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Home Path Loans - "Special Fannie Mae Foreclosure Loans" and Cunningham and Company September 6, 2010

 "To dare is to lose one's footing momentarily. To not dare is to lose oneself." - Soren Kierkegaard

Home Path Loans are a special program offered for purchasing foreclosures owned by Fannie Mae. Home Path Loans are a great opportunity for first time home buyers to get a higher loan amount without the added cost of mortgage insurance. Investors also can benefit buying homes with only 10% down payment and no mortgage insurance.

So what does a home path loan look like?

  • Minimum down payment of 5% for first time home buyers; the down payment amount can be a gift from relatives or others with no interest in the transaction. Typically they need to have some long relationship with you.
  • No need for an appraisal this saves $375-$450 in closing costs
  • Seller contributions up to 6% of the closing costs can dramatically limit the amount of funds needed to close.
  • No Mortgage insurance this can save over $100 per month and more for higher priced properties.
  • Credit score minimum of 660 FICO score. Traditional Fannie Mae or Freddie Mac loans will require 700+ credit score to get the best rates – Mortgage insurance is also quite hefty for 95% loans.

The maximum loan amount is $417,000 in the Charlotte MSA – for the right house the new buyer can save hundreds a month. Or have the same mortgage payment with fewer dollars for down payment.

The loans are restricted to Fannie Mae foreclosure properties. These can be seen by going to www.homepath.com you will need an approved Realtor to make an offer and you will need to be pre-qualified by an approved Home Path lender to get your offer reviewed and finally accepted. We can help you with both.

Keep in mind that these homes are foreclosures and they may need cosmetic repairs or other repairs to bring them to perfection. Is a Home Path loan the right loan for you? Only you can determine this, if you are looking for a pristine “ready to move-in house” you may be hard pressed to find your dream home. However if you don’t mind painting and have a few dollars saved to refinish hardwood floors or re-carpet the house this may be the right loan for you. Who knows your dream home may be only a couple of coats of paint away.

Cunningham and Company is an approved Home Path lender. Please call Deanna or Todd to find out more details about what can be done by us.

@ The Valeo-Croy Team, we are here for you.

The Valeo-Croy Team - (704) 366-7711

Todd Croy - NMLO license #91428
Deanna Valeo - NMLO license #91421

Accessible | Program Expertise | On-Time Closings

The Valeo-Croy Team and Cunningham and Company Mortgage Bankers are Equal Housing Lenders.

This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for Cunningham and Company to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply. Date: 9/6/2010


Latest Fannie Mae and Freddie Mac allow for refinances up to 95% with no mortgage insurance. September 13, 2010

"Discovery consists of seeing what everybody has seen and thinking what nobody else has thought." Jonathan Swift

You can now refinance your home if it is owned by Fannie Mae or Freddie Mac up to 95% of the new appraised without mortgage insurance.

The Keys are as follows:

1. You must have over 700 FICO score

2. You cannot have a single premium mortgage insurance premium (such as LPMI)

3. There must be a new appraisal ordered

4. The maximum total Debt/Gross Income ratio is 45%

5. You cannot have a 2nd mortgage or subordinate a current line

6. If you currently have monthly MI you may qualify for a lower rate with the same monthly MI amount however the total loan amount cannot exceed 95% of the new appraised value.

7. You cannot have been late on your mortgage payment in the past 12 months

This program will help free up capital to many clients that have a single loan on their home and have seen their home values drop in the current market.

Call us today and we can get your new refinance in the works.

All our best for the upcoming week.

@ The Valeo-Croy Team, we are here for you.

The Valeo-Croy Team - (704) 366-7711

Todd Croy - NMLO license #91428
Deanna Valeo - NMLO license #91421

Accessible | Program Expertise | On-Time Closings

The Valeo-Croy Team and Cunningham and Company Mortgage Bankers are Equal Housing Lenders.
This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for Cunningham and Company to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply. Date: 9/13/2010


Good Neighbor Next Door Offers HUD Foreclosure Discounts of 50% September 20, 2010

"Be kind to one another, because most of us are fighting a hard battle." Ian McLaren

 

To make American communities stronger, the U.S. Department of Housing and Urban Development designed the Good Neighbor Next Door (GNND) program to encourage firefighters, EMTs, police officers and teachers to buy homes in low and moderate-income neighborhoods.

HUD offers a fifty percent (50%) discount off the list price to firefighters, EMTs, police officers and teachers under the terms and conditions described below. To be eligible, firefighters, EMTs, law enforcement officers and teachers must be employed full-time, cannot own any other residential real estate, and agree to make the homes their sole residence for three years following the purchase. In addition, teachers must work in the areas in which the homes are located. HUD has authorized the purchaser to be eligible for $100 down payment if they use FHA financing.

FIREFIGHTER/EMT/OFFICER/TEACHER ELIGIBILITY

In an effort to ensure that homeownership opportunities are made available to law enforcement officers who are charged with the responsibility of ensuring the safety and well-being of residents in the communities they serve and to help promote safe neighborhoods by furthering the community law enforcement efforts being made by numerous cities, properties are being made available at a larger discount for sale to law enforcement officers who occupy them as a primary residence for at least three years. Teachers are required to live in the area in which they serve.

This program has now been expanded to include firefighters and EMTs who live in the area in which they serve.

A Law Enforcement Officer is defined as an individual who is:

• Employed full time by a Federal, State, County or municipal government
• Sworn to uphold, and make arrests for violations of, Federal, State, county, or municipal law
• In good standing with the department

A Teacher is defined as an individual who is:

• Employed full time by a a public school, private school, or Federal, State, county or municipal educational agency
• In good standing
• Holding a current State-level certification, as a classroom teacher or administrator in grades K through 12

A Firefighter/EMT is defined as an individual who is:

• Employed full time as a firefighter/emergency responder or emergency medical services responder unit of the federal government, a state, a unit of general local government, or an Indian tribal government serving the area where the home is located
• In good standing

Furthermore, the purchaser may not own residential property for 1 year prior to offer submission and neither may the purchaser's spouse. The purchaser, and his or her spouse, may not have previously participated in the program. Only one spouse may purchase the property.

EARNEST MONEY DEPOSIT

All offers submitted by a GNND purchaser must be backed by earnest money in the form of cash or certified funds and that the Selling Broker, if used, submit with the bid, a certification that the earnest money has been deposited in the Selling Broker's escrow account.

For NC and SC: All offers submitted by a GNND purchaser must be backed by earnest money in the form of cash or certified funds and that the Selling Broker will forward upon contract acceptance to the Closing Agent.

ELIGIBLE PROPERTIES

GNND offerings will be made available pursuant to HUD program policies.
Prior to the public listing, single-unit properties in revitalization areas will be made available to qualified Firefighters, EMTs, Officers and Teachers during the Lottery Period under the Direct Sale Program. For a list of available GNND HUD-homes, click on the appropriate

State button below:

North Carolina   South Carolina

Under the Direct Sale Program, qualified Firefighters, EMTs, Officers and Teachers may purchase single-unit properties located in revitalization areas at a 50% discount.

Only single-family homes, condos and townhouses are eligible for GNND purchases. Multifamily units are not eligible.

The option in Housing Notice 1999-30 for Firefighters, EMT's, Officers and Teachers to receive the fifty percent (50%) discount during the competitive sales listing period is no longer available. The fifty percent (50%) discount is only available during the Lottery Period.

SUBMITTING AN OFFER

When an Firefighter/EMT/Officer/Teacher has identified a property to purchase, they must submit their bid through a HUD-registered broker. Winning bids are randomly selected by computer. The winning bid is posted each week on the website where you made your bid.

If no Preliminary Interest is received during the notification period, the property will be made available for sale to the general public on a competitive bid basis. The option in Housing Notice 1999-30 for firefighters, EMTs, officers and teachers to receive the fifty percent (50%) discount during the competitive sales listing period is no longer available. The fifty percent (50%) discount is only available during the Lottery Period.

The 50 percent discount will be applied at closing.

HUD does not pay a buyer's closing costs or real estate brokers fees on the purchase of property through the GNND program.

If you have Further Questions About the Good Neighbor Next Door Program contact Deanna Valeo at 704-366-7711. Together we can make a neighborhood a little safer.

All our best for the upcoming week.

@ The Valeo-Croy Team, we are here for you.

The Valeo-Croy Team - (704) 366-7711

Todd Croy - NMLO license #91428
Deanna Valeo - NMLO license #91421
Accessible | Program Expertise | On-Time Closings

The Valeo-Croy Team and Cunningham and Company Mortgage Bankers are Equal Housing Lenders.

 

 
This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for Cunningham and Company to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply. Date: 9/20/2010


When you want to buy your new home before selling your current home September 27, 2010

"To accomplish great things, we must not only act, but also dream; not only plan, but also believe." - Anatole France

The "Buy and Bail" rules were introduced by HUD, Fannie and Freddie because “FHA and others in the mortgage industry observed an increasing number of homeowners who chose to vacate their existing principal residence and purchase a new residence often in another state."

The rule tries to prevent the practice known as ‘buy and bail’ where the homebuyer purchases, for example, a more affordable dwelling with the intention to cease making payments on the previous mortgage.

FHA actually has more liberal rules than Fannie and Freddie; here’s the deal. You CAN rent house #1 and still get an FHA loan on house #2 but only under the following conditions:
  • The homebuyer is relocating with a new employer, or being transferred by the current employer to an area not within reasonable and locally recognized commuting distance.
  • There is at least a one-year lease on the property.
  • The homeowner has obtained a security deposit and/or the first month’s rent.
  • Not all rental income can be considered when qualifying for the new FHA mortgage. Lenders must consider a vacancy factor.
  • ”The homebuyer has a loan-to-value ratio of 75 percent or less, as determined by either a current (no more than six months old) residential appraisal or by comparing the unpaid principal balance to the original sales price of the property.”
  • The rules does not apply “to existing rental properties disclosed on the loan application and confirmed by tax returns.”

Fannie Mae "Buy and Bail" rules are slighly different than FHA's and are outlined below - Freddie Maac follows these rules for their loans.
 
- If a customer is purchasing a new home prior to selling their existing home they must qualify with both payments (PITI, lender lingo for principal, interest, taxes and insurance). If the equity is less than 30% (market value less than amount owed) 6 months reserves are required. If equity position is 30% or greater 2 months reserves are required.

- If a customer is renting out their existing residence the borrower must also qualify with both payments. Rental income can only be used if the equity position is equal to or greater than 30%. Note only 75% of the rental income can be used, even then, for qualifying purposes. An executed 12 months lease and proof that a security deposit in the customers' account is required.

- If a client's pending sale for the existing home blows up before the closing of their new purchase, or will not occur prior to the new home closing the rules are a little different but similar to the first explanation. The payments for the existing home are not required for qualifying purposes if reserves can be documented along with a copy of an executed sales contract and confirmation of all financing contingencies are provided (final commitment letter from the buyer's lender) ~ this can be very hard to get.

- DU (fannie mae's automated underwriting engine) may decision less in reserve requirements.
Give us a call today when dealing with a client that still owns a home or wants to move-up before selling their current home we can help navigate the maize and structure a mortgage to get the deal done. 

All our best for the upcoming week.

@ The Valeo-Croy Team, we are here for you.

The Valeo-Croy Team -  (704) 366-7711

Todd Croy - NMLO license #91428
Deanna Valeo - NMLO license #91421


Accessible | Program Expertise | On-Time Closings   
                           
 
The Valeo-Croy Team and Cunningham and Company Mortgage Bankers are Equal Housing Lenders.

This information is for illustration only. It does not constitute an application for a loan or an offer or commitment for Cunningham and Company to make a loan on these terms. Interest rates are subject to change until an application is completed and you lock in your interest rate. The figures noted are estimates and may vary depending on discount points, taxes and insurance. Programs, terms and conditions are subject to change without notice. Mortgage loans are subject to credit qualifications. Normal credit standards apply.   Date: 9/27/2010