mortgage - Blog - REO Pro Network2024-03-29T01:58:28Zhttps://www.reopronetwork.com/profiles/blogs/feed/tag/mortgage401k Solo Plans: Understand Mortgage Note Investmenthttps://www.reopronetwork.com/profiles/blogs/401k-solo-plans-understand-mortgage-note-investment2016-04-11T22:43:40.000Z2016-04-11T22:43:40.000ZDmitriy Fomichenkohttps://www.reopronetwork.com/members/DmitriyFomichenko<div><p><a href="http://www.sensefinancial.com/wp-content/uploads/2012/01/RealEstate-IRA.jpg"><img src="http://www.sensefinancial.com/wp-content/uploads/2012/01/RealEstate-IRA.jpg?width=178" width="178" class="align-center" alt="RealEstate-IRA.jpg?width=178" /></a>You attended a seminar on passive income generation with mortgage notes, learning how to enjoy high returns while sitting on your couch, and you are ready for your first purchase. But, hold on. Is this how you make your investment decisions? There is no doubt about the efficacy of mortgage notes, but you must understand them before buying your first note.</p><p>In this post, we’ll look at the basics of a mortgage note and the tax benefits of adding mortgage notes in <a href="http://www.sensefinancial.com/real-estate-investing-401k-self-directed-plan/" target="_blank">401k Solo retirement plans</a>.</p><p></p><p><strong>What is a mortgage note and how does it work?</strong></p><p>In simple words, mortgage note is a legal agreement, involving a lender and the borrower under which, the borrower agrees to repay the loan amount along with interest in a definite period. Every mortgage note must include the names of both the buyer and the lender, descriptions of the property, the term period of the loan, the interest rate, installment amount, any legal protections favoring the borrower in case of a default, and details of previous financing, if any. If this is your first purchase, try to include detailed descriptions of the legal terms of the loan and cover any loopholes in the process. Once a deal is struck, the borrower deposits monthly repayments along with the interest to your account. You can hire a service company to manage the note and send regular payments for a monthly fee of under $100.</p><p><strong>What are the different types of mortgage notes?</strong></p><ul><li>Fixed and adjustable mortgage rates: The most common types of mortgage notes are those with fixed and adjustable mortgage rates. As it sounds, a fixed mortgage rate comes with a fixed interest for the complete loan term, and the principal amount decreases after every single payment. On the contrary, adjustable mortgage notes have a varying rate of interest, which tends to be lower initially, and then changes in accordance with the economy.</li><li>FHA and VA loans: These are loans guaranteed by the government and are available through federally approved banking institutions. The credit requirements and down payment terms are strict in comparison with private lenders, although there is a guaranteed repayment, making them an attractive investment option.</li></ul><p><strong>Why invest in mortgage note through 401k Solo plans?</strong></p><p>Self directed Solo 401k retirement plans are retirement solutions for small business owners and self-employed individuals, offering privileged features such as self-directed investing, checkbook control, and participant loans. According to the current IRS guidelines, a Solo 401k plan holder can invest in a wide variety of investment assets including mortgage notes, tax liens, real estate, and other untraditional investments.</p><p>What gives Solo 401k an edge is the tax-deferred growth. You can purchase mortgage notes under the name of the plan, and redirect your repayments into the account, where they enjoy tax-deferred growth until distribution. In case of Roth Solo 401k, the taxes are paid upfront and there are no taxes upon distribution, offering completely tax-free growth.</p></div>RESPA & TILA Changes Effective August 1st, 2015!https://www.reopronetwork.com/profiles/blogs/respa-tila-changes-effective-august-1st-20152015-06-22T19:00:00.000Z2015-06-22T19:00:00.000ZDanish Maqboolhttps://www.reopronetwork.com/members/DanishMaqbool<div><p><span><a href="{{#staticFileLink}}4359196453,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359196453,original{{/staticFileLink}}" width="534" class="align-center" alt="4359196453?profile=original" /></a></span></p><p><span>Another milestone reached by the mortgage industry reform: the end of the disclosure forms confusion! Provided to those applying for a mortgage, these forms were originally created based on two separate federal statutes: Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). The duplicate information as well as erratic language of these two separate documents, lead to an immense amount of confusion. Apart from those two documents, there were also two sets of disclosures: one provided when applying for a mortgage, and the other provided at the closing or just prior to closing on the loan. The consumers weren’t the only ones confused -even the lenders had a difficult time completing the forms. Basically, if the lenders weren’t even able to understand the verbiage, how could they possibly explain the documents to the consumers? </span></p><h5><span class="font-size-3">[Update: The Consumer Financial Protection Bureau announced a proposal to delay the effective date of the TILA-RESPA Integrated Disclosure rule until Oct. 1.<a href="http://www.housingwire.com/articles/34226-cfpb-moves-trid-effective-date-to-oct-1" target="_blank">Click here to read more</a>.]</span></h5><p></p><p><span>The resolve (hopefully) . . two new, straight-forward disclosure forms. This change will apply to all consumer mortgage applications received on or after August 1, 2015. The change is currently being referred to as “TRID,” for TILA-RESPA Integrated Disclosure.</span></p><h4>The changes . . In a Nutshell</h4><p>♦ With TILA, lenders use a uniform system for disclosures, including the same credit terminology.</p><p>♦ The Real Estate Settlement Procedures Act (RESPA) applies to any federally related mortgage loan, generally including any loan secured by a first or subordinate lien on family residential property (1-4 units).</p><p>♦ CFPB was responsible for integrating the existing disclosure requirements with the new amended requirements by combining the RESPA and TILA disclosures.</p><p>♦ The integrated mortgage disclosures use language that is designed to help consumers better understand the mortgage loan closing transaction.</p><p>♦ The new “Loan Estimate” form integrates and replaces the existing RESPA Good Faith Estimate (GFE) and the initial Truth in Lending forms.</p><p>♦ The new “Closing Disclosure” form integrates and replaces the existing RESPA HUD-1 and the final Truth in Lending forms.</p><p>♦ The integrated disclosure rule does not apply to HELs, reverse mortgages, mobile homes and dwellings not attached to real property, or for those making 5 or less mortgage loans per year.</p><p>♦ The definition of an “application” has been changed; now, an application consists of six pieces of information which are submitted.</p><p>♦ Consumers can’t be charged for fees until after they’ve been given the Loan Estimate form and consumers have agreed to proceed with the transaction.</p><p>♦ The Loan Estimate is provided to the consumer within 3 business days after submitting a mortgage loan application.</p><p>♦ There are only six legitimate reasons for revisions to a Loan Estimate form.</p><p>♦ The Closing Disclosure form integrates and replaces the existing RESPA HUD-1 and the final Truth in Lending disclosure forms.</p><p>♦ A Closing Disclosure is provided to the consumer so that they have a 3 business day waiting period before closing on the mortgage loan.</p><p>♦ There is now a three business day requirement once the consumer has received the Closing Disclosure, representing a waiting period for the consumer to review the disclosure.</p><p>♦ The lender now has all the liability for preparation and delivery of the Closing Disclosure form, even if they allow the escrow company to do it.</p><p>♦ The new Integrated Disclosures must be provided by a lender or mortgage broker that receives an applicationfrom a consumer for a closed-end credit transaction secured by real property on or after August 1, 2015.</p><p>♦ For a Loan Estimate, a “business day” is a day on which the lender’s offices are open to the public for carrying out business functions.</p><p>♦ For a Closing Disclosure, a “business day” includes all calendar days except Sundays and legal holidays.</p><p>♦ The Loan Estimate must be delivered or placed in the mail no later than the 3rd business day from receipt of the mortgage loan application.</p><p>♦ The Closing Disclosure must be placed in the mail no later than the 7<span>th</span>business day before consummation of the loan.</p><p>♦ The “Your Home Loan Toolkit: A Step-by-Step Guide” replaces the HUD Settlement Cost Booklet.</p><hr /><p>Key Points derived from <a href="http://www.theceshop.com/" target="_blank">The CE Shop</a> “<a href="http://www.theceshop.com/online-education/texas/real-estate/broker-and-sales-license/mce/course/respa-tila-changes-are-you-ready--2809-12830.html" target="_blank">RESPA/TILA Changes: Are you Ready?</a>” course. Right now the course is completely free when you use the promotional code (respafree) at check out. No credit card info is required.</p><h6>THIS IS NOT AN ADVERTISEMENT AND FSI-VAS WAS NOT PAID FOR THIS POST. WE SIMPLY JUST WANTED TO SHARE THIS AWESOME OPPORTUNITY WITH ALL OF YOU. DON’T FORGET TO FOLLOW US ACROSS ALL OF THE SOCIAL MEDIA PLATFORMS AS WELL AS SUBSCRIBE TO OUR MONTHLY NEWSLETTER!</h6><p><span>-Team FSI-VAS</span></p></div>Who is a REO agent?https://www.reopronetwork.com/profiles/blogs/who-is-a-reo-agent2014-07-07T19:59:18.000Z2014-07-07T19:59:18.000ZPam Maglionehttps://www.reopronetwork.com/members/PamMaglione<div><div style="text-align:center;"><a href="{{#staticFileLink}}4359189648,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359189648,original{{/staticFileLink}}" width="600" class="align-center" alt="4359189648?profile=original" /></a></div><div>The real estate market is a very volatile place to conduct your business – and for many of us, it’s an absolute necessity. After all, you need somewhere to live, right? This seems to be the problem for a lot of people, though. Because they feel they “need” a real estate agent, they are less likely to actually take into consideration what is being said, at least fully. One of the “new” breeds of estate agent that has arrived in recent years is an REO Agent.</div><div>Various PR issues and a lack of understanding about the world of REOs leaves a lot of people with the opinion that they are only out for themselves – especially REO agents. However, when you can actually see what they are trying to do on the market for you – beyond the sales talk – then it’s far easier to take an REO agent at face value.</div><div>So what does an REO Agent actually assist you with?</div><div>They are, undoubtedly, one of the most important cogs in a deal which involves an Bank Owned property. They regularly get the best deals, and if an investor is looking to pick up a property for up to a fifth off the asking price they need to be prepared to do a little dealing and this will, at one stage, most likely involve an REO Agent.</div><div>While it’s easy to paint an REO Agent as somebody who benefits from the suffering of others, the work that they put in is simply incredible. For example, your traditional real estate agent will be helping sellers keep a home in good shape and offering advice to help sell it as fast as possible, and in return can get anything from 4-6% commission for giving advice, being there to assist and putting you in contact with the right people.</div><div>An REO Agent on the other hand will walk into a dilapidated and vacated home with squatting pets and dangerous appliances and get the sleeves rolled up, cover all of the repair and maintenance costs themselves for up to 90 days after the sale, and then turn the house around to make a sale in the end. They may only walk away with about 1.5% commission, by the way.</div><div>For all the talk of REO Agent and real estate agents doing dirty deals, teaming up or even just downright ignoring offers along the way for their gain and benefit, the majority of REO Agents get into this line of work because the “traditional” form of real estate agency has not worked out for them or they have been forced out of the market for a variety of reasons.</div><div>As long as you get the right Home Inspection team in and the right staff to help out with the process, working with an REO Agent can be much easier and if you are willing to tough out the bad days together you can really make a significant change around the household and get the price that you are really looking for. They can be hard working and they come with a bad name, but with a bit of faith and an understanding that they are not the same as your normal real estate agents, you can go a long way together.</div><div><a href="http://www.pamsvas.com/">www.pamsvas.com</a></div></div>WHAT IS REAL ESTATE ZONING?https://www.reopronetwork.com/profiles/blogs/what-is-real-estate-zoning2014-06-27T16:00:09.000Z2014-06-27T16:00:09.000ZPam Maglionehttps://www.reopronetwork.com/members/PamMaglione<div><div style="text-align:center;"><a href="{{#staticFileLink}}4359189170,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359189170,original{{/staticFileLink}}" width="424" class="align-center" alt="4359189170?profile=original" /></a></div><div>Zoning according to Investopedia refers to the municipal laws or local government laws which dictate the use of real properties in some areas. Zoning laws therefore tend to limit the commercial uses of the land area in order to prevent manufacturing business and other kinds of businesses which could begin in residential neighborhoods. But it is vital to note that these laws may be modified to allow for construction of some properties which allow for economic advancement.</div><div>Zoning therefore plans out the use of a land through a system of allocation of certain areas and includes restrictions within the different areas. Some of these restrictions may include the buildings height, the density of the area as well as the types of businesses that will be seen in these areas.</div><div style="text-align:center;"><a href="{{#staticFileLink}}4359189184,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359189184,original{{/staticFileLink}}" width="500" class="align-center" alt="4359189184?profile=original" /></a></div><div><div>A good instance is that of the zoning laws which restricts parks, businesses and homes. The zoning area will therefore include the commercial, industrial, agricultural and school zones. Generally, zoning tends to be confusing to people as it is used to designate areas irrespective of the size of the state. The correct use of zoning allows for the development of cities and countries and impacts the lives of future property buyers, sellers as well as investors. This is due to the fact that zoning will always tell on the value of a property irrespective of it being residential or commercial. The major types of zoning today are basically:</div><div><b>Commercial Zoning</b> – Commercial property basically refers to properties which are not residential and they range widely from small offices to mega shopping malls and night clubs. As a result of this, they are zoned commercially.</div><div><b>Residential Zoning</b> – is basically the opposite zoning to commercial as it is done for individual family and can be manifested in zoning of single family homes, condos, duplexes and various other forms of apartments.</div><div><b>Industrial zoning</b> – This zoning is basically for the operations of the manufacturing sector and for warehouses.</div><div><b>Agricultural zoning</b> – This is usually mentioned in the same breath as the rural zoning as they basically deal with zoning regulations for ranches as well as farms.</div><div style="text-align:center;"><a href="{{#staticFileLink}}4359189149,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359189149,original{{/staticFileLink}}" width="450" class="align-center" height="310" alt="4359189149?profile=original" /></a></div><div><div>Another Zoning type includes Historic zoning, which is used for historic monuments and buildings such as museums. Zoning is however not a totally definite situation in terms of rigidity as the option of using a variance gives the option of an exception. The process is long to acquire a variance, depending on the local government, but can redirect the future of a property in the long term.</div><div>Something else to note about types of zoning is that they also have sub-categories and we can take the example of the residential zoning which has the sub-categories of sleeping units which are designed for transient occupants’ e.g. motels and those that are for residents who dwell more permanently such as apartment houses.</div><br /><div>If you are buying real estate, be sure to determine the type of zoning and restrictions placed on the property.</div><div><a href="http://www.pamsvas.com/">www.pamsvas.com</a></div><p></p></div></div></div>What Is PMI (Property Mortgage Insurance) and What Kind of Buyers Need To Have It?https://www.reopronetwork.com/profiles/blogs/what-is-pmi-property-mortgage-insurance-and-what-kind-of-buyers2014-06-13T17:21:29.000Z2014-06-13T17:21:29.000ZPam Maglionehttps://www.reopronetwork.com/members/PamMaglione<div><div style="text-align:center;"><a href="{{#staticFileLink}}4359188634,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359188634,original{{/staticFileLink}}" width="400" class="align-center" alt="4359188634?profile=original" /></a></div><div>Are you not sure how much of a down payment to put down on a home? You would need to consider that the figure will need to be at least 20 percent, if you want to avoid paying any Property Mortgage Insurance (PMI). This insurance covers all home buyers that have not deposited at least 20% as a down-payment on the value of their new home in the event you default on your monthly mortgage payments.</div><div>The lenders and banks will introduce this insurance as a way of protecting its own assets should the home buyer fall into financial difficulties and not be able to meet payments due. The lender can dip into the insurance funds and use that money to cover any short fall. In the United States it is possible to get private mortgage insurance or one from the government. The government scheme is handled by the Federal Housing Administration (FHA) and a number of companies are available for home buyers to use for underwriting private mortgage insurance.</div><div style="text-align:center;"><a href="{{#staticFileLink}}4359188584,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359188584,original{{/staticFileLink}}" width="350" class="align-center" height="197" alt="4359188584?profile=original" /></a></div><div><div><i>How Much Premium Will I Have To Pay?</i></div><div>This depends on the amount of deposit or down-payment you have managed to raise on your new home. The PMI can vary from as little as 0.3 percent of the total value of the property per year, to as much as 1.15 percent. So, if you pay the smaller amount (0.3%) on a home valued at $200,000 you would look to be paying around $600 premium per year. The upper limit of 1.15% would see homeowners forking out $2,300 per year in PMI fees.</div><div>But this does not have to be a payment you would have to make throughout the lifetime of your mortgage; when you reach the stage where the loan-to-value ratio hits 80 percent, tell your bank or lender that it is time to stop PMI premiums as you won't need them at this point.</div><div style="text-align:center;"><a href="{{#staticFileLink}}4359188651,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359188651,original{{/staticFileLink}}" width="390" class="align-center" height="185" alt="4359188651?profile=original" /></a></div><div><div class="post-body entry-content"><div>In fact, its law now that lenders should be telling you when you are likely to reach that 80 percent ratio and federal law insists the premiums must stop when the figure reaches 78 percent. The premiums will automatically be cancelled at this stage and you should not have to chase your lender for this to happen.</div><div>However, there are some Federal Hosing Administration loans that insist mortgage insurance premiums be paid for the life of the mortgage.</div><br /><div>If you would like more information on Property Mortgage Insurance, be sure to ask your Lender directly.</div><div><a href="http://www.pamsvas.com/">www.Pamsvas.com</a></div></div><div class="post-footer"></div></div></div></div>Alternative Mortgage Program - Better Than Rent-To-Ownhttps://www.reopronetwork.com/profiles/blogs/alternative-mortgage-program-better-than-rent-to-own2014-06-12T16:08:06.000Z2014-06-12T16:08:06.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="text-align:center;">Looking for a Rent-to-Own, Lease-Option or Land Contract in Wisconsin? We may have the perfect option for you! It's called the <strong>Alternative Mortgage Program</strong>. Please read the details below and visit the link for further information.</p><p align="center" style="text-align:center;"><a href="http://blog.rockrealtywi.com/wp-content/uploads/2013/09/Alternative-Mortgage-Program.jpg"><img class="alignnone size-full wp-image-5022" src="http://blog.rockrealtywi.com/wp-content/uploads/2013/09/Alternative-Mortgage-Program.jpg" alt="Alternative Mortgage Program" width="688" height="871" /></a></p><p style="text-align:center;">As you can see, this is <em>much different</em> than any other Wisconsin <strong>Rent to Own</strong> (RTO) or <strong>Land Contract</strong> program out there that we have seen. This could be the perfect conduit for you to get the home you want now, and be able to then purchase the house down the road when you can qualify for a traditional mortgage. If you are interested in hearing more about the program from the lender, please visit the link below and submit your contact information via the short form.</p><p style="text-align:center;"><a href="http://blog.rockrealtywi.com/rent-to-own"><img class="alignnone size-medium wp-image-5026" src="http://blog.rockrealtywi.com/wp-content/uploads/2014/06/Getting_From_Rent_To_Own1-300x182.jpg" alt="Rent to Own" width="300" height="182" /></a></p><p style="text-align:center;"><a title="Rent to Own in Wisconsin" href="http://blog.rockrealtywi.com/rent-to-own">Blog.RockRealtyWI.com/Rent-To-Own</a></p><p style="text-align:center;">Feel free to also visit our Rock Realty Wisconsin home listings websites below to help with your home search! You can search through all available MLS listings in your area.</p><p style="text-align:center;"><strong><a title="Janesville Wisconsin Homes for Sale" href="http://www.JanesvilleRealtor.com">Janesville Area Homes for Sale</a><br /></strong>(<a title="Janesville Homes for Sale" href="http://www.janesvillerealtor.com/" target="_blank">http://www.JanesvilleRealtor.com</a>)</p><p style="text-align:center;"><strong><a title="Madison Wisconsin Homes for Sale" href="http://www.MadisonWIForSale.com">Madison Area Homes for Sale</a><br /></strong>(<a title="Madison, WI Homes for Sale" href="http://www.madisonwiforsale.com/" target="_blank">http://www.MadisonWIForSale.com</a>)</p></div>The latest Real Estate Buyers: Who Are They and What Do They Look Like?https://www.reopronetwork.com/profiles/blogs/the-latest-real-estate-buyers-who-are-they-and-what-do-they-look2014-06-06T15:28:34.000Z2014-06-06T15:28:34.000ZPam Maglionehttps://www.reopronetwork.com/members/PamMaglione<div><div style="text-align:center;"><a href="{{#staticFileLink}}4359187979,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359187979,original{{/staticFileLink}}" width="291" class="align-center" height="244" alt="4359187979?profile=original" /></a></div><div>I'm sure you may have wondered what the average home buyer in the U.S. looks like today, or not so much what they look like but how old they are, where are they coming from, what sort of job or income are they earning and which region of the United States are they coming from.</div><div>It is all interesting information - to some - and in particular those in the business of selling real estate, prospectors, sellers and investors alike. So who are they and what is the market for real estate buying actually like in the flesh?</div><div>In the previous four years to 2013 in America the average age of the first-time buyer has been about 38 and an annual income just above $80,000. These are averages of course but in those four years the large majority of first time buyers have managed to put down a 25 percent down on the home they have bought.</div><div><div>So generally speaking, your average American has got a nice job and earns around $80,000 and has managed to save a large deposit to allow a lender to approve a mortgage for their new home, condo or apartment. It is possible to buy a nice condo in Florida for $100,000, so if you can afford the typical 25 percent deposit, your mortgage would be for $75,000. This is the average American today, or at least in the last four year period from 2009 to 2013 but you can rest assured that these typical average examples would not have been the case in the four year period between 2005 and 2009 nor the four-year stretch before that.</div><div style="text-align:center;"><a href="{{#staticFileLink}}4359187994,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359187994,original{{/staticFileLink}}" width="514" class="align-center" height="261" alt="4359187994?profile=original" /></a></div><div>The housing market in America took a hefty downturn in 2007 and the car has only just stopped rolling down the interstate bank and coming to a rest but as America recovers. What about foreign investment in real estate properties? Just as Canada has enjoyed recently in affluent cities like West Vancouver, real estate buyers are flocking in to American cities from as far away as China and Vietnam. The Chinese have plenty of dollars since its economy began a boom from the early 21<sup>st</sup>century.</div><p></p><div>There are also many second home buyers looking to grab property and you will find the average age of these people is 47 and they will earn on average about $90,000. The majority of home buyers are from the south (41 percent) and the affluent north-east sees the lowest percentage (13%) of first time buyers.</div><div>You may be close to these averages, but you may not be in a more affordable home buying area. Whether you are buying your first or second home, be sure to contact a real estate professional for assistance.</div><div><a href="http://www.pamsvas.com/" target="_blank">www.pamsvas.com</a></div></div></div>How is a Real Estate Mortgage Amortized and monthly payment determined?https://www.reopronetwork.com/profiles/blogs/how-is-a-real-estate-mortgage-amortized-and-monthly-payment2014-04-11T13:22:58.000Z2014-04-11T13:22:58.000ZPam Maglionehttps://www.reopronetwork.com/members/PamMaglione<div><p style="text-align:center;"><a href="{{#staticFileLink}}4359185135,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359185135,original{{/staticFileLink}}" width="443" class="align-center" height="276" alt="4359185135?profile=original" /></a></p><p>Buying a new home is quite an undertaking. The stress of buying a mortgage and planning on how you will pay back your lender can be a daunting process. It seems that a mortgage term can take a lifetime. Some mortgage periods last 20 years, most will go on for 25 years but there are 30-year terms available if you want to stretch out your payments over a longer period.</p><p> </p><p>Before you can even start to do any calculations – and we will at a later stage – you will need to get some figures written down first. The significant figure, of course, is the price of the home you are buying. Next, you will need to write down a figure representing any down payment (or deposit); this is assuming there is a deposit, in this example we will work without a deposit sum.</p><p> </p><p>So, how exactly is a real estate mortgage payment amortized? We have the price of your home – let us say you are buying a small condo in South Carolina valued at $100,000. You will have made the offer to the seller (via the real estate agent of course) and then you will need to establish a lender that is prepared to loan you the sum of $100,000 (remember you are not putting down any deposit).</p><p></p><p style="text-align:center;"><a href="{{#staticFileLink}}4359185354,original{{/staticFileLink}}"><img src="{{#staticFileLink}}4359185354,original{{/staticFileLink}}" width="357" class="align-center" height="448" alt="4359185354?profile=original" /></a></p><p> The lender will offer you an interest rate by which you must pay on top of your $100,000. If you decide to reduce the amount of monthly payments you would normally go for a 30-year term, rather than a shorter period. At 30 years with a fixed rate of 4.5% throughout the life of the mortgage you would have to pay $506.69 a month.</p><p> </p><p>Now, there are 360 months covering the life of your mortgage, so that's 360 x $506.69, which means over the life of your mortgage loan you will pay a total of $182,408. The first thought you will have is that you are paying some $82,400 more than the actual selling price of your South Carolina condo.</p><p> </p><p>Well, it's the way a mortgage payment is amortized, so if you want to drag out the loan over 30 years then any fixed rate is actually a good bargain, despite the US interest rates at an all-time low in the present climate. These low interest rate figures may well go up at some point in the future but it would be unlikely that we will see the historic highs before the housing market collapse pre-2007.</p><p></p><p>If you are a Real Estate Agent and need our Virtual Assistants, <a href="http://pamsvas.com/Contact.html" target="_blank">CONTACT US</a></p></div>FHA Back to Work Programhttps://www.reopronetwork.com/profiles/blogs/fha-back-to-work-program2014-02-11T19:37:16.000Z2014-02-11T19:37:16.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p><span>Exciting News</span>! FHA Is Allowing People that Suffered through Recent Economic Hardships to Apply for a Home Loan with the <a title="FHA Back to Work Program" href="http://www.madisonmortgageguys.com/blog/content/fha-back-to-work/">FHA Back to Work Program</a>.</p><div class="mceTemp"><dl class="wp-caption alignright" id="attachment_4409"><dt class="wp-caption-dt"><a href="http://blog.rockrealtywi.com/fha-back-to-work-program/" title="FHA Back to Work Program"><img class="size-medium wp-image-4409" alt="photo credit: Daquella manera via photopin cc" src="http://blog.rockrealtywi.com/wp-content/uploads/2014/02/Back-To-Work-225x300.jpg" width="225" height="300" /></a></dt><dd class="wp-caption-dd">photo credit: <a href="http://www.flickr.com/photos/daquellamanera/120118199/">Daquella manera</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by/2.0/">cc</a></dd></dl></div><p>In the not so distant past people had to wait 3 years or more after suffering through a financial hardship. Bankruptcy, foreclosures and other major financial disasters would sideline people for a number of years before they could buy a house again. However, all that has changed with the FHA Back to Work Program.</p><p><strong>Previous Guidelines</strong></p><p>For years the FHA program has helped people finance the purchase of a home with a modest 3.25% down payment. In general, the FHA rules for credit and employment history were more forgiving than conventional loan guidelines. However, there were strict rules about waiting a significant length of time after filing bankruptcy, losing a home to foreclosure, getting a loan modification or a deed-in-lieu.</p><p><strong>New Guidelines</strong></p><p>The Back to Work program waives waiting periods based on certain hardship situations. People that have suffered through the following types of problems are no longer forced to wait multiple years to apply for an FHA loan</p><p>* Bankruptcy (either Chapter 7 or Chapter 13)</p><p>* Short sale of previous home</p><p>* Foreclosure</p><p>* Modification of previous mortgage</p><p>* Sale of a home due to pre-foreclosure status</p><p>* Deed-in-lieu</p><p>Due to the recession of the past few years the government has given FHA the ability to relax their rules in order to help people qualify for home loans. Now people will only have to wait 12 months.</p><p><strong>Meeting the New Qualifications</strong></p><p>For borrowers that have faced a hardship like the ones described above they will need to meet a few qualifications.</p><p>First the borrower will need to prove that their current financial condition is recovered from the impact of the financial hardship.</p><p>Second, the borrower will need to provide proof that their income declined by a minimum of 20% for 6 months or longer. This can usually be shown by presenting federal tax returns and the supporting W-2 forms.</p><p>Finally the borrower will have to agree to complete a counseling session aimed at educating home buyers.</p><p>In addition to these items the borrower must re-establish their credit. This does not mean that the scores must be 700+. However, once the hardship has ended the borrower will need to have good payment history on all credit accounts in order to prove that they are able and willing to make their monthly obligations.</p><p><strong>Types of Borrowers</strong></p><p>The Back to Work program can be used for people buying their first home as well as people buying their second, third, fourth, etc. home. It can also be used with the FHA 203(k) program for people that wish to renovate or modernize a home. Even people that are currently in a Chapter 13 plan could be approved for the FHA back to work program. The court will have to grant permission for the loan and the borrower will have to meet the other requirements.</p><p>The recent recession has hit a lot of people and left a lasting impact on them. The Back to Work program is aimed to help these people put the past behind them and return to the stability of owning a home.</p><p>Additional Mortgage Information: <a title="Mortgage Loan Information" href="http://blog.rockrealtywi.com/wisconsin-home-buyer-discounts/mortgage-information-loan-programs/">Mortgage Home Loans Financing</a></p></div>What Kind of Mortgage Fits Your Needs?https://www.reopronetwork.com/profiles/blogs/what-kind-of-mortgage-fits-your-needs2014-01-22T20:12:27.000Z2014-01-22T20:12:27.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p><span><strong><i><a href="http://blog.rockrealtywi.com/kind-mortgage-fits-needs/"><img class="alignright size-medium wp-image-700" alt="Low home loan rates" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/06/Mortgage-300x195.jpg" width="300" height="195" /></a><br /></i></strong></span></p><p><span><strong><i>What Kind of Mortgage Fits Your Needs?</i></strong></span></p><p>No matter the state of the economy, each year the number of new mortgages underwritten reaches millions of homeowners. Some are buying for the first time while others are downsizing or upsizing. When rates drop, like they did over the past 2 years, many people seize the opportunity to refinance their home loan. However, how do people decide on which mortgage to use for their specific need? An online survey conducted by HSH.com points to some of the factors that influence consumer decisions.</p><p><b>Most Important Factor</b></p><p>It should come as no shock that the most important factor is the interest rate. Regardless of the type of loan, the size of the loan or the customers home state, everybody is trying to get the best rate for their home loan. In the survey mentioned above over 45% stated that the rate was the top factor for choosing a loan.</p><p>Other items, such as the length of the term and the fees also ranked high in the survey, but none was as vital as the rate.</p><p><b>Deciding How Much to Use for Down Payment</b></p><p>The ability to make a down payment equal to 10%-20% of the home’s price will give the borrower a range of products to choose from. A large down payment and a solid credit score will usually allow a borrower to qualify for a conventional loan which has the best interest rates.</p><p>For borrowers that have a smaller down payment, their options will be limited to FHA, USDA or VA for qualifying veterans.</p><p><b>Choosing the Right Term</b></p><p>With rates at an all-time low many borrowers are actually paying more attention to the term of the mortgage loan as part of the decision process. While the traditional fixed rate of a 30 year loan remains quite dominant more and more people are looking at different adjustable rate products. Those borrowers that have refinanced in the past 2 years have often chosen to go down to a 15 or 10 year term in order to drastically cut down on their total interest pay back while also paying off the home sooner.</p><p><b>Brokers Still the Top Choice</b></p><p>When looking for the right mortgage loan a number of people still prefer to use the services of a mortgage broker over a local bank or credit union. In the survey mentioned earlier over 30% of respondents claimed that they sought the services of a broker rather than another type of lender. Since brokers typically have access to multiple lenders they can offer any type of mortgage loan and get the best rate too.</p><p>Obviously, none of these factors discussed the two biggest items facing a borrower; are they happy with the home and can they afford the mortgage payment? Beyond those two items, the guidelines mentioned above should help any new borrower pick a loan that is right for their situation.</p><p>Additional Mortgage Info:<br /><a title="Home Loan Options" href="http://blog.rockrealtywi.com/wisconsin-home-buyer-discounts/mortgage-information-loan-programs/">Home Mortgage Loans</a></p><p>Related Articles:</p><ol><li><a title="Things You Should Ask a Mortgage Broker" href="http://blog.rockrealtywi.com/mortgage-broker/">Things You Should Ask a Mortgage Broker</a> <small>Things You Should Ask a Mortgage Broker Since buying a...</small></li><li><a title="Thousands of homes Foreclosed; Can you afford a Risky Loan?" href="http://blog.rockrealtywi.com/thousands-homes-foreclosed-afford-risky-loan/">Thousands of homes Foreclosed; Can you afford a Risky Loan?</a> <small>Thousands of homes Foreclosed; Can you afford a Risky Loan?...</small></li><li><a title="What is better for you: The FHA mortgage or the Conforming mortgage?" href="http://blog.rockrealtywi.com/you-fha-mortgage-conforming-mortgage/">What is better for you: The FHA mortgage or the Conforming mortgage?</a> <small>What is better for you: The FHA mortgage or the...</small></li><li><a title="WHEDA Home Loan Mortgage Rates at Historic Low" href="http://blog.rockrealtywi.com/wheda-home-loan-mortgage-rates-historic/">WHEDA Home Loan Mortgage Rates at Historic Low</a> <small>I receive daily updates on current mortgage rates in the...</small></li><li><a title="No Money Down USDA Mortgage" href="http://blog.rockrealtywi.com/no-money-down-usda-mortgage/">No Money Down USDA Mortgage</a> <small>Understanding the No Money down USDA Mortgage Buying a home...</small></li></ol></div>Purchasing Investment Properties for your IRAhttps://www.reopronetwork.com/profiles/blogs/purchasing-investment-properties-for-your-ira2013-06-05T19:41:51.000Z2013-06-05T19:41:51.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="line-height:1.5;color:#000000;text-decoration:underline;">Purchasing Investment Property using an IRA (Part 2 of 4)</strong></span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">Using an IRA account to purchase real estate can be a great way to add to an existing retirement plan or simply diversify current holdings. Following the guidelines of the law for these types of investments can bring strong yields to the IRA owner.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="line-height:1.5;color:#000000;text-decoration:underline;">Different Ways to Use IRA with Real Estate</strong></span></div><div class="mceTemp" style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:12px;line-height:18px;"><dl class="wp-caption alignright" id="attachment_3557" style="width:310px;"><dt class="wp-caption-dt" style="color:#000000;font-weight:bold;line-height:1.5;"><a href="http://blog.rockrealtywi.com/?p=3531" style="color:#743399;line-height:1.5;" title="Purchasing Investment Properties for your IRA"><img alt="photo credit: j l t via photopin cc" class="size-medium wp-image-3557" height="200" src="http://blog.rockrealtywi.com/wp-content/uploads/2013/05/Rental-Property-300x200.jpg" style="border:0px none;color:#444444;line-height:1.5;margin:5px;max-width:640px;padding:0px;" width="300" /></a></dt><dd class="wp-caption-dd" style="color:#444444;font-size:11px;line-height:17px;margin:0px;padding:0px 4px 5px;">photo credit: <a href="http://www.flickr.com/photos/jlt/307913131/" style="color:#743399;line-height:1.5;">j l t</a> via <a href="http://photopin.com" style="color:#743399;line-height:1.5;">photopin</a> <a href="http://creativecommons.org/licenses/by-nc-sa/2.0/" style="color:#743399;line-height:1.5;">cc</a></dd></dl></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">There are actually several ways to use an IRA as an investment in real estate.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* Act as a bank – The money in the IRA account can be loaned out to individuals who offer up real estate as the primary collateral. In essence, the IRA account becomes a mortgage lender.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* Own property – Most people choose to use their IRA funds to outright purchase an investment property. The seller of a home enters into a contract with the IRA and the IRA becomes the owner of the property.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* Partner with others that own property – It is possible for an IRA to become a partner with investors such as other IRA’s, entities or individuals.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="line-height:1.5;color:#000000;text-decoration:underline;">Property Value Requirements</strong></span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">Most IRA companies will require that the property has a report of market value in order to be accepted as an investment. Furthermore, some companies may require that a new value report be presented each year. This is to ensure that the correct property taxes are being paid. The report can come in the form of an appraisal or a market analysis completed by a real estate agent.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="line-height:1.5;color:#000000;text-decoration:underline;">Basic Guidelines for IRA Real Estate Investment</strong></span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* All transactions must be arm’s length – This means that the owner of the IRA cannot buy any property from the IRA. Conversely, the IRA cannot purchase one of your existing properties.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* The owner of the IRA cannot use the real estate – This means that you cannot live in the home nor can you use it as a second home or vacation property.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* The IRA account only invests for the account – The owner of the IRA cannot receive any type of immediate benefit from the investments.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* No sweat equity allowed – Any repairs or improvements made to a property must be completed by a third party.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="line-height:1.5;color:#000000;text-decoration:underline;">How to Manage the Property</strong></span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">Once an IRA has bought real estate, the expenses for the property will need to be managed via the IRA account. The expenses can be controlled by a property manager or by the IRA owner. Once again, there are some rules to keep in mind.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* You are in control of decisions for the property – You have the say in which plumber to hire, who is allowed to rent the home and other similar decisions. However, you cannot do any physical work on the property.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><span style="line-height:1.5;">* No personal funds used for the property – Your personal funds cannot be used to pay property taxes, secure insurance or anything else related to the property. For this reason it is always wise to open up an IRA account with a nice cash buffer to handle expenses.</span></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><em style="border:none;line-height:1.5;">This is Part 2 of a 4 Part Series.</em></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Part 1:</strong><span style="line-height:1.5;"> </span><a href="http://blog.rockrealtywi.com/realtor-invest-ira/" title="How a real estate agent can help you invest in your IRA" style="color:#743399;line-height:1.5;">How a Realtor® can help you invest in your IRA</a></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Part 2:</strong><span style="line-height:1.5;"> </span><a href="http://blog.rockrealtywi.com/purchasing-investment-properties-ira/" title="Purchasing Investment Properties with your IRA" style="color:#743399;line-height:1.5;">Purchasing Investment Properties for your IRA</a></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Part 3:</strong><span style="line-height:1.5;"> </span><a href="http://blog.rockrealtywi.com/invest-in-real-estate-using-ira/" title="How to invest in real estate using an IRA" style="color:#743399;line-height:1.5;">How to invest in real estate using an IRA</a></div><div style="color:#444444;font-family:Georgia, 'Bitstream Charter', serif;font-size:16px;line-height:1.5;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Part 4:</strong><span style="line-height:1.5;"> </span><a href="http://blog.rockrealtywi.com/buying-investment-homes-ira-account/" title="Guide to buying homes with your IRA" style="color:#743399;line-height:1.5;">Step by Step Guide to Buying Homes with your IRA</a></div></div>Assuming an Existing FHA Mortgage Loanhttps://www.reopronetwork.com/profiles/blogs/assuming-an-existing-fha-mortgage-loan2013-01-10T21:15:24.000Z2013-01-10T21:15:24.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><h2 class="mceTemp" style="line-height:18px;"><strong>Assuming an Existing FHA Loan</strong></h2><p class="mceTemp">Most mortgages have a requirement that the loan must be paid in full when the property is sold. However, FHA offers a different option to the seller and buyer. It is possible for the buyer to take over the existing FHA mortgage from the current property owner. This is a very enticing offer for someone that has a mortgage with a great interest rate. Here are the guidelines for an assumable FHA mortgage.</p><p><br /><a href="http://blog.rockrealtywi.com/assuming-existing-fha-loan/" target="_blank"><img src="http://blog.rockrealtywi.com/wp-content/uploads/2012/10/Mortgage-Sign-300x300.jpg?width=300" width="300" class="align-right" alt="Mortgage-Sign-300x300.jpg?width=300" /></a> photo credit: <a href="http://www.flickr.com/photos/68751915@N05/6869769579/">401(K) 2012</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by-sa/2.0/">cc</a>[/caption]</p><p><strong>Review Existing Loan</strong></p><p>The first thing you should do as a potential buyer is review the existing loan documents. Any loan that originated prior to December 1 in 1986 is allowed to go through a “simple assumption” procedure. This means the buyer does not have to qualify for the FHA mortgage. For loans that were originated on after the December date, the buyer will have to qualify for the loan just like any new borrower.</p><p><strong>Negotiate a Price with the Seller</strong></p><p>Most sellers would like to receive a large part of the equity they paid in to the mortgage over the years since they originated the loan. The price you can negotiate is really dependent on your ability to deal and the seller’s motivation for getting rid of the home. One thing that must be clear; the buyout amount given from buyer to seller cannot be financed in to the existing FHA mortgage. This is money that needs to be paid either in cash or with a loan separate from the mortgage.</p><p>It may be possible to convince the seller to finance the buyout amount. This would mean that you have two loans to repay in order to purchase the home.</p><p><strong>Talk to a Mortgage Lender</strong></p><p>Since you will likely have to qualify for an FHA mortgage loan, it is advisable to talk to a lender experienced with FHA loans. The lender can review your credit file, determine your monthly income per FHA guidelines and find out if you qualify for the loan.</p><p><strong>Determine Current Loan Status</strong></p><p>You need to find out if the current property owner is up to date on their mortgage payments. If there are any late payments, those payments are transferred to the new buyer. This can be rectified by either paying the amount necessary to get current or requesting a modification of the loan.</p><p><strong>Inquire About Down Payment</strong></p><p>Since FHA asks for a down payment equal to 3.5% of the price, this rule will apply to someone assuming the loan. In this case, the 3.5% is based on the existing loan balance.</p><p>If you are approved for the loan, you may proceed with the closing process. You should ask the lender to contact a local title agency to research the title to ensure there are no liens on the property other than the FHA mortgage. Additional liens will have to be paid in order to transfer the deed in to your name as owner.</p><address>This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a lender directly to learn more about its mortgage products and your eligibility for such products.</address></div>VA Mortgage Program has Good News for Veterans and their Familieshttps://www.reopronetwork.com/profiles/blogs/va-mortgage-program-has-good-news-for-veterans-and-their-families2013-01-10T20:58:26.000Z2013-01-10T20:58:26.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p><strong>VA Mortgage Program Has Good News for Veterans and Their Families</strong></p><p><br /><a href="http://blog.rockrealtywi.com/mishap-camp-lejeune-turns-good-news-veterans-families/" target="_blank"><img src="http://blog.rockrealtywi.com/wp-content/uploads/2012/09/Veterans-Administration-VA-Mortgage-300x241.jpg?width=300" width="300" class="align-left" alt="Veterans-Administration-VA-Mortgage-300x241.jpg?width=300" /></a>Photo credit: <a href="http://www.flickr.com/photos/tonythemisfit/3557345656/">Tony Fischer Photography</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by/2.0/">cc</a></p><p>Many years ago the United States decided it was a good idea to offer housing benefits for our veterans that were not attainable to other classes of people. The men and women who sacrificed time away from their families and risked their lives in defense of our country deserved the chance to buy a home with attractive features. As time has marched on and the needs of veterans have changed, the VA Mortgage program has made some changes to appeal to even more qualified borrowers.</p><p><strong>Spouses of Deceased Veterans</strong></p><p>Before the new law, spouses of deceased veterans could only apply for a VA mortgage if the veteran passed away during active duty defending our country or if the veteran passed away due to a disability sustained during duty. However, if the spouse can show that the veteran suffered from a disability sustained during duty for a minimum of 10 years prior to their death, the spouse can now apply for the VA mortgage.</p><p><strong>Funding Fee for Certain VA Loans Waived</strong></p><p>People in the military are no stranger to paper work. With every VA loan that is approved there is a fee associated with the loan. This funding fee provides money for the new crop of loans, avoiding the use of taxpayer's money.</p><p>If a veteran learns that they are eligible for disability pay due to their physical exam prior to discharge then they are allowed to waive the funding fee from the VA mortgage. Previously, a veteran had to receive actual disability pay on a regular basis before the fee could be removed.</p><p><strong>Beyond Fixed Rate Loans</strong></p><p>Fixed rate mortgages are great for people who are reasonably confident that they will stay in a certain home for many years. Having the mortgage payment set in stone offers stability for the homeowner. However, there are some people, such as veterans and active duty personnel, which may be on the move in a few years. For these people, getting an Adjustable Rate Mortgage (ARM) can make sense. They save money by getting a slightly lower interest rate that is fixed for 3 or 5 years. The new law makes it possible for eligible borrowers to apply for an ARM through the VA mortgage plan.</p><p><strong>More Flexibility for Military Families and Individual Parents</strong></p><p>For as long as the VA mortgage program has been around, one of the main requirements to the loan has been the veteran's occupancy. A VA loan states that the veteran must live in the home as their primary residence after the loan is completed. The veteran is given some time to move in to the new home, but the requirement is there. For military families in which both spouses are active duty, this can be impossible. Even harder for families that have only one parent who is serving in the military.</p><p>The Camp Lejeune act makes it possible for the children of the veteran to meet the requirement of occupancy. This means that dependents can live in the home purchased by their parent or parents through the VA mortgage while the parents sacrifice their time away from loved ones serving our country.</p><address>This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a lender directly to learn more about its mortgage products and your eligibility for such products.</address></div>Fewer Mortgage Loans for 2013......GUARANTEED.https://www.reopronetwork.com/profiles/blogs/fewer-mortgage-loans-for-2013-guaranteed2013-01-10T14:29:55.000Z2013-01-10T14:29:55.000ZJesus (Jesse) Gonzalezhttps://www.reopronetwork.com/members/JesusJesseGonzalez<div><p align="left"> </p>
<p align="left">Many of you may not be aware that in this new year, the mortgage lending industry will begin to abide by some new rules / regulations / laws that will surely reduce the amount of mortgage loans given out.</p>
<p align="left">The one rule that seems to sum up all of the new legislations is, lenders will be required to verify and inspect borrower's financial records. Granted, this doesn't sound like a bad rule at all, in fact, it's one I could get behind myself because it seems like it's nothing but common sense however, it's not what the industry has been practicing, even after the housing bubble burst. You see, many people who have the credit score, get the loan, with little to no actual "inspection" of their financial records or in other words with no real "inspection" of the consumers ability to pay back the loan.</p>
<p align="left">As a Realtor, I see this lack of true underwriting every day when I meet the buyer's appraiser at the property for the appraisal. He walks in, walks around, takes some pictures, looks under some cabinets, spends about 30 minutes to an hour there, goes back to his truck, says "thanks" out the window...waves and drives off. A couple days later, I see a copy of the appraisal from the lender and to my surprise, it's exactly the same amount of the purchase price. HOW IS THIS POSSIBLE? This makes me mad each and every time I see it. Why.....well, it means the appraisal is a sham, a farce, a magic show. I have been doing property evaluations for banks for years now. NO, I am not an appraiser, I do Broker Purchase Opinions, similar to an appraisal but, not the same. None the less, I know that it's impossible...absolutely, undeniably, impossible for a property evaluator to appraise or provide an opinion of value that is exactly the amount of the purchase price. Why is this, you might be wondering...why would it be so impossible for that to happen? Because if I am providing an unbiased opinion, I wouldn't know what the purchase price was. In short, if the buyer has the credit...the fico score, many banks....all of them....could care less how much the buyer spends or how much the property is really worth because, the buyer is getting the property based on a number, not his true ability to pay back the loan. This happens because these banks are making so much money on the total number of loans they do, taking a hit on a few who can't pay back...well, not such a big deal, that was until 2007 - 2008, that is.</p>
<p align="left">The housing bubble burst taught us all a lesson.......one that we should have learned from the banking crash of the 80's but, we ignored. Banks aren't doing a good job making sure the consumer can pay back the loan, they are doing a excellent job at making themselves money.</p>
<p align="left">Make no mistake, I am not an advocate for more regulations, more laws, more government intrusion in our lives, I am explaining this so that consumers wake up. As friendly as your mortgage lender is, as much as he tells you he likes your shoes and ask your husband if he saw the game this weekend, he gets paid more if you borrow more. You are personally accountable for your decisions so, if you are a taxi cab driver, making $24,000.00 a year.....NO, YOU CAN'T AFFORD A INTERST ONLY LOAN OF $250.00 A MONTH AND IN 12 MONTHS YOU GET A BALOON PAYMENT OF $15,000.00. Have you ever had $15,000.00 in your checking account waiting to be spent? Seriously?</p>
<p align="left">This new rule goes a bit further and says, lenders can't obligate consumers with more than 43% of the person's annual income in the loan. Yes....that means now we have a cap. If you are out there looking for a mortgage loan, you will not be able to get one that is more than 43% of your annual income. In my opinion, this goes a bit too far. Who is the government to tell consumers what they can or can't do? Sure....the government tells us everyday what we can and can't do but, should they be in the business of telling us what we can and can't borrow? I don't think so.</p>
<p align="left">Ok...sure, we have some in our society who are uneducated, un-intelligent, just stupid and yes, they should be protected.......or should they? In many ways, protecting the idiots amongst us who go to a lender, tell the lender they want to buy that $250,000.00 and they think they can afford it on a part time job at McDonalds........then, if the bank is willing to do it.....part of me says, step back, let it happen and watch the situation teach. That's right, some of us just aren't going to learn without going through the fire ourselves. My point is, can you legislate good behavior...I don't think so.</p></div>Big Differences Between FHA and Conventional Mortgageshttps://www.reopronetwork.com/profiles/blogs/big-differences-between-fha-and-conventional-mortgages2012-07-31T21:08:11.000Z2012-07-31T21:08:11.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Differences Between FHA and Conventional Mortgages</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Across the land the vast majority of home buyers use either a FHA or a conventional mortgage to purchase a property. While these loans are similar in a few ways, there are some pronounced differences. Each one has benefits that cater to a particular group of buyers. Understanding how they are different and which one is best suited to different circumstances will help buyers feel more informed about their financial situation.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">FHA Loan</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><a href="http://www.janesvillerealtor.com/home-buyers/big-differences-between-fha-and-conventional-mortgages-258/" title="FHA vs Conventional Mortgages" style="color:#743399;line-height:1.5;"><img class="alignright" src="http://cdn2.media.zp-cdn.com/2301/FHA-vs-Conventional-33f92e.jpg" height="95" alt="Differences between FHA and Conventional" style="color:#444444;line-height:1.5;margin:4px 0px 12px 24px;float:right;display:inline;" width="348" /></a></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">FHA stands for Federal Housing Authority. This agency does not make the loan itself. Instead, they insure FHA loans that are offered by approved mortgage lenders. The lender is protected in the event the borrower does not repay the loan.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">FHA is committed to providing basic, conservative loans. A large number of their deals are fixed rate loans even though FHA does allow for adjustable rate mortgages.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Conventional loan</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">A loan that is not insured by FHA is most likely a conventional mortgage. Mortgage brokers, banks, and credit unions offer a wide variety of conventional loans. Conventional loans have more unique offerings such as interest only type of deal or a combination of a first and second mortgage used for a purchase.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Down Payments</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">One of the major differences among the two types of loans is the requirement for a down payment. FHA will allow buyers to pay 3.5% of the home's price as a down payment. The money used for the down payment may come from cash on hand, savings, retirement accounts or even a gift from a relative.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">For conventional loans, the normal down payment is 20% of the home's value. However, there are quite a few loans that will allow a 10% or 5% down payment. The money used for the down payment must come from the borrowers own funds such as savings, investments or retirement accounts.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Private Mortgage Insurance</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Both the FHA loan and conventional loan requires private mortgage insurance (PMI) if the buyer makes a down payment that is less than 20% of the purchase price. This insurance is designed to protect the lender if the loan is not repaid in full.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">With a conventional loan, the PMI will be in place until the loan balance is paid down to 80% of the home's value. Typically, the PMI amounts for a conventional loan are higher than a FHA loan.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">For an FHA loan, there is a fee charged at the time of the loan closing as well as a monthly amount paid with the loan payments. The monthly amount is enforced until the loan amount reaches 78% of the home's value.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Credit Score Requirements</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Conventional loans have usually been reserved for customers with the highest credit scores. Due to the problems faced by the mortgage industry over the past several years, this fact is even more true today. Conventional loans rely heavily on standard credit reports offered by the major credit bureaus. Most conventional mortgages are approved by a computer system and reviewed by underwriters.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">On the other hand, FHA loans will allow a slightly lower credit score. In addition, FHA will allow underwriters to go beyond the computer system and make approvals based on a borrower's complete file. Items like residence history, rental history and stable job history can persuade some FHA lenders to approve a loan for people who have scores that are slightly less than perfect.</p></div>Understanding Requirements of Appraisal for FHA Loanshttps://www.reopronetwork.com/profiles/blogs/understanding-requirements-of-appraisal-for-fha-loans2012-07-30T17:49:47.000Z2012-07-30T17:49:47.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><span style="text-decoration:underline;"><strong style="color:#000000;line-height:1.5;">Understanding Specific Requirements of Appraisal for FHA Loans in Wisconsin</strong></span></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The all-time low mortgage rates combined with affordable home prices have generated a huge growth in business for FHA mortgages. People considering their first home need to understand the specific appraisal requirements for FHA loans in Wisconsin.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;"><a href="http://www.janesvillerealtor.com/home-buyers/understanding-requirements-of-appraisal-for-fha-loans-in-wi-253/" title="Wisconsin FHA Loans" style="color:#743399;line-height:1.5;"><img class="alignright size-full wp-image-752" title="FHA Loans" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/07/ar1264253814409951.jpg" height="299" alt="FHA Mortgages" style="color:#444444;line-height:1.5;margin:4px 0px 12px 24px;float:right;display:inline;" width="341" /></a>Basics of FHA Appraisal</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">In a nutshell, an FHA appraisal is a conventional appraisal with additional requirements. The goal is to identify any potential repairs that would need to be completed within the next 24 months and have those items addressed before the loan is closed.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">It is important to note that an appraiser does not review a home to the depth of a home inspector. A home inspection is still a good idea for a home, especially if it is 5+ years old.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">FHA Appraisal Caveats</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Only appraisers listed on the FHA approved roster are allowed to inspect homes and complete the evaluation. Before an appraiser is assigned to review a home a FHA case number will be assigned to the loan. The appraisal is valid for the next 90 days. The lender or borrower may change during that time period without the need for a new appraisal.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Any home that has undergone a conventional appraisal within the last 90 days will still need a FHA case number. In addition, the home must be re-inspected to verify FHA specific items. Here is a list of the items:</p><ul style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin:0px 0px 24px 1.5em;"><li style="line-height:1.5;">Confirm no existence of drainage or water damage</li><li style="line-height:1.5;">Ensure water pressure is adequate for the home without any leaks</li><li style="line-height:1.5;">Any exterior and interior lead-based paint must be inspected to identify peeling, chipping or cracking</li><li style="line-height:1.5;">Identify exterior access for each bedroom</li><li style="line-height:1.5;">Insure the minimum 18” egress and ingress from the lot line to the building</li><li style="line-height:1.5;">Test the heater to ensure proper working condition as well as air conditioner</li><li style="line-height:1.5;">Ensure electrical outlets are in every room and in working order</li><li style="line-height:1.5;">Test the fan/hood over the oven for proper working condition</li><li style="line-height:1.5;">Ensure screens are present on roof vents and no more than three layers of roof material</li><li style="line-height:1.5;">Determine that the electric box has at least 60 amp</li><li style="line-height:1.5;">Properly note existing wiring that is exposed as well as cover plates missing from electrical boxes</li><li style="line-height:1.5;">Do a brief inspection of crawl space and attic</li></ul><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Any issue found on the interior portion of the home needs to be either repaired or replaced. On the exterior part of the home any issue needs to be repaired or removed.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Specific Areas of Importance</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Of the items mentioned above three seem to get the most attention; water problems or drainage issues, lead-based paint and the ingress/egress points. Concerning the ingress/egress points, common problems occur with homes that have a garage touching the lot line. This prevents the homeowner from accessing the exterior wall of the garage in order to paint. If this is the case the neighbor may be asked for an easement in order to grant the homeowner access.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Consultant Required for 203(k) mortgage</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Buyers that are approved for a FHA 203(k) mortgage need to understand that the appraiser will be working with a consultant. The consultant must be approved by FHA. This individual will inspect the home and determine the necessary repairs and improvements and formulate an estimated cost. The appraiser will inspect the home and ensure that the consultant has properly identified all necessary repairs in order to conform to the FHA guidelines.</p><address style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:18px;font-size:12px;">This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a lender directly to learn more about its mortgage products and your eligibility for such products.</address></div>Minimizing Home Seller Risks in Rent|Lease to Ownhttps://www.reopronetwork.com/profiles/blogs/minimizing-home-seller-risks-in-rent-lease-to-own2012-04-16T21:17:29.000Z2012-04-16T21:17:29.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Tips for Home Sellers to Minimize Their Risk in Lease-to-Own Transactions</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The economic downturn in the housing market over the past 5 years has driven up the number of sellers willing to consider leasing out their homes with an option to sell. This can be a wise move in the right situation but sellers need to make sure they take steps to minimize their risk in these transactions.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;"><a href="http://blog.rockrealtywi.com/?p=2164" title="Rent-to-Own Minimizing Risks" style="color:#743399;line-height:1.5;"><img title="Rent-To-Own" class="alignright size-medium wp-image-2216" src="http://blog.rockrealtywi.com/wp-content/uploads/2012/04/Rent-To-Own-300x275.jpg" height="275" alt="Rent to Own" width="300" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>Demand an Option Fee Up Front</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">For the duration of the lease the seller of the home cannot market the home to would-be buyers. This time period could be as short as one year or as long as three years depending on the renter’s financial condition. Sellers should demand an option fee up front. This fee can be applied to the purchase if the renter indeed manages to arrange financing at the end of the lease. However, if the renter decides to pursue another home, they forfeit the fee. This fee is usually in the range of 3% to 5% of the agreed purchase price in order to ensure the buyer is committed to the purchase.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Protect Against Appreciation</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Once again, going back to the fact that the seller is not able to market the home while it is under a lease contract, it is possible the home could appreciate greatly in value. It is wise for most sellers to add at least 5% to the current market price of the home when writing out the lease-to-own contract to help the seller reduce their possible loss. At the same time, the buyer is getting a price on the home, in writing, for a future date. This is a big plus for the buyer since they now know the price cannot rise.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Work Out a Contract for Maintenance and Repairs</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">In order to give the buyers the sense of actually owning the home, sellers can ask buyers to sign a contract that spells out responsibilities for maintenance and repairs. Obviously, most renters will not be inclined to pay for major repairs such as a roof replacement or installing a new heating and air conditioning system. But the seller may want to enforce a policy that lawn maintenance, modest repairs for plumbing and electrical needs, and other such items are the responsibility of the buyer. This can help the buyer budget for future repairs and also help them decide if they are financially ready to purchase a home.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;">Carrying Additional Insurance</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">While the buyer/renter is in the home as a tenant sellers will require proof of renters insurance. However, it is a good idea to carry an additional policy on their home beyond their current needs. Catastrophic events such as tornadoes, fires and floods happen when we least expect them. Nothing makes a tragedy worse than realizing there was not sufficient insurance coverage to handle the damage.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Many hopeful borrowers are in need of something beyond a traditional mortgage. The lease-to-own model is a good way for sellers and buyers to reach their intended goals. However, sellers need to be especially careful in these deals to make sure their interests are protected beyond merely the sale of the home.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Original Post - <a href="http://blog.rockrealtywi.com/tips-home-sellers-minimize-risk-lease-to-own-transactions/" title="Minimizing Risks with Lease to Own">Rent-to-Own Minimizing Risks</a></p></div>Mortgage Forgiveness is Currently Set to expire at End of 2012https://www.reopronetwork.com/profiles/blogs/mortgage-forgiveness-is-currently-set-to-expire-at-end-of-20122012-03-12T17:51:09.000Z2012-03-12T17:51:09.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p><strong>Mortgage Forgiveness is Currently Set to expire at end of 2012</strong></p><p>One primary feature attracting many <span>underwater homeowners</span> to a short sale is the fact that the taxes are lowered thanks to a Mortgage Forgiveness Debt Relief Act of 2007 provision. However, that credit is set to go away at the end of the year 2012. This means that homeowners who have put off selling need to get busy.</p><p><a title="Mortgage Forgiveness Act" href="http://blog.rockrealtywi.com/?p=1977"><img class="aligncenter size-full wp-image-2095 align-center" title="Mortgage-Forgiveness- Debt-Relief-Act-2007" src="http://blog.rockrealtywi.com/wp-content/uploads/2012/03/Mortgage-Forgiveness-Debt-Relief-Act-2007.jpg" alt="Mortgage Forgiveness Debt Relief Act of 2007" width="369" height="66" /></a></p><p><strong>Basics of the Rule</strong></p><p>When <em>foreclosures</em> were the primary topic of almost every news broadcast, Congress stepped in and offered this one time transaction. Homeowners could sell their home, for less than the existing mortgage, if the lender agreed to the deal. The outstanding balance would normally be taxable as earned income to the homeowner. However, the Mortgage Forgiveness Act wiped out the taxes on any unpaid balance up to a whopping two million dollars. This act applies to short sales that occurred between 2007 and 2012.</p><p><strong>New Area of Expertise for Real Estate Agents</strong></p><p>Many real estate agents have chosen to specialize in certain areas. Some people prefer to work with commercial property, while others may focus their energy on single family homes. The past few years has seen a rise in the number of agents that zero in on the short sales, and for good reason. Many banks are not open to the idea of a short sale coming straight from the homeowner. But with an experienced real estate agent, the situation changes. Banks realize that these agents are quite familiar with the local area and can accurately predict a home’s true value. Using an experienced agent can help homeowners negotiate a fair sales price and remove themselves from the burden of a mortgage that is no longer feasible.</p><p><strong>Possible Change before End of the Year</strong></p><p>It is possible that Congress could move to extend the Mortgage Forgiveness expiration. After all, the home purchase credit initiated a couple of years ago was extended twice to encourage more people to buy homes. However, it is too early to tell if this particular act will be extended so it is better for most people to err on the side of caution and begin negotiating a sales price with their real estate agent and their lender.</p><p><strong>Getting Everything in Order for a Short Sale</strong></p><p>If you are considering a short sale of your home then you will need to get a bit of information together. First, you must contact your lender and ask them for a 30 day payoff on your mortgage. If you have more than one mortgage, or Home Equity Line of Credit (HELOC), then you will need a payoff amount for each loan. Once you have these figures you can call your real estate agent and ask for their professional opinion about the value of your home. The agent will be able to access sales of homes similar to yours in the surrounding area and provide you with an accurate value. Then, you will have a strong argument to present to the lender. The lender may ask that you have an actual home sale contract in hand before accepting your offer. But at least you will be on the track to selling the home once you have spoken to a real estate agent.</p><p>Original Email - <a title="Mortgage Forgiveness Act Expiring" href="http://blog.rockrealtywi.com/mortgage-forgiveness-set-expire-2012/">Mortgage Forgiveness Act expiring soon</a></p></div>Homebuyers Can Use FHA Loans to Purchase Property from Investorshttps://www.reopronetwork.com/profiles/blogs/homebuyers-can-use-fha-loans-to-purchase-property-from-investors2012-03-05T17:34:22.000Z2012-03-05T17:34:22.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Homebuyers Can Use a FHA Loan to Purchase Property from an Investor</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><a href="http://blog.rockrealtywi.com/?p=1985" title="Wisconsin FHA Loans" style="color:#743399;line-height:1.5;"><img title="FHA Loans" class="alignright size-medium wp-image-752" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/07/ar1264253814409951-300x263.jpg" height="263" alt="FHA Mortgages" width="300" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>FHA has been the most popular mortgage used by Wisconsin residents looking to purchase their first home. The relaxed credit standards lower down payment requirement and higher debt ratios has allowed many people to purchase a home through this type of loan. However, investors who were in the business of buying a home to simply turn around and sell it for a profit, called flipping, always steered clear of FHA borrowers. FHA had a rule stating a home could not be sold a second time within 90 days of its last purchase. But that has all changed.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Original Intent</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The primary reason for this “anti-flipping” rule was discourage fraud on mortgages. However, as time marched on it became apparent that deserving FHA buyers were being denied a home. Many homes have been bought after foreclosure by investors and repaired to make them ready for resell. The FHA ruling prevented the investors from selling and the market has struggled.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Some Rules to Keep in Mind</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Although the FHA administration has decided to lift this rule, there are still other guidelines that must be followed when dealing with one of these investment homes.</p><ul style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-top:0px;margin-right:0px;margin-bottom:24px;margin-left:1.5em;"><li style="line-height:1.5;">The seller of the home and buyer cannot have any type of pre-existing relationship. This could be as simple as a relative selling to a family member or as complex as a business owner selling to a partner or employee.</li><li style="line-height:1.5;">In the event that the new sales price is 20% or more than the price paid at acquisition by the investor the loan may be inspected more closely to ensure the value of the property was not artificially raised.</li></ul><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Keep in mind that the original rule was put in place to prevent fraud. In addition, the original rule only came in to effect when a home was bought by an investor and then resold within 90 days. If the investor waits beyond the 90 day window to sell the home most of these issues will not be present.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Protection against Future Fraud</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Most lenders are well aware of the abuse that has taken place in the mortgage industry over the past few years and have stepped up their lending standards to catch fraud and illegal practices. Because of the heightened scrutiny, many high ranking managers among the top lenders do not feel that this change in FHA rules will lead to a sudden burst of bad loans. The tighter appraisal restrictions, along with the general awareness of potential problems, should allow banks and mortgage companies to move forward with new FHA loans without falling victim to a scam artist.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Original Post - <a href="http://blog.rockrealtywi.com/homebuyers-fha-loans-purchase-property-investors/" title="FHA Loans to purchase from an investor">Using an FHA Loan to purchase from an Investor</a></p></div>Increased Mortgage Activity in Wisconsinhttps://www.reopronetwork.com/profiles/blogs/increased-mortgage-activity-in-wisconsin2012-02-24T16:55:58.000Z2012-02-24T16:55:58.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;"><a href="http://blog.rockrealtywi.com/?p=1981" title="Increase in Mortgage Activity" style="color:#743399;line-height:1.5;"><img title="Mortgage Rates" class="alignright size-thumbnail wp-image-700" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/06/Mortgage-150x150.jpg" height="150" alt="Low home loan rates" width="150" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>Increased Mortgage Activity</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Although the winter months have traditionally been a slow time in the real estate market, business has seen significant improvement across Wisconsin. While it may be premature to proclaim that the recession is ending, these signs do point to an improvement in the overall economy.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Starting Off 2012 with a Bang</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Across the state the number of home purchases increased by 11 percent in January 2012 in comparison to the number of homes sold in January 2011. This is a continuation of the trend that began in October of 2011. Although the average home price is still down from the levels of 2006, the improved activity is a good sign.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Refinancing is Hot now</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Along with improvements in home sales, refinancing has been quite popular lately. The record low interest rates have caused quite a few people to investigate refinancing their home. Recent reports show that as much as 80% of mortgage applications have been for refinancing.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Primary Key to Fuel Home Sales and Price Improvements</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The majority of economists agree that it is too soon to determine if the surge in home sales will last. However, they all agree on one point. A steady, stable growth in the number of people able to return to full time work will drastically help the housing market.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Still a Buyer’s Market</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The good news for buyers is the available inventory makes it possible for a buyer to review multiple homes and find the one that is best for their needs. The recent statistics show that the current inventory of homes for sale is quite large, but the numbers are moving down. Along with the incredibly low interest rate this marks a great time for new homebuyers to get in their first home as well as for current homeowners to consider selling for either a bigger property or a home in a better area.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Short Sales and Foreclosures add Properties to the Mix</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">While home prices have declined in recent years due to the struggling economy, some of the best deals can be found in the case of <span style="text-decoration:underline;">foreclosures and short sales</span>. It is common for a short sale to be in a much better condition than a foreclosure. Most of these owners were living in the home right up until the time they sold the property and moved on. This means that a home that was part of a short sale has a good chance of being in move-in condition. For the do-it-yourself type of people, a foreclosure could be a way to get a home at a tremendous discount and have the option of adding paint, carpet, and fixtures to customize the home to their liking.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Original Post - <a href="http://blog.rockrealtywi.com/increased-mortgage-activity/" title="Wisconsin sees increased mortgage activity">Increased Mortgage Activity in Wisconsin</a></p></div>New Employment Numbers has Negative Impact on Mortgage Rateshttps://www.reopronetwork.com/profiles/blogs/new-employment-numbers-has-negative-impact-on-mortgage-rates2012-02-23T15:50:15.000Z2012-02-23T15:50:15.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;"><a href="http://blog.rockrealtywi.com/?p=1979" title="Mortgage Rates Rising" style="color:#743399;line-height:1.5;"><img title="Mortgage Rates" class="alignright wp-image-700" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/06/Mortgage.jpg" height="182" alt="Low home loan rates" width="280" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>New Employment Numbers has Negative Impact on Mortgage Rates</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The recent good news for the job market had a less than desired effect on mortgage rates. Thanks to signs of an improvement in the economy the recent reports stating more people are back to work had an almost immediate impact on trading in the stock market. For years economists have pointed out the inverse relation between home mortgage rates and the general health of the economy. Usually, when investors are worried about risk, they will avoid the stock market and invest more money in to bonds and mortgage backed securities. This flow of cash makes the rates drive lower. However, when times are good and investors rush to the stock market, the opposite effect is felt.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">But the Sky is Not Falling</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">However, this does not mean that any improvement in the stock market will automatically push mortgage rates up. And it also does not mean that the mortgage rates will move dramatically one way or the other. For example, back in the year 2007 the average 30 fixed rate hovered between 6.325% and 6.625%. Now, for the past 3 months, the average rate has moved between 4.345% and 3.875%. This shows roughly a 2% change in rates over the course of 5 years. Mortgage rates do move with the ebb and flow of the economy, but it is rare to see drastic jumps or drops.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">What Does this Mean for Homeowners and Potential Homebuyers?</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">If the economy continues to slowly improve, this means that we may indeed have seen the lowest rates ever. Homeowners that have been wavering between refinancing and hoping for a slightly better rate would be well advised to lock in a rate suitable for their needs.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">At the same time, potential homebuyers who are wondering if rates could possibly get any lower may wish to go ahead and put out a contract on a home. Locking in a good rate now for 30 or 60 days could provide a small cushion against any small uptick that will likely come in the next few weeks.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Locking in a Loan</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Fortunately, the costs for doing a mortgage loan are still relatively low. Combined with the modest amount to lock in a loan, this is a great time to secure a solid rate. Most lenders are seeing quite a bit of pressure to keep the costs down so it is highly unlikely that the expense of ate locking will jump any time soon. Keep in mind that the current rates are around 3.875%. Rates cannot go to zero because that would mean the lenders are not making any money. Sooner or later, rates will go back up. How high will they go? That is the proverbial “big question” that no one really has an answer for at the moment. Better to get in on the low rates while you can rather than kicking yourself for waiting and missing out.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Original Post - <a href="http://blog.rockrealtywi.com/employment-numbers-negative-impact-mortgage-rates/" title="Mortgage Rates Rise on Employment Numbers">Mortgage Rates Rise on new Employment Numbers</a></p></div>Using FHA 203K Loan to Purchase a Fixer-Upperhttps://www.reopronetwork.com/profiles/blogs/using-fha-203k-loan-to-purchase-a-fixer-upper2012-01-30T15:07:20.000Z2012-01-30T15:07:20.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;"><a href="http://blog.rockrealtywi.com/fha-203k-loan-purchase-fixer-upper/" title="FHA 203k for Rehab" style="color:#743399;line-height:1.5;"><img title="FHA 203k Loans" class="alignright size-full wp-image-752" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/07/ar1264253814409951.jpg" height="299" alt="FHA Rehab 203k Mortgage" width="341" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>Using FHA 203K Loan to Purchase a Fixer-Upper</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Across Wisconsin there are a large number of short sale homes available to buyers. A short sale is a home being sold for an amount less than the existing mortgage balance. These homes often have a few cosmetic repairs that need to be made in order to make the home more presentable, if not safe. For years the issue of repairing a home prior to purchase was a catch 22. The bank or seller was not willing to spend extra money on a home that they are selling. The buyer could not make the repairs because they did not legally own the home. The FHA 203k loan solves that problem with ease.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Two Kinds of Loans</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The Federal Housing Authority (FHA) offers a loan called the 203k mortgage, named after the code section where the loan is found in the FHA guidelines. This loan is offered as a Streamline version and the regular version. The streamline was designed to offer lower amounts designated for repairs and slightly less paperwork. Both loans are ideal for Wisconsin homebuyers who wish to purchase a home in need of some repairs.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">How the Loan Works</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The loan program allows buyers to purchase a home based on the sales price. In addition, the buyers can borrow extra money to make the necessary repairs. Once the loan is approved and closed, the extra money is placed in an escrow account. The contractor that is doing the work will receive payment once the work is completed. This protects the borrower and the lender against problems with the repair process.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The amount needed for repairs is added to the loan for the purchase and the homebuyer makes one payment, at one interest rate, on the entire loan. Since mortgage rates are so cheap right now it is a wonderful way to buy a home that may be priced below market value due to some simple fix-ups.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Loan Amounts</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The Streamline 203k loan will allow Wisconsin homebuyers to borrow a minimum of $5,000 and a maximum of $35,000 to be used towards the repairs. The regular 203k loan allows much more as a percentage of the sales price and the estimated appraised value after the proposed repairs have been made. The regular 203k loan will need the involvement of an appraiser, home contractor and loan officer from the very beginning to make sure the loan and repairs meet the guidelines of the program</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">What Can be Done with 203</strong>k?</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Wisconsin homebuyers often ask about the types of repairs that can be done with the Streamline 203k program. The following list shows some of the more popular tasks accomplished using this type of loan</p><ul style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-top:0px;margin-right:0px;margin-bottom:24px;margin-left:1.5em;"><li style="line-height:1.5;">New gutters and a new roof</li><li style="line-height:1.5;">New Heating and air conditioning system or repairs to the existing system</li><li style="line-height:1.5;">Plumbing updates and repairs</li><li style="line-height:1.5;">Electrical updates and repairs</li><li style="line-height:1.5;">Bath and kitchen remodels, to a lesser extent</li><li style="line-height:1.5;">New flooring of any type; wood, carpet, tile</li><li style="line-height:1.5;">Painting for both exterior and the interior</li><li style="line-height:1.5;">New windows and doors</li><li style="line-height:1.5;">Energy efficient appliances</li></ul><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The 203K loan allows many types of repairs and improvements that can greatly enhance the value of a home and give buyers a chance to purchase a place at a savings. This loan is ideal for Wisconsin short sales or foreclosures.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Original Post - <a href="http://blog.rockrealtywi.com/fha-203k-loan-purchase-fixer-upper/" title="Rehab loan - FHA 203K">Using a FHA 203K Mortgage for Rehab</a></p><h6 style="font-family:Georgia, 'Bitstream Charter', serif;line-height:1.5em;font-size:.9em;margin-top:0px;margin-right:0px;margin-bottom:20px;margin-left:0px;font-weight:normal;">This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a FHA lender directly to learn more about its mortgage products and your eligibility for such products.</h6></div>No Money Down USDA Mortgagehttps://www.reopronetwork.com/profiles/blogs/no-money-down-usda-mortgage2012-01-16T21:50:37.000Z2012-01-16T21:50:37.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;"><a href="http://blog.rockrealtywi.com/?p=1744" title="Zero money down USDA Mortgage" target="_blank" style="color:#743399;line-height:1.5;"><img title="USDA Loans" class="alignright size-full wp-image-1774" src="http://blog.rockrealtywi.com/wp-content/uploads/2012/01/USDA_Loans.jpg" height="93" alt="USDA Mortgages" width="271" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>Understanding the No Money down USDA Mortgage</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Buying a home in Wisconsin with no down payment is still a reality thanks to the USDA program. The Rural Development section of the United States Department of Agriculture (USDA) has made great strides in the past two years to educate loan officers and potential borrowers of the benefits of this program. The mortgage offered by the USDA is quite different from other programs and is a great way for people to purchase a home without a costly down payment.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Mortgage Insurance</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Unlike conventional loans and FHA loans, the USDA loan does not require any mortgage insurance. This means that every dollar of every payment is going towards the principal, the interest or the escrow for the home.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Closing Costs Paid by Seller</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">A conventional loan allows the seller to pay closing costs up to 3% of the purchase price. Similarly, FHA will allow the seller to pay closing costs up to 6% of the purchase price. However, USDA has no limit on the amount that can be paid by the seller. This means it is possible to find a house and purchase it without paying a down payment or any closing costs.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Property Location</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">In order to be considered for the USDA loan a home must be located in an area designated as rural by the USDA. However, would it surprise you to learn that of the 72 counties listed in Wisconsin, 50 of those counties are considered rural? And the remaining 22 counties have sections that are considered rural. This means that there are numerous homes that could be eligible for this type of loan.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Income Limits</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">There are also some limits on the person’s income. The USDA bases the limits on the total number of people that will occupy a home. For example, a family made up of a mom, dad, and three children under the age of 18 will be allowed more income than just a married couple. A Wisconsin loan officer can look up the limits for each county and let you know if you meet the guidelines.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Loan Limits</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The maximum amount allowed for a USDA loan is different for each county in Wisconsin. However, the limits are very liberal. Some counties, such as Ozaukee and Dane, will allow qualifying borrowers to get a loan up to $230,000.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Not For Select Buyers</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Some people are under the impression that the USDA loan is only for Wisconsin borrowers looking for their first home. However, nothing could be further from the truth. People buying their first home or their fifth home can use the USDA loan. The only stipulation is that the property must be the borrower’s primary residence.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">It has been mentioned in the news a lot in the past three years that mortgage rates are at an all-time low. When rates are so low it is only a matter of time before they start to rise. Take the opportunity to talk to a Wisconsin loan officer and find out if you can get a home using the USDA loan.</p><h6 style="font-family:Georgia, 'Bitstream Charter', serif;line-height:1.5em;font-size:.9em;margin-top:0px;margin-right:0px;margin-bottom:20px;margin-left:0px;font-weight:normal;">This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a USDA lender directly to learn more about its mortgage products and your eligibility for such products.</h6><p>Original Post - <a href="http://blog.rockrealtywi.com/no-money-down-usda-mortgage/" title="Zero Down USDA Loan">Understanding the No Money Down USDA Mortgage</a></p></div>Qualifying for VA Mortgagehttps://www.reopronetwork.com/profiles/blogs/qualifying-for-va-mortgage2012-01-12T15:07:32.000Z2012-01-12T15:07:32.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;"><a href="http://blog.rockrealtywi.com/?p=1746" title="VA Loan Approval" style="color:#743399;line-height:1.5;"><img title="VA Home Loans" class="alignright size-full wp-image-667" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/06/VA-Home-Loans.jpg" height="93" alt="Qualifying for a VA Loan" width="354" style="color:#444444;line-height:1.5;margin-top:4px;margin-right:0px;margin-bottom:12px;margin-left:24px;float:right;display:inline;" /></a>Qualifying for VA Mortgage</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">For Wisconsin residents that have previously served our country in the armed forces or in the reserves, the VA mortgage is a great way to purchase a home. This loan is offered to qualified veterans with no money down and no mortgage insurance, making it very affordable. And the rules for determining who is eligible are quite liberal as well.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Minimum Service Times</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">People who have served in the Coast Guard, Navy, Marine Corps, Air Force or Army can be considered eligible for a VA loan if they have been discharged and met at least one of the following service times</p><ul style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-top:0px;margin-right:0px;margin-bottom:24px;margin-left:1.5em;"><li style="line-height:1.5;">At least 181 days of military service during peacetime</li><li style="line-height:1.5;">At least 90 days of military service during wartime.</li></ul><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">This rule is slightly different for people that enlisted past September 7, 1980 as well as any officer whose service began past October 16, 1981. For these people they must have completed 24 months of service.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Current Enlisted Military</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">People that are currently enlisted in full duty for one of the branches of the armed forces can also use the VA mortgage. After the person has completed 90 days of active service they can apply for a loan.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Service Time for Reserves</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">Wisconsin residents who have served in the various reserve branches can also be eligible for a VA mortgage. This applies to any of the Reserve components established with the Marine Corps, Army, Air Force, or Navy as well as the Air National Guard, Coast Guard Reserves and Army National Guard. For these people they must serve at least 6 years in their chosen Reserve before they are eligible for the VA certificate.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Benefits for Spouses</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">The spouses of veterans who perished in wartime may also be eligible to apply for a VA mortgage loan. The person would have to meet the other requirements regarding credit and income in order to be approved for the mortgage.</p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;"><strong style="color:#000000;line-height:1.5;font-weight:bold;">Other Exceptions</strong></p><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">There quite a few exceptions for veterans who were not able to complete the minimum service requirements. If you fall in to one of these categories then you may also be eligible for a Wisconsin VA loan.</p><ul style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-top:0px;margin-right:0px;margin-bottom:24px;margin-left:1.5em;"><li style="line-height:1.5;">Any person that became disabled during service and received a discharge due to the disability</li><li style="line-height:1.5;">People who were discharged after completing only 20 months of a 2 year agreement may be eligible if their discharge was at the convenience of the federal government.</li><li style="line-height:1.5;">Discharged due to a personal hardship and have completed either the 181 days in peace or 90 days in war</li><li style="line-height:1.5;">Discharged due to a pre-existing medical issue and the person completed either the 181 days in peace or 90 days in war</li></ul><p style="font-family:Georgia, 'Bitstream Charter', serif;color:#444444;line-height:1.5;font-size:16px;margin-bottom:24px;">As you can see from the previous listing, several different people that have served in the military can be eligible for a VA mortgage. With rates so low, it is a great time to buy a home in Wisconsin and enjoy low payments for years to come.</p><h6 style="font-family:Georgia, 'Bitstream Charter', serif;line-height:1.5em;font-size:.9em;margin-top:0px;margin-right:0px;margin-bottom:20px;margin-left:0px;font-weight:normal;">This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a VA lender directly to learn more about its mortgage products and your eligibility for such products.</h6><p>Original Post - <a href="http://blog.rockrealtywi.com/qualifying-va-mortgage/" title="Qualify for a VA Mortgage">Qualifying for VA Mortgage</a></p></div>Half of Homeowners Underwater on their Mortgagehttps://www.reopronetwork.com/profiles/blogs/half-of-homeowners-underwater-on-their-mortgage2011-11-18T19:53:16.000Z2011-11-18T19:53:16.000ZMichael Collins, CDPE, SFRhttps://www.reopronetwork.com/members/MichaelCollinsCDPESFR<div><p><a title="Wisconsin Underwater Home Owners" href="http://blog.rockrealtywi.com/?p=1519"><img width="240" style="float:right;" alt="Half of Homeowners Underwater on their Mortgage" height="156" src="http://blog.rockrealtywi.com/wp-content/uploads/2011/06/Mortgage-300x195.jpg" title="Underwater Mortgage" /></a><span style="text-decoration:underline;"><strong>50% of Homes with Mortgages now Underwater</strong></span><br /><br /><br />I came across the video below and was shocked to hear that nearly 50% (half) of the nations homeowners are effectively underwater. In times like these, it's important to know that there is help available. If you are a home owner that is struggling to make mortgage payments, I would first suggest that you talk with your bank. They may be able to offer you a few different options. They can sometimes lower your interest rate, offer you a forbearance, or even roll your past due amounts into the mortgage principal.</p><p> </p><p>In the event that you need to sell your home due to your financial situation, I would be happy to discuss if a <span style="text-decoration:underline;">short sale</span> might work for you. This is a process in which we work with your bank to sell your home for less than you owe on the mortgage. Does your home qualify for a <em>short sale</em>? Fill out our <a title="Underwater Home Short Sale Evaluation" href="http://blog.rockrealtywi.com/wisconsin-home-sellers/short-sale-home-evaluation/">Short Sale Home Evaluation Form</a> to find out.<br /><br /> <object height="380" width="400" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0" data="http://plus.cnbc.com/rssvideosearch/action/player/id/3000056102/code/cnbcplayershare" type="application/x-shockwave-flash"><param name="allowScriptAccess" value="never" ></param><param name="allowNetworking" value="internal" ></param><param name="wmode" value="opaque" ></param><param name="movie" value="http://plus.cnbc.com/rssvideosearch/action/player/id/3000056102/code/cnbcplayershare" ></param><param name="flashvars" value="endTime=000" ></param><embed wmode="opaque" height="380" width="400" src="http://plus.cnbc.com/rssvideosearch/action/player/id/3000056102/code/cnbcplayershare" flashvars="endTime=000" allowscriptaccess="never" id="cnbcplayer" type="application/x-shockwave-flash" allownetworking="internal"></embed> </object></p></div>Some direction for your short saleshttps://www.reopronetwork.com/profiles/blogs/some-direction-for-your-short-sales2011-11-09T14:59:13.000Z2011-11-09T14:59:13.000ZTrisha Dorkhttps://www.reopronetwork.com/members/TrishaDork<div><p>Today I got a call from an agent about a short sale I have listed. In talking I mentioned the current owner is not in default to which he countered "but he must be." I am here to tell you from experience, from closings, from approvals in my hand your client does not have to be in default to obtain an approval for a short sale. If the mortgage co tells you they must be ask them to show you in writing where this is their policy so you can show your client 9 out of 10 can't and this will get you past this hurrdle..<br />Myth #2, I get all the time, "once I short sale I can't get a mortgage to buy for some time." INCORRECT!! In July of 2011 I executed and closed a short sale on my listing and the same client was approved to purchase a new home and closed 3 weeks later. There is no rule that says you can't, if you keep your current mortgage current and the person negotiating your short sale gets an approval that say lender is going to except short sale as mortgage paid in full. We supplied the payoff (actually both it was a first and second) and credit showed always paid on time client upgraded to bigger and better house for same payment and maintained good credit.<br />This point brings me to myth #3 "it doesn't save me any to short sale I should let my house go and save my money." NO NO NO! See above scenario if you bide your time and pay payments till your agent can negotiate a short sale for you, you can save your credit by paying your payments and getting that payoff showing paid zero balance! Just because a bank didn't go after your friend for his foreclosed home doesn't mean they won't come after you and garnish your wages, freeze your bank accounts, or harass you till you can't stand it any more. Problems don't just go away a short sale is a proactive solution to an economy induced problem. <br />Myth#4 I make to much money I will not get granted a short sale....you can make 500k a year and still be granted a short sale on your house and here is why. You bought 123 Apple St for 700k 4 years ago now it's worth 200k as it stands with you in it, looking nice and clean and put together. HOWEVER if 123 Apple street is foreclosed and then has chance to be stripped down or vandalized the bank knows it will then only be worth 100k so they are better off letting you short sale then risking another foreclosure on their books which will be supported when appraiser goes out and does BPO. This also disproves myth#5 that "I owe way to much compared to what home will sell for bank will never do it." I closed a home that had a $750k loan on it but appraised only for $295 so bank allowed the short sale after they did their bpo and we sent copy of FHA appraisal.<br />Myth 6 my agent is a "short sale expert" I'm here to say I have been doing short sales since 2006, I was taught by a bank how to structure and execute them and still I am not an expert and I'll tell you why. <strong>You can not be an expert at something that changes with every file, every day</strong>. You can be very good, you can be excellent but not an expert. There is no such animal for short sales.. I give the example that a short sale is like a snow flake, every single one is different! I have closed one in two weeks YES TWO WEEKS but in the same token I have had one take eight months. The eight monther was a first and second for a divorced couple with a husband that claimed bk on the second but none the less it took eight months to get to closing. I am great at them and many others are too but be wary of the self proclaimed expert as often they over promise and underperform. <br />These are all just my experiences as stated earlier there are many others out there and every file differs but I think education is important as many agents are telling people they can't when in fact they just don't know yet that they can! :-)</p></div>First Call For Help Teleconfrence Workshop Successful?https://www.reopronetwork.com/profiles/blogs/first-call-for-help2011-06-07T13:58:32.000Z2011-06-07T13:58:32.000ZJonathanhttps://www.reopronetwork.com/members/Jonathan<div><p> </p><p>This call will also target owners and renters that are occupying homes at risk of foreclosure. More important, it cost almost nothing to educate hundreds if not thousands of people at on time. Our first call was a success and we are looking to partner with agents around the country to do more. Please listen to the audio of the first call, in which 50 people attended. This is better than any workshop I've held or seen when it comes to foreclosure. <a href="{{#staticFileLink}}4359156433,original{{/staticFileLink}}">May 25th, 2011 Audio</a><br /><br />"The only way to bring about stabilization to our neighborhoods is to get valuable information out to the people that need it most. Workshops are not working." said Broker and CEO, Jonathan G Burgess. Burgess has overseen the sale of over four hundred foreclosed homes and short-sales over the last 3 years throughout the company’s California offices. Neighborhood property values, cities, counties and utility providers suffer the most when the wrong decisions are made by the occupants of these homes. Code 3 Realty & Mortgage Inc. has made equipping individuals with the necessary information to make the right decision concerning their situations a top priority. <br /><br />Many real estate companies are hosting workshops for distressed homeowners to get much-needed foreclosure prevention information, however attendance to those events is usually low. “I’m not surprised attendance is low because this is a sensitive topic and can be embarrassing for many” said Burgess. "The majority of home owners struggling to keep their homes would rather not attend an open forum to discuss foreclosure. Telephone conferences are a discrete alternative." <br /><br />Owners and renters can get valuable, free information about programs and options to assist them by joining these conference calls. This information must get out if we are going to bring about stability to our economy and restore property values in neighborhoods. <br /><br />The first conference will begin on Wednesday, May 25th, 2011 at 7:00pm -7:30 pm.</p><p> </p><p>Join our Group ON REO PRO Today!!</p></div>20% Down Payment Rule Starts April 2011 | Mortgages For The Few, Renting For the Manyhttps://www.reopronetwork.com/profiles/blogs/20-down-payment-rule-starts2011-03-29T03:22:42.000Z2011-03-29T03:22:42.000ZRobert Morenohttps://www.reopronetwork.com/members/RobertMoreno<div><div class="entry"> <div title="20% Down Payment Rule Starts April 2011 | Mortgages For The Few, Renting For the Many" class="addthis_toolbox addthis_default_style addthis_"><div class="atclear"></div></div><p>Agents, are you aware of the fact that new lending requirements (Starting NEXT MONTH) will require <em><strong>20% down payments on mortgages. Yes, you read that correctly…20% down</strong></em> will be the new minimum requirement thanks to the new QRW Lending Rules.</p><p>Welcome to the new world of QRM: Qualified Residential Mortgage</p><p>The new QRM requirements exclude FHA mortgages. However, as you will learn in this video the NAR believes that higher downpayment loan requirements will trickle down to FHA loans as well. With non-FHA mortgages putting less than 20% down will require a very nasty interest rate and other added fees. Bottom line agents, unless something dramatic changes in the next 12 months you will see the mortgage products requiring less than 20% down disappearing.</p><p>In this housing market…the worst ever…does it make sense to require substantially higher down payments?</p><p>Bottom line, the new QRW rules may become the new rule April 2011 and be in <strong>full effect April 2012.</strong></p></div></div>Freddie Mac Weekly Update: 30-Year Fixed-Rate Mortgage Drops to 5 Percenthttps://www.reopronetwork.com/profiles/blogs/freddie-mac-weekly-update-1902011-02-25T02:25:24.000Z2011-02-25T02:25:24.000ZHoward Bellhttps://www.reopronetwork.com/members/HowardBell<div><p> </p><p><strong>30-year fixed-rate mortgage:</strong> Averaged 4.95 percent with an average 0.6 point for the week ending February 24, 2011, down from last week when it averaged 5.0 percent. Last year at this time, the 30-year FRM averaged 5.05 percent. .<br /> <br /><strong>The 15-year fixed-rate mortgage:</strong> Average 0.7 point, down from last week when it averaged 4.27 percent. A year ago at this time, the 15-year FRM averaged 4.40 percent.<br /><br /><strong>Five-year indexed hybrid adjustable-rate mortgages ARMs:</strong> Averaged 3.8 percent this week, with an average 0.6 point, down from last week when it averaged 3.87 percent. A year ago, the 5-year ARM averaged 4.16 percent. <br /><br /><strong>One-year Treasury-indexed ARMs</strong>: Averaged 3.40 percent this week with an average 0.6 point, up from last week when it averaged 3.39 percent. At this time last year, the 1-year ARM averaged 4.15 percent. <br /><br /><strong>Freddie Sayz</strong><br />Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac<br /><br />Fixed mortgage rates eased again this holiday week amid mixed inflation data reports. Although the core consumer price index for January rose slightly above the market consensus, house prices fell 4.1 percent in the fourth quarter of 2010 compared to the same period in 2009, according to the S&P/Case-Shiller National Index In addition, the level of the index was the lowest since the fourth quarter of 2002<br /><br />Low mortgage rates and home prices are sustaining affordability in the housing market. Existing home sales rose for the third consecutive month in January and were at the strongest pace in eight months, the National Association of Realtors reported; only the Northeast region experienced a slowdown in sales</p></div>Freddie Mac Weekly Update: 30-Year Fixed-Rate Mortgage Drops to 5 Percenthttps://www.reopronetwork.com/profiles/blogs/freddie-mac-weekly-update-4312011-02-18T01:00:16.000Z2011-02-18T01:00:16.000ZHoward Bellhttps://www.reopronetwork.com/members/HowardBell<div><p> </p><p><strong>30-year fixed-rate mortgage:</strong> Averaged 5.0 percent with an average 0.7 point for the week ending February 17, 2011, down from last week when it averaged 5.05 percent. Last year at this time, the 30-year FRM averaged 4.93 percent.<br /> <br /><strong>The 15-year fixed-rate mortgage:</strong> Averaged 4.27 percent with an average 0.7 point, down from last week when it averaged 4.29 percent. A year ago at this time, the 15-year FRM averaged 4.33 percent.<br /><br /><strong>Five-year indexed hybrid adjustable-rate mortgages ARMs:</strong> Averaged 3.87 percent this week, with an average 0.6 point, down from last week when it averaged 3.92 percent. A year ago, the 5-year ARM averaged 4.12 percent.<br /><br /><strong>One-year Treasury-indexed ARMs</strong>: Averaged 3.39 percent this week with an average 0.6 point, up from last week when it averaged 3.35 percent. At this time last year, the 1-year ARM averaged 4.23 percent.<br /><br /><strong>Freddie Sayz</strong><br /><br />Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac<br /><br />Fixed mortgage rates eased slightly this week and continue to be very affordable. Prior to 2009, interest rates for 30-year fixed-rate mortgages had never been at 5 percent since our survey began in April 1971. In both 1981 and 1982, the rates were over three times as high as they are today.<br /><br />The housing market is struggling to regain traction despite still historically low rates. New construction on one-family homes dipped slightly in January to an annualized pace of 413,000 units, which was the fewest number since May 2009. In addition, homebuilder confidence didnt improve for the third consecutive month in February.<br /><br /><strong>Related Articles</strong></p><p><a href="http://yourpropertypath.com/artman2/publish/Mortgages_165/FHA_Offers_Short_Refi_Program_For_Underwater_Homeowners.shtml"> FHA Offers Short Refi Program For Underwater Homeowners</a></p><p><a href="http://yourpropertypath.com/artman2/publish/Current_Market_Conditions/Rent_vs_Buy.shtml">Rent vs Buy End Of Year 2010</a></p><p><a href="http://yourpropertypath.com/artman2/publish/Current_Market_Conditions/A_Recent_Survey_Is_ItTime_To_Buy_Rental_Property.shtml">A Recent Survey: Is It Time To Buy Rental Property</a></p><div class="clearer"> </div><p><strong><br /></strong></p></div>