FHA's are Assumable!

It's still a great time to buy IF you can get a house. Of course inventory concerns in better markets are a dilemma, let's look at some more positives of buying today with a FHA loan.

Guess what? FHA loans are assumable and why does that matter you ask? Well in 5-7 years, which is the typical amount of time for homeownership in one home, when you go to sell the home, you can sell with an assumable loan.

Well why does that makes sense? Well, if rates rise, as they are expected to do, and you are offering a 23 year fixed rate FHA loan that is assumable. Compare that to a new 30 year fixed mortgage at 5, 6, or 7%... The savings are massive to the new homebuyer.... and guess whose home those buyers may pick when looking to buy in an higher interest rate environment. So if you are in an FHA loan - here is another reason to feel great about getting that home.

New Real Estate Investor Mortgage Product

I am beginning to market a brand new mortgage program for private real estate investors that allows for quality long term fixed rate financing for their Residential Real Estate Portfolios.

This mortgage program is designed for Real Estate Investors who own, in aggregate, over $4 million dollars in investment property and can accomodate transactions up to $50 million is size.

This program allows these property owners to obtain one blanket loan, for up to 70% of the value of those stabilized and rented properties for refinance (cash out or rate and term) this program can also accomodate bulk acquisition of stabilized and rented properties in one transaction as well.

Program Terms:

Non-Recourse

ZERO Credit Score Requirements

50-70% LTV $4 Million-$50 Million Loan Amount

6-8% Fixed Term for 20 Years (4 Years Interest Only)

1.5% Total Points

Rate Term, Cash-Out, Bulk Acquisition

SFR, Condo, Units 1-4's

For more information - please call or email today. Mortgage Brokers are welcome to participate. Michael Foote michael@michaelfoote.com 949-584-4600 for details

Stocks Uncertainty Helping Rates

Hopefully investors will take a little off the top and force cash back into Treasuries which will help all of us Originators lock in lower rates for our clients. Little rally today is helping. A few more down days and we could retouch those lows of late last year and early 2013.

 

Financial turmoil in the tiny little island of Cyprus has investors shifting back into the safe haven trade of global Bond markets today feeling that it could lead other small Euro nations across the region.

US Stocks are trading lower on the news and giving a bounce to Mortgage Bonds this morning.

There are no economic reports due for release today.

The big standout this week will be the two-day Fed Meeting that begins tomorrow and ends with the monetary policy statement being released at 2:00pm ET on Wednesday.

There is no chance of a hike in interest rates but the Fed's rhetoric on the current stimulus programs will be closely scrutinized.

A Carefully Floating bias continues to be recommended, but as always, sentiment can quickly reverse.

HARP 3.0 or is it III - Bill introduced to Congress today

The new HARP 3.0 bill was introduced in Congress today. The goal of this program is to expand the already fantastic results of HARP 1.0 and HARP 2.0. The bills aims at making it easier for underwater homeowners whose loans ARE NOT owned by Fannie Mae and Freddie Mac to refinance. This program does not require mortgage insurance and has low market rates.

The new program aims to make it easier in regards to income, appraisal, and employement requirements. Basically, we are going back to stated for those that have shown they can continue to make payments on time.

I've personally spoken to many of you about this program and it's advantages. Now!! is the time to apply for this program...Yes I know its not even out yet. But I can tell you that if you wait until the program is announced finalised and launched you WILL BE too late.

Lender are notorious for raising rates to cut back production when prodcution soars. And believe me production will sore again when this product hits the market.. So to quote an old adage, The early bird gets the worm.

Call me or visit my website to begin the application process. We will get your application all set-up and ready to go once the program is live. www.michaelfoote.com

SBA 504 - For Small Business this is the best commercial real estate loan

SBA 504 financing offers businesses below-market, fixed rate financing for the acquisition, renovation or construction of commercial real estate. SBA 504 loans provide long-term stability for businesses with the ability to retain working capital which can be used to further grow the business and create new jobs. The March SBA 504 interest rate is 4.29%, fully fixed for 20 years.

The SBA has been offering small business financing for a long time. And many believe today that financing is tight. Well the fact is the SBA WANTS to lend to small business and the 504 program is a great way to buy a building rehab an existing building or finance working capital for expansion.

Many banks and small lenders offer the product but rates vary greatly depending on who you speak to. And lenders also have overlays, or further restrictions in addition the the SBA minimum qualifying requirements. This is where a smart broker comes in handy.

Since the qualification process consists of a TON of paperwork. For the busy business owner, simply pile your last three years of taxes, your YTD profit and loss, and an executive summary and send it to a competent broker. That broker will qualify your loan before a bank ever sees it.

At that point, the broker can determine whose guidelines you fit in most compared to the lowest rate and cost out there. A broker's job is to work for YOU and shop and secure the best financing - so you don't have to.

Rates and fees for commercial loans aren't that easy to come by. There isn't

HARP Loans. Refinance Underwater Properties

HARP loans set another record this years. Surpasing most expectations for volume but many are still missing out on getting a lower mortgage rate. The HARP program allows homeowners who are underwater on their 1st and 2nd second mortgages and whose loans are owned by Fannie Mae or Freddie Mac to refinance into a new first mortgage at todays low rates. They cannot payoff the second mortgage but the savings on the first mortgage usually provides substantial overall payment benefit. The savings can then be applied to paying down their second mortgages. 

At www.MichaelFoote.com you can find a source for HARP loans with-out LTV restrictions. What does that mean? Well in many cases HARP is not the same from lender to lender. Some banks limit the LTV to 105% or 120% when in reality the program does not have a LTV or HLTV cap.

Make sure to visit my site and reach out to see if you qualify for a HARP loan. In some cases you may even qualify for a conventional loan with an even lower rate. With values rising at an ever increasing pace, its not uncommon for homeowners to not realize how much their homes are worth today.

If you have an FHA loan, don't forget about the streamline mortgage program. It MANDATES you have to save money and doesnt require a income documentation or appraisal. Just make sure you've made your first six payments on your current loan on time...and chances are you qualify.

Mortgages, Mortgages, More.

There is no trick to getting a great mortgage. At www.michaelfoote.com you'll find a independent mortgage banker who takes pride in trying to get the best deal possible and any given moment. Can I predict moves in rates, no. No one can. But what I can promise is my profit margin is much lower that most lenders and brokers and I can prove it. Big banks can mark-up their rates and consumers really have no way of knowing what the "mark-up" is. You see mortgages are really no different that apples. Apples are shipped all over the world and depending on the cost to bring that apple to market and the margin the company selling said apple needs to charge over their cost is the price you are going to pay for that apple. Mortgages are no different.

Today the vast majority of mortgage peeps are selling the same product. Sure there are small differences in product (Macintosh, Red Delish, etc) but they are all still apples. I don't have a large marketing budget, I don't deliver donuts to Realtors and I don't "pay-to-play" with Realtors, and I work from home. All this allows my costs per funded loan to be lower that some of the larger lenders and even some larger mortgage brokers.

The real conclusion here is you need to work with those you trust. Your gut should tell you who to work with and if you don't trust your gut. Go with a personal referral and NEVER deal with someone that won't put their offers in writing and guarantee your lock terms.