Coming up with a down payment can be the one of the biggest obstacles for first-time homebuyers. It can be challenging to save for a down payment, even if you have a steady income and decent credit score. But with the right planning and budgeting, you can reach your savings goals faster than you think. If you aren’t able to make a sizable down payment, another option is to use gift funds from a relative. As long as the borrower has 5% of their own money, gift funds can be used for the rest of the down payment. It’s also a good idea to talk to your lender to see if you qualify for down-payment assistance. Knowing what your options are and how much you will need to save before you start the process will help prevent any surprises along the way.

Your credit score can make a big difference in how much home you can afford and how much interest you'll end up paying. For example, if you're obtaining a $200,000 mortgage and have a FICO score of 750, you can expect to pay $138,324 in interest over the term of a 30-year mortgage as of this writing. On the other hand, with a score of 650, you can expect to pay almost $35,000 more. MyFICO.com has an excellent calculator that can tell you the cost of your credit score. Before you start the homebuying process, it can be a good idea to check your credit report and FICO score and to do damage control if necessary.
Once a Servicer is notified that a borrower is conditionally approved for mortgage assistance from a HFA, they must not refer the mortgage to foreclosure or schedule or conduct the foreclosure sale for 45 days. (Foreclosure actions are suspended unless the HFA notifies the Servicer the borrower has been determined ineligible for assistance.) Servicers must suspend the foreclosure referral or sale for a longer period of time if it is required by state law. Servicers may also postpone a foreclosure referral or sale exceeding  45 days if needed to facilitate the processing of mortgage assistance and receipt of funds, provided the Servicer follows up with the HFA on a regular basis to determine:
Save the Dream Tour: The NACA also has a venue to facilitate mortgage modifications, and it operates from dozens of major cities. The Save the Dream Tour has tens of thousands of homeowners participating at each event, and thousands of people who attend are able to have their mortgage restructured the same day. Attendees can meet directly with representatives from many banks and lenders. They can have their interest rates lowered to as low as 2%, or their principal reduced, or receive other forms of aid.
Your real estate agent is a vital and important partner in finding and buying your next home, but it’s important that you choose your lender rather than blindly going with who your agent recommends. The reality is sometimes there is a financial tie between your real estate company and the lender it refers. In this case, as always, it’s important to closely compare rates with other lenders. Family and friends who have recently purchased a home, as well as trusted professionals who work with lenders can help steer you in the right direction. If you find a lender that wasn’t referred by your agent, ask your agent to do a quick phone interview with the lender to be sure you’re not missing anything.

The Home Affordable Foreclosure Alternatives (HAFA) program is for borrowers who, although eligible for the government Home Affordable Modification Program (HAMP), are not able to secure a permanent loan modification or cannot avoid foreclosure. HAFA provides protection and money to eligible borrowers who decide to do a Short Sale or a Deed-in-Lieu of Foreclosure.


• Be ready to move fast. A well-located house in good condition and priced right will sell quickly; it can even be the first day it goes on the market. A buyer needs to be ready to commit if they find a home they like because they risk the chance of losing it if they don’t. One of the things First Ohio Home Finance is known for is how quickly they work for their customers.
If you have a credit card with a $20,000 limit, that doesn't necessarily mean that you should spend $20,000 on purchases with the card. The same logic is true when it comes to mortgages -- just because you can qualify for a certain mortgage amount doesn't mean that you have to max out your budget. Be sure that your new mortgage payment not only fits your bank's standards but your budget as well.
Oftentimes, rates you see in advertisements online aren’t necessarily for the loans you qualify for. So you’ll need to investigate. Interest rates vary by location and can change daily. And they vary depending on your specific financial picture, such as income, credit score, and debts.  A good place to get an idea of what rates are available to you right now is to search for interest rates on Zillow. You can get free quotes anonymously, based on your specific financial picture, so you don’t have to worry about being hassled. You’ll also be able to see mortgage rates from multiple lenders so you can easily compare rates.
Refinancing your mortgage simply means you’ll be replacing your current mortgage with a new home loan. You’ll get a new rate, new terms and conditions, new closing costs, and the possibility to choose a new lender. Refinancing can be a good idea when mortgage rates are low (as we saw at times in the past year) or when and if your home has seen a big jump in its market value.**
Save the Dream Tour: The NACA also has a venue to facilitate mortgage modifications, and it operates from dozens of major cities. The Save the Dream Tour has tens of thousands of homeowners participating at each event, and thousands of people who attend are able to have their mortgage restructured the same day. Attendees can meet directly with representatives from many banks and lenders. They can have their interest rates lowered to as low as 2%, or their principal reduced, or receive other forms of aid.
The internet is filled with “discount” mortgage financing options with great rates, but often they are not able to quickly close your mortgage or offer you the level of service you need. On the other end of the spectrum you have the large, national mortgage companies that purport to offer both great service and value but in reality are not able to give you a competitive rate, and the service is not on the level you might receive from a local company.

Down payment minimums vary and depend on various factors, such as the type of loan and the lender. Each lender establishes its own criteria for down payments, but on average, you’ll need at least a 3.5% down payment. Aim for a higher down payment if you have the means. A 20% down payment not only knocks down your mortgage balance, it also alleviates private mortgage insurance or PMI. Lenders attach this extra insurance to properties without 20% equity, and paying PMI increases the monthly mortgage payment. Get rid of PMI payments and you can enjoy lower, more affordable mortgage payments.
To be clear, you don't need a pre-approval to start looking at houses. However, since a pre-approval is essentially the same as a full mortgage approval, just without a specific home in mind, it can be an extremely valuable shopping tool. Specifically, if you submit a pre-approval along with your offer, it tells the seller that you're a serious buyer who is not likely to run into trouble when obtaining financing. One caveat: A pre-approval and pre-qualification are two different things. A pre-qualification is based solely on information you provide and is not a commitment to lend money, therefore it doesn't carry nearly as much weight.
This seemed to be the thinking a few years ago, and things didn’t turn out very well. When you borrow more than you can realistically pay, that’s a sub-prime mortgage. Banks sold a lot of those to people who assumed the housing market would keep rising like gangbusters. Their home values would go up, giving them nearly instant equity and they could refinance quickly at a lower rate or sell the home for a quick profit. Lenders sold these loan products because they were making the same bet, and interest rates are always higher on sub-prime loans. Even if some ended up in foreclosure, the lenders would still make a tidy profit. Unfortunately, it was a bad bet for almost everyone.
For decades, the only type of mortgage available was a fixed-interest loan repaid over 30 years. It offers the stability of regular -- and relatively low -- monthly payments. In the 1980s came adjustable rate mortgages (ARMs), loans with an even lower initial interest rate that adjusts or “resets” every year for the life of the mortgage. At the peak of the recent housing boom, when lenders were trying to squeeze even unqualified borrowers into a mortgage, they began offering “creative” ARMs with shorter reset periods, tantalizingly low “teaser” rates and no limits on rate increases.
This example is based on Anne, the youngest borrower who is 68 years old, a variable rate HECM loan with an initial interest rate of 4.032% (which consists of a Libor index rate of 1.782% and a margin of 2.250%). It is based on an appraised value of $300,000, origination charges of $5,000, a mortgage insurance premium of $6,000, other settlement costs of $2,688, and a mortgage payoff of $35,000; amortized over 193 months, with total finance charges of $51,714.48 and an annual percentage rate of 4.53%. Interest rates may vary.

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The major downside of taking out a mortgage is that it does put your home at risk if you fail to make payments. You may want to look into other options if you want to consolidate your debt. Some people choose to refinance their original mortgage to cash out their equity and to avoid two mortgage payments. When they refinance, they cash out the equity or take out more than they still owe on the loan. Like a traditional mortgage, refinancing has set monthly payments and a term that shows when you will have the loan paid off.

The next step is to thoroughly research these grants to ensure that you satisfy the eligibility criteria and complete their applications. The complexity of grant applications makes it worthless to apply for grants for which you are ineligible. Save your time by only completing applications for those grants that you feel you have a chance of receiving. Non-profit housing organizations and your city's housing authority may be able to assist you with your application.
Sellers often prefer buyers who come with a pre-approval by a lender. This makes their offer more attractive and can help to avoid any problems that may arise down the line. If  you are looking to get a pre-approval, a mortgage broker or bank loan officers will pull your credit and submit any supporting documentation to their automated underwriting system. This allows the bank to give you more accurate loan terms based on your actual credit score, debt obligations, and income. This will also help you to get ahead […]
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While some agencies limit their counseling services to homeowners with FHA mortgages, many others offer free help to any homeowner who is having trouble making mortgage payments. Call the local office of the U.S. Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency nearby. Or consider contacting the Homeownership Preservation Foundation (HPF); 888-995-HOPE. HPF is a nonprofit organization that partners with mortgage companies, local governments, and other organizations to help consumers get loan modifications and prevent foreclosures.
We're here to offer our customers excellent fee free mortgage advice. Our expert advisers will help you secure the best mortgage deal whether you're a first time buyer, remortgaging your home, buying to let or moving up the property ladder. We'll help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest, mortgage advice.
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“Get pre-approved early, and know your numbers. Make sure you understand the monthly payment that goes along with your price point. Your expectations and your reality need to sync up. Also, rely on your professionals like loan officers and real estate agents. Never feel like you’re bugging them with questions, they should want you to bug them with questions. They’d certainly rather you get the correct info from them than the incorrect info from Google. Also, I think it’s ok to overpay a little for a house you love. If the market isn’t giving you many options to buy and you find a house you love, don’t get hung up on a couple thousand bucks, especially if you’re going to stay in the house long-term. If you can afford it, make it happen.”–Tyler Baker, Branch Manager, Olathe, KS
No. The purpose of the Keep Your Home California Program is to keep struggling homeowners in their home and prevent avoidable foreclosures. This program is not available for second homes or investment properties, which includes using the home as a rental property. If you lease or rent your home after you receive Keep Your Home California assistance you will be ineligible to receive further assistance and may be responsible to repay the benefit proceeds if you sell your home in the future. If during the active benefit period of any Keep Your Home California program it is determined that your home is vacant, non-owner occupied, and/or rented, Keep Your Home California reserves the right to terminate benefit assistance.
"I don't know what I would have done without the help of Iowa Mortgage Help. After a long and expensive battle with medical bills, I faced foreclosure of a home that has been in my family for over 100 years. I was finally able to get a successful loan modification and a payment I can afford in order to take care of my home. I'd have lost everything if it wasn't for their assistance."

Your first action item is to seek pre-approval from a lender. It's important to note that pre-approval and pre-qualification are two different processes. For pre-approval, the lender will check your credit and other financial information to determine what price home you can afford. (You can use an online mortgage calculator to give you a ballpark figure on how much home you can afford.) This will give you a price range to stay within during your home search and lets buyers know that you’re serious when you make an offer. Getting pre-approval for a standard loan should take a couple of days.
You may not receive mortgage approval the first time around. Sometimes you're just shy of meeting program qualifications. It happens. But, it doesn't mean you should be written off as a customer. Be sure to choose a lender who sees you for you, not just your credit score. At American Financing, we'll guide you through credit weaknesses and next steps, getting you one step closer to mortgage approval.
A few years ago (see above), if you were breathing it seemed like you could find a mortgage. Things are a little bit tighter now. The biggest factor is your debt to income ratio. It’s your minimum monthly debt divided by your monthly income. But don’t worry. You don’t have to do the math! There’s a handy DTI calculator that will figure it out for you and estimate how much you’re likely to qualify for.
In addition to higher credit score requirements, several missed payments, frequent lateness, and other derogatory credit information can stop mortgage approvals. Pay your bills on time, lower your debts, and stay on top of your credit report. Cleaning up your credit history beforehand and fixing errors on your credit report are key to keeping up a good credit score.
CalHFA MAC provides homeowners with “satisfied” copies of their Promissory Note and Deed of Trust within 30 days of their Promissory Note’s scheduled maturity date. CalHFA MAC also submits paperwork to the county where the Deed of Trust was recorded with instructions to release the Deed of Trust. This document is called a Reconveyance and it will be sent to the homeowner as soon as the county completes the release of lien process.
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Why would anyone get a loan with a prepayment penalty? Some lenders offer very low (and therefore tempting) interest rates in exchange. Also, some borrowers agree to loans with penalties if they have bad credit and it’s the only way they can get the loan. Mostly, a prepayment penalty is a financial decision. There are situations where accepting a prepayment penalty on a loan can save you thousands of dollars in interest.
*If a homeowner obtains a loan modification that changes the mortgage payment amount being made through the Unemployment Mortgage Assistance Program, the Servicer is responsible for notifying Keep Your Home California of the change, so the amount of benefit assistance can be modified accordingly. As long as the homeowner was still qualified under program guidelines, Keep Your Home California would then process the payment change at the earliest possible funding date.
The major downside of taking out a mortgage is that it does put your home at risk if you fail to make payments. You may want to look into other options if you want to consolidate your debt. Some people choose to refinance their original mortgage to cash out their equity and to avoid two mortgage payments. When they refinance, they cash out the equity or take out more than they still owe on the loan. Like a traditional mortgage, refinancing has set monthly payments and a term that shows when you will have the loan paid off.
A mortgage is essentially a loan for purchasing property—typically a house—and the legal agreement behind that loan. That agreement is between the lender and the borrower. The lender agrees to loan the borrower the money over time in exchange for ownership of the property and interest payments on top of the original loan amount. If the borrower defaults on the loan—fails to make payments—the lender sell the property to someone else. When the loan is paid off, actual ownership of the property transfers to the borrower.
Once you research the types of financing available, determine which is best for your financial situation when buying a home: 15-year mortgage or 30, adjustable or fixed. If you are looking for security and a guarantee that payments won’t increase, a fixed rate mortgage might be the way to go. If you believe mortgage rates could still fluctuate and you want more flexibility, consider an adjustable rate mortgage.

Homeowner’s Insurance. Homeowner’s insurance is insurance that covers damage to your home from fire, accidents and other issues. Some lenders require this insurance be included in your monthly mortgage payment. Others will let you pay it separately. All will require you have homeowner’s insurance while you’re paying your mortgage—that’s because the lender actually owns your home and stands to lose a lot of it you don’t have insurance and have an issue.
Second Lien Modification Program (2MP): If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.

Whether it is purchasing your first home, buying a vacation home or downsizing to something more appropriate to fit your life style, a new beginning can be a wonderful experience. It can also be a bit overwhelming. There are open houses to attend, homes to compare and a sea of information to sort through.  During these times, having a team around you is extremely important. One of the most important members of that team is your loan officer (and mortgage company)
The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA offers a number of various loss mitigation programs and informational resources to assist FHA-insured homeowners and home equity conversion mortgage (HECM) borrowers facing financial hardship or unemployment and whose mortgage is either in default or at risk of default.
With a fixed-rate mortgage, the interest rate will not change over the life of the loan. It's a good choice for someone who likes the certainty of knowing the mortgage payment will never go up. ARMs start with a lower interest rate for the first few years and adjust after a predetermined period (usually five years) based on the housing market. This type of loan can seem risky as interest rates have the potential to rise significantly, but there are caps in place to keep the rates from rising to astronomical levels.
Bank of America Foreclosure Prevention - From January 2008 thru current, BOA has modified hundreds of thousands of mortgages. Some of those home loans were originally issued and held by Countrywide. Bank of America offers homeowners several foreclosure and mortgage assistance programs, including modifications, principal reduction, short sales, interest rate reductions and other resources. The lender also has opened help centers in many major cities, which provide homeowners with one on one counseling and free advice. Read more on all of the Bank of America foreclosure programs.
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