Thursday, February 14, 2019

Mortgage Options With No To Low Down Payment


Many people delay buying a home until they have saved 20% for there down payment. That is not necessary with several No to Low Down Payment options available to home buyers.

It’s true if you put down 20% your payment will be lower, but most don’t have that much in savings and if you do, do you really want to spend it all and put your financial health at risk. If you are like most people saving is very hard. Doesn't mean you can't make a monthly house payment. Putting off buying until you can save 20% will most likely cost you more with increasing home values and increasing mortgage rates. Here are a few loan programs that are available now. 

USDA – United States Department of Agriculture Rural Housing Loans offers 100% financing. You will be surprised to hear it’s not just a farm loan. You can use USDA home loan on many types of property, like condos and townhomes as well as residential homes. You can plug in any address to see if the property qualifies at USDA Property Look-up


USDA does have income limits, but most people will qualify. You can see if your income meets the requirements here USDA Income Limit- Look-up

Mortgage insurance is much lower on a USDA home loan, making this loan the most affordable home loan option.

VA Home Loan offers 100% financing for members of the Military and their surviving spouse. VA guarantees the loan and will repay the lender making the loan if they have met the VA guidelines.
There is a VA funding fee that is financed within the loan and all closing costs can also be incorporated into to loan. Making this a true 100% loan. There is NO mortgage insurance on a VA home loan.
The 2019 VA loan limit increased to $484,350 from $453,100 except in 199 high cost counties where they are higher. You can check out the loan limits by county


FHA – Federal Housing Administration is the largest mortgage insurer in the world, offering a 96.5% loan with 3.5% down payment. There is mortgage insurance (MI) of 1.75% upfront that is added to your loan and a monthly MI of .85% if the loan is at 96.50%. MI will remain on an FHA loan for the duration of the loan. You will need to refinance or sell to cancel the MI. Seller can contribute up to 6% of the loan amount as a credit, this can be used to cover your closing costs but not your down payment. Your down payment can be gifted completed or partially by a relative or third party.

If a lender funds according the FHA guidelines, then FHA will guarantee the loan making qualifying a bit easy with lower credit scores down to 580 for most lenders.

Fannie Mae Home Ready Loan Program with 97% financing with a 3% down payment. A great alternative to FHA.   Income limits do apply and you can look them up here Income Limit Look-up 

This loan program does require Mortgage Insurance but once your home has 20% equity you can request it to be removed, unlike FHA.  

There is a homebuyer education requirement to insure you know the process and what to expect financial as a new home owner. You can take this course online or in person.

Freddie Mac Home Possible offers 97% financing with a 3% down payment. This product feature very similar guidelines as the Home Ready program. MI can be removed once equity reaches 20%. Non- occupying co borrower is allowed on a 1-unit residence. Now you can even add sweat equity for your down payment and closing costs.  

 No income limits in low-income census tracts, and otherwise limited to 100 percent Area Median Income (AMI). No geographic limits on loan amounts. Use the Home Possible Income & Property Eligibility Tool to see income limits for specific properties or submit to Loan Product Advisor® to determine Home Possible income eligibility.

This is another great option for the right buyer.

Conventional Financing at 97% with a 3% down payment is another option with all the same guidelines as a normal conventional loan but it will have mortgage insurance based on your fico score, debt to income ratios and property zip code.  

Down payment assistance programs are also available in most cities, counties and states. Check your state and local area to see what is available and what guidelines are required. You will be surprised that most people will qualify for some type of assistance. Need help give me a call.

To get started to see if you qualify for any of the loan programs go to www.roxyloans.com and click on apply. Once you complete the application, I will give you a call. If you want to call me first, please do!

 For more information please contact me at 808-457-2455.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926


Saturday, January 5, 2019

Government Shutdown And How It's Affecting The Mortgage Industry

The government shutdown could put a halt to the Mortgage loan process and affect the housing market. Here’s some information about the different government agencies we depend on to process and close real estate mortgage loans.

 All borrowers go through a verification process of their Federal income tax return to verify their income. This is done through the IRS with a 4506T form that is sent to IRS for confirmation. This IRS department is closed, putting to halt to all verifications.

 FHA loans being originated by lenders with “Delegated Authority” will continue and be able to get their case numbers from FHA through their online systems and both FHA and VA will continue. However not all lenders have this authority and will affect closings.

 Many lenders have been putting the brakes on closing without this 4506T IRS verification, while others are doing a work-around on private loans, some will try to verify income through older methods and continue using Fannie/Freddie guidelines, those lenders lucky enough to have that delegated underwriting authority will continue to fund loans. 

This is going to create a backlog of 4506T orders for the IRS when they do get back to work. Because all these loans will eventually have to be verify even the ones that closed without it.

 USDA loans have been affected in the most negative way, the USDA department, that issues the loan commitments has been closed due to government shutdown. Without this letter of commitment, no USDA loan can close and all loans waiting for a commitment letter are at a standstill.

 If you are in the process of purchasing a home using FHA, VA or USDA check with your Loan Officer for the status of loan, hopefully the government shutdown will not be an issue, unfortunately some of you will be in a holding pattern until our government is up and running.

 For more information please contact me at 808-457-2455.
Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.




Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Tuesday, November 27, 2018

Loan Limits on the Raise for 2019


Today the Federal Housing Finance Agency (FHFA) announced for the third year in a row they are increasing the conforming loan limits for Fannie and Freddie. Per the Housing and Economic Recovery ACT of 2008, requires that the baseline loan limits be adjusted each year to reflect the changes in the national average home price. The increase for 2019 is $484,350 that is a 6.9% increase from 2018.

Home prices are on the raise and this moves keeps up with the economic need for higher loan limits. Loan limits for High Cost Areas where 115% of the local median home value exceeds the baseline loan limits, the High Balance limit is $726,525 and cannot exceed 150% of the baseline $484,350.

To check the High Balance limits for your county..  Click HERE! 

Below is a list of loan limits per unit for 1-4 units, the amount goes up for each added unit. 

New Limits
Conforming
1 unit - $484,350
2 unit - $620,200
3 unit - $749,650
4 unit – $931,600

High Balance
1 unit - $726,525
2 unit - $930,300
3 unit - $1,124,475
4 unit - $1,397,400

For more information please contact me at 808-457-2455.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Tuesday, November 20, 2018

Determining Your Commercial Mortgage Interest Rate

Understandably, one of the first questions we’re asked from potential commercial borrowers is “What will my interest rate be?” But the final interest rate on your new loan will be based on your past credit history, the loan-to-value (LTV) of the property, and other risk components associated with the deal. And before we can provide a valid financial quote we’ll need to work together to build a suitable package for the lender or investor to underwrite. The final rates and terms you receive will be based largely on you – the business owner.

In addition to interest rates there are other factors you should consider if your goal is to obtain the best overall financial package and return on your property as an investment. For example, the terms of a mortgage loan can be just as important as the interest rate. Any pre-payment penalties could also affect the overall cost of your mortgage should you wish to sell or refinance the property. So it’s wise to carefully review the covenants that the lender required on the loan.
Now that you understand how commercial rates differ from residential rates, this is the perfect time to contact me to get started on putting together your deal. 

For more information please contact me at 808-457-2455.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.



Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Friday, November 9, 2018

FHA Mortgage for Disaster Victims


Do you know FHA has a mortgage for Disaster Victims?

In light of the many disasters we have had in our country in recent months, I thought it would be good to share this information in case you know anyone in need of help recovering from a disaster. Rebuilding can be very difficult and is a financial burden many cannot see their
way through. 
Help is available....

Section 203 (h) of the FHA mortgage program offers features that make recovery from a disaster a bit easier for home owners and renters. Homeowner/renters are eligible if their homes were destroyed or damaged to the point they need to rebuild. The FHA mortgage can be used to purchase one home that will be their primary residence. The program assists in re-establishing your life after a difficult event. 

Through section 203(h) the federal government helps victims in Presidentially designated disaster areas by making it easier to get funding to rebuild and purchase a new home. A case number must be assigned within one year of the Presidentially-Declared disaster area.

  • No down payment is required. Borrower are eligible for 100% financing.

  • Less then perfect credit is ok, special guidelines are in place and exceptions can be made.

  • Mortgage terms of 15, 20, 25 and 30 years are available with a fixed rate or a 5/1 ARM.

Hope you won’t need this but it’s nice to know it’s available to those that need it.

For more information please contact me at 808-457-2455.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.



Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Saturday, May 5, 2018

How Will 5% Mortgage Rates Impact Buyers In 2018

Mortgage rates have not been 5% since 2011 and we are starting to see rates getting close to 5%.
The 30-year mortgage average rate is now about 4.5% for most borrowers but if your credit scores are low making you a higher risk, get ready for a higher rate closer to 5%.

For the first time in years we will see buyers with less buying power, they will qualify for less as we see increasing housing prices.  On the brighter side, I always look for a silver lining. Lenders are scrambling to provide new loan programs and guidelines to adjust to the raising rates.

Even with rates on the increase we are still seeing more buyers then housing inventory on the market. Making it a seller’s market and increasing prices.  If you are a buyer and thinking about buying this year you should be planning and preparing early, don’t wait to get pre-qualified, do it now. Your approval will be good for 90 days while you look for a home. If you go beyond those 90 days, it’s quick and easy to renew your approval for another 90 days. It’s very important you know how much you qualify for before you start shopping with your Realtor.  You can apply online on my secure website, you can upload needed documents making it very easy to get started. www.roxyloans.com
I am offering a buyer’s mortgage coupon $1000 off your closing cost to help make purchasing a bit more affordable. Request your coupon by sending me an email; roxy@roxyredenbaugh.com

The volatility in the market is due to the wide swings in the stock market. Mortgage rates tend to follow the 10-year Treasury yield. Yesterday’s bond market opened flat after economic data helped erase overnight lost. To get a full mortgage rate update each day you can visit my website,
This tool can be very helpful to know if locking your rate or letting it float is best.

If you would like my weekly mortgage rate update emailed to you, shoot me an email requesting to be added to my distribution list.
If you are a Realtor I can keep you informed on the market with this weekly mortgage rate update and my monthly newsletter that focuses on Real Estate trends and updates. Both allow for co-branding to help with your marketing efforts.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.


Roxy Redenbaugh
ACMC Loan Consultant
roxy@roxyredenbaugh.com
Mortgage Coach
Branch Manager
NMLS #269926

Wednesday, April 4, 2018

Why You Need An Annual Mortgage Analysis

Give your mortgage an annual once over
If the last time you looked at your mortgage was when you closed on your loan, it’s time to take it out for an annual once over.New loan programs and opportunities to leverage your home equity can bring you lower mortgage payments and new investment opportunities.

Is a fixed rate mortgage the best choice for you?
Many of us opt for the certainty of a 20 year or 30 year fixed rate mortgage when we get our first mortgage.If you anticipate selling your home within the next 10 years, one of our new hybrid loans may be a better financial fit for you.Hybrid loans typically have a lower fixed rate than a traditional 20 or 30 year mortgage.The savings you receive can well be worth switching to a hybrid loan.

Are you paying for Private Mortgage Insurance (PMI)?
There are a lot of new loan programs available that can help you eliminate PMI, even if you have less than 20% equity in your home. The monthly savings adds up quickly.  This money can be put to better use to help you achieve other short-term and long-term financial goals.

Are your taxes and insurance up to date?
Even though your mortgage servicer is responsible for paying your taxes and insurance out of your escrow account, it just makes sense to periodically check to see that these payments are being made properly. While you’re at it, you’ll want to review your homeowner’s insurance policy. It’s a good idea to review your policy every two to three years to make sure it covers recent home improvements, replacement costs for the contents of your home, and that its reconstruction coverage is keeping pace with inflation.

rightDo you have a Home Equity Line of Credit (HELOC) for emergencies?
Many homeowners are making the proactive choice to secure a Home Equity Line of Credit (HELOC) for emergencies.  A HELOC is a revolving line of credit that only charges interest when you actually draw money from the line of credit. As you repay the balance of the draw, the credit becomes available again. Securing a HELOC in advance can be a great help if you’re ever laid off or have an unexpected medical or other emergency.

How’s your credit report?
The information in your credit report has a huge impact on whether or not you will again qualify for a mortgage loan.  That’s why it’s important to periodically check your credit report.

Now it’s even easy to do so. A recent amendment to the federal Fair Credit Reporting Act (FCRA) mandates that each credit reporting company provide you with a free copy of your credit report, at your request, once a year. To request your free credit report, visit http://www.annualcreditreport.com. 

Are you making the most of your home’s equity?
With rising home prices, you may have more equity in your home than you realize.  Taking out a home equity loan to payoff credit card debt, car loans and other higher interest debts makes good financial sense.

leftIs it time to refinance?
The timing might be right to refinance your mortgage loan.  New rates may help you significantly lower your monthly payment. Or you might want to “cash out” some of the built-up equity in your home, which you can use to consolidate debt, improve your home, take a vacation - whatever! Perhaps by refinancing you can even pay off your mortgage sooner! 

I will work with you to determine if the timing is right to change your loan program, considering your cash on hand, how likely you are to sell your home in the near future, and what effect refinancing might have on your future plans.

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts.


Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Friday, March 30, 2018

Why You Should Get A Home Inspection


Whether you are buying or selling a home, you should have a professional home inspection performed.
A home inspection will look at the systems that make up the building such as:
  • Structural elements, foundation, framing etc.
  • Plumbing systems
  • Roofing
  • Electrical systems
  • Cosmetic condition, paint, siding etc.
If you are buying a home, you need to know exactly what you are getting. A home inspection, performed by a professional home inspector, will reveal any hidden problems with the home so that they may be addressed BEFORE the deal is closed. You should require an inspection at the time you make a formal offer. Make sure the contract has an inspection contingency. Then, hire your own inspector and pay close attention to the inspection report. If you aren't comfortable with what he finds, you should kill the deal.
Likewise, if you are selling a home, you want to know about such potential hidden problems before your house goes on the market. Almost all contracts include the condition that the contract is contingent upon completion of a satisfactory inspection. And most buyers are going to insist that the inspection be a professional home inspection, usually by an inspector they hire. If the buyer's inspector finds a problem, it can cause the buyer to get cold feet and the deal can often fall through. At best, surprise problems uncovered by the buyer's inspector will cause delays in closing, and usually you will have to pay for repairs at the last minute or take a lower price on your home.
It's better to pay for your own inspection before putting your home on the market. Find out about any hidden problems and correct them in advance. Otherwise, you can count on the buyer's inspector finding them, at the worst possible time.
Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts. 
Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926

Monday, January 1, 2018

TIPS On Getting Your Finances In Order for 2018

Like many families we need a bit of help organizing our finances to make sure we are in the best financial health, based on our own personal situations. I’ve put together some tips that will help you and possibly some areas where you can find money within your budget and spending habits to save and maybe even invest for your future.  
  1.  Savings, we all try but many are not able to save even 5% of our annual salary each year. Having an automatic savings that is forced is a great way. I know you may have heard this before but it’s important you pay yourself before you pay anyone else. By having an automatic savings deduction from your payroll or from your checking account that goes directly into a saving account is key. If you are not doing this, try it. Even if it’s a small amount it will add up over time. Having a nest egg for emergencies is critical, set your goal for one -two months of reserves. What I mean by this is add up all your monthly liabilities, times two and this should be your immediate goal to save and have on hand for an emergency or life changing event. 
  2. Analyzing your 401K, you should be watching your 401K for performance and make sure 
    you are experiencing gain and not losses, if you are losing money, contact your account manager and make some changes to your investments. It’s crazy not to do this, remember if you don’t, no one will.  Another tip on 401K is your contributions, are you over funding your 401K based on its performance. Maybe you could be investing the same money in a different type of account with a higher return. Also is your employer contributing to your 401k, hopefully they are to some degree but if not you might be better off with an IRA or ROTH IRA.
  3.  Insurance Policies are another great way to invest and can be added to your investment
    portfolio and paid with money from an over funded 401K. Life insurance policies have great rates of return and grow in cash value over time. If you already have a policy go over it and make sure you have enough coverage. Over time we increase our liabilities and networth so it is important to increase policies values. Insurance is a great way to invest long term and protect your family.
     
  4.  Budget is another thing you need to analyze. Many don’t even have one, so first it’s important to establish a budget. If this is you then please take some notes. Having a plan is critical to financial stability. Having no plan can be the reason you never have money and live from pay check to pay check. Many banks like BofA, Wells Fargo and others have spending reports you can run now that reflect your spending habits, use these reports to help you see where you can cut back your spending. This will help you free up money you didn’t think you had. You can also go through your bank statements to track your spending if reports are not available at your bank. Understanding where your money is going is the first step to controlling your budget.   
  5. Mortgage Analysis, it's important to look at the financing on your home and any other 
    property you own. Rates and programs change frequently.
    Do you have the best mortgage available that will save you money and reduce your interest paid each year. If you are paying mortgage insurance (MI) this step is critical to review 
    even twice a year and a must do each year. The value of your home is most likely increasing by 6% to 10% annually. This is why it's important to keep track of values because once you reach 80% loan to value you can request your MI be removed from your monthly payment. If you have an FHA loan you will need to refinance into a conventional loan to get your MI removed. 
  6. Start getting your documents in order for tax time. Remember to save your last paycheck stub for 2017, it will come in handy if you want to start your tax preparation early. 
I hope this post has been informative and will be helpful in 2018. I am here to help with any of these steps just contact me with any questions and I always welcome your comments and questions here on my blog. Thank you for stopping by!

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926


Saturday, December 23, 2017

Changes Coming to Lending and How It Will Affect You

We have all seen many changes in the mortgage industry over the past several years. More regulations and more disclosures to meet CFPB’s requirements for lenders and everyone that works for them.
For more then 20 years we have been using the same Uniform Residential Loan Application = URLA or 1003 for short. During our CE training this year we were all introduced to a NEW and improved URLA. We are going from a 4 to 5-page application to a 8-page application. The new form is more in depth and has an extensively enhanced Home Mortgage Disclosure Act = HMDA section for government monitoring. I’ve listed the changes below. It should be very interesting to see everyone's reaction when they complete this new form. I am going to keep an open mind to change and hope others will do the same.
This new form was reported to be available to use Jan 2018, but it doesn’t look like Fannie or Freddie will have their automatic underwriting systems ready for this start date. Looks like we will have a brief reprieve on the start date 7-2019. The borrower will only realize some minor changes in documentation and if you have a good loan officer they will help you complete this form and explain any changes. 
Here are some changes on the new form; 
·       Updated borrower contact information, such as cell phone number and email address.
·       Added a new military service section to assist veterans seeking and qualifying for VA loan opportunities.
·       Made it easier to identify employer and self-employment information.
·       Included fields to collect more detailed information about the property and loan purpose, including refinance types, energy improvements, and project types.
·       Added amortization types and loan features describing the mortgage and loan terms.
·       Updated the acknowledgement, agreement, and authorization sections to benefit the consumer and industry participants who use the loan application (e.g., mortgage insurers).
·       Revised government monitoring information (ethnicity and race) in accordance with the new Home Mortgage Disclosure Act requirements issued by CFPB.

The next change will be the increase loan limits for a conforming loan. In 2017 the loan limit has been $424,100 but starting on Jan 1, 2018 this will increase to $453,100 and increase of 6.8%. 
I’ve never been sure what the $100 is about as it’s much easier to have round numbers.
I think someone likes messing with us! 😊
The best part about this change, it will allow for more people to obtain cheaper financing on their conforming loans. Rates are lower then loan over this amount that are considered High Balance or Jumbo loans.


With the passing of the NEW Tax bill a couple BIG changes involved our home loans and the interest we get to deduct each year. This will now be limited to $750,000 per year. 
In addition, you will no longer be allowed to deduct the interest on your equity loan or line of credit. 

If you have one of those equity loans, line of credit etc. you will want to see about refinancing to include that equity line of credit in with your regular mortgage. Chances are you will save money with a better rate and you will be able to continue to deduct the interest on the same borrowed money! 

Getting a free mortgage analysis would be beneficial if you have this type of loan.  I can do this very quickly with just a copy of your mortgage statement on both your 1st lien and your second lien, or line of credit. 

Thank you for visiting my blog, I encourage you to leave a comment or questions. Let me know if my blog has helped you. I would love to hear your thoughts and any ideas for future posts. 

Roxy Redenbaugh
ACMC Loan Consultant
Mortgage Coach
Branch Manager
NMLS #269926