COMMUNITY Assistance programs for first time buyers which allow 0% down payments and 100% refinancing options.
You can purchase a house with no money down, by simply qualifying for the city assistance program. There has been funds in different cities that allow first time buyers to avail of this program. Please call the local city where you are buying and ask to see if they are participating in this program. It’s worth the phone call and may let you buy without any money down. The assistance amount provided by the city can be used for your downpayment and closing cost.
There is a Mortgage Refinance Madness going on. If your rates are above 4.875%, you might be due for another refinancing. The Federal Rates, almost at bottom levels, have pushed the mortgage rates lower, with Treasury Bonds being a safe haven for investors. Many homeowners have taken advantage of these lower rates. The 10-year Treasury Bonds have dropped below 3.15 that have pushed rates down to the low 4’s.
I advise you to review your mortgage rates and call me to see if you are eligible for refinancing.
We are one of the promoters of “No Cost Refinancing” where you can refinance just the amount of loan you currently owe. No out-of-pocket hard cost for refinancing. When refinancing, you have to understand that you may seem like you are skipping one mortgage payment, but think again.
Mortgage interests are paid one month in arrears and when you close on your refinancing, your next payment should be about 30 days from closing. Your first payment to your new lender will pay for the interest from when you close until that month’s end. Therefore, at the close of your refinancing transaction, your current lender will assess one full month of interest to be paid at closing.
When you are refinancing a loan, you actually almost always double pay your interest for between one to two days. Banks will never lend you money without any interest charges, they are always way ahead of you.
When refinancing, when it’s close to tax time, the lender will require you to prepay your taxes and insurances Be prepared.
Most refinancing will require you to maintain a 20% equity in your property to avoid having to pay Private Mortgage Insurance (PMI). But now, Fannie Mae and Freddie Mac, due to pressure from the administration, have actually opened up a refinancing option for homeowners who have absolutely zero equity.
Who can qualify for a loan refinancing without equity? 100% Refinancing (No Equity)
Everyone is waiting on these guidelines for refinancing their properties that has no more equity left, or cannot meet the regular 80% loan to value requirements that most lenders have.
Here are the new 100% refinancing guidelines:
Eligible Transactions: Rate and term refinance only, no cash allowed. Loan must be delivered to Fannie Mae prior to March 01, 2009. Go to http://loanlookup.fanniemae.com/loanlookup/ to see if you have a Fannie Mae loan.
Credit Overlay: 620 minimum fico
– No Mortgage lates within the past 12 months
– Bankruptcy: 48 months since discharged
– Foreclosure: 84 months since discharged
– Max DTI: 50% ( debt to income ratio )
Subordinate Financing: New Subordinate financing and payoff of existing subordinate financing with loan proceeds is not allowed. Payoff of existing subordinate liens from the borrower’s own funds is allowed.
Occupancy: Owner Occupied, Second home and Investment properties allowed.
Income Documentation: Salary/Bonus/Overtime: One current paystub and verbal Verification wick be accepted, for Self employed: One years Fed Taxes required.
Additional FNMA Restrictions: Refi Plus loans must provide a benefit to the borrower in the form of a reduced P&I payment or more stable program.
Properties listed for sale within the last six months are ineligible.
Loan Limit: $ 417,000
This might be your ticket to get better financing, if you are hanging on to your mortgage payments. There will be price adjustments based on your loan to value and credit scores.
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Call Ken Go of 1st Innovative Finance Group to give you a quote at (562)697-7028 or write to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
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