Helping through the Mad Mortgage Process

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Just when you thought it was safe to go back into the water….

I am not just angry…I am MAD

NW Indiana Real Estate's Magic Number

Now, more than ever, is the time to buy in NW Indiana, with about 11 months of home inventories nationwide and home interest rates nearly all time lows one more time this year and not to mention the Indiana first time home buyer tax credit is set to expire at then end of November.

Well, many people are saying that Washington will extend the Home Buyer credit, but do you really want to take that chance. I mean, they are still trying to ram through a health care reform that may or may not help as many American as they claim. I digress, with inventories still as high as they are in many parts of NW Indiana, it is still very much a buyers market and I know that with the Indiana Home Buyer Tax Credit many new homeowners are making money when they buy a house. They are paying off debt with the tax credit, buying a home that needs a little love a fixing it up or just socking it away for a rainy day.

New home construction is up, home sales are ticking up, rates are ticking down, what are you waiting for?

D

B +

B+
Be Positive

On Friday, I heard a commercial for mortgage guy out of Chicago and his message was just all over the place, but it was mostly negative.  He was not being negative on his competition, but on the “market” on a whole.  I was shocked by his comments.  I was thinking what a fail of a commercial.  Why even spend the money to do a commercial if you are just going to be that dower?  Why go on record for having such a lousy attitude?

B + from Dave Woodson on Vimeo.

Staying positive in today’s Real Estate & Mortgage Markets

There are lots of positives in this market as we improve daily.  Housing starts were way up for June and rates are still very low.  Now, is the best time to be a First Time Home Buyer with the the First Time Home Tax Credit.  Please remember there are only about 130 or so days left to get in on the Tax Credit.  You must close on or before 12/1/09.  Home prices have come down enough to let so many more people in the market from the First Time Home Buyer to the Move-Up Buyer to the second home buyer on Indiana’s great lake front.  Don’t let this buyers market slip past you – This time.

Dave Woodson
The Indiana FHA Expert and the Mad Mortgage Machine

Indiana First Time Home Tax Credit

Revisited…

Lately, I have been getting some calls and emails about the Indiana First Time Home Buyer Tax Credit from some very confused Indiana home buyers and agents alike.

I want take just a moment and straighten out a few of the misconceptions that are there.

Lets set the record straight once and for all and let me be the guy that does it.

Here are the provisions for the Indiana First Time Home Buyer Tax Credit

It ENDS December 01, 2009 – now unless Congress comes out and changes that here in the near future, you will need to close on your first Indiana home on December 01, 2009.

If you close on 12/02 and you don’t get it.

• First Time Home Buyers only – you cannot have owned a home in the last 3 years
• The Tax credit is is 10% of the homes COST not worth, but homes COST at the time of Purchase

Some simple math $80,000 home times 10% = $8000

• The Maximum credit allowed is $8000

More simple math $170,000 home times 10% = $8000 (hey, our gov’t is involved here, we are lucky to have roads)

• Adjusted gross income of no more than $95,000 single and $170,000 joint

Partial credit is received when you make more than the above amounts

• Credit is taken when you file your tax return

Cannot be used at a part of down payment or taken as a credit at closing; you will either pay less in taxes or a get a larger refund.

Now, I am a mortgage guy, I am the Indiana FHA Expert, and I am not a tax guy.  Please, consult a tax professional.  A tax pro can save you headaches and can find you deductions that you may not know that you deserved.  If you would like a professional referral just ask for one and I will be more than glad to give you one.

Dave Woodson
The Indiana FHA Expert

Where in Indiana are you?

Where in Indiana do we do business and where in Indiana have I been doing business!

I cover the State of Indiana, as I am the Indiana FHA Expert and the Mad Mortgage Machine.  A few weeks ago,   we were able to do a first time home loan for a good friend of mine and his agent Evelyn Johnston was so impressed with me and my team that she asked us to do a second loan for one her clients that we were able to close in in two weeks.  We were able to do these loans that were about 70 to 75 miles from our office.

To date, I have done loans in southern Indiana, well, watch this quick video and I am sure you will understand what I am talking about.

Covering the State of Indiana from Dave Woodson on Vimeo.

Indiana FHA Expert

Dave Woodson
The Indiana FHA Expert

Real Estate News for the Region

Good News for the Region

Combined with the $8000 tax credit for Indiana’s first time home buyers and exceptionally and, not to mention, historically low Indiana FHA rates have driven home sales in Northwest Indiana higher than the previous month by a whopping 13.4%.

Most of the questions that I am getting are about the Indiana First-time homebuyers tax credit Several of my buyers have taken the time at the closing table to fill out an amended federal tax form and mailed it on the way to their new home to get the money all that much sooner.

Pricing has also picked up in Northwest Indiana in May as many buyers, who had been priced out of the market are able to come back and in bid on homes that were previously out of their price range. A recent example is a home that sold for $132,000 but was appraised at $150,000 and the home around the corner was under contract for $188,000 and was 400 square feet smaller. Granted, this was a foreclosed home and had been vacant for over a year, but a good deal is a good deal.

Home sales, nationally, did increase in May, but at a slower pace than Northwest Indiana.

May was the 3rd straight month that home sales have increased telling me that this may be more than just a seasonal increase. There is still a glut of bank owned properties and “short sale” properties that act as a drag on the region, but with rates still great and the tax credit,

Now, is the time to buy – Now, More than ever. The tax credit ends towards the end of 2009, and there are plenty of great deals to be had.

Home sales pick up some steam

Lake County existing single-family home sales

May 2009: 363

April 2009: 320

Porter County existing single-family home sales

May 2009: 111

April 2009: 86

Indiana FHA Home Loan

Are you unhappy where you are living? Are you too old to be living with mom and dad?

With an Indiana FHA Home Loan…You can change your life.

Whether, you are a first-time home buyer, have owned a home before or have less than perfect credit FHA more than likely has a program that will best suits your needs. I am Dave Woodson and I am The Mad Mortgage Machine and I will take you through the Indiana FHA loan process step-by-step.

With an FHA Loan you can:

* Purchase a Home (really kind of a no-brainer and with the $8000 tax credit and rates the lowest they have been in years, and now you can use it as a down payment*)
* Remodel Your Home
* Make Home Repairs
* Make Energy-Efficient Improvements, and with new tax credits out there you can save a ton as well.

FHA Loans are guaranteed loans, which means that lenders offer you a lower, more affordable rate. Even, if you have less than perfect credit or are a first time home buyer, an Indiana FHA Loan can help you save thousands of dollars on the home of your dreams.

If you are looking to buy a home or even sell your home consider using an FHA home loan with its lower down payment requirements, lower mortgage insurance rates (which is still tax deductible) and less stringent guidelines vs. Fannie Mae.

So, if you are ready for a change, download and fill out my Mortgage Planning Questionnaire that is designed to help me and your Real Estate Agent of choice find the home of your dreams.

*details are being worked out

Fannie and Freddie makes Indiana FHA and easy choice

I got good news and bad news….

OK, first the good news…mortgage rates are down and housing prices are lower — which is fantastic for many buyers and those looking to refi.

Here is the bad news…there are new underwriting and appraisal changes taking here in the near future that are putting huge obstacles in the way of many borrowers and loan officers.

Fannie and Freddie have increased add-on fees for loans purchased after April 1.  Applicants are being hit with fees in the range of 3% to 5% simply because of the property type, credit scores and the amount of down payment.

A few major lenders that sell their loans to Fannie and Freddie are piling on just a little more, with ever tightening underwriting guidelines far beyond what either requires.  An example of this is, as of April 6, Wells Fargo, one of the nations largest mortgage companies (and just posted some record profits) and bank is imposing a new minimum FICO score of 720, up from 620, on all conventional loans that have less than 20% for down payment.  On top of that, it is requiring a total debt-to-income ratio of 41%  down some 4% from the previous 45%.

Fannie now has a mandatory fee of 3/4% on all condos, no matter what the applicant’s credit score is.  The once very popular interest-only condo loan with a 20% down payment and a credit score of 690, will now be imposed with the following add-ons: 1/4% as an “adverse market” fee, a 1.5% for below-optimal credit score (beinh 30 points lower that 720), a 3/4% for the interest-only payment feature, and let’s not forget the property is a condo.  The total added fees comes to an extra 3.25%.  Hey, it can be paid upfront or simply rolled into the loan.   HELLO, Indiana Condo builders and buyers make sure you go back and read that again.

And, now for the icing on the cake, besides all those extra fees, borrowers are going to start getting hit with not one but two sets of cost increasing appraisal rule changes. Fannie and Freddie are now requiring all appraisers to complete an extra report on “market condition” that will include detailed statistical analyzes of local sales and pricing trends, which is above and way beyond normal appraisal data. Appraisers that I have talked to will be charging an extra $40 to $50 for the additional time to complete the form.  You can expect to the higher fees will be passed onto the home buyer and those looking to refi.

Wait, yes there is more…

Beginning May 1, Fannie and Freddie will be refusing to fund loans that have appraisals that don’t follow a set of “rules” known as the Home Valuation Code of Conduct. Those changes include:

Mortgage brokers will no longer order appraisals directly.  The lenders or investors will use a third-party “appraisal management company” to assign the job to appraisers within certain networks.

Well, how will this affect the consumer? Consider the notification that one of my friends got in Texas that starting April 20th, that all good faith estimates provided to applicants must indicate a flat $455 charge for appraisals arranged through the appraisal management company (that they lender will dictate who to use).  My friend previously only charged $300 to $350, and they will have to pay upfront for the appraisal, and this before  an inspection or valuation is done.

My issues is what will happen if the appraisal comes in to low and they don’t qualify for a refi or purchase program they were looking for?  They will have two choices pay another $455 for another appraisal with no guarantee that problem will be solved or simply cancel the app.

Please read this carefully, that the over all effect of the underwriting guidelines, credit score and pricing changes will simply push some people who are able to buy a house right out of the market.

These new rule changes are just plain ridiculous…well there is still some good news for the Indiana home buyer and those looking to refi their Indiana home.

The Indiana FHA Program:

• Indiana FHA does not require a huge down payment, just 3.5% will do.
• You can still get the home seller to pay all of your closing costs up to 6% of the sales price.
• No silly add-on fees from Fannie or Freddie this is a US Gov’t backed loan
• It is a great option for the Indiana First Time Home Buyer

Any questions please feel free to give me a call at (219)841-5053

An Indiana FHA How-To

There are many opportunities for a person or a family to get an Indiana FHA loan help. Maybe you need a FHA loan as a first time homebuyer. Maybe you are struggling with possibility of foreclosure.  Or, just maybe you need to refinance and get a lower interest rate. Whatever the reason, your first step should be to call FHA loan specialist and get pre-approved, you can do that right here with me.  .

When you contact me, your Indiana FHA loan Expert, I will talk to you about the types of loans available, and what you may qualify for. To get answers quickly, make sure you have all of you information and resources ready. Here are a few tips:

• Know your credit score and is your history is clean. Check your report for any errors before applying for a loan because your credit worthiness is the key to getting any loan.  Sidenote here, most lenders have instituted a 620 minimum credit score.

• Proper identification to prove just who you are including your Social Security number. Also, have the addresses of where you may have lived over the last two years.

• Make sure you have your Income information on hand. Your Indiana FHA home lender will need proof of income.  Plus, the names and contact information for employers over the last two years. Also, you will need to have your most recent W2’s as well.  Sidenote: I once did a loan for a guy that had 62 different W2’s in a two years span.  He was a professional stage hand.

When you have these items ready to go, it will easier to talk to you about the loans that are available to you. I would be ready to prequalify you for an Indiana FHA Home loan. This is the best process of getting you qualified for a loan, based on the information that you provide. When this information has been verified, you will receive a preapproval for an Indiana FHA Home loan.

If you are ready to get going feel free to give me a call or you can download the Mortgage Questionaire. You may just be surprised by how easy it can be to get an Indiana FHA loan.

Why an Indiana FHA Makes Sense

Are you looking to buy a home in Indiana? Or, are you struggling to keep your home? Perhaps you should consider a FHA Home Loan. A FHA loan is a government-backed loan that generally has a lower interest rate than many conventional more traditional Indiana home loans. So, before you write off this home loan as an impossible option, please keep in mind that thousands of Indiana home owners are enjoying the benefit of them right now.

There are many ways an Indiana FHA home loan can help you to buy that new home you are looking to buy or help you in so many other ways.

#1: Lower Interest Rate: One of the main benefits of an Indiana FHA loan is to help individuals get a lower interest rate. If FHA is backing your home loan, you are less risk to the lender. So, they offer a better lower interest rate, and can save you thousands of dollars over the lifetime of the home loan. That is money in your pocket.

#2: Much Easier to Qualify: Lenders have increased standards for lending money making it more difficult to get a home loan.   If you do not have a credit score over 680 or a large down payment, then the best bet to get a lower interest rate is with a FHA loans. You do not need to have as much down to qualify for for an Indiana FHA Loan.

#3: Get Out of a High Interest Rate Loan: Perhaps when you first bought your home, you were put into a sub-prime loan and you have a higher interest rate and it keeps adjusting.  Maybe, you are just paying much more than the 4.5 to 6% that is available now. A FHA loans can help you to get a lower rate even on a refi.  There are several options available with the FHA Streamline and Cash-out options.

#4: You are an Indiana First Time Home Buyer: If you have not owned a home in the last 3 years or have ever owned a home and are worried about doing so, a FHA loan can help. An Indiana FHA loan is very affordable and ideal for the first time homebuyer. who is unsure of the next step.  I have helped hundreds realize the dream of home ownership. Plus, with the $8000 Indiana First Time Home Buyer Tax Credit, you are getting paid to buy a new home.

FHA loans have helped millions of people to get into homes that they want and need, or to protect them from losing their hard fought investment.

For more information feel free to call me or apply now for an Indiana FHA Loan
Dave
The Indiana FHA Expert

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