Saturday, February 8, 2014

Ask the "Mortgage Man": Effective Financing for Foreclosures with NO PMI i...

Ask the "Mortgage Man": Effective Financing for Foreclosures with NO PMI i...: Do you ever see a property cheap enough to buy, but needs thousands of dollars in minor cosmetic repairs?  You don't have much money for...

Effective Financing for Foreclosures with NO PMI insurance!

Do you ever see a property cheap enough to buy, but needs thousands of dollars in minor cosmetic repairs?  You don't have much money for a down payment because you want to save some of your money to fix up the home.  Usually an FHA loan is the best way to finance a property so that you can keep your down payment to a minimum. FHA requires certain repairs and defects to be completed prior to a new buyer taking ownership of a property.  Perhaps it is a bank-owned property who won't allow you to make any repairs or alterations to the property prior to taking ownership.  A simple solution would be an FHA 203K loan.  This product allows a buyer to finance the required repairs into the mortgage, with all of the work being done after the closing.
Lately, more and more people are upset about FHA's version of PMI insurance.  It is called Risk Premium.  It is the most expensive monthly PMI insurance on all types of mortgages.  The cost is anywhere between 125% to 250% higher than PMI insurance on conventional mortgages.  We offer conventional loans with as little as 5% down with NO PMI insurance.  Since most conventional mortgage underwriters normally don't call for cosmetic repairs to be completed prior to closing, this is a better alternative with properties that don't need major structural repairs.  So if you don't want PMI insurance on your loan, and wish to do as little as 5% down payment, this is a better alternative for many buyers.

Andy Williams
NMLS #118317
President
Abacus Regional Mortgage
NMLS # 113984
(484) 695 -5972
www.abacusmort.com








Saturday, February 1, 2014

USDA loans are quicker than normal

As of last week, USDA has not only caught up in their underwriting department, but they are way ahead of their normal time frame.  They are taking only 2 business days from the time the final files are submitted to them for a final approval.  Most loans are closed within 4 business days of final loan submission. This means that buyers can move in to their home in much less time than usual.

For your next USDA loan, please call me.

Andy Williams
President NMLS 118317
Abacus Regional Mortgage NMLS 113984
484 695 5972

Monday, January 13, 2014

Ask the "Mortgage Man": What is with this QM change to lending?

Ask the "Mortgage Man": What is with this QM change to lending?: I've been in the lending business since 1986 and I've found out that things are always changing in this industry. Although guideline...

What is with this QM change to lending?

I've been in the lending business since 1986 and I've found out that things are always changing in this industry. Although guidelines sometimes change, we adapt and find new ways to help people buy homes.  In 1980-1982, the interest rates were a staggering 18%+ yet buyers still purchased homes.  In March 2009, the Governor abolished all types of "No income verification" loans to be written in the state of Pennsylvania.  The latest change is the new QM changes in effect since January 10, 2014.  This QM ( Qualified Mortgage)
change means all lenders must prove that anyone they are lending to must qualify for the mortgage. Certain protocol, verifications, and other steps must be followed in order to comply with this new law.  For those of us who've always performed these steps there is not going to be any significant change in our day to day operations.  More importantly, the buyers who now are buying will continue to be able to buy.  Very few people will be affected by the new guidelines.  The hilarious part is that there is a period of adjustment where the government will allow status quo with no changes.  The deadline is the year 2021! This means that they can revamp the guidelines again or abolish them anytime within the next 7 years.  We've been able to overcome high interest rates, major program changes, a current glut of foreclosures and short sales, and we will continue to prosper in the future.

Andy Williams NMLS 118317
President
Abacus Regional Mortgage
NMLS 113984
484-695-5972


Monday, December 16, 2013

Ask the "Mortgage Man": Can I buy a house if I just declared bankruptcy?

Ask the "Mortgage Man": Can I buy a house if I just declared bankruptcy?: I have heard this question over and over again, and until now, I was unable to say yes.  The old tried and true method of approval is: 2 yea...

Can I buy a house if I just declared bankruptcy?

I have heard this question over and over again, and until now, I was unable to say yes.  The old tried and true method of approval is: 2 years out of bankruptcy, 3 years from short sales or foreclosures.  With this new program from FHA called "Back to Work", it enables an individual with a bankruptcy/ foreclosure/ short sale, to purchase a home after 1 year.  If they lost their job and earned much lower income while collecting unemployment, or had to take a much lesser paying job, they may be eligible for this program.  The catch is that a borrower must be able to show that they had good credit prior to their loss of job, and good credit reestablished for the past 12 months since this life changing event.  This program has and will open many new doors for home-ownership in 2014 and beyond.

For more information please contact me at 610 837 1600 or 484 695 5972

Andy Williams 118317
President
Abacus Regional Mortgage 113984
www.abacusmort.com