HARP - Home Affordable Refinance Program is still available.
As noted in my April 2013 article, HARP is still available for home owners who have not or were not able to take advantage of it over the last few years. If your rate is above 4.5% or interested in lowering your mortgage term, you may want to take advantage of this stream lined refinance program now. Contact Craig!
Good news, bad news.
HARP, the Home Affordable Refinance Program, has been extended through 2015 by the Federal Housing Finance Authority.
The Good:
HARP is designed specifically for current homeowners with mortgages owned or guaranteed by Freddie Mac or Fannie Mae (the GSEs) and high loan-to-value (LTV) ratios which make it difficult if not impossible to refinance through traditional programs. The majority of HARP borrowers are actually underwater on their mortgages with the majority having LTVs in excess of 100 percent.
Find out if you may qualify for a Harp 2.0 refinance here.
The Bad:
The HARP extension did not move the dates for eligible borrowers. The current HARP guidelines are specific to borrowers who have a loan that was sold to one of the GSEs prior to May 2009. So, if you have a loan sold to a GSE after June 1, 2009 or not backed by a GSE (see Fannie or Freddie), you would still not be eligible for HARP.
Until Next Time,
Craig Turley
Please contact Craig at 480-385-1422 if you would like to discuss the good news or the bad news related to the extension of HARP through 2015. Craig Turley has directed over $1 Billion in funded loans since his career began 20 years ago.
Thursday, July 17, 2014
Tuesday, June 24, 2014
Fannie Mae Short Sale Policy Changes effective August 2014
Effective on applications dated Aug 16, 2014 or later:
The waiting period requirements for borrowers who have had a previous deed-in-lieu foreclosure or pre-foreclosure sale (Short Sale) are being updated to now require a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstances* and the loan complies with all requirements specific to deed-in-lieu of foreclosure or a pre-foreclosures sale due to extenuating circumstances, as specified in the Fannie Mae Selling Guide.
The loan-to-value restrictions previously tied to different waiting period time frames are also being removed. For loan applications taken before August 16, 2014, the lender must document that the event was completed two or more years from the disbursement date of the new loan, and that the loan complies with all other requirements specific to a deed-in-lieu of foreclosure specified in the Selling Guide in order for the loan to be eligible for delivery to Fannie Mae.
Please note: Contrary to other information floating on the world wide web, this does not include foreclosure events. Currently, Fannie Mae has a 7 year waiting period policy after foreclosure.
Quick Reference Guide to Fannie Mae Short Sale/Foreclosure Policy:
Up until August 16, 2014:
Short Sale/Deed In Lieu - 80% LTV on purchase or rate and term after two years.
Short Sale/Deed In Lieu - 90% LTV on purchase or rate and term after four years.
Foreclosure - waiting period 7 years.
After August 16, 2014
Short Sale/Deed in Lieu -95% LTV on purchase or rate and term after four years.
Foreclosure - waiting period 7 years.
Further updates and clarification will become available over the next few weeks through Fannie Mae.
All information gathered via the Fannie Mae release notes DU Version 9.1 August update - June 17, 2014.
*Extenuating Circumstances---the next extenuating circumstance granted by an investor will be the first.
**FHA, VA, USDA, Jumbo guidelines are not impacted by Fannie Mae changes. (See more here)
Regards,
Craig Turley
Southwest Direct Mortgage, LLC
NMLS 61314/AZ BK 0908190
MLO 80917/AZ LO 0920382
Craig is a well respected 20 year veteran of the mortgage profession. He has been directly responsible for over $1 Billion in funded loans and prides himself on providing exceptional customer service AND the best mortgage advice in the industry. In today's challenging mortgage environment, EXPERTISE and EXPERIENCE make all the difference.
Tuesday, April 22, 2014
Improve YOUR Credit for the BEST Mortgage Loan
Do you want the best home mortgage loan rates and fees? If the answer is "yes" - the following tip sheet will help you get closer to realizing your home ownership dream -with competitive market rates and fees. Keep in mind, every situation is different - so consulting with a professional mortgage banker is recommended. If you are in Arizona or California - I can help!
Tip #1: Plan at least SIX - NINE months ahead to review and, IF NECESSARY, fix your credit report.
Like anything worthwhile, improving your credit score will take time. But you can't change your credit score if you don't know something is wrong in the first place. If you give yourself enough time, you can correct any mistakes and change up any bad habits.
Pulling and reviewing your credit report ahead of time can save YOU money and time once you elect to enter the housing market. Email me now for more details on a no obligation credit analysis.
Tip #2: Use 20 Percent or less of your revolving credit.
Know your credit line high limits and manage your credit line balances accordingly. For example, if you have a credit card with a $2,000 high limit - manage the balance to around $400 per month. Optimum management is 10% of credit line.
High credit achievers keep a low balance on credit cards and loans.
Tip# 3: Keep old credit cards OPEN.
Established, good payment history is valuable. If you have had a credit card for 5-10 years and have always paid on time that is a good sign that you are responsible to lenders.
Closing an old credit card reduces your available credit and increases your balance-to-limit ratio. This is a sign of risk which could lower your credit score.
The lower the credit score, the higher the mortgage rate in many instances.
Tip #4: Limit your credit inquiries.
Keeping your credit cards open and active is one thing but you should not run out and apply for 3 cards all at once. Also, applying for different accounts in a short period of time (such as an auto, credit, unsecured bank note, a mortgage, a boat, etc. etc.) can be a detriment to your score.
Credit inquiries can look very risky to lenders if they see that you have applied and were denied for multiple lines of credit in a short period of time.
Reserve your credit inquiries for a specific event (s) and purpose.
Tip #5: No MAJOR purchases (auto) six months prior to applying for a home loan.
Inquiries do matter and purchasing a vehicle (boat; timeshare; etc) prior to your home loan can affect your home loan in two different ways.
Credit inquiries can and will reduce the credit score AND if you increase your monthly debts, this will impact your DTI (Debt to Income) ratio and you may qualify for less home OR even disqualify you.
----------------------------------------------------------------------------------------------------------------------------
Purchasing or refinancing your home will be one of your major financial decisions in your lifetime. Do yourself a favor and plan accordingly!
You can order your FREE credit reports from www.annualcreditreport.com --you get 1 free credit report from all three credit bureaus every 12 months.
Craig Turley is a mortgage and finance consultant. He has over 20 years professional business, finance, and management experience as an entrepreneur and corporate executive. Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance.
Craig Turley
Tip #1: Plan at least SIX - NINE months ahead to review and, IF NECESSARY, fix your credit report.
Like anything worthwhile, improving your credit score will take time. But you can't change your credit score if you don't know something is wrong in the first place. If you give yourself enough time, you can correct any mistakes and change up any bad habits.
Pulling and reviewing your credit report ahead of time can save YOU money and time once you elect to enter the housing market. Email me now for more details on a no obligation credit analysis.
Tip #2: Use 20 Percent or less of your revolving credit.
Know your credit line high limits and manage your credit line balances accordingly. For example, if you have a credit card with a $2,000 high limit - manage the balance to around $400 per month. Optimum management is 10% of credit line.
High credit achievers keep a low balance on credit cards and loans.
Tip# 3: Keep old credit cards OPEN.
Established, good payment history is valuable. If you have had a credit card for 5-10 years and have always paid on time that is a good sign that you are responsible to lenders.
Closing an old credit card reduces your available credit and increases your balance-to-limit ratio. This is a sign of risk which could lower your credit score.
The lower the credit score, the higher the mortgage rate in many instances.
Tip #4: Limit your credit inquiries.
Keeping your credit cards open and active is one thing but you should not run out and apply for 3 cards all at once. Also, applying for different accounts in a short period of time (such as an auto, credit, unsecured bank note, a mortgage, a boat, etc. etc.) can be a detriment to your score.
Credit inquiries can look very risky to lenders if they see that you have applied and were denied for multiple lines of credit in a short period of time.
Reserve your credit inquiries for a specific event (s) and purpose.
Tip #5: No MAJOR purchases (auto) six months prior to applying for a home loan.
Inquiries do matter and purchasing a vehicle (boat; timeshare; etc) prior to your home loan can affect your home loan in two different ways.
Credit inquiries can and will reduce the credit score AND if you increase your monthly debts, this will impact your DTI (Debt to Income) ratio and you may qualify for less home OR even disqualify you.
----------------------------------------------------------------------------------------------------------------------------
Purchasing or refinancing your home will be one of your major financial decisions in your lifetime. Do yourself a favor and plan accordingly!
You can order your FREE credit reports from www.annualcreditreport.com --you get 1 free credit report from all three credit bureaus every 12 months.
Craig Turley is a mortgage and finance consultant. He has over 20 years professional business, finance, and management experience as an entrepreneur and corporate executive. Craig is a 1993 graduate of the University of Arizona with a degree in Business Administration, emphasis finance.
Craig Turley
480-385-1422 (office)
480-385-1450 (Fax)
602-930-2529 (cell)
NMLS #80917
CA-DOC 80917
AZ LO #0920382
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