http://www.cicimurphy.com
The sub-prime mortgage crisis has had fall-out in the regular mortgage markets. Underwriting is changing. Products are changing. Down payment requirements are changing. Freddie Mac and Fannie Mae have eliminated "no doc" products.
Gone are "No Ratio Loans"
Gone are "No Income Verifier Loans"
Gone are "Stated Income Loans"
Gone are "No Doc Loans"
Oh, you may still be able to get some of these products on the higher interest rate portfolio loans or sub-prime market. But expect to pay much higher interest rates, have a larger down payment, and have a higher credit score than before.
Friday, January 4, 2008
Tuesday, October 2, 2007
WHEDA loans for Wisconsin first time home buyers
WHEDA stand for "Wisconsin Housing and Economic Development Authority".
Apply for a WHEDA loan Get WHEDA information in an email
A WHEDA loan is Wisconsin's first time home buyer loan. Technically, it is NOT just for "first time" home buyers. The buyer cannot have owned a principal residence in the last 3 years. So, if you currently own an investment property, or you owned a principal residence more than 3 years ago, you qualify. For a WHEDA loan, you must still meet the income limitations, however.
The WHEDA HOME LOAN offers below-market fixed interest rate home financing to first time home buyers with low to moderate incomes.
Features and Benefits of the WHEDA Home Loan
Below market interest rate—more buyers can qualify for a WHEDA Home Loan
WHEDA loans have lower mortgage insurance premium - reduces monthly payment
Fast turnaround time—you won't wait days for your approval for a WHEDA Home Loan
3% down (No down payment or 'Zero Down' loans available for some borrowers)
Mortgage Guardian mortgage payment protection pays your WHEDA Mortgage payments in the event of involuntary job loss
HOME PLUS loan line of credit to improve your new home
Borrower Eligibility for a WHEDA Loan
The borrower cannot have had an ownership interest in a principal residence for three years. The only three exceptions are:
the borrower is a military veteran
the property is located in a target area
the property will be the subject of a qualified major rehabilitation
Copies of the borrowers tax returns for the last one year, and W-2 forms for the last 2 years are required to determine eligibility.
Income limits and purchase price limits
The combined income of all adults who will occupy the property and, the purchase price cannot exceed the limits for the county in which the property is located. Contact CiCi Murphy to find out the income and purchase price limits for your county.
Principal residence
The borrower must occupy the property within 60 days of loan closing. The property must be owner occupied for the life of the loan.
Acceptable Credit
Borrowers must show a willingness and ability to repay the loan
Federal Recapture
Recapture is a tax that you may have to pay on their federal income tax returns if you sell your WHEDA financed home within nine years, and if, at the time of sale, your household income has increased substantially. The majority of WHEDA's borrowers will not be subject to this tax. No tax will be collected if the home is owned for nine years or the borrower income is below federal limits.
WHEDA Zero Down Program
The WHEDA Zero Down Program has grown to be more popular than ever dreamed possible. Since June 2006, it has grown from 6% to 40% of WHEDA business in January 2007.
It was found that 24% of the WHEDA Zero Down borrowers have liquid assets exceeding $7,000. Based on the average purchase price, this would allow them to make a 3% down payment, cover closing costs and prepaids and still have some funds in reserves. Borrowers who have the ability to put money down are on the path to building wealth through home equity.
To encourage borrowers to build equity and to reduce the volume of WHEDA zero down financing, effective for loans rate locked on or after April 1, 2007, borrowers must have less than $7,000 in verified liquid assets at the time the loan application is underwritten.
Eligibility
You cannot have had an ownership interest in a principal residence during the past three years unless the property being purchased is located in a target area.
Copies of your most recent tax returns are required to determine eligibility.
You must have a median credit score of 680 or higher.
Your total debts, including house payment cannot exceed 45% of your gross income
You must have less than $7,000 in liquid assets. This does not count any retirement funds.
You must complete Community Home Buyers Education. This can be done on line.
HOME Plus Loan Frequently Asked Questions:
What is a WHEDA HOME Plus Loan?
A WHEDA HOME Plus Loan is a second mortgage issued by WHEDA.
--------------------------------------------------------------------------------
Do I have to apply for a WHEDA HOME Loan to be eligible for a WHEDA HOME Plus loan?
Yes, you are only eligible for a WHEDA HOME Plus loan if you are applying for your first mortgage with a WHEDA HOME loan.
--------------------------------------------------------------------------------
What can I use WHEDA HOME Plus for?
You may be eligible to use WHEDA HOME Plus for down payment and closing costs and/or for future repairs to your home. You may draw from the WHEDA HOME Plus loan during the first two years after you purchase your home.
--------------------------------------------------------------------------------
What is the total amount I can borrow?
The maximum amount for a WHEDA HOME Plus loan is $10,000.
--------------------------------------------------------------------------------
How much can I draw from my WHEDA HOME Plus loan for down payment and/or closing costs?
You may draw up to 5% of the purchase price for your down payment and closing costs if you have an excellent credit history. Please ask CiCi Murphy for details about using WHEDA HOME Plus for your down payment and closing costs.
--------------------------------------------------------------------------------
What is the term of the HOME Plus loan?
The loan term is 15 years. You will only pay interest on the amount that has been disbursed during the first two years. After that, you'll begin to repay both the principal amount you've drawn from the HOME Plus loan plus interest. The HOME Plus loan interest rate is assigned when your lender locks the interest rate for your WHEDA HOME loan.
--------------------------------------------------------------------------------
How can I request funds for home improvements?
A few weeks after you have moved into your new home, you will receive a welcome letter from WHEDA. With the letter you will also receive a form that you may fax to WHEDA when you need to draw funds from your WHEDA HOME Plus loan for home improvements. You may draw from your WHEDA HOME Plus loan for home improvements during the first two years. The minimum amount you can request is $200. Please include a copy of your contractor's estimate for the repairs/improvements if you need $1,000 or more.
--------------------------------------------------------------------------------
Is the interest paid on this loan tax deductible?
The interest you pay may be tax deductible, but you should see your tax consultant regarding your specific situation.
http://www.cicimurphy.com
http://www.cicimurphy.com/WHEDA_20_Loans.html
Apply for a WHEDA loan Get WHEDA information in an email
A WHEDA loan is Wisconsin's first time home buyer loan. Technically, it is NOT just for "first time" home buyers. The buyer cannot have owned a principal residence in the last 3 years. So, if you currently own an investment property, or you owned a principal residence more than 3 years ago, you qualify. For a WHEDA loan, you must still meet the income limitations, however.
The WHEDA HOME LOAN offers below-market fixed interest rate home financing to first time home buyers with low to moderate incomes.
Features and Benefits of the WHEDA Home Loan
Below market interest rate—more buyers can qualify for a WHEDA Home Loan
WHEDA loans have lower mortgage insurance premium - reduces monthly payment
Fast turnaround time—you won't wait days for your approval for a WHEDA Home Loan
3% down (No down payment or 'Zero Down' loans available for some borrowers)
Mortgage Guardian mortgage payment protection pays your WHEDA Mortgage payments in the event of involuntary job loss
HOME PLUS loan line of credit to improve your new home
Borrower Eligibility for a WHEDA Loan
The borrower cannot have had an ownership interest in a principal residence for three years. The only three exceptions are:
the borrower is a military veteran
the property is located in a target area
the property will be the subject of a qualified major rehabilitation
Copies of the borrowers tax returns for the last one year, and W-2 forms for the last 2 years are required to determine eligibility.
Income limits and purchase price limits
The combined income of all adults who will occupy the property and, the purchase price cannot exceed the limits for the county in which the property is located. Contact CiCi Murphy to find out the income and purchase price limits for your county.
Principal residence
The borrower must occupy the property within 60 days of loan closing. The property must be owner occupied for the life of the loan.
Acceptable Credit
Borrowers must show a willingness and ability to repay the loan
Federal Recapture
Recapture is a tax that you may have to pay on their federal income tax returns if you sell your WHEDA financed home within nine years, and if, at the time of sale, your household income has increased substantially. The majority of WHEDA's borrowers will not be subject to this tax. No tax will be collected if the home is owned for nine years or the borrower income is below federal limits.
WHEDA Zero Down Program
The WHEDA Zero Down Program has grown to be more popular than ever dreamed possible. Since June 2006, it has grown from 6% to 40% of WHEDA business in January 2007.
It was found that 24% of the WHEDA Zero Down borrowers have liquid assets exceeding $7,000. Based on the average purchase price, this would allow them to make a 3% down payment, cover closing costs and prepaids and still have some funds in reserves. Borrowers who have the ability to put money down are on the path to building wealth through home equity.
To encourage borrowers to build equity and to reduce the volume of WHEDA zero down financing, effective for loans rate locked on or after April 1, 2007, borrowers must have less than $7,000 in verified liquid assets at the time the loan application is underwritten.
Eligibility
You cannot have had an ownership interest in a principal residence during the past three years unless the property being purchased is located in a target area.
Copies of your most recent tax returns are required to determine eligibility.
You must have a median credit score of 680 or higher.
Your total debts, including house payment cannot exceed 45% of your gross income
You must have less than $7,000 in liquid assets. This does not count any retirement funds.
You must complete Community Home Buyers Education. This can be done on line.
HOME Plus Loan Frequently Asked Questions:
What is a WHEDA HOME Plus Loan?
A WHEDA HOME Plus Loan is a second mortgage issued by WHEDA.
--------------------------------------------------------------------------------
Do I have to apply for a WHEDA HOME Loan to be eligible for a WHEDA HOME Plus loan?
Yes, you are only eligible for a WHEDA HOME Plus loan if you are applying for your first mortgage with a WHEDA HOME loan.
--------------------------------------------------------------------------------
What can I use WHEDA HOME Plus for?
You may be eligible to use WHEDA HOME Plus for down payment and closing costs and/or for future repairs to your home. You may draw from the WHEDA HOME Plus loan during the first two years after you purchase your home.
--------------------------------------------------------------------------------
What is the total amount I can borrow?
The maximum amount for a WHEDA HOME Plus loan is $10,000.
--------------------------------------------------------------------------------
How much can I draw from my WHEDA HOME Plus loan for down payment and/or closing costs?
You may draw up to 5% of the purchase price for your down payment and closing costs if you have an excellent credit history. Please ask CiCi Murphy for details about using WHEDA HOME Plus for your down payment and closing costs.
--------------------------------------------------------------------------------
What is the term of the HOME Plus loan?
The loan term is 15 years. You will only pay interest on the amount that has been disbursed during the first two years. After that, you'll begin to repay both the principal amount you've drawn from the HOME Plus loan plus interest. The HOME Plus loan interest rate is assigned when your lender locks the interest rate for your WHEDA HOME loan.
--------------------------------------------------------------------------------
How can I request funds for home improvements?
A few weeks after you have moved into your new home, you will receive a welcome letter from WHEDA. With the letter you will also receive a form that you may fax to WHEDA when you need to draw funds from your WHEDA HOME Plus loan for home improvements. You may draw from your WHEDA HOME Plus loan for home improvements during the first two years. The minimum amount you can request is $200. Please include a copy of your contractor's estimate for the repairs/improvements if you need $1,000 or more.
--------------------------------------------------------------------------------
Is the interest paid on this loan tax deductible?
The interest you pay may be tax deductible, but you should see your tax consultant regarding your specific situation.
http://www.cicimurphy.com
http://www.cicimurphy.com/WHEDA_20_Loans.html
Friday, September 28, 2007
Which mortgage is best for First Time Home Buyer?
A first time home buyer has many options from which to choose.
In Wisconsin, you may be eligible for a WHEDA loan (Wisconsin Housing & Economic Development Authority). There are income limitations and purchase price limitations depending on the county.
Conventional financing offers No Money Down options.
Federal VA and State VA for veterans.
FHA is for everyone, and is appropriate for borrowers that may have some credit issues.
Regardless, you need to sit down and go over all the options to determine which is the best fit.
Join me for my Tuesday or Thursday sessions, or call CiCi Murphy to schedule a private appointment
262-754-6487
http://www.cicimurphy.com
In Wisconsin, you may be eligible for a WHEDA loan (Wisconsin Housing & Economic Development Authority). There are income limitations and purchase price limitations depending on the county.
Conventional financing offers No Money Down options.
Federal VA and State VA for veterans.
FHA is for everyone, and is appropriate for borrowers that may have some credit issues.
Regardless, you need to sit down and go over all the options to determine which is the best fit.
Join me for my Tuesday or Thursday sessions, or call CiCi Murphy to schedule a private appointment
262-754-6487
http://www.cicimurphy.com
Which mortgage is best for First Time Home Buyer?
Most first-time home buyers are ovewhelmed with the prospect of purchasing their first home. They aren't too sure where or how to begin. Get your questions answered and get a firm plan of 'what to do next' from CiCi Murphy on Tuesday and Thursday afternoons at 3PM. Call for directions. (262)754-6487
http://www.cicimurphy.com
http://www.cicimurphy.com
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