If your are looking for a mortgage in the Lehigh Valley, we wanted to let you know about http://lehighvalleymortgageloans.com/. This is a great new site, specifically set up for Lehigh Valley home buyers looking to get pre-qualified for a low interest mortgage.

http://lehighvalleymortgageloans.com/ is a direct lender, dealing in FHA, USDA, VA, Conventional, and self-employed mortgage loans. Zero down, and low down payments are available to qualified buyers.

The whole process takes about 24 hours and is 100% FREE. All you have to do is visit the site and fill out the quick, easy online form. Within 24 hours you will be contacted and given your mortgage pre-approval to use when making an offer on your home of choice.

Click Here: 

LEHIGH VALLEY MORTGAGE LOANS

Self employed applicants for a home mortgage loan are income qualified based on the business net profit from the income tax returns.  New rules and laws require lenders to verify a borrower’s ability to repay the loan by this method.    Sometimes self employed mortgage loan applicants are penalized under mortgage loan underwriting rules.  Preparation is important because it may take a year or two to fix some problems.  Any self employed person who thinks there may be a mortgage loan in their future should read this guide.  Please consult your tax adviser or CPA before making changes to your business. 

Who is considered self employed?

If you own 25% of more of a business, the underwriter will consider you self employed.  If you are an independent contractor, file a schedule C for your work income or your employer does not withhold income taxes, than you are considered self employed by a mortgage underwriter.  Employees of Corporations who own 25% or more of that corporation are considered self employed.  The underwriter will use your W-2 income plus or minus the net business income for the previous one to two years.

How does the underwriter calculate qualifying income?

The underwriter will look at your net profit to determine your qualifying income.  Net Profit is line 31 on the 2008 IRS Schedule C.  Depreciation (line 13) and sometimes expenses for business use of your home (line 30) can be added to qualifying income.  If you own a partnership or corporation, a few other business expenses can be added to the qualifying income such as amortization/casualty loss and depletion.  Farms can add back Co-ops and depletion.  Usually income is averaged from the previous two years’ tax returns, but not always.  We have been able to use the most recent year’s income only in some cases.

What should you do to help qualify for a mortgage loan?

•        Open a separate business bank account

You business should have a separate bank account and all business bills should be paid from that account.  Debts on your personal credit report can be removed from the qualifying debt ratio if you can demonstrate the business pays that debt by showing the last 12 months of cancelled checks from the business account.  If the account is not old enough, you paid one month from a personal account or in cash, or debt payments are co-mingled with personal accounts – then that debt cannot be removed from your qualifying debt ratio. 

•        No new debts

If a debt is too new to provide 12 months of cancelled business checks, then that account will probably be included in your debt ratio.  Also, new debt is a usually a derogatory credit score factor.  If you plan to apply for a mortgage loan in the next year, hold off on all other new credit.

•        Obtain business credit

True commercial accounts usually do not show up on your personal credit report and therefore will not be counted in your debt ratio.  Just in case, be sure to pay the debt from your business bank account.

•        Co-borrowers and co-signers

A co-borrower is typically a person who will reside in the home and be on the title with the borrower.  Income and debts of borrowers and co-borrowers are combined to determine the debt ratio.   Often, a co-borrower is a spouse but not always.  Co-borrowers equally share individual responsibility for the debt with the borrower. 

A co-signer is usually someone who does not live in the home and often is not on title.  A co-signer is personally guaranteeing your mortgage loan.  They are responsible for the debt.  If your business income is not sufficient to qualify, a qualified co-signer can make the difference.  Not all loan programs allow co-signers. 

•        Establish a history

Two years is the typical requirement to use self employed income.  Sometimes, a shorter time period is acceptable.

•        Get listed

Often, the existence of the business for two years must be verified.  Typical ways to do this are by business licenses, a CPA letter or a yellow pages listing.  I have encountered some self employed borrowers who can provide none of these.  This can present a challenge.  We find a way to verify the business exists, but it is faster and easier to do so if you follow the conventional means.

•       Balance deductions with qualifying

No one enjoys paying income taxes.  There is sometimes a choice to be made between paying income taxes and the ability to qualify for a mortgage loan. 

•       Get pre-approved for your home loan

The first step to buying a home is a pre-approval for your home loan.  Bring your income tax returns to your mortgage loan officer.  Different loan programs have their own rules – Fannie Mae, Freddie Mac, FHA, VA, USDA and so on.  Meeting with a mortgage loan expert is especially important for the self employed applicant.

Apply Now: LEHIGH VALLEY MORTGAGE LOANS

Contact me when you are ready for your mortgage loan pre-approval.  Small business owners and self employed customers are a specialty of mine.  I serve the business community on the executive board of the Nazareth Area Chamber of Commerce and other organizations. In addition, my eleven years experience in the mortgage loan industry and personal experience as a third generation small business owner helps me relate to and assist my self employed customers.

Now more than ever is the absolute best time to buy a home here in the Lehigh Valley. As a result of the current economic climate, Lehigh Valley Mortgage rates have dropped to the lowest rates they have been in over 4 years. This creates a tremendous buying opportunity for anyone looking to buy real estate in the Allentown, Bethlehem, Easton areas.

Currently FHA mortgage rates are at 5.5% – This is truly remarkable. Contrary to what you may be hearing on the news, there are plenty of opportunities to get a mortgage. The best part is that you do not need perfect credit! In fact, you can even get 100% financing in certain areas, thanks to the USDA programs available for homes in rural areas.

Combine this with the fact that this is still very much a buyers market, ther has never been a better time to buy. But, this time frame is slowly coming to a close. Experts agree that we are nearing the bottom of the market. What this means is that soon, the market will start going the other way – up.

Right now, you can get incredibly low rates, sellers are very motivated and willing to give more concessions than ever before, and prices are down what they were 4 years ago! Real Estate sales in the Lehigh Valley, like in may other markets are seasonal. So come spring time you will likely see a  a slight rebound, meaning interest rates and prices will climb back up slightly.

So the bottom line is that if you are considering making a move, you should do it as soon as possible. The longer you wait, the more it will cost you. If you would like more information on Lehigh Valley mortgage rates, or more information on buying home here in the Lehigh Valley, Please contact me directly at 610-533-4549.

Chris Hoffman
Keller Williams Real Estate
GoValleyHomeFinder.com

Fair Isaac, the creator of the fico scoring model, reports the following factors determine a fico credit score:

• 35% payment history
• 30% balances owed
• 15% length of history
• 10% new credit
• 10% types of credit used

The percentages reflect how important each of these factors are.  See any surprises there?  What about inquiries?  They do not even make the list.   Most of these factors are intuitive, but the second largest factor: 30% balances owed, takes many people by surprise.  The key is to keep you credit card balances low, below 30% of the credit limit preferably.  As credit card balances approach the limit, the fico credit score drops.  I have seen some drastic cases where a person has never had a single late payment, but their credit score is in the 500s because of many credit cards being maxed out and usually several of the accounts are new.  Fair Isaac does not distinguish between a credit card with a $10,000 limit compared to a $300 limit, the utilization factor is the same so closely watch those accounts with low credit limits.  If you are planning to apply for a loan, pay your credit cards down at least two months in advance of your application.

Visit my website:  www.dominionrates.com for links to credit education and repair resources.  Now more than ever fico scores are important.

Contact me with any questions about credit and mortgage financing: dan@dominionrates.com

Daniel D. Thierry, CRMS

Sr Mortgage Advisor and Credit Repair Specialist

PH:  610-614-1903

TF: 800-443-4414

USDA insured home loan key points:
 
·         100% loan to value, no down payment required!
·         Unlimited seller assist – payment towards buyer’s closing costs
·         Finance closing costs up to the appraised value of the home
·         30-year fixed rate, no balloons, no prepayment penalties, no recapture fess, etc.
·         Current interest rate:  6.50%  (8-29-08, subject to change, borrowers must qualify)
·         FHA type home condition requirements, insulation standards no longer apply!
·         No limit on loan size up to $417,000
·         No monthly mortgage insurance premium!
·         Flexible credit underwriting, income must be verified and qualify
·         not restricted to first time buyers – anyone who needs a home!
 
Property restrictions:  For sale single family, owner occupied homes, no manufactured homes, twins/duplexes and row homes are permitted
 
Geographic Restrictions:  For towns with populations under 10,000, no flood plains
Eligibility website:  http://eligibility.sc.egov.usda.gov
 
Income Restrictions:  based on family size, family care expenses and county

Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.

Uncle Sam wants you…to own a home!  It is true.    There are several Federal and also some state government home loan programs.  FHA and VA are the most widely known.  Most of these home loan programs have not tightened their qualification standards despite the credit crunch that is changing the landscape entirely for conventional loans.  So now government insured loans, nearly obsolete a year ago, are making a mighty comeback.  Little or no credit is not much of an obstacle for most government insured home loans.   Generally, if you do not have any traditional credit but can demonstrate that you pay bills like rent and utilities on time – that qualifies.  Also, a low credit score is permissible with an explanation and no late payments in last twelve months.  Additionally, government loans are the haven for small and zero down payment and they permit sellers to pay towards the buyer’s closings costs.  So let your tax dollars work for you by helping your family buy a new home.

Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.

Borrowers are flocking to government-insured loans, particularly those offered by the Federal Housing Administration, as they seek to refinance out of costly adjustable-rate mortgages or take out purchase loans with low down payments.  The Mortgage Bankers Association says applications for government-insured loans were up 133.9 percent in July from a year ago, while applications for conventional loans like those purchased and guaranteed by Fannie Mae and Freddie Mac fell 50.2 percent.  The FHA loan limit increases signed into law earlier this year, coupled with the permanent increases included in the recent Housing Bill can be credited with increased applications for these loans.

For More Information on How You Can Get an FHA loan in the Lehigh Valley Please Call 610-533-4549

More than ever, fico scores are important for mortgage loan approval and a factor in determining the interest rate on most conventional home loans.  Here is the short list to maximize your fico score:  #1 pay everything on time, this cannot be emphasized enough, #2 establish credit if you do not have a mix (mortgage, installment and revolving) of reporting accounts and at least a 24 month history  #3 reduce your credit card balances, the lower the balance compared to the limit, the higher your fico score will be – this is the single most overlooked item  #4 age of accounts matters, try not to close accounts with a good, long history, opening new accounts will probably reduce your fico score for a while  #5 inquires matter, but are only small factor, these sometimes get too much attention.  A fico score over 720 is considered a good fico score.  Mortgage companies use all three major credit bureaus and typically use the middle fico score of the three as the indicating credit score.  For more information on credit and credit repair services, visit our website.

Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.

Bridge loans, sometimes known as swing loans, are short term loans intended to access trapped home equity for the purchase of buying a new home.  For example, if John and Mary Homebuyer have their current home for sale and will net $200,000 (equity) after paying their selling costs and current mortgage.  That $200,000 will be the down payment on their new home.   John and Mary do not have their current home sold yet, but they find their dream home for $500,000 and they need to close next month.  John and Mary cannot count on selling their existing home in time, but expect it will sell soon.  The challenge is they need to get that $200,000 in trapped equity to the closing table in the form of cash when they settle on their dream home – the bridge loan accomplishes this.  Bridge loans are intended to be made on a home that will be for sold in the short term, otherwise a standard home equity loan would do the job.

Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.

The answer depends upon the mortgage program and a buyer’s specific qualifications.  Both Veteran’s Administration (VA) and USDA Guaranteed Rural Housing still allow zero down payment home loans.  You read that right, zero down payment and from a program insured by the Federal Government.  FHA loans remain at a minimum 3% down payment and some conventional (non-government insured) home loan programs allow 3% down.  Down payment funds can be gifts or grants with many loan programs.  There are several grants available in the Lehigh Valley.  Having a down payment is important and the more the better, so start saving now, but you can still buy a home with minimal or no down payment.
 
Call the mortgage line, Dan Thierry at Dominion Mortgage at 610-614-1903 or visit www.dominionrates.com.