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Home Mortgage Tips
Tighter M.I. Requirements Effective Today
Jul 8th
Tougher credit and income requirements become effective today on new mortgage insurance applications submitted to United Guaranty Corp.
Mortgage insurance applications submitted on or after today require a minimum credit score of 680, according to bulletin CA 2009-27 issued today by the Greensboro, N.C. based company.
Loans with scores below 680 will be ineligible for insurance.
HUD Clarifies The First Time Homebuyer Tax Credit
Jun 1st
HUD Clarifies Tax Credits
Borrowers still need 3.5% of own funds
The U.S. Department of Housing and Urban Development has clarified how tax credits under recently passed legislation can be monetized in home purchase transactions.
HUD Secretary Shaun Donovan today told a group of directors for the National Association of Home Builders that the $8,000 first-time homebuyer tax credit created under H.R. 1, the American Recovery and Reinvestment Act of 2009, can be applied toward the purchase of properties securing loans insured by the Federal Housing Administration, a news release said.
Donovan originally announced the monetization of the tax credit earlier this month.
The recovery bill became law in February.
The tax credit is not available until the borrower files a U.S. income tax return. But with today’s action, HUD will allow FHA borrowers to obtain secondary financing up front from state Housing Finance Agencies and certain non-profits.
“Today’s action will help stabilize the nation’s housing market by stimulating home sales across the country,” the statement said.
However, the funds cannot be applied toward the 3.5 percent down payment required from the borrower. But the funds can be applied toward “their down payment in excess of 3.5 percent of appraised value or their closing costs.” Funds used for discount points can help reduce interest rates.
In addition to the borrower’s own cash investment, the 3.5 percent can be contributed by parents, employers and other governmental entities.
Donovan noted that today’s actions differ from seller-funded downpayments — which were “a vehicle for abuse.”
Would like to learn how the first time home buyer tax credit can help you be debt free? Then you take a little time and learn about the Money Merge Account program. You can request a free analysis today.
How the First Time Homebuyer Tax Credit Can Help You Be Debt Free
Mar 15th
The IRS has updated the tax form used to claim the first time homebuyer tax credit. That’s been increased to as much as $8000 for buyers purchasing a home before December 1st.
In 2008 nearly half of homebuyers were buying for the first time and the expanded credit will make it easier for that group of buyers to enter the housing market this year, the Treasury Department said in a recent announcement about its implementation.
IRS Form 5405 will allow qualifying buyers to claim the credit on either their 2008 or 2009 tax returns. The credit is equal to 10% purchase price of the home, up to a cap of $7,500 or $8,000.
For the first time homebuyers who purchase a home in 2008, the credit maxes out at $7,500 and functions like an interest free loan it must generally be repaid over 15 year period.
The American Recovery and Reinvestment Act of 2009 raised the cap to $8,000 and eliminated the repayment requirement unless a home is resold within three years.
With the first time homebuyer tax credit, a first time buyer can put their mortgage on the fast track with no out of pocket expense. By using the power of the Money Merge Account program, which pays off a mortgage using an interest-reducing strategy. First time homebuyers have access to an incredible tool, that can pay off their mortgage in as little as 1/3 to 1/2 the time. Thus saving themselves time and interest, and owning their home free and clear.
To find how quickly you can pay off your mortgage, becoming debt free thanks to the first time homebuyer tax credit schedule a free financial analysis today.
Mortgage Originators It’s Time To Step Your Game Up!
Oct 15th
The major advantage to Congress, HUD, and FHA creating tighter loan guidelines and making changes to loan programs is, simply put, that they will help borrowers with purchasing homes. The major challenge with this, of course, is that it means mortgage originators need to step up their game and become as up-to-date as possible on a myriad of new regulations.
Proper training on FHA loans and products is now paramount in the industry. So, as a means of helping mortgage professional become better equipped to deal with the impending changes, AllRegs, an information provider for the mortgage lending industry, has launched a service to augment its training services and support the increased growth of homeownership through FHA loan programs.
The AllRegs FHA Hotline is being made available to support the industry at a time when FHA business is growing exponentially and organizations are looking for resources to get them in the game. “You can’t be a mortgage banker today if you’re not keeping up with the intricate levels of change,” said Dan Thomas, senior vice president of AllRegs. “We’re seeing number from lenders where as much as 50% of their products are FHA. Originator need to know what is going on with FHA products.”
My question to mortgage originator’s is, are you ready to step your game up? Are you up to date with the latest products to assist your clients achieve home ownership? Did you know that there is a program that can legitimately help your client pay off their mortgage faster, in as little as 1/3 to 1/2 of the time?
Most importantly, when do you want me to get you the information to show how to do this for your clients?
You can find out immediately here —> www.wealthandmoneymagnet.com
A call for a 90 day foreclosure Moratorium
Oct 14th
As part of several steps for short-term economic recovery, Democratic nominee Barack Obama has proposed a 90-day moratorium on home foreclosures.
On Monday, the Senator from Illinois also called for a two-year tax break for businesses that create new jobs and allowing people to withdraw up to $10,000 from their retirement accounts without any penalty through 2009. He also proposed a $3,000 tax credit for each full-time job created by a business.
The foreclosure moratorium would only affect banks that are participating in the federal bailout, according to the proposal.
To qualify, homeowners would have to demonstrate good-faith efforts towards paying their mortgage.
“We need to give people the breathing room they need to get back on their feet,” said Obama.
New Enviromentally-Friendly Brokers Organization Launched
Oct 8th
By James Comtois
“NEWPORT BEACH, CA-A new organization has been launched to help homebuyers get a jumpstart on green living. The Green Buyers Broker Organization, a group of Realtors, environmentalists, green building suppliers and mortgage brokers, said it will rebate real estate commissions to help home owners conserve water, power and avoid toxic chemicals in the home.
Green Buyers Broker researches all possible incentives and tax rebates for each homebuyer’s local area. A portion of the real estate sales commission will be applied toward the purchase of green home improvements designed to save energy and ultimately money by reducing utility costs.
“My goal is to promote solar energy and educate buyers on conserving the earth’s valuable resources,” said Steve Bender, founder of The Green Buyers Broker Organization. “If you are buying a home, it is the perfect time to change your habits. If you buy a home through our network, we will help you implement that change by connecting you to environmentally conscience organizations and manufacturers of energy friendly products.”
Charities can benefit if they refer buyers to the network. This aspect of the program drives interest from within environmentally conscience organizations and promotes a unique synergy to the products that make green living a reality.
The Green Buyers Broker Organization wants to make it easy for homebuyers to be green the day they move into their new home. Homebuyer options include solar panels, tank-less water heaters, water saving showerheads and other environmental products.
The new company cited an example of how its method works with purchasing a home in Southern California. For a home valued at $1 million in Los Angeles, Orange or San Diego County, Green Buyers Broker will purchase the following at close of escrow: A two kilowatt Suntrek Photovoltaic Solar System and Evolve showerheads with Smart flow technology would be installed in every shower.
The homebuyers would also receive a one year supply of Begley’s Best cleaner and Living with Ed Book” and a complimentary copy of “Green ‘n’ Easy Living.”
4. A detailed inspection and report with suggestions on how to use your GBB credit listed below from ECO ConsultingLA.
Additionally, the Green Buyers Broker Organization will offer a $2,500 budget to help move with green products, purchase energy efficient lighting, programmable thermostat, low flow toilets, smart switches, tankless water heater and energy star appliances.
According to the company, $1,000 will be donated to the referring non-profit charity or the homebuyer can choose to help Rebuild Greensburg Kansas Green (to which the Green Buyers Broker Organization will donate $2,000). The homebuyer would also receive a $2,000 federal tax credit until December 31st.
The Green Buyers Broker Organization offers rebates in all 50 states and Canada.”
Not only can you learn how to purchase a home and live “Green”, you can also learn how to “Make It Yours, Free and Clear!”
When Will the Mortgage Market Recovery Begin?
Oct 1st
There is a lot of conversation about when will the mortgage market recovery will begin. Fixing the mortgage and housing market has been the talking point on the news and radio for over a year. But, has there been any true solutions offered to help the current situation?
Congress has approved a bailout for the financial market but the problem still remains. Which is that currently lenders are to afraid of their own shadow to offer real home financing options for homeowners. How can you go from super easy financing guidelines where banks where willing to lend money as long as you can breath and had a pulse to a situation that requires you to virtually be willing to give up your first born child?
When I first enter the mortgage market and submitted a loan to a lender they perform manual underwriting and base their loan decisions on common sense underwriting. And in my opinion that is a key element in the mortgage market recovery process. Once lenders start offering home financing options that are affordable, and providing financing options for the non-traditional borrower. We will see both the housing and mortgage market begin to recover.
Secondly, we as consumer need to take back control of our finances. Fortunately, I’ve found as system that’s helping me take back control of my finances. To learn how I’m doing it visit United First Financial.
5 major bills you can cut fast
Oct 1st
As the economy weakens and prices soar on everything from gas to groceries, we’re all looking for quick ways to cut expenses and hold on to more cash.
Fortunately, there are plenty of ways to chop your spending without a lot of time or hassle. Add them all up, and you could trim your annual expenses by hundreds of dollars or more.
Energy and gas savings
Energy costs are boiling over. Fortunately, some relatively cheap fixes are available, and many begin in the home.
For example, weatherstripping, caulking doors or sealing windows can keep out cold and heat, lowering your heating and cooling bills.
Meanwhile, you can trim vehicle gas costs with the following steps:
- Adopt good driving habits. You’ll save a bundle if you stop speeding. If you typically race around at 70 mph instead of 55 mph, you’re lowering your vehicle’s fuel efficiency by as much as 17%, according to the American Council for an Energy-Efficient Economy.
- Pump up your tires. Tires lose about a pound of pressure a month, and if you drive with tires that are 3 pounds underinflated, your vehicle’s fuel economy drops by 1%, the council says.
- Clean your car. If your car resembles a junkyard on wheels, clean it out. If you’re hauling around 100 extra pounds, for example, you’re lowering fuel efficiency by up to 2%.
Food and groceries
The average American household spends $6,111 per year on food, according to the U.S. Department of Labor’s Consumer Expenditure Survey. But with prices rising quickly, food is taking an increasingly bigger bite out of our budgets.
How can you save on something so fundamental? It’s actually not difficult. A family of four can slash $240 from its monthly food budget by switching from pricey meals to lower-cost options, according to the U.S. Department of Agriculture.
The key is to embrace culinary change rather than fearing it.
“We can’t be doing the same thing the same old way,” says Sheryl Garrett, the author of the “Personal Finance Workbook for Dummies.”
Store shelves are crammed with relatively expensive prepackaged convenience foods designed to save time, Garrett says.
“But what we need to do is try to remember two simple words: whole foods,” she says. “Instead of buying prepared, frozen, twice-baked potatoes, buy a real live whole potato. It costs a fraction of the price — pennies per pound. And it probably even tastes better.”
Banking and credit
Individuals pay banks, brokerages, credit card companies and other vendors a slew of extra fees, charges, interest and penalties.
One recent study by the Government Accountability Office and the Federal Deposit Insurance Corp., or FDIC, found that Americans spend $36 billion annually on bank fees alone. That’s up from $24.4 billion in 2000.
Meanwhile, Consumer Reports estimates Americans spend $216 billion a year on fees for personal financial services, from banking to mortgages.
Don’t take these fees lying down. For example, if your lender increases your credit card rate, call to have it lowered. You’ve got a 50-50 chance of getting resolution, according to a consumer study by U.S. Public Interest Research Groups, or U.S. PIRG
Taxes
If you’re like most people, you probably don’t pay much attention to taxes until April 15 rolls around. But taxes affect us daily, whether we’re working, shopping or saving for important milestones such as retirement.
Here are ways to reduce your taxes:
- Snag the first-time-homebuyer credit. Individuals who buy a dwelling between now and July 1, 2009, and who haven’t owned a primary residence for the previous three years can claim a new credit that’s worth 10% of a dwelling’s purchase price, or up to $7,500. The break phases out for joint tax filers with incomes of $150,000 (or $75,000 for individuals). It’s important to note that these credits are structured more like interest-free loans than true tax breaks.
- Claim the 2008 homeowners tax break. Individuals who own their homes outright or who’ve had mortgages so long they’re paying mostly principal rather than interest may no longer qualify to itemize on their returns. Now there’s some temporary relief for them. This year, they can take $500 (or $1,000 for joint filers) of state and local property taxes as an addition to their standard deduction on their 2008 federal income tax return.
- Grab breaks for low-income earners. One out of four eligible taxpayers fails to claim the earned-income tax credit, or EITC, worth as much as $4,716 a year depending on someone’s earnings, marriage status and whether he or she has children or other dependents. If you qualified for but didn’t claim the EITC, file an amended tax return for any previous year back to 2005.
Home Mortgage
The Money Merge Account System is the first of its kind to be sophisticated enough to allow you to utilize interest cancellation solutions without having to qualify for a traditional line of credit. Qualified homeowners using the Money Merge Account System can now potentially pay off their mortgage in as little as 1/2 to 1/3 the regular time – with little to no change to your current lifestyle and without increasing your current mortgage payments.