Deanna Valeo
Home

Buy a HUD Foreclosure for only $100 down payment - Do you feel lucky? June 5, 2011

 

"Act as if what you do makes a difference. It does." ~  William James

Normally, FHA has a 3.5% down payment requirement, but this program works with just $100. It is available for owner occupied FHA insurable Department of Housing and Urban Development (HUD) homes. The HUD $100 down program, started 11/23/07,  is a great opportunity to get into a foreclosed home for only $100 dollars.

The $100 down payment HUD program in Charlotte and surrounding areas allows people to buy homes in which they plan to live, using an FHA loan, as long as they offer HUD the full amount at which the home is listed. Using the HUD $100 dollar program has great benefits including seller paid closing costs up to 3% and a FREE appraisal. You will not have to come to closing with any more than the $100 if you get them to cover all your closing costs the right agent can make this happen.   

HUD homes eligible for the $100 down payment program have all been foreclosed upon by their lenders; the loans involved in the foreclosure were FHA-insured. Other foreclosures on which the loans were not insured by the FHA do not become HUD homes and are not eligible for the $100 down payment program.

There is one catch, finding the right house.  As you can imagine finding the right HUD foreclosures in the right neighborhood at the right time can be tough.  However, if you get lucky and you can qualify for a FHA loan; you may be a new home owner with only one Benjamin out of your pocket; not a bad way to get into your new home.

HUD has a great site for answering all your questions about buying a home and FHA Financing.

100 Questions & Answers About Buying A New Home

Search for HUD homes Here

 In line with the new government restrictions on rate quotes** we will be providing a link to http://www.mortgagenewsdaily.com/mortgage_rates/ and their rate guide.

 

Have a Fantastic Week and Remember We Are Here For You.

Sincerely,

The Valeo-Croy Team - Call today:  (704) 488-1421

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

Accessible | Program Expertise | On-Time Closings  

Apply Now!

**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
 
Facebook link: http://www.facebook.com/valeocroyteam?v=app_4949752878


The Valeo-Croy Team and New American 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 New American Mortgage 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: 6/5/2011

 

 

 


What do you say when a buyer says “I have already been pre-approved by ___________________” June 8, 2011

What we say when a buyer says "I have already been pre-approved by ___________________" (another lender) 

 

That's great however I know the following when we use New American Mortgage:

  1. They have great rates
  2. We have selected New American Mortgage for our inside lender partner because they are the fastest growing Mortgage Banker in the United States.
  3. They have a system to assure you close on time the fastest loan turn times in the industry
  4. They will have an underwriting decision back within 24 hours of submitting your paper work
  5. Lower stress borrowing because you know what you need to supply for paperwork
  6. No surprises due to quick underwriting turn times
  7. They have very experienced loan officers with 15 and 10 years of experience right here in this office
  8. They are ethical and will try to get you the best loan structure to meet your needs
  9. They understand the need for consistent communication during the loan process to assure no surprises.
  10. No Surprises because they are trust worthy

Our commitment to all of you is that we will have great rates, close on-time, have fast underwriting decisions, keep you borrowers stress lower when compared to other lenders, give your client the best possible loan structure and finally have no surprises. 

We really want to earn our business please give us a try.

 

Have a Fantastic Week and Remember We Are Here For You.

Sincerely,
 
The Valeo-Croy Team - Call today:  (704) 488-1421
Todd Croy - NMLO license #91428
Deanna Valeo - NMLO license #91421
 
Accessible | Program Expertise | On-Time Closings   
 
 
**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
 
Facebook link: http://www.facebook.com/valeocroyteam?v=app_4949752878
 
 
The Valeo-Croy Team and New American 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 New American Mortgage 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: 6/5/2011

 


When can I cancel my mortgage insurance (PMI)? June 20, 2011

 

"It is our choices that show what we truly are, far more than our abilities." ~ J.K. Rowling

When it comes to private mortgage insurance (MI), there are several misconceptions that exist that make buyers reluctant to consider a conventional loan with MI purchasing a home. One of the more common misconceptions is that cancelling MI is a difficult--not to mention time-consuming--process.

The irony is that the majority of buyers don't have the same reservations about an FHA insured loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.

HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998--which applies to both FHA and MI insured loans--required lenders and servicers to provide disclosures regarding MI for residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and two, they had a good payment history.

While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for keeping track of their loan balance.

The HPA established three different times when a lender or servicer must notify consumers of their rights.

At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination

• A written initial amortization schedule for fixed-rate loans only

Each year, loan servicers must send borrowers a written statement that discloses:
The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled

When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due

Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan becomes current.

Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches 80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30 days late on a mortgage payment within one year of their request, or 60 days late within two years.

However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and even then, it can only be requested beginning five years after the loan origination date.

With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite falling property values, it's possible for homeowners to gain enough equity in their home to request cancellation in less than five years based on a home appraisal.

In line with the new government restrictions on rate quotes** we will be providing a link to http://www.mortgagenewsdaily.com/mortgage_rates/ and their rate guide.

Have a Fantastic Week and Remember We Are Here For You.

Sincerely,

The Valeo-Croy Team - Call today:  (704) 488-1421

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

Accessible | Program Expertise | On-Time Closings  

**Please note the rates quoted are at the absolute best loan amount, the highest credit score and lowest LTVs allowed with a 1% origination fee and indicate the absolute lowest rate possible. You should use this list as a guideline and trend indicator and get a specific quote for your project (often it may be slightly higher).
                           
Facebook link: http://www.facebook.com/valeocroyteam?v=app_4949752878

The Valeo-Croy Team and New American 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 New American Mortgage 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: 6/20/2011


Home Buying for Single Parents June 27, 2011

 

Today statistics show there are more and more families with a single parent.  If you are in this situation, and want to purchase a home, there are some very specific details you should know:

FHA requires a 3.5% Investment into the Property, which is lower than the 5% charged on most Conventional Loans.  USDA does not require a down payment on the purchase of homes in qualifying areas. Best of all you can buy more house with USDA because it does not have monthly mortgage insurance.

The down payment or closing costs for a FHA and USDA loan can be a gift.

FHA and USDA loans, in today's lending environment generally require 12 months of clean credit, and a credit score of at least 620.

FHA will consider part time jobs if you've only had that part time job for 18 months most other underwriting requires you to have a 24 month history of working 2 jobs. (and let me just say, if you are a single parent working 2 jobs God Bless you! WOW! Talked to a Dad today who is doing that!)

CHILD SUPPORT or Alimony

You have to have evidence that you have received child support, on time, for a year for it to count as income.

One of the most common problems we see is when a single parents gets a child support check, cashes it, and deposit part of the check into their account.  In order to have EVIDENCE that you are receiving that income, we need to have bank statements that reflect the entire "check."  We suggest that the single parent deposit the child support check into their account at the same time each month; the same for Alimony.

An underwriter must have evidence that you will receive Child Support or Alimony for at least 3 full years after the date of closing.  Let's say you receive $300 for each of your 2 children until they are 18.  So if you have a child who is 12 and a child who is 16 we would only count the 12 year old's portion of your support in qualifying you for the mortgage.

If you PAY Child Support or Alimony... An underwriter are only going to count that payment against you (like a car loan) if you have more than 9 months of payments left per your agreement.  If you are behind on Child Support or Alimony, and the court is garnishing wages for those payments, we would need 12 months history of that "work out" being made on time.  You will need a credit score of at least 620.

Non-Occupying Co-Borrower

You can purchase a home without being married to the other borrower. You could buy the home with your parents (for instance), and they would not have to live in the home. We would take all of their income, all of your qualifying income, all of their debts and all of your debts, and see what the ratios look like.  Having someone purchase the home with you helps from an Income Qualifying standpoint.  Having someone else purchase with you will not help a single parent with CREDIT issues.

Purchasing a home with someone who is NOT a family member would require that the other person live in the property with you. Again, you take all of their income, all of their debts and add it to yours... and their credit needs to be at least as good as no late payments in the last 12 months and at least a 620 credit score. (Don't have a 620 score yet?  Click here for tips you can start doing today to improve your credit score! 8o))

RoomMates

We are seeing more single parents who are living with OTHER single parents.  If you HAVE a roommate, or if you are GOING to have a roommate it is very very difficult for us to count that income.  If the roommate is not going on the mortgage loan with you, we cannot count that rental income.

Previous Mortgage

If you and your Ex owned a home, and the mortgage was NOT in your name there's nothing to worry about.

If you owned a home, and the mortgage was in BOTH names, and you Quick Claim Deeded the Property over to your Spouse... you are STILL responsible for the mortgage.

If the Separation Agreement says that the SPOUSE is responsible for the mortgage payment -and you were ON the mortgage loan... you are STILL responsible for the mortgage. Unless you have been TAKEN OFF of the mortgage let's say the other person refinanced the mortgage and took your name off, or if you sold the home, you are still responsible for the mortgage.

If there was a Short Sale, or Foreclosure on that home, and you were on the mortgage, (even if you did not live there at the time and you the separation agreement said you were not responsible for the mortgage) click here for more details and time lines.

HERE'S THE GOOD NEWS!

Less income, in today's real estate market buys MORE home. With Interest rates in the 4's and home prices coming so far down a parent who makes $38,000 with no more than $350 a month in debt can purchase a home in Charlotte home market with 4 bedrooms, a 2 car garage, in a NICE neighborhood for around $200,000. 

So, if you make $35,000 and receive $300 a month in child support... you could purchase a nice home, and you could GET a roommate to help you make your payments!  NOW really is a great time to purchase a home!

If you are a Single Parent, interested in buying a home, Call Todd or Deanna at 704-488-7763 or 704-488-1421.  Each situation is different; let us help you with a plan that will mean you can purchase a home! We know the FHA and USDA guidelines in NC/SC and we love helping people buy a home for their family!