First Time Home Buyers use FHA Mortgage and Seller Paid Closing Costs to Buy Real Estate Now. Best Market Conditions for Foreclosures and Small Sales in Decades. Go To realestatemarketingthisweek.com Part 2 (Excerpt) How having the Seller pay your closing costs can quadruple your money On the other hand if you roll that into the loan it’s going to take you 160 months to break even on that. 160 months which is a small over 13 years, that is the antithesis of the Velocity of Money that we talk about on the show every week, so I am not convinced that its the right deal for the masses, but something that should be considered is what is the opportunity cost of taking the money out of Account X and the type of account you taking it out of has some impact too. If it’s from a brokerage account then you experience the market loss in that account and youre selling at these low price levels, I reckon the markets are going to turn and the opportunity costs over 160 months, youre talking about a substantial amount of money. And the additional mortgage payment is insignificant. Obviously no one is going to allow you to pay more than the house is worth, that’s not what were suggesting. What were suggesting is merely to look at instead of simply making a lower offer than you would normally make, I’m suggesting that you consider the closing costs and what the real closing costs are in this example. Assuming that the house is already attractively priced, one of the things that this buyer …
Posts Tagged ‘closing costs’
Real Estate Conditions 2 – Mortgage & First Time Home Buyer Dec08 Seller to pay Closing Costs
Friday, March 19th, 2010General FHA home Loan Underwriting Guidelines
Thursday, March 18th, 2010Disclaimer: These guidelines are to be considered standard or general. FHA will, from time to time, change their guidelines such as loan limits or debt-to-income ratio requirements. In times when guidelines change frequently, we are not able to update the guidelines immediately, therefore, we cannot guarantee that the guidelines outlined here will be in effect at the time of your loan application but is provided to give you the basic thought of the requirements of the FHA mortgage.
FHA Mortgage loan Advantages Include:
Â
Minimal Down Payment and Closing Costs.
Simpler Credit Qualifying Guidelines such as:
Simpler Debt Ratio & Job Requirement Guidelines such as:
Apply now at www.FHAmortgageFHALoan.com or all 954-667-9110
Â
Fha Streamline Refinance Saves Money!
Monday, March 15th, 2010An FHA streamline refinance has multiple benefits for homeowners who want to refinance their current FHA mortgages. One of these benefits includes a lower interest rate. A lower interest rate, along with the other benefits of the loan, will save homeowners money that they can use to pay off other debt or to pay for other expenses.What is an FHA Streamline Refinance?The purpose of this type of financing is to lower a homeowner’s interest rate on his or her loan and, in turn, lower his or her monthly mortgage payment. This loan allows homeowners to refinance their existing home loans with a more efficient process. With this type of financing, there is less documentation and less underwriting, which can make the loan process significantly quicker. There is also an option to refinance with this type of loan without having to get an appraisal, as long as certain requirements are met. If no appraisal is done, the new loan amount cannot be more than the original loan that was taken out by the homeowner.Requirements of this LoanA homeowner must already have an FHA mortgage that is current in order to qualify for this type of financing. This means there can be no delinquent payments on the mortgage. With this particular type of financing, no additional cash can be taken out. If a homeowner want to receive cash back when refinancing his or her loan, there is a cash-out refinance option available, but this option is not a streamline loan.There are closing costs associated with this loan, but a homeowner has options that allow him or her to avoid paying them out of pocket. In some instances, homeowners can choose to obtain a higher rate in exchange for lower closing costs. On the other hand, if there is sufficient equity in the home, a homeowner can choose to have the closing costs included in the new loan amount. An appraisal will determine if there is an adequate amount of home equity for the homeowner to choose this option.Benefits of this Type of FinancingRefinancing with this loan can lower a homeowner’s rate and monthly payment and save him or her money over time. This type of loan has more efficient processing when compared with other home loans. It can have fewer requirements, and, in some cases, the closing costs can be financed so homeowners will have less money to pay upfront. This saves them more money for their other expenses.There are not strict eligibility requirements for this type of financing. Homeowners do not need a high credit score or income to qualify for this loan, but most lenders will require that a borrower have a credit score of at least 620. For homeowners who would like more refinancing options besides the streamline refinance, the FHA also has refinance loans that allow a homeowner to consolidate debt, change the terms of his or her loan or receive cash back.This type of financing is a fantastic option for current homeowners who want a quick way to reduce their current interest rates and lower their monthly payments without having to meet all of the standard requirements for a home refinance loan.
I’m thinking of having someone assume my FHA mortgage…..?
Sunday, February 28th, 2010I currently have an FHA mortgage on my home; I’ve been paying just about 3.5 years on this note. I want to sell to take advantage of the market right now but realistically would have to invest money to sell due to the current market conditions.
I am thinking about looking to have someone assume my FHA mortgage which I have read is do-able pending my banks approval. Can this in anyway effect my credit score? Are there any negatives to this, outside of not making money on the transaction?
I have also read that I may be responsible for the payments if the new buyer defaults….Is this right? Is there any way around that?
Thank you for the responses. Yes my mortgage is assumable, I have verified with the bank (Citi Financial.) Being that I bought the home nearly 4 years ago in Cleveland, there is absolutely no equity in home. On average home prices are down 24% in this area. I am not willing to invest several thousand dollars into selling the home. It is not feasible that I would be able to sell the house without a significant investment.
I am but willing to walk away at a “break even.”
Is there a way to go through an assumption and not be liable for the new buyers credibility? I know that Citi will have a complete background/credit check prior to the assumption to ensure that the buyer is mortgage worthy.
Yes, my interest rate in competitive. It is slightly above what is available now, but an assumption would allow a buyer to buy my home with substantially less out of pocket costs. With the assumption a buyer will not need the 3.5-20% that is required for any loan in the area (USDA is not applicable) and the closing costs are approximately a third of a standard buy.
Search :
Related search on ‘closing costs’
Closing costs for home refinancing or purchases are often misunderstood and frustrating for the buyer and seller (who is probably very soon going to be a buyer). Closing costs are assessed once a purchase agreement is finalized with the ...
Sacramento Home Search- Closing Costs and Seller Credits - Brokers Journal with Bill JoyceSacramento Home Search- Closing Costs and Seller Credits - Brokers.
Before contacting lenders, rates current research interest and fees for the type of loan that interests you comparison shop to see which banks offer the best prices. Note the words, closing costs, and if rates are fixed or adjustable. ...
D (1-2) Please mark all closing costs as being paid for by. the Buyer. (we'll address how to ask for those. appropriately on page 1 if the Buyer needs. closing costs assistance). 4.E (1-2) Please mark paid by Buyer. These cost can be ...
Or it is explained away when you see a high APR by saying the reason is because of the closing costs. Closing costs do move the apr higher but considering the apr is factored over the life of the loan 30 years or whatever your term is. ...
Our unique FHA mortgage Loan Application to Approval process was created to help you seamlessly and efficiently obtain the best mortgage rate and closing cost.If you are in the market for a FHA Mortgage loan or need a FHA Loan ...
If you are thinking about buying a Spring Texas home, you will soon hear either your Realtor or your loan officer mention the phrase closing costs. Closing.
Wheatworks Software, LLC announces an update of MoneyToys(tm) Closing Costs Calculator, a web site calculator that real estate webmasters can quickly and easily install. Closing Costs Calculator is an online calculator which lets home ...
As an example, a local mortgage company, who has a good flow of business, may not be as motivated to give you the lowest closing costs or the lowest available rates, when his competition is basically local. But, when you have a large ...
UpFront Costs or Closing Costs. Closing costs are fees and other miscellaneous billings that come in a typical mortgage refinancing deal. Insurance fees attorney fees title insurance as well as other costs are included in this category. ...