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How to qualify for FHA Negative Equity Short Refinance on a San Jose Home

Department of Housing and Urban Development (HUD) announced enhancements to the existing Making Home Affordable Program (MHA) and Federal Housing Administration (FHA) refinance program that will give a greater number of responsible borrowers an opportunity to remain in their homes. These enhancements are designed to maintain homeownership by providing borrowers, who owe more on their mortgage than the value of their home, opportunities to refinance into an affordable FHA loan. This opportunity allows borrowers who are current on their mortgage to qualify for an FHA refinance loan provided that the lender or investor…continue reading →

FHA reduces upfront Mortgage Insurance for San Jose First Time Home Buyers

FHA today announced reduction in upfront Mortgage Insurance Premium (UFMIP) for San Jose First Time Home Buyers and FHA Streamline Refinance on San Jose homes. A change that has been prompted by passage of H.R. 5981 in the congress, will reduce the upfront mortgage insurance premium to 1% from the current 2.25%. At the same time, the annual mortgage insurance premium currently at .55% for the minimum downpayment of 3.5% will go up to .90%. For downpayments at 5% or more the annual mortgage insurance may go up to .85% from the current…continue reading →

Can I purchase a new home if my spouse does a Short Sale?

Short sales, in most cases, are one of the most economical solutions for all parties involved when a borrower can no longer afford their home. The bank typically incurs a smaller financial loss than would result from an ultimate foreclosure or continued delinquency on the mortgage payments. Borrowers may be able to soften the overall damage to their credit, and potentially settle future deficiency judgments. The big question on hand is.......What is life like after a short sale?? If you're married and your spouse has recently had a short sale, you may still…continue reading →

Benefits and Drawbacks of a short sale on a California Home

There are many benefits to a Short Sale versus a Foreclosure for a California homeowner, but there also many drawbacks to a short sale that need to be considered before deciding on the best course of action. A short sale is a great option for California┬áhome owners who need to sell their home and owe more than their property is worth, but a short sale is not for everybody. Benefits of a Short Sale A short sale will not drop the FICO score as much as a foreclosure. It is estimated a foreclosure…continue reading →

Looking for a reason to Refinance – How about the lowest rates in 40 years!!

CNBC and Bankrate.com just reported that home loan rates are at their all time lows. Yes, all time lows! This is great news for anyone who has yet to refinance to take advantage of the lowest rates ever recorded, or to purchase that new home or investment property more affordably than ever before. Both 30 Year and 15 Year Fixed Rates clipped down to their lowest levels. All this is incredible as just months ago, many experts had anticipated that rates would be well above 5% this summer and on their way to…continue reading →

Short Sale vs. Foreclosure – What you need to know to make an informed decision

Whether you should do a short sale or let the home go to foreclosure depends on several factors. While for some homeowners, it is easier to throw up your hands and let the bank take your home, that might not be the wisest thing to do. Short Sale Benefits Here are a few benefits for doing a short sale that may not have occurred to you: You may sleep better at night knowing who is buying your home. You will spare yourself the social stigma of the "F" word, foreclosure. Contrary to popular…continue reading →

Fannie & Freddie make it difficult to qualify for ARM and Interest only loans

Fannie Mae and Freddie Mac are making the following changes to interest-only and 3/1 and 5/1 ARM Loan Programs. These changes go into effect immediately. Interest Only Product Changes Interest only transactions are no longer available for Cash-out refinances, Investment properties and 2 to 4 unit properties. Interest only loans are still eligible on following transactions: - unit purchase and rate/term transactions - Primary residences or second homes with a: - Maximum LTV and CLTV of 70% - Minimum credit score of 720 - The borrower must have minimum reserves of 24 months…continue reading →

Resources for FHA Approval Process for San Jose Condominiums

FHA recently announced additional resources for condominium approval process for San Jose and rest of the country condos. All condominium inquiries, telephone and email, must be submitted to the FHA Resource Center at:(800) 225-5342 or by email at: [email protected] The FHA Resource Center will provide responses to general inquiries received from consumers and industry partners. Before contacting the FHA Resource Center, it is recommended that you use the following resources to search for answer(s) to your question(s). 1.Check to see if your question is already included in the Condo FAQs currently posted on…continue reading →

FHA 203K Rehab loans for San Jose Homes

Have you found that almost perfect San Jose home in the right location that is selling at a reduced price because it needs a little rehab work? Unfortunately, most mortgage loan programs require homes "in need of work" to be complete before the financing can be secured for the purchase transaction. Whether the property needs a little or a lot of work, most First-Time Home Buyers simply don't have the up-front cash to invest in a property prior to actually securing the financing. However, the FHA 203(k) Rehab Loan may be your answer…continue reading →

What’s keeping San Jose Mortgage Rates REALLY low?

Last week mortgage rates for San Jose homes eased back to the lowest level of the year. According to Freddie Mac's Primary Mortgage Market Survey 30-year fixed-rate mortgage (FRM) averaged 4.84 percent with an average 0.7 point for the week ending May 20, 2010, down from last week when it averaged 4.93 percent. The 5-year adjustable-rate mortgage (ARM) for San Jose home loans averaged 3.91 percent this week, with an average 0.6 point, down from last week when it averaged 3.95 percent. This breaks last week's record and, again, the 5-year ARM has…continue reading →