Posted by admin on 30 Jul 2008 6:59 am. Filed under Idaho FHA Loan.
July 30th, 2008
President Bush has signed a massive housing bill intended to provide mortgage relief for 400,000 borrowers with $68 billion in loans.Many struggling homeowners will benefit from the program.Here’s what Idaho homeowners need to know.
Who’s eligible?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it’s to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home’s appraised value at the time.
How can I apply?
Borrowers can contact their current mortgage servicer or go directly to an Idaho FHA-approved lender for help. Lisa Kratz at Apex Mortgage can help you right away at 208.888.9251 or www.myidahohomeloan.com
How does the refinancing process work?
This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home’s current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.
But lenders won’t sign off on a workout unless they think that they’ll lose less money on that than they would by allowing a home to go through the costly foreclosure process
Each loan will have to be underwritten by an Idaho FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home’s current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.
Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home’s market value.
If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.
As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.
What does it cost?
There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.
However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.
Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they’ll pay a “3% exit fee” of the mortgage principal to the FHA when they resell or refinance.
Plus, they’ll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.
After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.
What will I save?
Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.
Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgages.
Posted by admin on 25 Jul 2008 3:18 pm. Filed under Idaho Mortgages.
Whether you’re shopping for an automobile, electronics, travel services or Idaho real estate, the internet has revolutionized the way people gather information about products and services. For people who are thinking about buying a new home, the change is apparent, as well. The internet now is the number one source of information. With online listings of homes for sale featuring streaming videos, panoramic pictures, prices, recent comparable sales, real estate taxes, Idaho
mortgage loan options, and more. Indeed, potential home buyers who choose to use the Internet to access new listings and narrow their search may be the best informed and most efficient that today’s real estate professionals have ever dealt with!
The Roll of an Idaho Real Estate Agent
In your typical home sale, there are two real estate professionals: one who works with the seller — called the listing agent — and one who works with the buyer — called the selling agent or buyers agent. The listing agent generally shares the sales commission with the selling agent who finds the buyer for the home. But the seller pays both agents, usually from the proceeds of the sale. In Idaho agents are required to disclose the type of relationship they have with you, and then, it’s up to you to decide whether you want them to represent you. Whether you meet an agent at an open house or get in touch with one on your own, be aware that they need to disclose important information about their business relationship with you. Just feel free to ask them upfront.
Think about this. If you hired a professional Idaho real estate agent, to sell your home at the highest most desirable price aren’t they ultimately working for you? If I were buying a home today, I would seek my own independent agent to work for me and help me secure the best possible deal in today’s buyers market.
Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 23 Jul 2008 7:06 am. Filed under Idaho Home Loan.
Not too long ago, no-down payment loans were at the peak of popularity for homebuyers.
With the recent credit crunch lenders have tightened their standards, borrowers once again are expected to “put some personal interest” into the transaction and cash down payments are definitely back in style.
The biggest advantage of a down payment today is simply the ability to qualify for a loan, since only a handful of so-called Idaho “zero-down” loan programs still exist. Yet down payments have other benefits, too!
One great way to look at investing from the start is the more money you put down to buy a home, the smaller your monthly payments will be, A down payment becomes a homeowner’s instant equity when the purchase transaction closes, and that equity can be borrowed against with a home equity loan or line of credit. Guidelines to qualify for these loans have become much stricter. Some loan programs require cash reserves for this very reason.
Benefits of a down payment:
• Borrow less money to buy the same-priced home.
• Get a better overall deal from your Idaho Mortgage Lender loan products and programs
• Get a lower interest rate, due to less risk
• Pay less for upfront and or monthly mortgage insurance.
• Simply avoid private mortgage insurance altogether, if the down payment is at least 20% of the purchase price.
Almost all Idaho Lenders require a down payment to be “sourced and seasoned,” meaning the lender needs to know how you obtained the funds and that you’ve had control of those funds for at least several months. Gifts and seller’s concessions are acceptable, up to the percentage allowed by the loan program, but borrowed money cannot be used as a down payment because it is debt that has to be repaid.
Many homebuyers have difficulty coming up with a down payment. Here are some ways to do it!
5 ways to get your Idaho Down Payment:
1. Get a gift from your parents, friends, or other family member
2. Sell your free and clear motorcycle, car, boat, guns or other assets
3. Liquidate your stocks, bonds and mutual funds
4. Take loan from your 401k and pay the interest each month to yourself
5. Get a gift from the seller in a form of down payment assistance
Government-backed programs allow smaller down payments.
Two government-run programs are designed to help homebuyers who haven’t saved much for a down payment. An Idaho FHA Loan (The Federal Housing Administration), offers mortgage insurance that allows qualified buyers to purchase a home with a 3-percent down payment, all of which may be a gift. An Idaho VA Loan (The U.S. Department of Veterans Affairs) offers a home-loan guarantee program that helps many veterans.
Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
The Process of Refinancing can seem not only confusing but daunting. When you refinance your Idaho Mortgage, you take out a new home loan and use some or all of the proceeds to pay off the existing one. If you obtain a lower interest rate on your new loan than you had on your old one, you’ll be saving money. If you refinance and payoff debt this could also save you money not only each month but hopefully at the end of the year come tax season when you write off your total mortgage interest.
When is it the best time to refinance?
There are two good times when it’s wise to refinance your mortgage. One good time to refinance your Idaho Mortgage Loan is when you’ll save money by getting a lower interest rate. In this case, you’ll want to make sure that your monthly savings will pay back your refinancing costs while you’re still living on the property.
If you are like the millions of other American’s experiencing difficult cash flow issues, you may be tempted to lower your monthly mortgage payments by refinancing to extend the term of the loan. Take a careful look at the overall picture and ask your mortgage loan officer to help you run the numbers to see if this will provide some overall comfort and stress relief immediately.
Another crucial time to refinance is when have an adjustable rate mortgage, and are coming due to adjust. More then likely your payment will increase. If you refinance to a fixed rate mortgage, particularly to a rate comparable to your present low adjustable rate, you’ll avoid the higher monthly mortgage payment before the adjustment even takes place.
How to pick the best Idaho Mortgage Broker
To get the best mortgage refinancing deal you need to deal with an honest broker that genuinely has your best interest in mind. Idaho Mortgage Brokers usually follow certain practices when dealing with their customers. Not favoring just their own loan product like big national lenders. Insuring complete understanding, an Idaho Mortgage Broker will explain this to you in a clear way, so you can understand it. This is so you can weigh it out and decide for yourself if refinancing is actually in your best interest!
Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Many have been hearing about the recent turmoil with Fannie Mae and Freddie Mac, the private equity firms responsible for funding about half the nation’s mortgages. Home owners, as well as loan-seekers want to know: “What does it mean for me?”
The following article explains well the situation, as well as the proposed solutions for these Idaho mortgage funding institutions. In short, they have enough money, it’s simply a matter of investor confidence that they will always continue to have enough money. The proposed government solutions help reassure investors that they will. “There has been no liquidity crisis for Fannie or Freddie … It’s simply been a crisis of confidence in the equity.”
The details of the problems and solutions will continue to unfold. Some experts think lending requirements could continue to tighten, until full market confidence returns. More than ever, we believe loan seekers should work with a local lender who will take the time to listen, and take advantage of borrower attributes that might be skimmed over by large lending firms.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
– The federal government moved in to help bolster Fannie Mae and Freddie Mac on Sunday with a Treasury Department proposal that sets the stage for a government-orchestrated rescue. In the short term, the plan enables the two quasi-governmental agencies to continue to borrow money at favorable rates in order to fund their operations.
Last week, concerns about the financial stability of Fannie Mae and Freddie Mac were at the forefront of investors’ minds, and shares of both companies tumbled.
Here, a look at some of the factors behind the rescue operation launched this weekend.
What is the government proposing?
The Treasury Department disclosed a three-part plan to enable both companies to continue to play “a central role” in the nation’s housing market in their “current form as shareholder-owned companies.”
The department’s plan would temporarily increase Fannie and Freddie’s line of credit with the Treasury; give the Treasury Department the ability to purchase stock in either of the two companies — if it becomes necessary; and give the Federal Reserve a say in setting financial requirements and standards for the companies.
The department said it arrived at the plan after consultations with the Federal Reserve, the Office of Federal Housing Enterprise Oversight — the agency that regulates Fannie and Freddie — as well as the SEC, and Fannie and Freddie. Congress would have to approve any of the measures.
The Fed also said Sunday that the companies could borrow funds at a discounted rate — known as the “discount window” — from the Federal Reserve Bank of New York “should such lending prove necessary.”
So does all of this amount to a bailout?
Right now, it’s more of an effort to battle the markets’ lack of confidence. Opening the discount window to Fannie and Freddie “instills confidence in investors, so investors will continue to fund Fannie and Freddie,” says Frederick Cannon, chief equity strategist for Keefe, Bruyette & Woods. “I don’t see them using the window.”
Fannie and Freddie float bonds in the debt markets and use the money they raise to fund mortgages and guarantee mortgages. There has been no liquidity crisis for Fannie or Freddie, Cannon explains: “It’s simply been a crisis of confidence in the equity.” The actions over the weekend, he says, will enable the two companies to continue to support the mortgage market.
Why did the government choose to step in over the weekend?
The rescue effort was orchestrated to calm investors worldwide and to prevent the collapse of these two housing finance giants. Fannie and Freddie own or guarantee more than $5 trillion in mortgages — nearly half of all the mortgages issued in the United States.
The announcements on Sunday were intentionally made prior to the opening of the Asian stock markets and a Monday morning auction of $3 billion in securities by Freddie Mac.
Last week, Treasury Secretary Henry Paulson said no immediate bailout was necessary in an attempt to calm investors. The Treasury’s proposal on Sunday reflects a shift in gears to assure investors that the companies have all the money they might need, and that there’s no immediate danger of a collapse. It’s also a means for encouraging the continued purchase of Fannie and Freddie’s securities.
Both companies said on Sunday that they hold more than adequate capital. Freddie Mac also said it expected that its June 30 results will show that the firm has “a much greater surplus” above the minimum requirements.
What are the next steps?
The rescue provisions announced over the weekend will be added to a housing bill that is making its way through Congress. But Congress has to wrestle with a number of questions that regulators left unanswered. Fannie and Freddie are chartered by Congress, but they are public companies. What implications does this have for other private companies if the government bails out Fannie and Freddie? If the Treasury Department steps in and buys Fannie and Freddie stock, will those shares be of the same class as those held by institutional and indvidual investors, and will they be worth the same?
What are the implications of these proposals for taxpayers?
For years, advocates in Congress and in the private sector have been pushing for Fannie and Freddie to have a stronger, single regulator. Among those is FM Policy Focus, a group of financial services and housing organizations. Executive Director Mike House says the legislation in Congress now is “strong and adequate” for meeting this goal. The group also supports the Treasury’s proposals, which it says “will prevent taxpayers from having to bear the burden on this.”
House says the key thing is for “Congress to act expeditiously and get the legislation passed so that the market will get stabilized.”
If I own a home or plan on purchasing a home, what does this mean for me?
The stability of the mortgage market — keeping money available for people to buy homes — is closely tied to Fannie and Freddie. That’s because the companies presently fund a huge block of the nation’s mortgages, and the cornerstone of their mission is to fund mortgages for low- and moderate-income buyers.
“My sense is that all the turmoil makes homeownership more difficult,” both in terms of perceptions of homeownership and its value, says Bruce Gottschall, executive director of Neighborhood Housing Services, a Chicago-based nonprofit that assists low and moderate-income people with homeownership.
The tightening of the credit markets that has been building over the last couple of months impacts peoples’ ability to borrow money to buy homes. “From our experience, those in the low and moderate income are hit hardest and earliest in terms of that availability of credit,” he says.
– Written by Joshua Brockman, NPR, with reporting by Jim Zarroli. The Associated Press contributed to this report.
If you are in the market for an Idaho Home Equity Loan - sometimes called a Home Equity Line of Credit, or simply HELOC - there are a few important considerations. With these loans, you are essentially putting your home up as the collateral, so be sure you are getting the best Idaho mortgage rate and that you can afford the payments.
Here are a few more tips on getting the best Idaho home equity loan:
Know your credit score before applying for a loan. This will give you the leverage you need to get the best interest rate! Your credit report will show your credit score, sometimes called FICO credit score, from the three major credit bureaus (Transunion, Experian, and Equifax). They’ll all show about the same number, so lenders just use the middle one. Your “middle credit score” affects your ability to qualify and ultimately your interest rate.
It’s popular – and a good idea – to use your Idaho Home Equity Loan to pay off credit cards and other high-interest debts, but be sure to think it through carefully. Make sure you can afford the home equity loan payment and that your home value is stable. I wouldn’t advise going over 100% loan-to-value in today’s current real estate market. In other words, don’t let your mortgage balance plus your total home equity loan balance total more than your house is worth.
Once you get those nasty credit cards paid off, destroy them (at least cut up all but one)! You do not want to let yourself fall into the same trap again. Next get on a simple household budget and, here come’s the hard part… stick to it. Once you receive the money from your loan, be sure to use it wisely and save a bit of a safety net for emergency and unexpected expenses.
Do some research and comparison shopping of these loans. Most folks think all loans and lenders are the same – but they’re not. A good loan officer will take the time to understand your unique circumstances, then seek out the best loan for you.
My Idaho Home Loan. com can help you obtain a Home Equity Loan, or an Idaho mortgage loan for all types of goals. We offer innovative loan products, a simple process, and fast, friendly service. Click here to get pre-qualified immediately.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 10 Jul 2008 2:03 pm. Filed under Scenic Idaho.
Located 20 miles west of Boise, along I-84, Nampa is the second largest city in Idaho, at about 80,000 residents. The city is considered part of the Boise metropolitan area. Nampa is also the state’s fastest growing city, with a population growth rate of 47.66%.
Thousands of residents each year move to Nampa to save money on their homes, get relatively more house for less money, and pay less monthly on their Nampa Idaho mortgage payment (click here to get pre-approved).
Unlike other cities hit hard by the tough real estate market, property assessment values in Nampa are holding steady – many have, in fact, gone up in the latest Canyon County tax assessment.
Nampa is home to the NNU, an award-winning liberal arts college. The city is also home to the Snake River Stampede Rodeo, one of the top twelve rodeos in the pro rodeo circuit. More recently, the Idaho Center was built in Nampa and hosts major music and outdoor events.
Nampa has its own airport (though commercial carriers use nearby Boise Airport), as well as the close-by Warhawk Air Museum. Nampans are also excited about their “Historic Nampa Downtown Revitalization Project,” which aims to give local business a boost, as well as foster a sense of old-town charm in the heart of the city.
both agents, usually from the proceeds of the sale. In Idaho agents are required to disclose the type of relationship they have with you, and then, it’s up to you to decide whether you want them to represent you. Whether you meet an agent at an open house or get in touch with one on your own, be aware that they need to disclose important information about their business relationship with you. Just feel free to ask them upfront.
This article about Fannie Mae and Freddie Mac is written by N.P.R. and A.P. Next, see our 
