What this conjointly means that is that profit takers are looking to induce in before the doors slam shut on a historic shopping for opportunity in not solely Florida but the complete U.S. One amongst the most reasons that the monetary downturn has lasted this long is as a result of conforming lenders have all but forgotten concerning the important estate investor. Last year conforming lenders implemented a tenet stating that anyone with a lot of than four properties financed is not eligible for conforming financing. It doesn’t matter how much cash you make or how smart your credit is, banks WILL NOT lend to investors with additional than four properties. This has left many investors stuck between a rock and a exhausting place.

Investors notice that currently is the time to be buying properties. Most investors are choosing up bank owned properties for pennies on the dollar however an enormous percentage of these investors don’t have enough capital to buy these properties cash.

ENTER florida commercial LENDERS

This is often where Florida hard money lenders became so necessary to the current situation. Personal investors don’t should follow conforming tips and are in a position to extend financing to investors looking to buy or perhaps to refinance their current properties so as to bolster their investing funds accessible to them. Onerous money loans permit for up to seventy% loan to price on refinances of properties that are free and clear or have a lower loan amount to payoff. This is often allowing investors to help take in the excess housing inventory which can bring a floor to the market much sooner than if they may not purchase these properties up.

florida hard money purchase lending is currently in huge demand despite it’s downfalls. Although laborious money loans carry a higher interest rate (sometimes 8.ninety nine%-twelve%) investors can still notice huge profits with the help of this tough money financing. Hard cash loans can be short term (twelve months) to fully amortized thirty year fastened loans depending on the wants of the laborious cash client. Many mortgage companies find themsevles unable to compete in this market as a result of they are thus focused on cranking out the FHA loans which are so standard today. We tend to have found it a boon to not solely our business to but to our clients to supply another backup answer in case typical,Florida VA, or Florida FHA financing falls through.

Even though Florida FHA guidelines don’t state a minimum score requirement, most lenders require your middle score to be at least a 620. Five Stars Mortgage has a program that will let you go as low as a 530 middle score as long as you can prove at least 2 years worth of rental history. Other than that, the only other thing they require is 2 open trade lines showing that you have paid on time for at least 12 months.   Open trade lines could be credit cards, car payment, student loans, etc. And speaking of student loans, remember, you must be current on all Federal loans to be able to qualify for FHA.

Now that we got the credit out of the way, let’s talk about employment history. FHA isn’t all that strict about it. Let’s say you just started your telemarketing job last month. That would probably mean you can’t get approved, right? Incorrect! As long as you have been in the same line of work for at least 2 years (there’s that number again) then you are ok. Now you can’t go from working as a waitress to a secretary and count that as the same line of work  of course unless you were in college at the time and now you are working in the field you went to school for.

See, things are starting to seem much easier, aren’t they? So, let’s talk about down payment. If you were to go conventional, you would need about 20% down. On a $100k loan that’s $20k! Who has that kind of money right now?  With FHA you only need to put 3.5% down. That’s only $3,500. Much better number, don’t you say? Not to mention that you could get it gifted by a relative or borrow it from your 401k. The only place it can’t come from is the seller, but that’s no big deal since FHA allows the seller to pay up to 6% for closing costs (and closing costs are usually never more than about 5%)

So now that you know you have real options, how about giving us a call to get you that pre approval letter. We can pre qualify you in about 15 minutes and tell you exactly how much you can afford. With that letter you are set to start  house hunting!

Hard money loans

We will refer to these loans simply as hard money loans. There are many myths and misconceptions about hard money that should be cleared up. The first and foremost of these myths is that a private investor is making a loan because he wants to foreclose and get access to the equity in the home. While there may be some cases where this is true, the vast majority of hard money investors are looking to make regular monthly interest profits and NOT go through the hassle of foreclosing on your home. Should the lender have to foreclose they are looking at many months where they will receive no profits on their funds.

The foreclosure process can take up to a year in parts of Florida where the banks are bogged down with hundreds or even thousands of bankruptcy and foreclosure cases in addition to their normal workload. Once the lender finally gets a foreclosure done the property is then sent to a public auction. At the auction the lender would then have to bid on their own property against other investors that will want to acquire a house with plenty of equity. On top of having no profits for many months, legal fees, and now having to bring money to the table just to acquire the home from other investors… you can see how a hard money lender would want to do everything in their power to make sure you keep making payments where they will receive regular profits versus having to take back the home.

People use hard money loans for a variety of reasons. As mentioned previously, conventional and Government lenders are continuing to further tighten their credit and underwriting guidelines making it more and more difficult for investors and homeowners to get access to the equity in their homes. Some of the most common scenarios we encounter from people using hard money loans include:

• Inherited a property that is free and clear and have no credit or bad credit to get approved to pull cash out of it.
• Paid cash for a property recently and need to get cash out of it (conventional and Government loans require 12 months seasoning on title where hard money loans have no seasoning requirement at all)
• Already have more than four properties financed (conventional and Government loans will now allow more than four properties to be financed or t hey will not approve a loan, hard money loans have no financed property limitations)
• Property Types that conforming and Government loans don’t finances are allowed with hard money loans such as mobile homes, raw land, condos and town homes.
• Investors looking to purchase a home and need to close fast (conforming and Government loans can take 30-45 days but hard money loans can close in 3-5 days.

Not all hard money loans are the same. There are two different types of hard money loans that you can consider using:

1. No Document Hard Money Loans – These are true no documentation loans. The lender is lending money based strictly on the amount of equity you have in your home. These loans close very fast as the only thing to do is arrive at a fair value on the home and ensure the title work is in order. Interest rates on a no document florida hard money loan can run between 12%-15% on a 10-30 year fixed rate mortgage.

2. Full income documentation loans – These loans allow the home owner to get interest rates closer to 10% on a 20-30 year fixed rate mortgage. These fully documented florida hard money mortgage loans allow investors and home owners that can prove their income to receive better terms. These loans help fill the gap for investors with more than four properties financed, investors that need to close quickly on their home using hard money, and home owners with poor credit that banks will not finance.

One of the major advantages that mortgage brokers have in today’s market is that they have access to a wide variety of lending sources for all types of loan programs. A bank or credit union will not be able to offer anyone a private money loan. These loans are only provided directly from the private funding sources or as is normally the case, through mortgage brokerages that are used to dealing with funding hard money loans.

If you have been considering a hard money loan or have been turned down by the bank but have equity in your home, we highly recommend calling or filling out the online inquiry form right now. By this time next week you can have your equity in your bank account!

The tax credit allowed first time home buyers purchasing their primary residence to receive a tax credit of up to $8,000. With the expiration of the program many feared that home sales would declined and a market recovery would be further delayed.

Initial reports are that the Senate has not only approved an extension of the first time home buyer tax credit, but an expansion that would allow current home owners to also be eligible for a tax credit on a new home florida purchase as well!

Sources within the Senate have indicated that there is a preliminary agreement to extend the so called “first time home buyer tax credit” until the end of April 2010. In addition they intend to expand the program to include a tax credit of up to $6,500 for home buyers that already own a home. The senate sources indicated that one requirement on current homeowners looking to buy a new home and get the $6,500 credit is that they must have lived in their primary residence for the last five years.

It appears they will attempt to attach this new home buyer tax credit extension to the unemployment extension bill. It’s still unclear as to when the extension will come up for a vote, but this initial report is incredibly positive news for the housing market.

Thousands of families have already been able to purchase a home and take advantage of the first time home buyer tax credit. This five month extension and expansion will allow countless thousands more to take advantage of it as well.

One point of frustration for many home owners is not being able to access the tax credit early and use it as part of the down payment on their purchase. While HUD has approved the use of the tax credit as down payment, lenders as we have seen all too often, have not gotten on board with it and widely ban the use of the tax credit for down payment. Third parties had been advancing borrowers money to use as down payment in some reported cases. This is still not widely accepted by lenders and borrowers have had to wait until tax time to receive their credit.

If you have been in the market to buy a home it looks like you will have until the end of April to get a Government check to do so!

First, let’s talk about what exactly is an Florida FHA loan because you are probably thinking this sounds too good to be true. An FHA mortgage is issued by federally qualified lenders and insured by the Federal Housing Administration. That means that they are government loans just like USDA & VA. To get a USDA you must be zoned agricultural and VA you have to be a veteran to be eligible. Unlike the other 2, FHA is for everyone!

So, what is required to get an FHA loan you ask?

You need 2 years worth of documented work history. That means you have to be able to prove it with either tax returns or W2’s. It doesn’t have to be 2 years at the same employer, but it does help if its 2 years in the same line of work. They are sometimes able to look past it if you were in college and you now work with your degree.

Credit. That’s a scary word for many people. You walk into a bank with anything under a 620 credit score… well, you pretty much get thrown out! FHA is a bit more lenient. We have a program that allows you to have a 580 or higher middle score (that means out of the three credit bureaus, not the highest nor the lowest… the one in the middle) So, what can you have on your credit? They are pretty strict when it comes to other government loans on your credit report though. Student loans must be current. Bankruptcies and Foreclosures must be at least three years old. Chapter 13 bankruptcies are allowed as long as they have made 12 months payments on time.

Down payments are a necessity when it comes to buying a house. Most lenders for conventional financing require 20% down. That’s a lot of money. If the loan you are trying to get is $100k, well, then you need to bring 20 thousand dollars to the table!!! Who has that now days with this economy? FHA only requires you to bring 3.5% down. That’s a huge difference.

You are probably thinking that with all of these benefits, that there has to be a down fall. Right? It has to be in the rates… right? Well, you are wrong. FHA has the same low rates as conventional! You can get FHA loans right now for as low as 4.875% on a 30 year fixed (which I forgot to mention, all FHA loans are 30 year fixed, with no Pre Payment Penalties!)

So what are you waiting for? If you are in the market for a home call us, go on line and chat with us or even email us. We are here for you!

This program has been a huge advantage to first time home buyers (technically classified as anyone not having owned a home in the last three years) that had previously been on the fence wondering when the market was going to hit bottom.

With the recent Federal Reserve Treasury Secretaries announcement that the recession is finally over, we think it’s wise to point out that this market has probably reached it’s bottom. There has been over a year for investors and first time home buyers to soak up some of the rock bottom priced foreclosed homes on the market. New construction has not even played a factor in the housing market since late 2007.

Now this excellent incentive is ending as of December 1st of 2009. Since economic indicators are beginning to look favorable it is not likely that this program will be extended past the December deadline.

This means that any first time home buyer looking to take advantage of the $8000 tax credit must close on their home prior to December 1st. Since it can take up to 30 days for the finance process on conforming and Government loan programs, that means anyone looking to take advantage of the $8000 tax credit needs to be under contract by November 1st of 2009. That is only six weeks from now!

If you have been on the fence. If you have been waiting for home prices to come down. If you have been waiting for interest rates to fall to a certain price to jump into the market… we STRONGLY urge you to act quickly so that you can claim your $8000 tax credit this year! Time is running out very quickly.

Mortgage rates are still VERY low, below 5% today. If you have been considering purchasing a home in the near future or know someone who has, please have them call or apply online so that we can get them pre-qualified as quickly as possible and ensure they get their $8000 tax credit.

Many states have found ways to use the $8000 tax credit as a downpayment, but Florida is not one of those states. Lenders in Florida are not currently allowing the $8000 tax credit to be used as downpayment, however a gift from family, friends, and work are still allowed. In addition all programs allow the seller to contribute to your closing costs!

Obtaining a Florida conventional or Florida Government loan requires a 620 middle score, two years of employment in the same line of work, and documented income sufficient to cover your mortgage and other expenses monthly. If you meet these basic guidelines you are on your way to being approved to purchase a home and receive your $8000 tax credit. In order to determine how much of a home you qualify for we must look at your total income versus your total debt obligations. With those two figures we can calculate how much of a home you can qualify for so that you can get under contract by October 1st.

This is an extremely rare Government program that we don’t expect to see again in the near future. We hope that anyone that is prepared and was looking to buy soon will act quickly and ensure that they receive their $8000 tax credit this year as well as a low priced home with a low fixed interest rate!

It wasn’t all sunshine and roses, but for many experts their comments are heralding and end to the longest economic depression since the Great Depression. The terminology used in their statment was, “economic activity is leveling out”, “financial markets have further stabilized in recent weeks”, “Hosehold spending shows signs of stabilization”. In essence what they are saying is that our economic freefall has stopped. They believe that we are leveling out and have finally hit a bottom.

The Feds estimated a period of sluggishness followed later in the year by slow growth!

Only earlier this year the President, Congress, and the Senate were all telling us that the fate of the entire global economy was on the precipice and could tip over the ledge at any time. Now in August of 2009 they are in effect declaring that the recession is on the back nine of its life cycle and the worst is over. This administration and the Fed working together have managed to pull us back from the brink and save the American way of life. Sure billions of dollars were wasted and corporate executives basically swindled the taxpayer’s children into debt, but such is the American way of life, for better or for worse.

As the President grapples with finishing up a war over seas, ratcheting up his efforts in a second war over seas, and tackling the biggest most far reaching domestic issue (healthcare) at home, the rest of us must deal with the daily grind of still rising foreclosures and job loss.

Another bonus that came out of the Fed meeting yesterday is the decision to keep the Fed Funding Rate (the rate at which banks lend each other money) at 0% for the foreseeable future. They do not feel inflation is a risk in the near term.

This and the fact that the Federal Government is committed to buying Mortgage Backed Securities should continue to keep mortgage rates fairly low through the rest of the year.

Today we had a nice little interest rate rally that brought a 30 year fixed slightly below 4.75%. The Fed is doing quite a bit to try to help keep the housing market afloat. Just to name a few are:

• Presidential Loan Modification Plan to help keep borrowers out of foreclosure
• Presidential Refinance plan to help good borrowers lower their interest rate and monthly payment despite possibly being upside down on their homes. (110% loan to value loans and no mortgage insurance will do the trick!)
• $8,000 tax credit (not a loan… A FREE CHECK from Uncle Sam just for buying a home). The Market is also trying to find a way to make this work as downpayment funds for those lacking the 3.5% that FHA requires as a down payment.
• Buying MBS to keep rates low
• Flushing banks with free or EXTREMELY low cost money so they can keep making loans (even if they act like they fear doing so)

No doubt President Obama and his staff are pulling out all the stops in their efforts make lemonade out of the economic hand they were dealt.

We look forward to reporting next week on where rates are after receiving some more economic data. Recent reports about slowing job loss was good news, but it was followed by reports of rising foreclosure rates.

To all of our fellow survivors in the mortgage and real estate industry we salute you.

To all those able to benefit from low interest rates and rock bottom housing values we congratulate you!

It is relatively simple and easy to apply for:

Applying for a loan modification can be as simple as picking up the phone. Calling your lender is the first step. Ask for the loan mitigation department and explain your situation in clear, concise detail. It is important to take notes including the date and time, whom you spoke with, and what information they relay.

The serious need for a loan modification must be stressed at this point, primarily by expressing the burgeoning inability to meet the due payments and the sincere desire to keep paying to prevent the house from going into foreclosure.

Loan modifications are now widely offered:

It is no longer just the lucky few that qualify for loan modification. President Obama has implemented a plan with intentions of including all responsible but struggling homeowners.

Other than paying off your mortgage, a loan modification is the only legal route to keep a homeowner behind in payments from being foreclosed upon:
For those with a mortgage they are struggling with it is important to avail yourself to the loan modification process just in case paying the mortgage becomes increasingly difficult, or worse, not possible at all.

Even though widely offered not everyone can qualify for a loan modification:

The new plan, while a very good measure is not a free for all. A thorough assessment will be made on everyone applying for a loan modification. The homeowner must live in the home full time. The loan modification process is not for investors, speculators, or to save rental properties, or vacation homes. Any mortgage company is sure not to approve the request of a person when it becomes apparent that the person is only out to scam the mortgage company and not actually pay anything at all or use the loan modification on a home that is not their primary residence.

Mortgage companies are especially wary at this time, and will not hesitate to deny the application of anyone who raises their suspicion, so it best be established beyond the shadow of any doubt that the person applying for the loan modification is absolutely incapable of meeting the required payments for the mortgage of their primary home. At the very least, florida mortgage companies will accept only those whom they deem as an acceptable risk, regardless of the circumstances expressed by a person for being unable to meet the mortgage payments, so it is really essential to stress the intent to pay, the intent to stay in the home and also express the extreme need for a loan modification in order to make that possible.

Most hard money mortgages are made by private local investors. Usually, the fico scores are not a focal point to getting one of these loans. They are mostly based on the property

Credit bureaus collect information about the amount of debt you have and whether you pay your bills on time. They compile this information into a file called a credit report, and then boil all this down to a number between about 300 and 850. That number is your credit score. Sometimes it’s called a FICO score, after Fair Isaac Corp., the company that pioneered credit scoring. Most lenders use the middle of the three scores. So for example if you had a 600, 620, and 640 score set