for a Lender" for some good clues.
One final word of advice. Don't assume your current lender can give you a great deal because "they already know you." It almost always is a worse deal because they know you DON'T SHOP!
Need financing in MN, WI, or FL... We can help. Apply Here
FICO CREDIT SCORE GRADE AND FORECLOSURE RISK BY THE NUMBERS
Just something to think about...
GRADEAA = over 760A = 720 - 759B = 680 - 719C = 640 - 679D = 600 - 639E = 560 - 599F = 520 - 559AVERAGES2% of the population have scores under 4995% of the population has a 500 - 549 score8% of the population has a 550 - 599 score12% of the population has a 600 - 649 score15% of the population has a 650 to 699 score18% of the population has a 700 - 749 score27% of the population has a 750 - 750 - 799 score13% of the population has over 800 scoresFORECLOSURE RISK1 in 588 for Standard Conforming Fixed1 in 189 for Standard Conforming ARM1 in 147 for FHA Fixed1 in 101 for FHA ARM1 in 244 for VA1 in 77 for Subprime Fixed1 in 31 for Subprime ARM
Thinking of refinancing to today's great rates? BEWARE before you commit!
Saint Paul, Minnesota: Real 30-year fixed interest rates without discount points have been hovering right about 5% lately for those with high credit scores and plenty of equity. Lender phones are ringing off the hook with mortgage refinance applications at their highest level in more than 5-years!
While this sounds great, applications don't necessarily equal loan closings. A monstrous black cloud is about to burst on many unsuspecting applicants.
Two major issues are crushing refinance dreams as after application, many borrowers are finding out they do not have the equity position or credit to actually get a great deal closed.
A prime example is a customer of mine who bought a new home in October 2006. At the time, he put 25% down from the sale of his previous home. Today, I would be able to lower his interest rate about 1.25%. This would save him approximately $202 per month. Payback for closing costs is under two years, and he plans on living in the home a long time. Therefore this customer would appear ripe for a refinance.
Problem one? His property value has dropped to a level where his NEW loan would have a loan-to-value of 90% (a loss of 15% in value).
I now have to add mortgage insurance to his loan, MAKING HIS NEW GREAT RATE REFINANCE PAYMENT GO UP. Dead deal.
Problem two? Credit score requirements. Another recent customer has a first and second loan he wants to refinance into one new loan at today's great rates. He has heard all the rate news and is ready to take advantage, as he THINKS he could lower his rate 1.25%.
In years past, if you qualified for a conforming loan, everyone got the same conforming rate. It didn't matter if your score was a 620, or an 800. Today, you may get a conforming loan, but rates vary greatly depending on your personal situation.
In my example case, because we are paying off a second mortgage, this is considered a higher risk "cash out" transaction. His middle credit score was just 659. Therefore, while I could do the loan, his rate would have been 5.875%, down just 1/4%. Dead deal.
Bad lender problems too. To further complicate matters, and to potentially throw more egg on the mortgage industry face, inexperienced and bad lenders once again are promising the world to customers without doing a proper analysis of the customers situation.
Many of these lenders demand $300 - $500 non-refundable application fees, then send an appraiser to the customers home. The appraisers are told to collect their fee "at the door".
Two weeks later, the customer is told one of the two examples above, and that their great deal isn't so great after all.
DON'T LET THIS BE YOU. Make sure you are working with a true professional Loan Officer and Mortgage Company. Make sure you ask about credit scores and talk about estimated property values and how they may effect your great deal.
DO NOT EVER PAY APPLICATIONS FEES, and DON'T believe everything you hear, especially from a telemarketer. There are plenty of sharks still left in the mortgage sea.
With a little customer knowledge, you may be able to take advantage of today's rates, or save yourself unnecessary application fees and appraisal costs.
© 2009 Metzler Group.
Should you be buying a home, modifying your existing loan, refinancing, or running away?
Saint Paul, MN: These are certainly trying times, and 70% of homeowners have some sort of financing on their home. The economy is hurting, and fear of job loss is on many minds. But what you should be doing in today's market isn't always clear.
The economy is hurting largely because of the initial wave of foreclosures and high gas prices of earlier in 2008. This has spilling over into all aspects of American lives, but is it really as bad as the constant beat of the media drum has one to believe?
Unemployment nationwide is averaging in the 6% range. This is significantly below the highs of years past. retailer are reporting bad Christmas numbers, down some 6-8%. Foreclosures are still at historic high levels. These reports sound bad, but sit back and take a look at your own individual lives to examine if it really is bad for you and what you should be doing.
For example, while possible job loss is on a lot of minds, examine your own ability to market yourself? No job is guaranteed. If you did lose your job, how quickly can you replace it with a similar income, even if in a different field.
I am in the mortgage business, which clearly is suffering. I don't worry about my home or income, because I know that if needed, I would take two or three jobs (even menial jobs) to always make sure my family has the three most important items: Shelter, food, and clothing. I know I can cut off cable TV, sell cars, cut expenses, and go into survival mode and that I will always be able to provide the basics.
If unemployment is averaging 6%, this means 94% of people are working. If foreclosures are averaging 10% of homes, this means 90% of people are OK. Turn off the TV, stop reading the paper. If you didn't hear and read all the "bad news", how would YOU personally view your situation?
BUYING A HOME: We all need a place to live. Home prices are extremely attractive, with great deals to be found everywhere. Mortgage rates are near historic lows. If you have OK or better credit, can come up with a small down payment, plan on staying in the home for at least four years, you are almost foolish to not buy something TODAY.
Many people bought homes they shouldn't have and took risky loans to do so. Simply because a lender said yes, doesn't mean you should have. Even more people who originally bought right used their homes as ATM machines, with a constant "cash out" refinance to pay credit cards and live lifestyles they couldn't afford. I just spoke with a customer who bought this home 15-years ago for $85,000 who is losing it to foreclosure owing $300,000.
MODIFYING YOUR EXISTING LOAN: As little as two years ago, getting a bank to modify your loan was rare, and required you to be seriously behind in payments. Today, banks are very willing to help keep you in your home by modifying your payments. Workouts vary greatly depending on many variables, but the best ones we see lower your rate to around 3% for 5-years. Then the rates start adjusting back to where they originally were.
Unfortunately, we are seeing two problems emerge with modification. The first, is many people who got loan modifications fairly quickly fall behind again. While no one wants to lose a home, you must be realistic. Many times I speak with people where I calculate a payment based on ZERO percent, and they still tell me they can't make the payment. Modifying only delays the inevitable. Getting out completely and into a situation you can afford releases untold weight off your shoulders.
This brings me to another HUGE problem. Unlicensed loan modification companies have popped up everywhere offering to help you. These companies vary from legitimate low or no fee non-profits, to outright fraud. States across the country have files cease and desist orders, criminal charges, and lawsuits against man. We suggest that if a loan modification is right for you, that you consider working with your bank yourself, or contacting a city, county, or state non-profit homeownership center before paying any upfront or advanced fee to anyone, no matter what they promise.
REFINANCING YOUR EXISTING LOAN: Interest rates are currently hovering near historic lows and it is well worth thinking about getting something better if you qualify. The basic criteria is that if you can lower your rate and you'll be there long enough to at least break even on the closing costs, then it is a smart move.
Today unfortunately, we take many refinance applications, but don't actually close a lot of new loans because of a variety of reasons. The biggest is failing values. A customer of mine bought a home 3-years ago with 20% down. Today's appraised value would put him at 90% loan-to-value. While I can lower his rate 1%, I now have to give him mortgage insurance because he would be over 80%. The mortgage insurance cost completely wipes out the interest rate savings making his payment HIGHER than he is currently. (Wondering what your home is worth today, and what it will appraise for? get a FREE home valuation report)
New credit score requirement and tighter lending guidelines in general also combine to make many refinances harder to come by too.
So, should you be buying a home, modifying your existing loan, refinancing, or running away? It all depends, but I suggest we all stop living in fear, properly analyze our lives and personal situations, take our heads out of the sand, and make well educated decisions to put our lives in a better place.
hile our government is bailing out Wall Street, DPA and H.R. 6694 is looking out for Main Street.
The plan being negotiated by the Bush administration and Congressional leaders calls for the government to spend up to $700 billion to bailout Wall Street. Add in the $300 billion from the "Housing Bill" (H.R 3221) passed in July and this bailout is costing taxpayers $1 TRILLION!
The single largest part of this tragedy is that this $1 trillion is being spent bailout Wall Street, banks, institutional investors and foreign investors!
And while all this is going on in Washington, D.C., who's looking out for the American Taxpayer? Who's focusing on working class Americans?
The growing list of sponsors for H.R. 6694 are! As you know HUD has tried to paint a picture of DPA as part of the problem, and while yes, there have been a few issues, it really has helped. More and more people are realizing that DPA and H.R. 6694 is not the problem, rather, a part of the solution. It is a $150 billion annual boon to our economy that does not require taxpayer subsidy!
Main Street America needs H.R. 6694 as part of the solution to help working class American families become homeowners! Why should these families who are neither rich nor reckless be denied homeownership when it will cost taxpayers nothing?
H.R. 6694 Provides Downpayment Assistance with these benefits: Zero tax dollars are used to fund downpayment assistance (DPA) programs Real estate purchases stimulate the economy and generate tax revenue DPA programs help thousands of families each month realize the dream of homeownership Homes purchased with DPA drive wealth creation
The time is now. Please act. Support H.R. 6694!
Contact your Senators and House Representative and tell them H.R. 6694 should be included as part of the Wall Street bailout plan! Send a Letter in Support of H.R. 6694 and DPA.
Visit http://capwiz.com/nehemia/issues/alert/?alertid=11709431
33 Wentworth Ave E Suite 290, St Paul, MN 55118
Phone: (651) 552-3681
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