One of my favorite blogs to follow, Get Rich Slowly, recently published Reader Stories: I bought a duplex to save money on rent. The author of the post describes how he used an FHA mortgage to buy a duplex and with renting out the unit he was not living in, he wound up paying less for his housing than when he was renting.
Buying a Duplex to live in with an FHA mortgage
April 26, 2013 by 4 Comments
Why you should compare FHA to a Home Advantage Mortgage
April 24, 2013 by 2 Comments
If your credit scores are 680 or higher and you’re considering buying a home located anywhere in Washington state using FHA for your mortgage, you may want to consider the Home Advantage Mortgage program.
Home Advantage is a mortgage program created by the Washington State Housing Finance Commission. Only Loan Officers, like yours truly, who have completed WSHFC training are allowed to offer this program.
Your First Home Mortgage Guide Book
April 23, 2013 by 2 Comments
My most recent guide book, Your First Home Mortgage, is filled with information that I hope first time home buyers will find useful. Please feel free to share this book with anyone you know who is considering buying their first home.
You can find a collection of my other guide books and slide shows by visiting the Mortgage Porter library.
Remember, if I can help you with your mortgage needs, including buying or refinancing a home located anywhere in Washington state, I’m happy to help you! Click here for a free rate quote.
PS: If you’re interested in attending one of my home buyer seminars sponsored by the Washington State Housing Finance Commission, click here.
What May Impact Mortgage Rates the week of April 22, 2013
April 22, 2013 by Leave a Comment
Mortgage rates continue to be very low, helping to spur on greater Seattle area home buyers and home owners wanting to refinance. If you’ve been considering locking in a low mortgage interest rate, now could be a good time to do so!
Here are some of the economic indicators scheduled to be released this week that may impact mortgage interest rates.
- Monday, April 22: Existing Home Sales
- Tuesday, April 23: New Home Sales
- Wednesday, April 24: Durable Goods Orders
- Thursday, April 25: Initial Jobless Claims
- Friday, April 26: Gross Domestic Product (GDP) and Consumer Sentiment Index (UoM)
Don’t forget, we have just over one month left to get FHA case numbers in order to avoid having FHA mortgage insurance on the life of the loan. This will impact FHA case numbers issued June 3, 2013 and later. FHA case numbers are typically issued after full application.
If you are considering buying or refinancing a home in Sammamish, Sumner, Sultan or anywhere in Washington State, where I’m licensed to be a Loan Officer, please contact me I’m happy to help you!
You can also follow me on Twitter @mortgageporter or “like me” on Facebook.
House Key Opportunity – Washington State Bond Mortgage Program
April 17, 2013 by 5 Comments
UPDATE MAY 1, 2014: FUNDS ARE BACK FOR HOUSE KEY ARE BACK – AND ARE LIMITED.
House Key Opportunity is a mortgage program offered by the Washington State Housing Finance Commission. House Key Opportunity is probably the program you’ve heard about when someone mentions “state bond” mortgages. This program offers below market mortgage rates for a select group of home buyers and is often combined with a WSHFC second mortgage for down payment assistance. The rates are only available until the funds reserved for the program run out.
Here’s a quick review of House Key Opportunity:
- Borrowers must be first time home buyers (or have not owned a home in the last three years) unless you’re buying in a “targeted area”.
- Income limits apply based on the size of the household with the first mortgage. Additional income restrictions may apply with the DPA (down payment assistance) second mortgage.
- Maximum acquisition cost applies based on county.
- Home buyers must attend a WSFHC approved class.
- Property must remain owner occupied or recapture tax applies.
- Properties must have an inspection unless a 1 year warranty is provided by the builder.
The House Key Opportunity Program with down payment assistance programs are available to borrowers who meet specific program requirements. Amounts and terms of the DPA vary with each program. The second mortgage programs listed below may also be used with a Home Advantage first mortgage and are provided based on need. Not all of the DPAs listed below have constant funding so availability may be limited.
- The HomeChoice Program: eligible borrowers must have a qualifying disability or have a family member with a qualified disability living with them. Maximum DPA is $15,000.
- House Key Schools: borrower must be an employee of an accredited or state recognized K-12, public or private school including community and technical schools. Max DPA is up to $10,000.
- House Key Veterans: eligible borrowers are veterans who received an honorable discharge and include members and honorably discharged former members of the Washington national guard and reserve or never remarried spouses and dependent/children of deceased veterans. Max DPA is $10,000.
- New Home for You: available to first time home buyers (or targeted area) meeting criteria and buying a never occupied new construction home. This program is only available with a House Key first mortgage and requires credit scores of 680 or higher. Max DPA is $10,000.
- House Key Plus ARCH: first time home buyers must be purchasing a home in designated areas of east King County. Max DPA is up to $30,0000.
Home Advantage Rebound: the home being purchased must be bank owned, foreclosed or a short sale. Max DPA is up to $10,000
Home buyers seeking down payment assistance, who do not want to buy in a targeted area or who are not first time home buyers or who do not meet the specific needs criteria, may opt for WSFHC Home Advantage Program.
For current rates on House Key Opportunity and more information about this program, click here.
As a Washington State Housing Finance Commissioned trained Loan Officer, I’m pleased to offer both House Key Opportunity and Home Advantage mortgage programs. Here as a list of WSHFC classes where I will be one of the instructors.
If I can help you with your home purchase or refinance on property located anywhere in Washington, please contact me.
What may impact mortgage rates the week of April 15, 2013
April 15, 2013 by Leave a Comment
Here are some of the economic indicators scheduled to be released this week which may impact mortgage rates:
Monday, April 15: Empire State Index
Tuesday, April 16: Building Permits; Consumer Price Index (CPI); Housing Starts; Industrial Production and Capacity Utilization
Wednesday, April 17: Fed’s Beige Book
Thursday, April 18: Initial Jobless Claims and Philadelphia Fed Index
Remember, mortgage rates are based on mortgage backed securities. When the stock market is deteriorating, mortgage rates tend to improve (or not decline) as investors will seek the safety of bonds over the quicker profits potentially found in stocks. And when the stock market is rallying, mortgage rates tend to trend higher as investors seek a higher return from stocks.
What also impacts mortgage rates is the Fed’s buying of mortgage backed securities to keep rates lower while unemployment is higher. By keeping mortgage rates low, the housing market has improved by making mortgages more affordable (and tempting with extremely low rates) to buy homes and also by helping Americans reduce their mortgage payments by hundreds of dollars each month, which puts more cash back into the economy.
Speaking of refi’s, last week, HARP 2.0 was extended through 2015.
Another important date to remember is May 31, 2013. If you’re considering an FHA refinance or streamline refi or are in the process of buying a home using FHA financing, you’ll want to start soon. FHA case numbers issued June 3 or later will have mortgage insurance for the life of the FHA loan (until it is refinanced or paid off).
If you are interested in buying or refinancing a home located in Bellingham, Bainbridge Island, Bellevue or anywhere in Washington state, I’m happy to help you. Click here for a mortgage rate quote.
Home Advantage Mortgage with Down Payment Assistance
April 11, 2013 by 4 Comments
Home Advantage is a program that is offered through the Washington State Housing Finance Commission. Home Advantage is typically combined with a Home Advantage second mortgage that can finance closing cost and the down payment. Unlike the House Key program (state bond), this program has unlimited funds available for qualified Washington home buyers.
HARP 2.0 extended through 2015
April 11, 2013 by 5 Comments
FHFA just issued a news release announcing that the Home Affordable Refinance Program (aka HARP) has been extended through 2015. This refinance program created for home owners with conventional mortgages who are “under-water” home values was set to expire at the end of this year.
There is no mention of expanding or removing the June 1, 2009 securitization requirement that has excluded many home owners from being able to refinance their homes (aka HARP 3.0 or #MyRefi).
Here are some of the requirements to be eligible for a HARP 2.0 refinance:
- Your mortgage must be securitized by Fannie Mae or Freddie Mac. NOTE: this is different than who you make your mortgage payment to (your mortgage servicer). Your may be making your mortgage payment to a big bank and your mortgage is securitized by Fannie or Freddie.
- The mortgage must have been sold to Fannie Mae or Freddie Mac on or before
May 31, 2009. This is not the same as your closing date and takes place sometimes several weeks after the closing of your loan. - The mortgage cannot have been refinanced under HARP previously unless it is a Fannie
Mae loan that was refinanced under HARP from March-May, 2009. - The current loan-to-value (LTV) ratio must be greater than 80 percent. It doesn’t matter how “under water” your home’s equity is! Often times, no appraisal is required.
- The borrower must be current on their mortgage payments with no late payments in the
last six months and no more than one late payment in the last 12 months
This program is available on owner occupied, second homes and investment property and is available to most mortgages with existing mortgage insurance as long as the above criteria is met.
Click here for my complete guide on the Home Affordable Mortgage Program.
I’m happy to help you with a HARP refi or any mortgage for homes located in Washington state, where I’m Licensed. Click here for a rate quote.
I am required to have the language below if I am soliciting your Home Affordable Refi for your home in Washington…and yes, I would love to help you with your HARP (or any) refinance:
Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.
If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: www.freddiemac.com/mymortgage or http://www.fanniemae.com/loanlookup/
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