Ask the "Mortgage Man": Grant Money for First Time Home Buyers!

Ask the "Mortgage Man": Grant Money for First Time Home Buyers!: Is it possible to have another incentive better than what is currently available?  We have a program called the First Front Door .  This gra...

Grant Money for First Time Home Buyers!

Is it possible to have another incentive better than what is currently available?  We have a program called the First Front Door.  This grant is offered to first time home buyers ( buyers who haven't owned a home in the past 3 years), under certain income limits, to be used to enhance their down payment.  For every $1 down payment paid by the buyers, this program offers an additional grant of $3 to a maximum grant of $5,000.  This may or may not have to be paid back.  There are certain income limits and restrictions, but you don't have to pay anything back if the property is occupied for the first 5 years of ownership.  It is a nice way to minimize the savings required to buy a home.

In addition to this grant,  the normal incentives of seller assist can be applied to the closing costs, making this program affordable to may different first time home buyers.  The grant funds are limited and are given on a first come first serve basis, until the funds are depleted.   They anticipate that they will be exhausted sometime in April. 

It is a great program for anyone that needs that extra cash, especially on properties that won't meet USDA or FHA property requirements.  Perhaps the well and septic don't meet the  minimum property requirements, or repairs necessary to pass the property for  FHA/USDA  financing.  This is a fantastic alternative while monies last.

Andy Williams
President
(484)-695-5972
NMLS #118317

www.abacusmort.com

Fannie Mae raised their maximum lending limits

Buyers who qualify for conventional financing can purchase a home for over $500,000 while only putting down a 5% down payment.  This is quite a difference from when I started in the business.  The maximum loan amount that could be financed through Fannie Mae in 1986 was $133,250.  This opens up more opportunities for buyers wishing to qualify for more home with less of a down payment.  This isn't like years ago where the leniency in lending laws caused an avalanche in foreclosures due to poor lending practices.  Using sound judgment, lenders ensure your ability to qualify for these mortgages.  Dodd-Frank requires lenders to make sure that they qualify to buy.

For more information please call me at (484)-695-5972 or visit our website at www.abacusmort.com

Ask the "Mortgage Man": IRS PHONE CALL IS A SCAM

Ask the "Mortgage Man": IRS PHONE CALL IS A SCAM: I was awakened by a wrong number in the middle of the night, but I missed the call.  Wondering if it was some family member in an emergency,...

IRS PHONE CALL IS A SCAM

I was awakened by a wrong number in the middle of the night, but I missed the call.  Wondering if it was some family member in an emergency, I listened intently as I played all of the unheard  messages on our home voice mail.  I was alarmed at a robotic automated message left from the "Internal Revenue Service".  I was startled at first by the robotic voice's nasty undertone.   As I replayed it, it became apparent that perhaps this is some sort of scam. The message threatened that there will be legal action initiated against me unless I call them immediately.  Click here to hear the actual message.  A police officer was scammed and called the number back.  This is interesting as the scammer actually goes into detail to how they take your money. Click here to see the accompanying video. Watch from 1:45 to 5:00.  A former NFL player, who is a radio personality, left his office and did exactly what the scammer told him to do.  He went to many convenience stores and payed thousands of dollars into foreign Pay Pal accounts before realizing that this may be a scam.

After researching this more in depth, I found that the IRS will never call you on the phone.  The most they will do is send you multiple letters.  If you file your tax returns on time, pay your required income tax, you have nothing to worry about.

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

Does Going With Conventional Financing Avoid Having To Make Required Repairs?

If FHA/ USDA/ VA loans require repairs to be completed prior to closing, why not just switch to a Conventional Mortgage? As long as the buyers qualify, we won't have to worry about doing any repairs to the home.  Besides, many of these homes are foreclosures, and many banks, Freddie Mac, Fannie Mae, HUD, and others won't allow the properties to be touched prior to closing.  Wrong!

The appraisers have been going through a scrutiny as of late.  The level of responsibility to report accurate and concise information of the homes, has increased exponentially.  Appraisers are being told that they can be held liable for any unreported issues, so appraisers are now required to take pictures of every room in the house, and they must note any unusual abnormalities that can effect the marketability of a home.

They must give the home a Quality rating, too.  They are given a rating of  C-1 to C-5. A rating of C-3 is considered average.  When the Conventional appraiser reviews the home, they are still taking pictures and making notations of things like: Stains in the carpet, water stains in the ceiling, holes in the wall, missing molding, broken windows, water in the basement,etc.  Even though none of these is structural in nature, banks are requiring these items to be fixed because they are concerned about safety and soundness issues with the property.  The average quality rating is expected, and anything below that rating requires repairs to be made before the buyer can take possession of the home.  Once these repairs are completed, the appraiser must go back out to the property and reinspect it for the bank.  The appraiser verifies that the Quality rating is up to average.

There are two ways that this situation can be dealt with.  Either the buyer does the repairs on a home that they don't own, which can be time consuming and unacceptable to a seller, or they can apply for a rehabilitation loan.  A rehab loan is one where a buyer obtains an estimate of repairs from a contractor, our bank holds the amount of money in an escrow account.  Once the required repairs are complete, the bank pays the contractor direct for the repairs, or reimburses the buyer once they have been shown that have been completed.  Most lenders can't do any type of Rehab loans, or they offer the FHA 203K, which is arduous and expensive.  I can do a standard conventional rehab loan, requiring as little as 5% down payment.  Regardless which way you want to go, please know that switching the type of financing to Conventional doesn't promise any different outcome.

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

Ask the "Mortgage Man": BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE...

Ask the "Mortgage Man": BUYERS WITH CREDIT SCORES BELOW 620 ARE FINANCABLE...: Does your lender finance anything  below a 620/640? FHA/VA/ USDA loans are all regulated by the government.  They don't truly have minim...