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.

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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

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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

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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

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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.

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Northampton County is researching whether it has the legal authority to temporarily suspend sheriff sales to try to help residents whose homes are in foreclosure. County Council on Thursday asked County Executive John Stoffa to study the issue and report back, but the panel tabled a resolution that called for a 90-day moratorium on the sales if it’s determined the authority is there.

Source: The Morning Call, 7.11.08

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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.

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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.

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Just a few short weeks ago mortgage rates were still dropping and even people with less than perfect credit could buy a home here in the Lehigh Valley for just over 6%. Persons with strong credit scores (over 650) were getting 30 year fixed rate loans for 5.5 – 5 3/4%. But those days are gone, at least for the time being.

Contrary to what may people believe, banks and mortgage brokers have little control over the rate that you pay when you buy a new home. especially if it’s an FHA loan. The federal government sets and controls the interest rates. Guidelines are set, based on credit score, purchase price, and type of loan. Recently rates have been creeping back up. So even if you have a good credit you can expect to pay over 6% – even close to 7%.

Don’t panic though, rates are still the lowest they have been in years, and are not expected to go too much higher any time soon. But 6.5% to 7.5% will be the norm for the next few months at least. And prices are still coming down, though again not as drastically as you may believe if you watch the news. The Lehigh Valley has always been a strong housing market, and will continue to be for the foreseeable future.

If you are considering buying a home within the next few months and would like a free pre-approval to see what kind of rate and purcahse price you can qualify for, please contact us

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So what exactly is a shot sale anyway? A short sale is when a home is in pre-foreclosure and the bank allows the owner to list the home with a Realtor and try to sell the home and avoid foreclosure. In most cases it is being sold for less than what is owed to the bank. The owner may be very behind on the payments, and may also have multiple loans on the home. The bank(s) will agree to the short sale because they will ultimately recoup more money a lot faster than if they had to go through the foreclosure process. Also, if the home was foreclosed upon, usually only the primary lender gets paid. So if  the owner has 2nd mortgages, or lines of credit with other banks, they may not even get paid at all if the house goes into foreclosure. The owner makes out because even though they are paying back less than what they owe, their accounts are marked settled and paid, also there credit does not suffer as badly as if the property was foreclosed on.

This works out well for the potential home buyer as well. He or she is able to purchase a home in the Lehigh Valley for less than market value, usually 10 to as much as 30 or 40% below actual value of the home. One thing to consider is that the bank(s) approve all offers, and the homes are being sold as-is, and quite often the may need minor repairs and/or TLC. Time is another factor to consider, it may take the bank(s) up to 6 or even 8 weeks to approve the offer.

If you look at the big picture, everyone makes out. The banks recoup most of their money and don’t have to deal with the hassle and expense of the foreclosure process, the seller gets to save their credit and satisfy their account(s) and best of all, the buyer gets a good deal on a pre-foreclosure in the Lehigh Valley!

Contact an Agent for more info

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