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