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Arm’s-Length Transaction

May 23, 2009 at 11:58 pm · Filed under For Home Buyers

Recently one of our readers asked how she would go about buying her sister’s house which was a short sale. Not possible we had to tell her, a short sale must be an arm’s-length transaction.

An arm’s-length transaction is one which takes place between parties that have no kind of familial or business connection to one another. This ensures that there is no question of conflict of interest and the parties to a transaction are independent and on an equal footing.
Many lenders are requiring buyers to sign arm’s-length transaction affidavits if the purchase is a short sale.

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Important Mortgage Updates – Friday 5/22/09

May 22, 2009 at 11:56 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

photo courtesy of: icann has cheezeburger

Sorry to be a little late with this update, but I’ve been trying for several days to figure out the real scoop on exactly what happened. For the first time that I can ever remember, FHA actually published a mortgagee letter on their website and then just removed it.

Usually the process of revoking a Mortgagee Letter would involve issuing another Mortgagee Letter with updated rules. Looks like someone at HUD may have gotten ahead of themselves!

For the time being, there is no monetization of the $8000 tax credit. Even if they should re-instate it, it will be months before lenders would be able to get geared up to do it.

Sorry for the unnecessary excitement.

Rates as of today were:

30 Yr Fixed – 5% (0 points)/ 4.75% (1 point)
15 Yr Fixed – 4.625% (0 points)/ 4.25% (1 point)
FHA – 4.875% (0 points)
Investment – 5.75% ( 0 points)/ 5.25% (1 point)- 25% down payment required)

*35 day lock Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA)
*Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

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Where do FHA Mortgages Come From?

May 21, 2009 at 11:01 pm · Filed under First Time Home Buyers, For Home Buyers

FHA loans do not come directly from the FHA. The FHA guarantees home loans, reducing the risk to lenders and offering increased borrowing power to qualified applicants. You may get better interest rates thanks to FHA home loan insurance.

FHA loans are particularly helpful for those who want a home, but have little or no money saved for a down payment; including those just graduating college, newly married couples, and also those who have had credit problems in the past.

Typically, FHA mortgages require a 3.5 %down payment. Unlike traditional loans, this money can also be a gift to the homebuyer and does not need to be secured as the homebuyer’s own money.

Technorati: Philly home buyers, 1st time home buyers, Philly mortgages, FHA mortgages

posted by janice SEARCH the Philadelphia MLS. No Registration Required!

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Applying for a FHA Loan

May 19, 2009 at 9:54 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

The FHA asks for a lot of information on your FHA loan application. You will need to provide the FHA with a wide range of details including:

1. All addresses where you have lived in the previous two years.

2. Your employer’s name and addresses for the last two years, plus the amount of your Gross Monthly Salary.

3. W2’s for the past two years.

4. Income tax forms submitted for the last two years.

Gather all of this before you begin your FHA application so you will have everything handy to complete your FHA loan forms at one time.

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT

Technorati: Philly home buyers, 1st time home buyers, Philly mortgages, FHA mortgages

posted by janice SEARCH the Philadelphia MLS. No Registration Required!

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What’s a Perfect Loan for a Philly 1st-Time Home Buyer?

May 18, 2009 at 11:38 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

FHA may be the best financing option of 2009.

Why is the FHA program so good?

1st, you can get a fixed-rate loan at a decent rate. This is very important because unprecedented government spending and balance-of-payments deficits could cause inflation and the devaluation of the dollar — bad news for those with adjustable-rate loans. If inflation becomes an issue loan rates and monthly payments will soar for ARM borrowers.

2nd, there is no prepayment penalty or other funny business.

3rd, HUD, to its credit, tries to help FHA borrowers who run into hard times.

4th, the application process is very clear: You have to provide paperwork and verifications, the way loans should always be underwritten.

5th, you can buy with 3.5 percent down.

Tomorrow: Applying for a FHA Loan

Potentially Related Posts: 7 Facts About FHA Mortgages

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT

Technorati: Philly home buyers, 1st time home buyers, Philly mortgages, FHA mortgages

posted by janice SEARCH the Philadelphia MLS. No Registration Required!