Archive for the ‘Mortgages’ Category

Homeowner’s Bill of Rights Passes

Posted on the November 7th, 2011 under Mortgages by

Both houses of California’s legislature just passed the Homeowner‘s Bill of Rights (HOBOR), which aims to provide needed protections for homeowners in California. The bill package by Insurance Commissioner John Garamendi includes four parts: SB 2199 (Kehoe), AB 2962 (Pavley), SB 1474 (Escutia), and SB 1855 (Alpert). “The insurance industry must fulfill its promises to its policyholders,” said Garamendi. “This bill package will help ensure that they do, and it will help prevent future occurrences of the types of serious problems we are seeing in the wake of the Southern California wildfires. Garamendi recently held several town hall meetings in San Diego and San Bernardino to hear the concerns of survivors “The insurance industry must fulfill its promises to its policy holders,”…This bill package will h”ensure that they do… Insurance Commissioner John Garamendi of the 2003 firestorms. The meetings were attend- ed by more than 1,000 residents, many with numerous complaints about the way their claims are being handled by insurance companies. The most serious problems include underinsurance—when the insurance policy does not fully cover the cost to rebuild—and “blacklisting” of homeowners who use the insurance policy to rebuild their home or settle a claim. The bill package includes: • SB 1474: Requires an insurance company to issue and renew a homeowner’s policy unless the consumer made two or more claims within the preceding three-year period. Additionally, no surcharge on a homeowner’s premium can be levied unless there are two or more claims in three years. This bill should protect consumers by prohibiting insurance companies’ “Use it and Lose it” practices while also providing insurers with the opportunity to re-evaluate policies for consumers filing multiple claims. • SB 1855: Requires insurance companies to disclose to homeowners the additional cost of broader insurance coverage than the homeown- er’s current coverage. The costs shown would represent the additional premium that the consumer would be charged for the additional coverage, if the consumer were to opt for that category of coverage. Also requires insurers to include additional information about the insured property on the declaration page to reduce the chances and amount of underinsurance in the case of a catastrophic loss. • AB 2199: Establishes a minimum 12-month period in non-catastrophic situations and a 24- month period for declared “state of emergency” situations for homeowners to repair, rebuild, or replace their home after a loss, commenc- ing with payment of actual cash value. Also, it allows homeowners the flexibility to rebuild or replace in a different location than where the original loss occurred in the event of a total loss. • AB 2962: Establishes a uniform measurement of “actual cash value” and prohibits the depre- ciation of labor costs from homeowner claims unless it is fully disclosed in the disclosure and policy. AB 2962 also prohibits insurers from depreciating items that, by their nature, do not wear out during the normal life of a structure, such as two-by-four studs or cement posts.

FHA Mortgage loan

Posted on the May 5th, 2011 under Mortgages by

For first time home buyers and other mortgage applicants the FHA  loan can have key advantages:

Other FHA Mortgage loan Advantages Include:

Minimal Down Payment and Closing Costs.

* Down payment less than 3.5% of Sales Price * Gift for down payment and closing costs allowed. * No reserves or required. * FHA regulated closing costs. * Seller can credit up to 6% of sales price towards buyers costs.

Easier Credit Qualifying Guidelines such as:

* Minimum FICO credit score of 540. * FHA will allow a home purchase 2 years after a Bankruptcy. * FHA will allow a home purchase  3years after a Foreclosure.

Easier Debt Ratio & Job Requirement Guidelines such as:

* Higher Debt Ratio’s than other home loan programs. * Less than two years on the job is allowed. * Self-Employed individuals o.k.

Other FHA advantages  homebuyers should know:

Easy Qualification – The FHA loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA mortgages can work with as little as 3% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with  FHA home loans.

Less than A-1 Credit is Okay – The  home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage rates get approved every day for FHA mortgages to buy or Refinance homes The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – TheFHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Michigan FHA loan mortgages also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using a Michigan

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA financing! All FHA loans can be assumed by qualified buyers.

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.

Michigan FHA Loan Programs

At one point and time many years ago, the FHA loan was the only alternative to local bank financing for home buyers. In the fashion world, there is a saying: Wait long enough, and everything comes back into style. That rule applies just as well to Michigan FHA mortgage program. Long-overlooked, the FHA mortgage is becoming popular again with Michigan Home Buyers for its low rates and the real security it provides borrowers.

For Michigan banks and other mortgage lenders, FHA mortgage loan financing offers the security of a government insured Mortgage.

Although Michigan FHA home loans require additional paperwork, the reality is that applying for an FHA mortgage loan in Michigan is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Michigan Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Michigan on-time.

You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Michigan homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

FHA Home Loans Offer the Convenience of Streamlined Refinance

An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. Since HUD approved you for the original FHA loan, the paperwork to refinance is minimal and the process is simple.

So long as you have made your FL FHA loan mortgage payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Michigan under very specific conditions.

Less documentation and no appraisal are just two of the reasons a FHA streamline refinance is cheaper and faster for the borrowers who qualify.

FHA Mortgage Loan

Streamline Refinance Requirements

When your 1st Continental Mortgage lender helps you get a streamlined FHA refinance on your existing mortgage loan, he or she will make certain that you meet these conditions:

* Your current mortgage must be an FHA mortgage. * You must have had your FHA Mortgage for at least 6 months. * You must have paid your mortgage on time for the most current 12 months. * Your FHA Streamline Refinance must lower the principal and interest portion of your mortgage payment by at least $50 or convert the mortgage from an ARM to a fixed rate FHA home loan. * You can’t get cash out on the FHA streamline refi. * You must have an FHA appraisal if you are rolling the closing costs into the FHA streamline refinance. * Any existing liens on your Michigan home must be subordinate to the new FHA mortgage.

FHA Mortgage Loan Refinance

Programs for Cashing Out Equity

Although a streamline refinance does not allow you to cash out equity, we have a FHA loan refinance program that is specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.

Unlike many conventional loan programs, the FHA mortgage does not adjust the rate based upon loan to value or credit score. You will find the FHA has very reasonable underwriting guidelines for cash out refinancing.

We have helped many clients borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Michigan FHA cash out refinance right now!

FHA Home Loans For Mobile Homes with Land

Although some conventional lenders in Michigan shy away from making a loan on Mobile Homes or manufactured homes, many FHA mortgage loan lenders do not.

In fact, mobile homeowners fortunate enough to connect with a Michigan mortgage lender, who is well schooled in how FHA loans work for mobiles and manufactured homes, can get a better interest rate, better terms, and a lower monthly payment by going FHA in nearly every case.

It only takes a few minutes to get an FHA loan mortgage quote on your Michigan mobile home. We’ll wager that the savings on your monthly mortgage payments will make it some of the highest paid work you’ve ever done.

Few people realize that the FHA loan uses the same underwriting criteria for single and double wide mobile homes and manufactured housing as it does for traditional site built block or stick homes. In addition, FHA is one of the very few programs that can offer up to 97% financing on mobile homes on land. In addition, did you know that the seller can contribute up 6% toward your closing costs on an FHA mobile home loan and that down payment assistance can be used in Michigan? It’s true! You could package your mobile home financing to create a real no money down loan with unbelievably low rates.