Category Archives: Mortgage Information

Fannie and Freddie extend refinance program

Posted on August 29, 2016 | Leave a comment

HARP program will continue through September 2017, FHFA says

Companies will launch a new refinance program in October 2017

Fannie Mae and Freddie Mac are extending one of the most successful federal programs enacted in response to the mortgage crisis into next year, even as the pool of borrowers who could benefit from it continues to shrink.

Borrowers can continue to use the Home Affordable Refinance Program, or HARP, though September next year, the Federal Housing Finance Agency, which regulates the mortgage-finance companies, said Thursday. HARP allows some borrowers to refinance to a lower rate even if the equity they have in their home is less than 20 percent, the typical cutoff for some refinances.

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San Diego – Down payment Assistance Plans are available for some

Posted on June 28, 2016 | Leave a comment

Assistance plans are available in National City and Chula Vista. The San Diego Housing Commission, San Diego County and San Marcos have similar programs for other parts of the county but all three are out of funds until probably this summer.

National City recently resumed its program that gives borrowers up to $70,000 toward a down payment.

To qualify, borrowers must be first-time home buyers, qualify for a first mortgage, and buy in National City. They also must have an annual household income below 80 percent of the area median income, which is $51,850 for a family of two, $58,350 for three and $64,800 for four.

The loan does not need to be paid back for 30 years. However, it does need to be paid if the home is sold or the owner decides to rent it out.

It has a 3 percent simple interest rate that does not compound. For a $70,000 loan, that would be $2,100 added to the principal balance each year.

National City gets money for the program from the Home Investment Partnerships Program, administered by the U.S Department of Housing and Urban Development.

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Tips for first-time buyers

Posted on June 6, 2016 | Leave a comment

SAVE, SAVE, SAVE

Buyers should plan to put at least 20 percent down in order to be taken seriously. That’s right, for a $500,000 apartment, you’ll need a down payment of $100,000, and that does not include closing costs.

Be prepared for other charges large and small. Among the larger is the 1 percent surcharge on sales of $1 million or more in New York City, known as the mansion tax. Among the smaller incursions on your wallet: the co-op lien search fee (roughly $300), the board package fee ($500 to $2,000), the appraisal ($300 to $1,500), the condo municipal search ($350 to $500) and so on. Brokerage firms including Douglas Elliman and Town Residential offer a laundry list of estimated closing costs on their websites.

CLEAN UP YOUR CREDIT

Unless you are sitting on a substantial nest egg or are being financed by a benevolent relative, you will need a loan to afford your first place in New York City. Banks use credit scores, also known as FICO scores, to evaluate the potential risk of lending to individuals. The higher the number, which runs from 300 points to 850 points, the better your credit score.

Knowing your score well in advance will give you time to clean up any mistakes, like tax liens that were paid off many years ago or parking tickets that should have been expunged, said Peggy Dahan, an associate broker with Siderow Residential Group. “Sometimes it takes months to clear it up, and by then the seller has sold your dream apartment and we are back to Square One.”