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Loans, Buy Down Mortgage, Save money, Money, Mortgage

Loans, Buy Down Mortgage, Save money, Money, Mortgage


I found a great resource for people looking for ways to save tons of money on accumilating interest.
Its called “How to knock 9 years off your mortgage.”

I feel that mortgage brokers should be the “good guys” when it comes to owning a home. When a lot of money is moved around in real estate there is definitely room for greed’s nasty face to show up. If banks had it their way they would be constantly lending money to you and gaining tons of interest on that money. It’s what they’re good at. Although its not all that bad. If you know how to make it work to your advantage! Do your homework. Study how a mortgage can work for you. And if youre reading this, you are moving in the right direction.

The reason why we should be the good guys is that we’ve already done the homework, we know the material. We should be guiding clients in the best possible direction just as a financial planner would. We should be earning our comission through good sound advice and life long/Mortgage long guidance. We SHOULDN’T be putting people into loans we know they can barely make it by. Why let the public suffer with a sub par quality of life paying tons of money towards a mortgage they cant afford? But thats what was happening for a while.. knowlegeable mortgage brokers letting their loan officers solicit without the clients best interest in mind. Greed played a big part in the mortgage meltdown. I’m hoping to help turn it around one loan at a time.

*UPDATE* I am a finishing up my degree and classes had just started a week ago. There is a lot of transformations going on and I would like to apologize to the readers of this blog for not posting regularly like I should. There has been a few changes.

The Down Payment Assistance programs are most likely going to be non existant by october 1st of this year. This is very close. It will be one of the Bush administration’s final blow to the mortgage industry. Although I understand the reasoning behind its dismantlement, the down payment assistance program helps alot of renters that don’t want to throw their money out the window with monthly payments to their landlords. It will be devistating to many.

*Exciting News* – Ford Financial is now one of 3 institutions helping with a 220 apartment units transition into condominiums. This is great for us because the other two banks have a limit credit score or they can’t do the conversion. I know we will help alot of people stay in their homes.

If you have any questions about your current mortgage, credit repair, or getting a mortgage please contact us today!

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As some of you know the Down Payment Assistance programs offered by FHA were on the verge of being shut down. Something like 30% of all FHA government loans were done with downpayment assistance programs. The two most popular non-for-profit’s, Nehemia and Ameridream, were in question of whether or not they actually were non-for-profits and if they deserved to stay afloat.

Well i’ll just copy and paste the email I recieved the other day…

August 1, 2008 Last night, Congress introduced bipartisan legislation, H.R. 6694 <https://www.ameridream.org/Documents/Congress/HR6694.pdf>  that would reauthorize and reform charitable downpayment assistance. This bill would remedy a harmful provision in the new housing law which limits homeownership opportunities for low and middle-income Americans. The legislation, sponsored by U.S. Reps. Al Green (D-TX), Gary Miller (R-CA), Maxine Waters (D-CA), and Christopher Shays (R-CT) reauthorizes and reforms charitable downpayment assistance funded in part by sellers, which has helped over one million families and individuals become homeowners since 1999. The program was eliminated by legislation signed by President Bush on July 30, 2008. The Green-Miller-Waters-Shays plan would re-authorize and reform non-profit downpayment assistance and secure it as an allowable source for FHA borrowers. The bill seeks to ensure that providers of the downpayment assistance operate in a transparent manner to guard against conflicts of interest. The bill also includes language to ensure that FHA maintains its financial stability by permanently authorizing the Secretary to assess higher premiums to higher risk borrowers. It is important that you contact your elected officials in Congress and tell them that you support downpayment assistance and urge them to support H. R. 6694. To reach your elected officials, please call the US Capitol Switchboard at 202.224.3121. To learn how you can support it, visit http://www.supporthomeownership.com <http://takeaction.supporthomeownership.com/ahaa/issues/alert/?alertid=11521436> . AmeriDream continues to be your trusted advisor, bringing timely and accurate information when you need it most. Thank you for your continued support and confidence.  

We at Ford Financial pledge to always give you the real deal, up to date information about your home mortgage and the benefits/downfalls that come with it. Contact us today if you have any questions!!

Purchasing your first home can be a daunting task for many first time homebuyers. Many individuals do not have the best credit and finding a home loan that wont kill your paycheck can be a hard task. Others are concerned about the up front costs that come with purchasing a home including money down, closing costs, taxes, etc.

FHA is a solution to many of these questions and doubts.

Today’s FHA terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for conventional 80% / 20% down payment loans.

There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan. (like stated earlier right now are lower due to market conditions)

Normal subprime lenders have employed much higher interest rates in order to compensate for the increased risk of the loan. Because FHA loans are guaranteed, there is substantially less risk for the lender and therefore interest rates are lower

Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when using the down payment assistance programs that supplement FHA, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.

Stop renting today and purchase your first new home. Why pay for someone else to build equity when you can jump on lower FHA loan rates and build your own wealth? Don’t be intimidated by the thoughts of upfront costs and take that first step to purchasing your first home. It may not be a brand new house but it’s always nice to have a roof over your head that you can say belongs to you.

Some of you will notice the two new links on the left hand side of this page. These are links to government sponsored programs. Both are very similar in that they both are involved with down payment assistance. With these two programs you can buy a house with no money down. So when you hear everyone say NO MONEY DOWN, this is what they’re talking about.

How does it work?

Being that they are non-profit organizations they basically take a check written by the seller, the organizations then process that check and write a new check as a “gift” or “grant” for the down payment which the seller is returned in the end.

There were some problems with this earlier on in the year between the government and them regarding whether or not they really are a non for profit organization.

Either way they are still providing homes with no money down through FHA backed mortgages. Being FHA experts in this field if you are looking to buy a home for no money down it most definitely is possible!!