Cash Out of Home with FHA Refinance

January 5, 2009 By Leave a Comment

Do You Have Cash in Your Home?Have you heard the joke about the way you see your house, and the way the tax guy sees it and the way your appraiser sees it?

Well, it’s pretty funny… because everyone has a difference perspective!

If you believe you have some equity in your home, and you would like to take cash out, FHA might be your best bet! Not on a home like the one above (of course), the maximum FHA loan in Wake County is now $271,050… but FHA now allows you to cash out up to 95% of the value of the home!

FHA allows you to use this money for investments, to take a vacation, pay off bills, home improvements… almost anything you need!  Some folks think rates will be at 4.5%!  To find out how to get your 4.5% mortgage - click here!

Call us for details, and the current interest rates! Steve and Eleanor Thorne, Connect With Us on Facebook, 919-649-5058.

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Are You A Waitress? Wanna Buy a House!?

January 5, 2009 By Leave a Comment

I just wrote about a waitress in Garner, NC who was able to purchase a home, with a new roof, new windows, carpet, and HVAC system!  It cost her less than $3000 – and her total monthly payments are LESS than $500!

Best of all… she also qualifies for a $7500 Tax Credit from Uncle Sam!

We used a FHA 203K loan for her – which can be complicated – but it’s a GREAT program!

WOW! If you want to purchase, don’t let anything stand in your way!  Give me a call!

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Stop Renting – Buy Now

December 4, 2008 By Leave a Comment

Tired of Renting? Buy a House!Are you tired of having to clean up after roommates?

Then take the $8000 credit the government is giving first time home buyers – and BUY a house!

You have some great financing options (and YES we are STILL making loans to folks, and first time home buyers have the EASIEST qualifying of any group!):

  • FHA will allow gift funds for downpayment (or you might have it saved up)… you will need about 4% of the sales price to cover downpayment and closing costs!  (Click here for details on FHA loans)
  • FHA 203K loans can cover the cost of “fixing up” some of those foreclosed properties you might be looking at. It allows you to borrow money based upon the “fixed up” value of the home! (Click here for details on 203K loans)
  • Veterans have access to 100% loans! No PMI, can borrow over $400,000, and there’s no restriction about where the property needs to be located! (click here for more information on VA benefits!)
  • USDA also has 100% loans, and although there are some restrictions (click here for details) there’s no PMI, and it’s a 100% loan!

So what are you waiting on?  When you buy a house, you get a RAISE!  (It’s TRUE! Check out the Tax Advantages of Home Ownership!)  Call Stephen L. Thorne, Mortgage Loan Officer in Cary NC for more details at 919-649-5058!

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Filed Under: FHA Mortgage Loans, First Time Home Buyer, USDA Home Loans, VA Mortgage Loans Tagged With: , , , , , , , , , , , , , ,

What are VA Home Loan Benefits??

October 20, 2008 By 5 Comments

The VA Loan came about as part of the 1944 original Servicemen’s Readjustment Act most people refer to as the GI Bill of Rights. President Franklin D. Roosevelt provided veterans with a federally guaranteed home with no down payment. This feature was designed to promote housing and assistance for veterans and their families, at a time when we needed more veterans to realize the dream of home ownership. The GI Bill contributed more than any other program in history to the welfare of veterans and their families, and to the growth of the nation’s economy.

Although it might seem like a complicated formula, the VA will guarantee a maximum of 25 percent of a home loan amount up to $104,250, which limits the maximum loan amount to $417,000 (except in some very high cost areas where they go over $700K). Generally, the reasonable value of the property or the purchase price, whichever is less, plus the funding fee may be borrowed.  All veterans must qualify for the loans, they are not automatically eligible for the program.

Today, there are over 30 million soldiers and service personnel eligible for VA financing. This loan 100% loan is attractive and has many advantages. Eligibility for the VA loan is defined as Veterans who served on active duty and have a discharge other than dishonorable after a minimum of 90 days of service during wartime or a minimum of 181 continuous days during peacetime.  If you served in Vietnam, or the National Guard or Reservist, and want to find out if you qualify please click here.

If you are purchasing between 1/1/2009 and 04/30/2010 you might qualify for an $8000 tax credit!  For details click here! (For First Time Homebuyers!)

Veteran’s!  We love to do VA mortgage loans!  Call Steve and Eleanor Thorne,   Cary, NC  919-649-5058

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Step 2 Homebuying in Cary

June 7, 2008 By Leave a Comment

In a previous post we explored the whole “First the Loan, then the Home.” Mentality of Home Shopping. The idea is that if you begin shopping for a $175k home because you used an online calculator and figured that’s what you could afford… but some reason you DON’T qualify for that much… you’re never going to find a $150 house that looks like the $175K’s.  Does that make sense to you?

Lending is so very complicated, that you really really need to get pre-approved by a REAL PERSON! (preferrably me!)

SO we’re on to Step 2! ”Now that you and the agent know your budget, there are still questions about family, hobbies, interests, floor plan layouts, decorating tastes, schools and LOCATION which must be addressed.  Once these questions are answered, then you can see what is on the market.  In some prices rages, there are more buyers than listings and that is where your patience and the Realtor’s persistence come into play.

With today’s technology, Realtor’s have access to the constantly changing market which helps them keep an eye out for houses that meet your needs! ”

Let’s go back and re-read that highlighted section.  See that “R” word?  Realtor?  Guys!  You could cut your own hair… but why would you?  As a buyer, a real estate agent does not COST you anything!

We work with some of the TOP agents in the area.  If you don’t have one yet, look at one of these!

If you are considering buying a home in Raleigh or purchasing a home in Cary, contact Steve and Eleanor Thorne, Connect With Us on Facebook, in Cary, NC  919-649-5058

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Filed Under: First Time Home Buyer Tagged With: , , , , , , , , , , ,

The FHA Bailout Plan

June 4, 2008 By Leave a Comment

Congress, and specifically the NC delegation and Rep. Barney Frank have a new plan to stop the “bleeding” for many American Families who are upside down in their homes.  This is really not so much a problem for those of us with property in the Triangle – but for folks moving here (and by my unscientific calculations almost 65% of the mortgages are currently being written for folks MOVING HERE), it could be a great deal.

The crux of the problem, as seen by Franks, are the number of new vacant homes that are competing on the market with “used” re-sale homes.  We need to get folks into those new homes, draw the inventory down – and Badda Bing – no more Housing Crisis.

How he proposes to do this is with a 300 Ba Ba BILLION dollar overhaul of FHA which creates a complicated system whereby the banks take a little loss – the seller takes a little loss and the government takes the risk.

IMHO there’s no chance this will make it’s way through Congress prior to the election - but the provisions in the bill – which expand the FHA authority are helpful, and if passed, this could be the end to the Housing Crisis.

The question we must all weigh is weather or not we are willing to take on this additional risk to our collective “Uncle Sam” balance sheet.  It could backfire, drive the dollar lower… and that would put gas at what – $6 bucks a gallon???

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Risk Based Pricing?

June 4, 2008 By 5 Comments

fha mip

This information is about FHA PMI in June of 2008.  This program has changed 8 times from 2008 to 2012.  Current FHA PMI rates

You are buying a home this summer and you are LOVIN’ Life!  Yippee!

Well, if you have credit scores over 640 – there’s more good news!  Effective July 14 FHA will move to Risk Based MIP and your cost of home ownership will be less!  What is Risk Based MIP?  Well, it’s really just the FHA PMI.  FHA insures mortgage loans, they don’t really “Make” loans – so this is their new Insurance Pricing.

So, what does Risk Based MIP mean and what happens if your score is NOT a 640?

Risk Based MIP means that if you are considered a lower “risk”, because your credit score is 580 (for example) then you will have a higher UFMIP.  What is UFMIP??  It’s the UpFront Mortgage Insurance Premium charged on an FHA loan, and there’s a monthly fee too.

This is going up to 2.0%… meaning that if you borrow $100,000 on an FHA loan – you will also be charged $2000 in MIP.  This mortgage insurance is ADDED to your loan – so your Principal and Interest payments are now based on $102,000 (base loan of $100,000 plus MIP of $2,000).  If you sell the home or refinance in the first 7 to 10 years then a portion of the MIP is refunded back to you.

The most significant part of this change is NOT that the UFMIP is going up… the most significant part is that FHA is going to these steps which many see as the first in moving FHA into the “new” sub prime role.  The Risk Based Matrix actually accept scores down to 525 (and lower)… although we don’t know of “Investors” who are willing to purchase loans at these low credit scores.  FHA does not make loans – they only insure them.

So even though their matrix says you can have a lower score and get a FHA loan – it doesn’t mean that SunTrust (for instance) has to make loans at the lower score.  Our best bet is that it will be at least 12 months before loans for people with credit scores under 580 are made.

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FHA Repair Requirements

April 14, 2008 By 4 Comments

FHA Repair requirementsHomebuyers are looking for a deal – and sometimes you might think that purchasing a “fixer-upper” might be the best way to go!

The problem is that many sellers, including banks holding foreclosed property, might not want to accept an FHA borrower? Why?  Because FHA will not take a property with a paint job like the one shown here.  If you were purchasing this property, the exterior repairs would need to be done PRIOR to closing.

Most homebuyers do not want to sink money into a property they haven’t purchased yet – leaving the repairs for the seller (who often doesn’t have a ton of cash on hand, ergo this is why they are selling!).

fha loans cary

FHA did make some moves earlier this year that lead some to believe that it’s EASIER to get financing with FHA on an existing home… and indeed, if you are purchasing a home in fairly good shape the appraisal process is easier!  Look through this list with your realtor and we believe that you will agree that a Seller of a property in reasonable repair should accept a contract with FHA financing for the borrower.

Examples of MINOR property conditions that no longer require AUTOMATIC repair for existing properties are:

  • Examples of Missing handrails;
  • Cracked or damaged exit doors;
  • Cracked window glass;
  • Minor plumbing leaks (such as leaky faucets);
  • Defective floor finish or covering (badly soiled carpeting);
  • Rotten or worn out counter tops;
  • Crawl Space with debris or trash;
  • Defective paint surfaces in homes constructed Post 1978

Examples of tests that may no longer be REQUIRED:

  • Wood Destroying Infestation Report-required if there is evidence of READILY OBSERVABLE ACTIVE infestation;
  • Well (Individual Water Test)-Required if there is knowledge that well water may be near sources of contamination;
  • Septic Test-required if evidence of system failure.

Don’t be confused when you hear stuff about FHA being a bad program!  Get the FACTS!  You MIGHT need an FHA 203K home improvement loan – ask us for details!

For more information on FHA MORTGAGES, contact Steve and Eleanor Thorne, The FHA EXPERT in NC  919-649-5058 at Connect With Us on Facebook, 

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No Credit? Think FHA!

March 19, 2008 By 9 Comments

fha loans cary ncStudents are studying their way through college – not building credit…

Once you have a job, and you want to purchase a house, how do you create credit?

FHA allows mortgage lenders to accept loans from those who do not have a credit score. We are required to “build credit.”  This means that we need to verify alternative credit that you’ve paid.  We will need at least 4 alternative sources – and they can include:

  • Rent (keep your cancelled checks!)
  • Insurance
  • Cable
  • Telephone / mobile bill
  • Electric Bills

For this reason – you want to have the leases in your name – or make the payments for your portion of the bills directly to the utility company.  Start now keeping records  – you’ll need at least 12 full months of credit history – even from an alternative source!

Contact the FHA Experts to get pre-qualified for a mortgage in Cary, Steve and Eleanor Thorne, 919-649-5058

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