Buy a Home Now vs. Wait – Who Needs a Forecast for that?

Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. works cooperatively with other real estate agents across the United States in attempting to find ready, willing and able buyers for homes …

Fannie Mae Requirements for Investor and Second Home Borrowers with Five to Ten Financed Properties

Most lenders will restrict the number of properties an investor can finance to a total of four properties.  This restriction was recently loosened to allow for up to ten financed properties.  There are unique restrictions regarding credit score, Loan to Value (or LTV) and reserve requirements that make getting them funded very difficult. Here are a couple of bullet point guidelines you’ll need to be aware of: No foreclosures in the preceding 7 years No late mortgage payments within the last 12 months 6 months of mortgage payments in need to be in reserves for each other second home or …

Gaining an Edge With the Best Homebuyer Education

This episode of the Twin Cities Real Estate Radio Show covers comprehensive homebuyer education and wraps it up in a bow called DoorSteps. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, …

5 Things I Wish All Homebuyers Knew Before Getting Their Mortgage

A good mortgage loan officer is like a financial psychiatrist for residential housing.  Years of training and experience are packed into our minds for the purpose of reacting correctly to buyers’ financial profiles, stories and desires.  The moral of the story?  All those years of training and experience are an empty value unless you put your entire buyer profile, story and set of desires before your loan officer.  Not doing this is like buying a 600 dollar phone and only using ten percent of its features. A good mortgage loan officer is not a peddler of a financial commodity (I …

New Minnesota Housing Mortgage Loan Programs – not just for First Time Homebuyers!

Through the Minnesota Housing Finance Agency (MFHA), the State of Minnesota offers eligible homebuyers loans with subsidized interest rates and mortgage insurance for low-to-moderate income homebuyers, that is correct, it is not just for first time homebuyers anymore! Start Up is the new Minnesota Housing statewide mortgage loan program for low-to-moderate income first-time homebuyers.  Click here for detailed information on Start Up (first-time homebuyer loan program). Step Up is a new Minnesota Housing loan program for non-first-time homebuyers to purchase or refinance a home.  The program offers affordable fixed-rate loans and access to down payment and closing cost loan options …

The MN Mortgage Financing Contingency – What it is and what it isn’t

The “Written Statement” of Lender Commitment is a misunderstood, under-utilized, and yet incredibly significant component of the Minnesota Association of Realtors’ (MAR) Residential Purchase Agreement. Despite the almost universal acceptance of the MAR forms in MN purchase transactions, the “Written Statement” or Lender Commitment Letter component is seldom explained to a buyer or seller. The Financing Contingency (Conventional, FHA or DVA) which functions to describe the financing that a buyer is attempting to obtain, contains the clause referring to the Lender Commitment Letter (referred to as a “Written Statement”.)  The Financing Contingency requires an option to be chosen at the …

Buying a Home & Getting a Mortgage with a H-1B Visa

These days, any time a lender sees a square peg and a round hole, they tend to run for the hills.  In the case of homebuyers seeking a mortgage with H1B visa status, too often this is the case.  If they’d patiently take the “outside in method” of loan structuring (start with Fannie Mae/Freddie Mac, then check mortgage insurance guidelines and then reference the lenders underwriting guideline overlays), they’d find that these waters are not that hard to navigate and that round hole isn’t as round as it may appear. An H1B visa is a work permit issued by a …

How to Choose a Mortgage Lender When Buying Your Home

This episode of the Twin Cities Real Estate Radio Show covers different considerations when choosing a mortgage lender for a home purchase. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. …

New Rules: If You Want an Adjustable Rate Mortgage (ARM) You Better Have Cash

Rest assured, if homebuyers or Realtors think they may have a good idea for a low down payment purchase loan program, they needn’t bother thinking since Fannie Mae has decided to make that executive decision on their behalf.  As of October 20th, the new choice will be between a fixed rate mortgage, fixed rate mortgage or fixed rate mortgage.  What’s best for the homeowner has now been mandated by Fannie Mae. The maximum Loan to Value for ARM’s (Adjustable Rate Mortgages) is being dropped from 97% to 90% for all purchases and no cash out refinances (seriously, this is not …

The Breaking Mortgage Industry

This excerpt from the Twin Cities Real Estate Radio Show covers the pressures that are bringing the mortgage industry to its knees. Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, Inc. …

The Return of the Subprime Mortgage

Fear, regulatory uncertainty, market instability and a lack of consumer confidence has kept the reemergence of these products at bay.  Make no mistake though; the money for these products is there.  Reemerging market stability has helped to abate the fears of some mortgage investors on the secondary market.  Consumer confidence has not recovered but it is up.  The big issue has been regulatory clarity.  Two significant events are unfolding that are likely to bring that to an end. The first is the move by the FDIC to provide the new definition of subprime mortgages.  The first thing they did was rename subprime loans as …

The Home Buyers Scouting Report® Mobile App is Here!

The Home Buyers Scouting Report® is now mobile. From the browser on your mobile phone, if you type in www.homescouting.com, you’ll see that your scouting report is now mobile friendly. From an iPhone, Android or Blackberry you should bookmark the page and add a bookmark icon to one of your home screens. You can also get the apps from the Apple Store or Google Play: For tutorials on the mobile Home Scouting app, click here. If you need mortgage calculators on the go, pull up http://calculators.charlesdailey.com/ in your mobile browser and bookmark it .  Should you want rate quotes on …

How to Get Your Offer Accepted in Multiple Offer Situtuations

This radio show explains the difficulties of getting your offer accepted in multiple offer or competitive situations and how to overcome them. < Charles Dailey – Branch Manager, Loan Officer, Certified Military Housing Specialist – CA DOC, MN DOC & WI DFI The Home Buyers Scouting Report® is provided directly to the buyer by HBM II, a licensed national real estate brokerage service company, not to or through a lender. The FREE home finding service is provided directly to prospective homebuyers by HBM II and its real estate brokers, as part of their ordinary real estate brokerage services. HBM II, ...

The Cost of Waiting to Buy a Home in fall of 2013 vs. Now

With all of the recent strength in the Twin Cities housing market and Minnesota’s relatively low unemployment rate one might be confused about why we’re experiencing all-time lows (ours are even lower) in mortgage rates since typically the beginning of a recovery is followed by higher interest rates. But the truth is that the Minnesota story is not the national or global story. Events on the national and international stage have caused the Federal Reserve and global bond markets to drive US mortgage rates down. This too will end and will carry a cost to those contemplating a mortgage. First, …

Buying a Home After a Short Sale using a VA Mortgage

I have had a lot of people ask me about how to buy a home after a short sale using FHA financing but it’s becoming more and more common that people are considering buying a home after a short sale using financing insured by the Veteran’s Administration.  These guidelines use to be murky but the issues concerning waiting periods after a short sale and underwriting guidelines are coalescing around an interesting blend FHA guidelines and Fannie Mae guidelines. There are six unique stipulations and they are as follows: The borrower must have made all mortgage and installment payments within the …

Minnesota Mortgage Refinance and Purchase Mortgage Calculators

You are in your jammies, its 1:00 AM and visions of new homes are dancing in your head.  How much is this going to cost?  What interest rate will you get?  Who are you gonna call?  No need, my friend…the internet has got you covered! Information is GOLDEN.  And if you are like most, you are a do-it-yourself-er (DIY).  You want and expect information at your fingertips until you reach a certain point in the home buying process. I GET THAT. Most people prefer to browse and learn online before shopping with the aid of a real estate or lending …

Can You Qualify in Today’s Market? Introducing the Professor’s Mortgage Qualification Tool

Reblogged with Permission VIA: http://www.mtgprofessor.com/Qualification/About_the_Qualification_Page.html Posted October 29th, 2011 View the Mortgage Qualification Tool One major difference between the housing finance system today and the system that prevailed prior to the financial crisis is in loan underwriting — the set of rules and procedures governing who is approved for a loan and who is rejected. The swing has been from lady bountiful to Mr. Scrooge. Rules have been tightened across the board. Where the major mistake before the crisis was approving loans to borrowers who should have been rejected, the major mistake today is rejecting loans that should be accepted. …

Fannie Mae and Freddie Make Mac Move to NO Loan to Value Limit Loans on HARP

The Federal Housing Finance Agency, with Fannie Mae and Freddie Mac, has announced a series of changes to the Home Affordable Refinance Program (HARP). This program was designed to be able to help people who were in a position of negative equity. Now, it someone is upside down on their home, there will be no limit to how far upside down they are in order to qualify for these loans. This program will continue to be available to borrowers with loans sold to the Fannie Mae or Freddie Mac on or before May 31, 2009 with current loan-to-value (LTV) ratios …

Do I Need to be Late on My Mortgage to Qualify for a Short Sale? – Don’t Take Yes for an Answer!

I have a lot of people call me to get pre-qualified to purchase a home using FHA financing after a short sale. Early on, not a lot of these scenarios panned out but these days, more and more of them do. When they don’t, the number one reason is because they took bad advice from a party to their short sale transaction. That advice? “Mr. and Mrs. Short Seller, you need to be late on your mortgage to qualify for a short sale.” This is often false and has devastating consequences. In many cases, proving imminent danger of default is …

FHA’s Short Refi Program

The FHA Short Refinance Program has always existed in an unofficial form but became a formal program on December 16, 2009 with Mortgagee Letter 09-52.  It was “refined” on August 6th of 2010 with Mortgagee Letter 2010-23.  It was designed to provide more mortgage options to those that owe more than their house is worth.  There are many requirements for this loan but for most borrowers who are upside down on their home and have good credit; these criteria are likely to be met with the cooperation of the existing lenders about to be paid off. For these transactions to …