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Flower Mound, TX Mortgage Company Blog
Summer 2014 Mortgage Trends
The Mortgage Bankers Association’s latest forecast says the 30-year fixed rate could average 4.9 percent by the third quarter and reach 5 percent by the end of 2014. But there’s a good chance rates will remain stable through the summer, says Peter Grabel, senior mortgage loan originator for Luxury Mortgage Corp. in Stamford, Connecticut. “I don’t feel there’s any reason for rates to change a lot,” he says. Still, if you like the rate you have today, don’t waste time. “They are not that much off all-time lows. There’s only room for them to go in one direction and that’s up.” Getting a mortgage these days is obviously not as easy as it was during the housing boom, when pretty much anyone could get a loan. But after years of tightening, it seems like the standards are loosening up a bit. “We are seeing underwriters have a little more flexibility with some common-sense issues,” Grabel says. “That’s not a suggestion we are going back to the old days.” Standards have loosened mostly for larger loans, or jumbo loans, because they are not the types of loans that get sold to Fannie Mae and Freddie Mac. The institutions have their own guidelines and lenders must follow them if they want to sell the loans after they issue them. FHFA to Change Guidelines Mel Watt, the new head of the Federal Housing Finance Agency, recently said his office will change some of the guidelines to allow lending to borrowers with slightly lower credit scores. The FHFA oversees Fannie and Freddie. “Mel Watt reversed course for the first time in many years... read moreHARP Home Loan Program for Texas Homeowners
HARP stands for Home Affordable Refinance Program. HARP is a financial aid program that was introduced by the United States Federal Government in 2009 to help homeowners who are underwater, which means there is zero — or negative — equity in their home to refinance their mortgage. If you are a Texas homeowner who is underwater on your existing conforming or conventional mortgage, you may be eligible for a refinance without paying down any principle, without paying mortgage insurance, and in many cases, without spending any money out-of-pocket. HARP 2.0 – Help For Texas Homeowners The modified HARP program – HARP 2.0, also referred to as The Making Home Affordable Program, the DU Refi Plus Program, and/or the Obama Refi Program – is specifically targeted towards Texas homeowners having a loan-to-value ratio less than 125 percent. However, an additional guideline change to HARP 2.0 actually lifted the loan-to-value restrictions. So, Texas borrowers with a loan-to-value ratio even greater than 125 percent can now apply to this program. HARP 2.0 gives Texas homeowners the ability to refinance at today’s low mortgage rates without private mortgage insurance, exorbitant closing costs and fees, and in most cases without an appraisal. If you have been turned down before for this program, you will certainly want to re-apply for HARP 2.0. In order to qualify for HARP assistance, the basic eligibility requirements are: 1. Your loan must be backed by Freddie Mac or Fannie Mae 2. Freddie or Fannie should have bought your mortgage prior to June 1st, 2009. Determine If Your Loan Is Backed By Fannie Mae or Freddie Mac Unfortunately, Texas homeowners rarely know... read moreTypes of Mortgage Loans
Mortgage loans can be divided into two categories, conventional mortgage loans and governement mortgage loans. Any mortgage loan other than an FHA, VA or an RHS loan is called a conventional mortgage. The Federal Housing Administration (FHA), which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. If you are currently looking for an FHA home loan, please feel free to contact us. We are a HUD-approved mortgage lender. VA Loans VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. Lenders generally limit the maximum VA loan to $203,000. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan. VA-guaranteed loans are obtained by making application to private lending institutions. If you are interested in obtaining a VA-guaranteed loan contact us today for more information. RHS Loan Programs The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture guarantees loans for rural residents with minimal closing costs and no downpayment. Contact us for details about this loan program. Ginnie Mae which is part of HUD guarantees securities backed by pools of mortgage... read moreTexas Public School Personnel
Do you meet these criteria? Have a Full time independent school district job in Texas? Are you a classroom teacher or teacher’s aide? Are you a school librarian, school nurse, or school counselor? There is a new Texas program for you – First Come, First Served. This grant money is available to qualified Educators. Grant Requirements: Income and home purchase price limits apply You must meet standard mortgage underwriting requirements as credit worthy The house you are buying must be your primary residence FHA Loans Only This program will give you a grant of 3% of your total loan amount. It can be used as a part your down payment. The grant does not have to be repaid. Example: For a $100,000 loan: The grant would be $3000. If used toward your down payment requirement of 3.5% or $3,500, you would only need $500 for your portion of the down payment. Global Lending Solutions is here to help you with a mortgage for your dream home and show you how to use this program for Educators to your... read more