Posted on September 1, 2011 by Lee Robinson

100% FINANCING STILL AVAILABLE with (RD) USDA Rural Development and (VA) Veteran’s Administration Guaranteed Mortgages.

VA and Rural Development loans both have very minimal credit standards to qualify.  Veterans can actually obtain a VA loan with no credit scores at all.  While Rural Development loans have geographical and household income restrictions VA mortgage do not.  Please note Rural Development Financing will not longer be available in Bentonville, Arkansas after 10/01/2012.  So if you are not a veteran and plan to purchase a home in Bentonville with 100% financing you have one year left to make the move.  

Both Programs have implemented changes to their guarantee fees for loans closing on or after October 1st 2011. 

VA is actually reducing their guarantee fees.  This is good new for our Veterans. 

Rural Development is decreasing their upfront premium, but starting to charge a small annual premium that will paid monthly similar to FHA and private mortgage insurance on conventional loans that are over 80% loan to value.  

The guarantee fees charged by VA and Rural Development allow people to purchase homes at very low interest rates without putting 20% down just like FHA insured loans and conventional loans with private mortgage insurance.  

For more information about which loan program is best for you contact Lee Robinson at Southwest Funding, LP.  (479) 409-8244.

Posted in Northwest Arkansas | Leave a comment

FHA Mortgage Insurance Premiums Changed October 4 2010

Posted on September 15, 2010 by Lee Robinson

FHA Mortgage Insurance Premiums Set to Change October 4, 2010

For the second time this year HUD has decided to make changes to the up front mortgage insurance premium and monthly premium.  Earlier this year HUD increased the upfront mortgage insurance premium from 1.75% of the loan amount to 2.25% of the loan amount.  The upfront mortgage insurance is financed, so it did not affect the upfront amount required to purchase a home except they did increase the down payment from 3.0% to 3.5%.  Earlier this year they also increased the monthly mortgage insurance premiums from a factor of .50 to .55.  These premiums are based on 30 year fixed FHA mortgage with a loan to value greater than 95%

Now all FHA case numbers pulled on or after October 4, 2010 for 30 year fixed rate FHA mortgages with loan to value greater than 95% will only pay a 1.0% upfront mortgage insurance premium.  The upfront mortgage insurance premium will still be financed like it has been in the past.  HUD has also decided to increase the monthly mortgage insurance premium form a factor of .55 to .90.

What do this mean in dollars and cents?

Example 1 – $100,000 mortgage under current FHA guidelines

Base Loan Amount: $100,000

Loan Amount with 2.25% up front mortgage insurance = $102,250

Principle and interest payment on $102,250 at 4.5% is $518.09

Monthly mortgage insurance premium at .55 is $45.83

Total payment with out taxes and insurance is $563.92

As of October 4, 2010

With a bases loan amount of $100,000 plus the 1.0% upfront mortgage insurance premium will require the home buyer to only finance the $101,000.

The principle and interest payment on $101,000 = $511.75

Monthly mortgage insurance at . 90 will equal $75.00 a month

Total payment without taxes and insurance equals $586.75

The changes in the FHA mortgage insurance will cost the home buyer $22.83 more with $100,000 base loan amount.

People are speculating with these changes many of the private mortgage insurance companies who have pulled out or greatly restricted the availability of private mortgage insurance will bring PMI back to the market place for high loan to value mortgages.

This may help to drive some borrowers back into conventional financing.   Not sure if this is HUD’s intent, but I don’t think they will complain since their market share is currently greater than what HUD prefers.   HUD’s mission is to serve the under served.   Lately the have been instrumental in sustaining what is left of the housing market.  FHA has been then most viable loan product for people with minimal funds for down payment and I don’t think that is HUD’s intent.

We will see if the experts are right in coming months if private mortgage insurance become more readily available.

Posted in Interesting News Stories | 4 Comments

FHA Upfront Mortgage Insurance

Posted on April 12, 2010 by Lee Robinson

News Flash

As of April 5th 2010 all FHA case numbers requested for purchase or refinance transactions will require upfront mortgage insurance premium of 2.25% of the loan amount up from 1.75%.  The good news is FHA is holding firm on the 3.5% required down payment which can still be a gift from a family member or borrowed against a secured asset.  In some areas community grant programs are available and acceptable form of down payment for FHA loans.  The grant and bond programs are usually only available to lower income families.  Email me at Lee@nwamortgagepro.com or call (479) 616-1722 with any questions.

Posted in Home Purchase Advice | 1 Comment

FHA 203K Renoviation Lending

Posted on March 14, 2010 by Lee Robinson
How can I afford to remodel my home, finish out a basement, build an addition, make energy efficient improvements, and virtually make any improvement to my home?  FHA 203K Renovation Lending is the answer.
FHA 203K Benefits
View more presentations from Lee Robinson.
Posted in Northwest Arkansas | 3 Comments

State Bond Programs to Pick up Steam

Posted on October 21, 2009 by Lee Robinson

The US Treasury Department announced about a month ago they are planning to buy $35 billion in mortgage bonds from state housing agencies.  Many of the bond programs are targeted towards low to moderate income families and first time home buyers.  Most of the bond programs are underwritten and eligible for FHA, VA, and USDA loan guidelines.  The state agencies also provide  down payment and closing cost assistance.   In Benton and Washington counties in Arkansas between June 1st 2007  and July 3oth 2008 there were a 137 bond loans funded with the average loan amount over $110,000.

Posted in Northwest Arkansas | Leave a comment

Man Robs Bank to Pay Off His Mortgage

Posted on October 13, 2009 by Lee Robinson

It’s the latest innovation during the US foreclosure crisis: the bank branch robbery.

A 69 year-old Californian homeowner allegedly robbed a Bank of America branch in order to pay off his mortgage at its 17% interest rate.

The man claimed to need $50,000 to save his home from foreclosure but left the bank with $100,000, according to the post. He would not get far enough to make the payment, however.

The man later said he wanted to “get the money and get the hell out of there,” but he got a lot more when authorities arrested him.

“I don’t do this kind of [stuff]. I was stupid,” he said in a post-arrest interview.

A clip of the interview is available to watch below.

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Buying a home, where do I start?

Posted on October 12, 2009 by Lee Robinson

Find the right people to help

More than likely you are going to need a real estate agent and loan officer to assist you in the home buying process.  Like most things in life you need to surround yourself with the right people in order to succeed.

Start by asking your family, friends and co-workers who helped with the purchase and financing of their home.  You will discover people often have strong opinions about the realtor and loan officer who assisted with the purchase of their home.  I recommend contacting a least 2 loan officers and 2 realtors who come highly recommended and tell them about your plans to buy a home.

Get Approved for a Mortgage

One of the first questions you may be asked by a real estate professional is “Have you been pre qualified?”  With many recent loan guideline changes this applies if you are buying your 1st, 2nd or 10th property.  I recommend taking it a step further and become pre approved.  You do not want to go through the process of finding a home to discover you don’t qualify or the financing terms (interest rate and/or down payment) are not what you expected.

Much of the leg work in finding a loan officer can be conducted via phone and email, but once you have narrowed your options a face to face meeting is recommended.  If you are working with trusted sources do not be overly concerned about providing personal information over the phone.  The more information you provide the less chance for problems.  Do not hide information.  A good loan officer should ask the right question to uncover any potential problems, but if you are aware of an issue be upfront.  Also, you should not be concerned about allowing a few lenders to pull your credit while shopping for a mortgage.  Credit repositories count multiple inquires for mortgages as 1 inquiry if within 15 days of the initial inquiry for the purpose of a mortgage.  Most importantly ask a lot of questions to insure you have a clear understanding of your mortgage and approval terms.

Check back more to come.  How to compare Good Faith Estimates?  What you need to know about credit scoring?  Homebuyer down payment assistance programs.  Until then if you have any questions email Lee@nwamortgagepro.com.

Posted in Home Purchase Advice | Tagged | 1 Comment

Fayetteville, AR #4 Forbes 2009 Best Places

Posted on October 7, 2009 by Lee Robinson

Fayetteville, AR # on Forbes 2009 Best Places for Business and Careers

Fayetteville, AR #7 on 2008 Kiplingers Best Cities

Fayetteville Arkansas is excellent a place to live and the rest of the country is catching on.  Check out the video below

Population: 419,455
Population Growth Since 2000: 17.3%
Percentage of Workforce in Creative Class: 31.4%
Cost-of-Living Index: 90.4 (100 being national average)
Median Household Income: $42,267
Income Growth Since 2000: 17.6%

Click this link to find Arkansas Homes For Sale

Posted in Interesting News Stories, Northwest Arkansas | Tagged | 2 Comments