One of the issues for refinancing is equity nationwide.  Fha has a Streamline Refinance Option and many other Government Home Loan Programs do as well.  No Appraisal Required and if you have a second mortgage above the current value of your home you can still refinance.

Last week rates dropped to 5% and below for Streamline Refinances on USDA and Fha home loans.  For a 4 hour period we were able to lock 2 million in volume and we even paid 100% of the closing costs associated with the loan.

Many clients waited and lost out on the no cost option.  There is no reason to catch the absolute bottom of the market if the lender is paying the closing costs.  You can catch a low rate and a few months down the road if rates fall further you can refinance again.

I suggest to everyone that if you want a Certified Mortgage Planning Specialist watch your loan you get on the list.  Take action now and when the next 4 hour window arrives you can be sure to lock in.

http://www.RonYarbrough.com

http://www.Getamortgageplan.com

In today’s financial climate first time homebuyer’s are really stuck having to come up with a down payment to purchase a home or get a sizable gift from a relative that is loosing money in their own portfolio.I have had many requests for more information from the

This post is for consumers/homebuyers, Real Estate Professionals and Mortgage Professionals that may not have a good working knowledge of the features and benefits of the

Many Advantages of this home loan are:1.      No down payment required.2.      No Mortgage Insurance.3.      No cash reserves required.4.      No seller contribution limit.5.      No Prepayment Penalty6.      Loan up to 102%* of appraised value allowed…not the lesser of Sale Price or Appraisal7.      Loan amount can include closing costs and prepaids up to appraised value.8.      No stated maximum loan amount; maximum loan based on repayment ability9.      No First Time Homebuyer Requirement10.  New and existing homes OK11.  Fully amortized 30-year fixed rate loan12.  No minimum credit score required…common sense underwriting allowed.13.  No minimum cash contribution required from borrower.

14.  No limit on CLTV when soft second financing.

15.  No limitation on source of funds for closing costs. No seasoning requirement.16.  100% gifted closing cost or down payment assistance is permitted.17.  Non-traditional credit may substitute for lack of traditional credit history.18.  No derogatory credit explanations required when credit score is 660 or above.19.  Rent is not verified with FICO of 660 or more.20.  Qualifying ratios of 29%/41%…29% PITI to Income and 41% Total Debt to Income, however standard ratios may be exceeded with documented compensating factors.21.  Conventional type loan packaging with only 1 extra form required.22.  Competitive rates (set by underwriting lenders) As of 12/12/2008 rates for loans above 85,000 are 5.50%*Appraisal may be exceeded by amount of Guarantee FeeDetermining if property is in a Rural Development designated rural area: http://eligibility.sc.egov.usda.gov/   Determining if applicant(s) have an acceptable credit history:1.      Credit history must indicate a reasonable willingness to meet obligations when due.2.      Streamlined credit approval when primary applicant has a middle credit score at 620 or above.3.      No minimum credit scores.4.      Lack of credit is not derogatory. Alternative credit verifications are allowed, typically 3 lines.5.      Lenders make the credit decision.Income eligibility:Project the cumulative gross income of all adults in the household.THE GROSS INCOME LIMITS CAN BE MUCH HIGHER THAN THE ADJUSTED INCOME LIMITS SHOWN IN THIS TABLEIf the projected dependable income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 or younger and paid to someone outside the family. You also can deduct one $480 annual deduction for anyone under 18 or a student who is not one of the applicants. Other deductions may be available (see FL/VI Handbook or RD Instruction 1980-D, www.rurdev.usda.gov/regs Example:

55050 62900 70800 78650 84950 91250 97550 103800

See the easy to use calculator at: http://eligibility.sc.egov.usda.gov/eligibility  Click on “Single Family Housing” under “Income Eligibility”Applicant(s) repayment ability:Ratio limits are 29 front (housing, PITI), 41 back (total debt, MOTI). Rural Development generally allows expanded repayment ratios if recommended by the lender’s underwriter. 31%/43% automatic for dwelling built after 1/1/2000.Other eligibility criteria:1.      Do not own a suitable dwelling.2.      Insufficient resources to secure conventional 80% loan without the guarantee.3.     

http://www.RonYarbrough.com

I know I have blogged about the opportunity in the past but I cannot believe more potential homeowners have not taken advantage of the Zero Down Mortgage program.  I have been closing USDA RECD home loans for over 12 years and they have always been zero money out of pocket, and no PMI.

The bulk of the clients I have helped have been in the Gardner, Edgerton, Springhill, Desoto, and Bonner Springs, Kansas Area.  This mortgage does have some income limits but they are very agressive.  For a family of 4 with 2 children under 18 the max income is 79,610 a year per household.  In addition you can get credit for Child Care paid.

What this means is that a home buyer would qualify for a 1923 a month house payment if they were at the maximum Income.  With an interest rate of 5.5% this would purchase a 265,000 home with Zero Down.

Do the math.  There is no better program with a low funding fee of 2% financed into the loan, Veterans don’t even have it as good. 

http://www.RonYarbrough.com

If one of the biggest fears for our economy is deflation, why would the Fed come out boasting a 4.5% conforming rate.  To the masses this keeps potential homeowners on the fence.

Many of my clients have decided to go ahead with a no cost refinance now to hedge their bets on the interest rates.  No cost refinancing allows a homeowner to refinance, lower their rate and not increase their mortgage balance. 

As a Certified Mortgage Planning Specialist in Gardner, Kansas, I have been helping clients manage their mortgage for over 13 years.  I literally pay all the closing costs and the client takes their savings and either applies it to their principal balance or directs the funds into an investment account.

If rates continue to fall then we have an opportunity to lock in at the lowest rate without paying closing costs multiple times.

Ron Yarbrough