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Archive for the ‘Loan Programs’ Category

I have met some great people during my career as a broker.  Great people

Improve your credit score

who just simply want to realize the American dream of home ownership.  Often times we make those dreams a reality.  Often times we make those dreams reality in a timely manner.  Other times it takes time.

Why?  The powers that be have installed a system whereby in order for someone to qualify to get a loan to buy a home they have to be what they would call ‘credit worthy’.  The banks and lenders need to feel comfortable in the borrower’s ability to repay whatever loan they are given.  How they do that is primarily through a credit score. 

Credit score calculations are put together by the same people who have developed the BCS standings for college football championships seemingly.  No one fully grasps how they do it or why they weigh more on particular aspects of a persons financial snapshot over others, but that’s the reality. 

Essentially the credit score is put together by three bureaus who record financial information in a database and plug that information into their formulas to come up with a score.  Those bureaus are Trans Union, Equifax and Experian.  Lenders then use that information to determine if a person is ‘credit worthy’ or has a strong likelihood of repaying a loan. 

What if that score is too low?  Lenders want to see (and this is subject to the lending environment at any given time – aka ‘Subject to Change’) scores at least 620 and higher.  The lower the score the higher the rate can be.  The lower the score the higher the down payment potentially can be, too.  If that score is on the low side there are things that can be done to improve that score.  Here are a couple links to improving your credit score. 

The most complete resource for all things credit score is www.myfico.com 

Here’s an article from Money Magazine on 7 ways to improve your credit score.

Here’s to a healthy credit score!

Alan Strange, and The Strange Team, has a comprehensive website focusing on Denver Real Estate. Buyers can search all of the active Colorado MLS listings for homes Fast, Free and Easy.

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My attempt at being younger than I am…does it show?  CHFA is in the news again due to some well needed and helpful changes that are making it easier for first time homebuyers to get into the game.  With the real estate market the way it is in Colorado anyone buying now is going to come out way ahead in the upcoming years and here are two programs making that happen: 

CHFA HomeOpener and HomeOpener Plus

CHFA HomeOpener and CHFA HomeOpener Plus are statewide first mortgage programs available to homebuyers. There are no purchase price limits or first time homebuyer requirements, and mortgage loans originated in these programs are not subject to the Recapture Tax provision. The CHFA HomeOpener Plus program includes the CHFA Second Mortgage Loan to assist with down payment and closing costs for a single family property. The programs offers market interest rates.

These programs have income limits, and to qualify, you must attend a Homebuyer Education class if you are a first time homebuyer or Money Management if you are not a first time homebuyer. You must also contribute a minimum $1,000 to the purchase of the home. The property must be occupied by the homebuyer and not used as a rental property.
 

CHFA Second Mortgage Loan

Used in conjunction with the CHFA HomeOpener Plus program, this optional loan helps with down payment and closing costs. This loan, if used, will come from the same lender as your primary loan.

The CHFA Second Mortgage Loan is available for up to 3 percent of the first mortgage loan amount at the same interest rate and term (30 years) as the first mortgage, the CHFA HomeOpener Plus. Monthly  payments are due on this loan at the same time the payments on the  CHFA HomeOpener Plus first mortgage loan payments are due. If the first mortgage is refinanced, title transferred, or if the property is no longer the borrower’s principal residence, the CHFA Second Mortgage Loan is due and payable in full. The CHFA Second Mortgage Loan can not be subordinated to any new first mortgage other than one offered by CHFA.

source: CHFAinfo.com

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According to www.FinancialStability.gov two new plans were initiated to help struggling homeowners.  The details on those follow:

PROGRAM #1: Refinancing For Strong Borrowers 

If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance. (program begins immediately and run until 6/2010)

Who may qualify:
1. The home in question must be your primary residence.
2. It must be a Fannie Mae or Freddie Mac loan (conventional loan).  If you don’t know contact: 

Fannie Mae, 
1-800-7FANNIE (8am to 8pm EST).
www.fanniemae.com/homeaffordable
Freddie Mac
1-800-FREDDIE (8am to 8pm EST)
www.freddiemac.com/avoidforeclosure/

3. The mortgage must be current: “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
4. The value of your home must be about the same or less than the current value of your house.

PROGRAM #2: Remodifying Loan Terms For At-Risk Borrowers

Making Home Affordable Modifications

If you can no longer afford to make your monthly loan payments, either because your interest rate has increased or you have less income or you are experiencing a hardship that has increased your expenses (like medical bills), you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible. (program begins immediately, new borrowers are accepted until 12/31/2012)

Who may qualify:
1. The home in question must be be your primary residence.
2. The amount owed on your first mortgage must be equal to or less than $729,750.
3. Are you having trouble paying your mortgage?  An example would be if have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR you have suffered a hardship that has increased your expenses (like medical bills).
4. The current mortgage must have been created before January 1, 2009.
Go to the website for the links necessary for guidelines and more detailed information in how to apply and to learn how the loan is modified.

If you or someone you know is faced with either of the above situations and you would like more information we would be glad to help.  We have consultants waiting for you call and can help with home retention or foreclosure prevention.  Don’t hesitate to see what your options are. 

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