With this as the case, HARP was enacted by the US federal government to provide a refinancing program allowing some upside-down homeowners an opportunity to refinance their mortgage. Unfortunately, if you have a VA loan and want to take advantage of the streamline low VA rates or a FHA loan and their low rates you will not be able to use the HARP program for your refinance. The HARP is only for those homeowners with a Fannie Mae or Freddie Mac insured/backed mortgage. Below you will find some additional requirements of HARP to help you determine whether you qualify.

• You must have not missed or been more than 30 days late with your mortgage payment over the past 12 months.
• You must be current with your mortgage payment.
• Using the HARP program must put you in a better more stable financial situation like lowering your monthly payment or converting a more risky adjustable rate mortgage or an interest only mortgage into a fixed rate mortgage.
• You must have no equity in your home and not have your mortgage balance be more than 125% of the value of your home.
• You must have sufficient income and proof of the financial means to repay your new mortgage payment

With these simple requirements in mind, you may or may not think that you can qualify for HARP. The best advice is the call a mortgage lender to find out. You can call your current mortgage company first and then call a few other companies to see what kind of answers you get. You ought to call several companies anyway to give you a range of offers to compare. At the very least, you’ll know where you stand with a refinance if you are upsidedown.

In order to make sure you get a good faith estimate you must make sure you ask for one. The reason for this is that you can have a conversation with a loan officer that only pre qualifies you versus pre approves you. For a pre qualification, your loan officer may not ever look at your credit report – rather give you some general information based on what you say about your credit and financial situation. On the other hand, a pre approval gets into your credit report and getting real documents from you like your pay stubs and bank statements to take a long hard look at you qualifying.

What Does the Good Faith Estimate Make Easy To Compare Between Loan Offers?

4 different loan offers.
Loan originator name
Inital loan amount
Loan term
Initial interest rate
Initial montly amount owed
Rate lock period
Can interest rate rise?
Can loan balance rise?
Can monthly amount owed rise?
Prepayment penalty?
Balloon Payment?
Total Estimated Settlement Charges

When comparing different offers make sure you are comparing apples to apples like – 30 year fixed rate mortgage to another 30 year fixed rate mortgage. A 15 year mortgage will have a lower interest rate and may lower fees but a higher payment. An adjustable rate mortgage may have a very low start rate and lower fees, but after a year or two have a much higher interest rate.

Oh, and if you have questions make sure you ask them.

If you find yourself in the category of being a first time home buyer who does not have VA loan eligibility, then you should keep reading. If you are a Vet then you should probably talk to a VA lender about getting a VA loan because of the record low va rates. Also, in my opinion in most cases the VA loan is a superior mortgage program on the market today, including the one that I’m getting ready to present below.

California first time home buyers can once again take advantage of the CalHFA FHA Loan Program. The CalHFA FHA loan program is solely designed to build homeownership opportunities and home affordability for first time home buyers. The program offers a low fixed interest rate mortgage to those first time buyers who meet certain specified income and home sales price guidelines and qualify for FHA financing. Unlike VA loans – which allow an eligible home buyers to buy a home with 100% financing, FHA loans require home buyers to have a down payment of 3.5%. The CalHFA FHA loan program is no different.

However, what makes this program unique and a good deal for first time home buyers in California is that it can be coupled with the California Homebuyer’s Downpayment Assistance Program (CHDAP). The CHDAP provides eligible and qualified first time buyers a payment deferred “junior” mortgage (small second mortgage) of up to 3% of the sales price that can be applied to the home buyer’s 3.5% down payment requirement when getting an FHA mortgage. I was talking about one person who had recently bought a house in Riverside (by the way RRiverside home loansare available for this program now as well as virtually any other area of California) and used the program.

Some notes about this program – use can only use it to buy either a new or existing single family home or condo which means you cannot use it to buy investment properties, manufactured homes, or multi family homes. You also are limited in the amount of income you can make and the home price that you can purchase is capped. The income and home price caps are determined by the county where the property being purchased is located.

You will have to work with a CalHFA approved lender to get access to the program. Learn more about this program at the CalHFA website (California Housing Finance Agency).

Find a real estate agent

In California, anyone who helps you buy, sell, or lease property for commission or compensation must be licensed. There are two types of licensed agents, brokers and salespeople. The agent should interview you before showing you homes, to find out how ready you are for home ownership. The agent can also help you start the loan process.

Make an offer

Once you have found the home you want, it’s time to make an offer. This is where your agent can really help you. Any offer must be submitted in writing. In California, this paper is called a Deposit Receipt. It includes all details of the offer including offered price, terms, fees, financing, inspection, etc. Usually a deposit check is included with the receipt to show the offer is being made in “good faith”. After the prospective buyer presents the offer to the seller, the seller will usually make a counter-offer.

Opening escrow

Once the offer or counter-offer is agreed upon by both parties, the agent puts the deposit check in escrow. Before the home can be sold and the title transferred, the buyer must deposit all money to pay for the home into escrow. Then the old loan is paid off, and other liens taken care of. Usually, escrow is handled by a title insurance or escrow company. The escrow officer acts as a neutral party to make sure all the conditions of the sale are met. After complying with the terms of the sale, escrow is closed.

Inspections

Before escrow is closed, you may have the house inspected at your own expense. Inspections usually include looking for pests and termites, checking plumbing, heating, electrical, roofing and swimming pools and inspecting the foundation of the building. Most lenders require some sort of inspection before they will loan money on it.

Title Report and Insurance

In California, a title company searches the title of the property and issues a report for the buyer. Such items as the legal owner, a description of the property, any liens or unpaid taxes, and any easements or restrictions on the property would be included in the report. At close of escrow, a title insurance policy will usually be issued. This insures the interest of the buyer and the validity of the loan.

Approving the loan and closing

The loan must be approved and the documents signed and delivered to the escrow company. After all obligations have been met, the mortgage is ready to close.

Most people in California buy homes without the help of a real estate attorney, which makes it different from some other states. Remember, if you do need legal or tax advice when buying your California home, consult with an attorney or tax specialist.

If your health insurance premiums are above your head, then it is important to find a different health insurance plan to help make the premium more affordable. This may seem an impossible task, but there are many options for health care that can be found with some research online. These plans include HMO, PPO plans, high deductible plans, and much less catastrophic insurance plans or hospitalization.

Obtaining medical insurance now will help to protect you when the government starts coming after those people who live without health insurance. If you can not get insurance through your employer, then you might also benefit from a temporary health insurance plan while you are looking for a good job with health insurance benefits.

Family benefits can be very costly but it may help you to know that your children may be eligible for health care through Medicaid or the newer extension of Medicaid. This plan may allow you to get health care for your children at no cost to you which can free up some money to get a better health care plan for the adults in the family.

Health insurance is an expense but also an asset. It can help protect you from the skyrocketing costs of medical care, especially if an illness or injury becomes something that is in need of long term care. Finding ways to keep up with your health insurance premiums is the best way to make sure that you are protecting yourself and your family from the risks of life without insurance as well as protect you from the fines of the federal government.

It can not be right or fair, but the judges say it is within the rights of the government to force health insurance for every American. And even if we disagree with it, the law is the law and there will still be fine to prevent them from those who live without insurance.

Providing health insurance for your loved ones can be a strain when you find yourself unemployed and without medical coverage. When obtaining health insurance quotes it is important to compare companies to ensure you are receiving what you need at the lowest cost possible. For assistance in obtaining quotes log onto gohealthinsurance.com.

Before refinancing, it’s vital to have a good credit rating. Your credit rating will be part of what determines the terms of a loan refinance, so you’ll want it to look solid. If you don’t know what your credit rating is, it’s worth it to hire a company to check up on it. And of course, it goes without saying that you should always do your best to make your payments on time anyway.

Wait a few months if you need to while making all your payments on time to improve a less than stellar credit rating. This can help you secure the terms and quality of refinancing you want.

Establish a plan for refinancing your property by shopping the lenders. Banks and financial institutions are looking for reliable, stable borrowers, so check out several. Get quotes on interest rates, terms and fees from several companies. Compare the information they provide to find your best deal. Affordable monthly payments, lifetime cost of the loan ‘ these are just some of the factors you will want to consider when making your decision.

If you think you’ve found the right lender, but just aren’t sure, keep shopping. You can always go back to your first choice later. More than likely, they are waiting to hear back from you. If they have a good product and service, they know it.

Many people use refinancing to increase their holdings. You can use refinancing to buy more land and increase your acreage, or even land you think will make a profit somewhere else. You can even use refinancing your property loan to help you invest in opportunities other than real estate if you want. Refinancing can be the motivating force to help you invest in stocks, buy into an existing business, or even start a business of your own.

A great way to make the most of your refinancing is to use the savings to improve the property. If your property needs a new roof or you want to add a room or even a garage, now is the time. Home improvements can greatly increase the value of the home and actually is another reason refinancing is beneficial. When the value of the property increases the lender and you profit. The lender profits because their loan is actually more secure. You profit because the value of your real estate increases.

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Homebuyers tend to think a written appraisal is more accurate than what they’re advised in person. If a seller is listing their home below the written appraisal on their residence, she or he can convince you their listing price is really a bargain.

Be careful of this scheme if a seller or real estate agent tries to impress you with how low the listing price is. While the possibility exists a property can be listed at a bargain price, a greedy seller or agent could present an inflated appraisal to impress you into thinking you’re buying a bargain priced property. If you encounter this type of situation, here are some facts you need to know about:

-Appraisals are time dependent. They are only accurate at one particular point in time. Be sure to check what date the appraisal was performed. If the real estate market is really fluctuating, an appraisal a month or two old may be already outdated.

-When were the comparable properties sold? The most important feature of the appraisal is the sales date of comparable home sales. An appraisal is based on the current selling price of homes in a community. You want these sales to be less than 90 days. If the local real estate market has been slow, an appraiser may need to go back six months to a year to obtain proper sales data. The older the sale, the less accurate the value in determining today’s value.

When on appraiser wants to make use of older comparable home sales, she or he needs to make adjustments for the price. To adjust recent home sales information, an appraiser ends up estimating the worth of the house.

It’s essential to keep in mind the fact an appraisal doesn’t certify the price of a house, nor does it tell you precisely what a house is really worth. It’s merely a professional’s opinion of what they believe a house is worth in the existing marketplace.

Due to this fact, you can question the accuracy of an appraisal. Don’t let the seller or their agent trick you into accepting their appraisal as the final authority. Use it only as a guide to the value of a property.

An appraisal leaves out crucial information. The appraisal is dependent on the assumption the residence is clean of any defects or troubles. If an appraiser didn’t see a defect, his or her report will presume the defect is non-existent.

Are you confused which home to buy after viewing all the Beverly Hills homes for sale? Use these local Beverly Hills Realtors to help you find one.

Along with a slew of benefits with the VA loan like no mortgage insurance (which keeps your monthly mortgage payment lower), very competitive interest rates (sometimes better than conventional rates because the US Goverment guarantees the loan), and 100% financing (means no down payment required) as a veteran you can still take advantage of the Home Buyer’s Tax Credit that was authorized by President Bush and reauthorized by President Obama.

For the rest of us who do not have VA loan elibigibility the opportunity to take advantage of the home buyer tax credit, aka first time home buyer tax credit is slowly closing. In fact if you didn’t get a signed sales contract by the end of April 2010, the opportunity to take advantage of this program has already ended for you. But, if you were fortunate enough to get a signed sales contract by the end of April 2010, then you have until the end of September 2010 to close on your mortgage.

But, if you are or were in the military or you were or are a federal employee who served outside the continental US for at least 90 days during the period of January 1, 2009 and April 30, 2010 you have until April 30, 2011 to take advantage of the federal home buyer tax credit program. You can get the tax credit no matter whether you get a VA, FHA or conventional mortgage.

To further clarify, if you are eligible for the military home buyer tax credit extension, you must enter into a binding home purchase contract by April 30, 2011 and you have until June 30, 2011 to close on the purchase. If you are a first time home buyer you can get up to $8,000 in the federal tax credit and if you are a “long time” first time home buyer buying a new primary residence you can get up to $6,500 in the federal tax credit.

Depending on where you live and in what state, you will likely find additional state and local municipality tax credits, tax deductions, down payment assistance, and first time home buyer programs. Many of these programs can be used in conjunction with each other which can really add up to your benefit as a home buyer.

My suggestion is to talk your loan officer and your real estate agent to see what kind of programs are in your area and then go for it.

How does BAH work?

BAH provides service members on permanent duty within the U.S. with suitable housing compensation when government quarters are not available, according to the DoD. The reimbursed amount is based on housing costs in the local area in which the service member lives. People on active duty overseas are eligible for Overseas Housing Allowance, or OHA.

The stipend awarded is also determined when looking at the military member’s duty location, pay grade and dependency status. Although the current BAH system allows for many service members to live without any out-of-pocket expenses, some costs may have to be covered. It depends on the housing market.  Either way, a veteran and his or her family can save funds.

Sometimes BAH rates are subject to decrease.  However, individual rate protection prevents the decrease of a BAH rate as long as the duty status of a service member remains the same. And when the new 2010 BAH rates go into effect, this protection assures that the service members’ out-of-pocket costs may be less but not more.

BAH Rates

As stated before, BAH rates an increase and decrease, but individuals are protected from losing allowances.  People with dependents can get about $316 more than single persons.  Persons without dependents receive what’s called Partial BAH.  There’s also BAH II and BAH Diff for persons paying child support.

Buying a Home with BAH

The VA mortgage plan is a program that makes it possible for veterans to buy their dream home.  The U.S. Department of Veteran Affairs secures the VA loan.  With the BAH program, a veteran could use his or her allowances to pay monthly mortgage which with the VA program is less stressful than conventional loan mortgages.  One of the biggest features of the VA plan is no down payment.  So, veterans and their families do not have to come up with a large lump sum of money towards the purchase of their home. Talk with a VA loan specialist today and see how BAH funds could help you to purchase a home!

You may not know this, but one place where you can get your down payment from is your IRA – Individual Retirement Account. What’s even better about this is that you may be able to tap into this pool of money – if you are fortunate enough to have it – without penalty if you are a first time home buyer and meet certain requirements. If this is you, keep reading…

Back in 1997 the US Government enacted the Taxpayer Relief Act which made it possible under certain conditions to tap into a traditional IRA or a Roth IRA for the purpose of buying a first home without penalty. Safe to say, as of 2010, you have a lifetime cap of being able to withdraw up to $10,000 from your IRA as a first time buyer.

I’m not a qualified financial planner or tax preparer so I cannot specifically speak to your situation or tell you definitively what you may or may not qualify for as a first time home buyer with using your IRA for your down payment. But I will tell you, there is definite merit with checking into this program if you don’t have a whole lot of money in your checking account but your IRA does.

Oh, and another possibility…are you expecting to get some money from a parent or relative in the form of a gift for your down payment. If so, you may want to check out the rules about getting money as a gift from parents to put into your IRA. You may find that they can gift you money ahead of the time which would allow you to start or add to your IRA and possibly make some interest in your account while you wait. You never know – some parents have this thing inside them when it comes to helping their kids out with retirement.