Tag Archives: Mortgages

What to do to Purchase a Home

WHAT TO DO TO PURCHASE A HOME

Purchasing a home is the largest investment that most people undertake in their lifetime. Since credit scores are very important factor in determining what terms the buyer would receive on the financing in the purchase of a home, buyers should know what they can do to improve their credit scores.

First thing is get credit scores from the three major credit bureaus, Experian, Equifax, and Trans Union. These scores should be similar, if not, then there are discrepancies that need to be looked in to.

If you find any errors, they should immediately be challenged in writing by filling out a dispute form located on the back of the credit report. Once the credit bureau as received the written challenge, they must notify the retailer and then the retailer has 30 days to respond in writing. If they fail to respond the consumer gets the benefit of any doubt, but the down fall it takes 30-45 days to correct it. It is recommended that the buyer get credit scores 45-60 days prior to closing on home, to give enough time to fix errors.

Do not make inquires for additional credit such as department store, auto dealers, furniture etc. Recent inquires lower scores.

Payoff as many outstanding balances owed on credit cards and other month to month and do no use credit cards until after closing.

Pay obligations timely.

Do not use credit cards to pay off another during 30-45 days of closing period, as both credit card balances will show up increasing debt ratio.

Do not use consumer finance companies. They lower your score.

Never go to consumer counseling service when you apply for home loans. This alerts credit bureaus that you are unable to pay bills and will have an effect such as bankruptcy would.

If you have relatives that are willing to help you, have them pay off your credit cards to help wipe out debt. Present estate gift laws allow relatives to give $11,000 per year. Another way a relative can help is to buy down the mortgage rate, or they can act as co– borrowers.

It is always good to check your credit report yearly. We found someone used my husbands name and SS# and we had a judgment on one of the three reports.

I hope this was informative for you and your friends. I hope you are doing well. If you need anything call me 352-266-2637.

I work with Rick Durham Bank of England, he is wonderful, call her for loan information– 352-804-5883

– Rhonda

Maybe it could be a good time for you to buy a home in Ocala? | FHA May Waive Its 3-Year Foreclosure Waiting Period

Rhonda Buckner with Buckner Homes Realty 3200 SE 20 ave 34471
352-266-2636

FHA : Loans For Borrowers With 500 FICO Or Better

The Federal Housing Administration (FHA) is not a mortgage lender; the FHA does not make loans. Rather, it insures loans for banks that do.

The FHA publishes a compendium of rules known as “FHA mortgage guidelines” and so long as a mortgage meets of the rules’ minimum standards, the FHA will insure the loan-issuing bank against default.

A better name for an FHA mortgage, then, might be FHA-insured mortgage; it’s a more accurate reflection of the relationship between the FHA and mortgage lender nationwide.

Click here for today’s mortgage rates.

For purchase transactions, FHA mortgage guidelines are fairly straight-forward :

Monthly debt should not exceed 45% of household income, without excellent cause
Downpayment must be 3.5% of purchase price or appraised value, whichever is lower
Credit scores of 580 or higher get “maximum financing”; Scores under 500 disallowed
In addition, mortgage loan sizes may not exceed local FHA loan limits.

In most areas nationwide, including Palo Alto County, Iowa; Price George’s County, Maryland; and Miami County, Ohio, for example, local FHA loan limits are $271,050.

In other “high-cost” areas including Los Angeles County, California; Monroe County, Florida; and Eagle County, Colorado, the local FHA loan limit is $729,750.

Click here to check your area’s FHA loan limit.

FHA Mortgage Guidelines Change With The Economy

Mortgage guidelines are a living, breathing thing. As the housing market moves, and as credit conditions necessitate, mortgage guidelines morph. This is true for FHA mortgage guidelines, just as it is for Fannie Mae- and Freddie Mac-type loans and VA loans, for example.

Guideline changes can be small; increasing maximum debt-to-income ratios from 43% to 45%, for example. Or, they can be big. The HARP 2.0 program is a good example of this. Other times, changes are major — broad enough in scope that they reverberate throughout the housing market as a whole.

The FHA may make a major guideline change soon.

Within 75 days, the FHA is expected to change its purchase mortgage guidelines to allow home buyers with major derogatory credit events in their recent history to skip the traditional “waiting period” for an FHA-backed mortgage.

Click here for today’s mortgage rates.

FHA : “Ignore” Foreclosures, Bankruptcy, Short Sales?

Major derogatory events include foreclosure, short sale, and Chapter 7 bankruptcy. The mandatory waiting period of each of the aforementioned events are as follows, assuming credit has been re-established by the borrower :

Foreclosure : Must wait 3 years before eligible for FHA-insured financing
Short Sale In Default : Must wait 3 years before eligible for FHA-insured financing
Chapter 7 Bankruptcy : Must wait 2 years before eligible for FHA-insured financing
Under the FHA’s expected new plan, these waiting periods will be waived in full.

Soon, FHA-insured loans may be available to home buyers who may have been recently foreclosed upon; for whom a short sale was necessary; or for whom a Chapter 7 bankruptcy was discharged yesterday.

The FHA’s new waiver on foreclosures, short sales and bankruptcies would add to the national pool of home buyers, creating buy-side demand for housing and upward pressure for home values nationwide.

Click here for today’s mortgage rates.

See Today’s FHA Mortgage Rates

The FHA has grown its market share since the start of the decade on a combination of sound mortgage guidelines, low mortgage rates for borrowers, and a minimum downpayment option of just 3.5%. With its expected “waiting period” waiver, the FHA figures to grow its market share, and the pool of potential buyers nationwide.

Home prices have made slow, steady gains since October 2011 and those gains may accelerate with new FHA policies. See how today’s FHA mortgage rates can fit in your household budget.

Give Rhonda Buckner a call at 352-266-2637 to find the home of your dreams!

Facing Forclosure in Ocala? | Tips to Help Prevent Foreclosure

Rhonda Buckner- Buckner Homes Realty 3200 SE 20 Ave. Ocala, Florida
34471 Phone 352-266-2637

In early 2011, you may remember there was a lull in foreclosure activity – a lull that was prompted by nationwide scrutiny into lenders’ home-seizure practices. But in more recent months, as barriers that have been holding foreclosures back have been removed, banks, anxious to rid their books of long-delinquent mortgage loans, have been stepping up foreclosures — all over the country.

Granted, we’re well below the peak levels we saw from 2007-2010, but even so, consider this: In March, 2012, foreclosure filings were reported on nearly 200,000 properties — that’s 7.4 out of every 10,000 homes. With many more foreclosures in the pipeline, here’s how to avoid becoming a statistic:

Buy a home you can truly afford

Ok, so this is an obvious point, but reiterating the numbers is never a bad idea: Your housing costs (mortgage, insurance, taxes) should be no more than 25-28% of your monthly take-home pay. Use Zillow’s affordability and mortgage calculators. They’ll estimate the monthly costs of home ownership within the context of your monthly budget. If the payments seem too unruly (Give them a test drive!), you may need to come up with a larger down payment or shelve your purchase plans altogether.

Contact your lender immediately!

Doesn’t look like you’re going to be able to make that payment .. again? You need to let your lender know about your financial woes immediately, and, ideally, while your head is still above water and your credit is in tact.

Consider temporary relief

If you think that your inability to your make your mortgage payments is going to be temporary, see what kind of temporary relief your mortgage servicer can offer. They may be willing to accept reduced payments over a certain period of time; they may allow you to skip payments over a certain period of time; they may extend the grace period for late payments. Just remember: these solutions are temporary, so in the interim, try to find new ways to slash spending and save more. You must also prioritize your bills, paying attention to the ones that are the most essential.

Look into a modification

If your financial situation has permanently changed, then temporary relief is not going help much. You may need to have your loan modified. And while there are many different ways to do a modification, they generally incorporate interest rate cuts, term extensions and principle reductions – or a combination of these methods. Yes, there is a lot of paperwork involved, and yes, it can be complicated, but banks are under pressure to do these modifications and as a result, we are seeing higher success rates: the average savings, per modification, is about $500 a month. To see if you are eligible for a modification, go to makinghomeaffordable.gov.

Explore a short sale

If you’re underwater (as 23% of homeowners are today), cash-strapped, desperate for relief, and foreclosure is looking imminent/speed is of the essence, then you might want to consider a short sale. This where you’re selling your home, for less than what you owe on it, to your mortgage lender. The upside: No more negative equity burden; it’s not as damaging to your credit as a foreclosure is; you can purchase a home again in as little as 3 yrs; and you’re selling your home with your pride in tact.

Rhonda Buckner Specializes in Short Sales and can help get you through the entire Short Sale Process. Call Rhonda Buckner at 352-266-2637