Word on the street is that fixed interest rates for home buying shouldn’t start significantly increasing for the next 6 months.  That’s great news considering interest rates are still available in the very low 5% range for qualified buyers seeking a FL FHA loan, VA home loan or Fannie Mae conventional  mortgage; and with no discount points.  Whether you are buying your next home as a seasoned investor or FL first time home buyer; your FL Realtor will amaze you with current reduced home prices.  Over the weekend a client called about their desire to purchase their dream home in Key West, FL .  Built in 2007, their 1,880 square foot , 4/2 vacation home was listed under $50,000!  Even Condominiums in Cocoa Beach, FL are at ridiculous reduced prices and many second home or vacation home buyers are taking advantage.  But keep this in mind. Although interest rates are down and home prices are down everywhere in FL; so too are the qualifying debt ratios for your FL  mortgage approval.

When considering a new home loan, FL mortgage professionals must review and determine qualifying debt ratios.  This is done by dividing the home buyers monthly debts (credit cards, auto, boat, student loans) by their gross monthly income.  Fannie Mae has reduced their debt ratio maximum to 50%.  So, for example, if a home buyer has a million dollars in the bank, and credit scores over 800 (superb), and puts 20% towards a down payment, but their debt ratio is 56%; there is a very good chance they will not obtain an approval.  The same holds true for many FHA first time home buyers; except the qualifying debt ratios may be as low as 45%. 

There are ways to achieve a lower debt ratio and your FL mortgage professional is the first one who may have the answers.  Don’t lose your next home by not talking to someone with experience, first.  The mortgage underwriting squeeze does need to ease a bit.  For now, one can only hope that when interest rates start climbing and home price begin increasing as homes appreciate; that home buyers remember to begin their FL home search with speaking to an experienced FL mortgage professional.  Got a question with your next home buyer?  Contact me at info@beechtreemortgage.com anytime.

Many FL home buyers are calling to simply ask what current credit score requirements are for Fannie Mae, FHA or other types of home loan financing.  Generally speaking, in today’s restrictive lending environment, FL home buyers need to have established a good credit history usually evidenced with favorable credit scores.  There are exceptions to today’s FL mortgage tighter qualifying credit scores and Veterans are included.

When a Veteran seeks to purchase their next or first FL home mortgage; they can enjoy a little breathing room when it comes to credit score quailfying.  As long as the amouont borrowed is $417,000 or less; there may not be a credit score minimm requirement.  Good news for Veterans who may have run into making slower credit card payments due to a temporary job loss or unexpected circumstances. 

Remember whether a FL first time home buyer or moving up to a larger home; qualified US Veterans have advantages with a VA Home Loan over other FL mortgage options, including:

• Save more money with no down payment requirement for loan amounts up $417k (Monroe County allows up to $425k)
• Enjoy lower mortgage payments with no monthly mortgage insurance
• Easier to qualify with less restrictive credit score requirements (Bankruptcies under 2 years may be considered)
• Save even more as you could receive up to 4% of your contract price towards closing costs, from allowable contributors

For more information with your next FL VA home loan, feel free to contact me directly at info@beechtreemortgage.com.

 After 14 years as a FL mortgage professional, I have experienced countless changes in our industry.   Mortgage programs were created such as interest only fixed rate loans, or the notorious pay option ARM.  Stated income mortgages, meant for self employed borrowers, became available for salaried home buyers.  And no document type mortgages were everywhere so anyone could buy a home; which really screwed things up.   And lest we forget today’s magnitude of mortgage underwriting  makeovers.   However, one thing remains the same.  Home buyers are still focused on interest rate.  What about the mortgage making sense?

 Interest rate shopping is very important after you have spoken to a FL mortgage professional regarding which mortgage program best suits your financial future.  A few years ago if someone wanted simply the lowest available interest rate, the answer was usually the pay option ARM rate of 1%.  Can’t beat that one.  However, many home buyers were not made aware of the pitfalls that came that low payment rate.  The pitfalls were huge!

It pays to speak with an experience FL mortgage professional who will assist in detailing the advantages and disadvantages of any specific mortgage program scenario.  Just because a FL home owners calls to refinance and lower their fixed interest rate; doesn’t mean it is in their best interest to refinance.  This includes FL FHA loans, FL VA home loans, FL Jumbo loans and conventional mortgages.  The mortgage must make sense. 

What about recovery period considerations when refinancing?  Or what is the long term interest savings when deciding between a new 25 year fixed rate, 20 year fixed rate or a 15 year fixed rate mortgage? 

Once you have found your seasoned FL mortgage professional who knows what he or she is talking about – then move onto interest rate.  Be wary of mortgage originators that talk only about rate.  It’s usually because it’s  whole lot easier to quote an interest rate than to know how to truly qualify and educate a home owner when seeking their first FL mortgage.  The mortgage must make sense.

And making mortgage sense starts with an experienced FL mortgage professional.  Have a question your current mortgage or know someone else who may?  Contact us anytime.

In today’s ever tighter mortgage guideline environment, many home buyers are are learning that yesterday’s adage or question “What’s your interest rate?” has been replaced with “Can you close my loan?”  Rate is out and getting the job done is in.

FL mortgage underwriting of credit histories and scores; income evaluations or calculations; and appraisals have made buying a home less fun for many.  The truth is that FL home buyers should make sure they work with experienced FL mortgage professionals.  It no longer matters who has the lowest interest rate for a FL fixed rate VA, or FHA mortgage,  or even a conventional Fannie Mae loan.  A fixed rate of 3.5% sounds like a great FL 30 year fixed rate mortgage.  But if the lender or  bank cannot close the loan; the interest rate doesn’t matter.

I am not saying to toss rate shopping out the window.  Of course a competitive interest rate is important when buying your new FL home.  Always compare a quoted fixed interest rate against the costs for that rate.  With today’s new good faith estimate, this can be done easily.  Compare the lender or banks fees; now called the origination fee, and the interest rate quoted against other estimates.  But if you want to ensure that you are going to close; work with a seasoned, experienced, knowledgeable FL mortgage professional.  I would take a real interest rate with reasonable costs and an experienced mortgage professional; over a slightly lower interest rate and never get to closing; anytime.

Ask your licensed FL Realtor how long they have been working with their local mortgage professional.  And then do some research.  Ask for referrals, ask about length of time as a FL loan originator.  By talking to several loan officers, you can actually hear the difference between the newbies, the crooks (most of them are gone now – hopefully) and the true Fl mortgage professional.  Got a question about your next home buyer or know someone searching for true mortgage answers?  Have them contact me or call anytime at 407-733-6425.

Our great state of Florida offers many military benefits for Veterans seeking to purchase their new FL home while using their VA Entitlement for a FL VA mortgage.  I want to share the following FL VA specific benefit information for qualified Veterans seeking a FL VA home loan.  There are specific FL VA benefits regarding homestead tax exemptions which may reduce or even eliminate FL taxes on residential homes.

• According to FS 196.081(1); any real estate owned and occupied (homesteded) by a US Veteran who has a service-connected, permanent and total disability and has been honorably discharged; is exempt from FL property tax.  The Veteran home owner must be a permanent resident of FL on January 1st of the year in which the exemption is being claimed. 
• FL Veteran home buyers or current Veteran home owners are eligible with a VA service-connected disability of 10% or greater shall be entitled to a $5,000 property tax exemption.
• The exemption of taxation carries over to the spouse in the event event the Veteran is deceased; at least until the spouse remarries, sells or otherwise disposes of the property.

For more information regarding additional FL Veteran benefits with respect to homestead tax exemption; please visit the FL Senate website. And if you or someone you know is a US Veteran requiring more anwswers to their FL VA mortgage questions; please have them  contact me anytime.

One of the most popular FL mortgage programs happens to be one of the best ways to buy a FL home with the least amount of down payments and less hassle.  Whether you are a FL first time home buyer; searching for a second home or vacation home; or want to pick up a great investment or FL rental home – Fannie Mae’s HomePath Mortgage has it’s advantages.   

• Imagine being able to finance your next FL home without having to have an appraisal!  With the HomePath mortgage, not only are appraisals not required; there are no declining market policy restrictions.  Keep in mind, you can obtain your own, independent appraisal – just for piece of mind.
• Down payments can be as low as 3% for primary residences and 10% for second homes / investment properties.
• All this and nomonthly, PMI, private mortgage insurance!  Sort of like getting a FL VA home loan without being a Veteran.
• Sellers can contribute up to 6% towards closing costs for primary and second homes; and up to 2% for investment properties.

For more information on the HomePath Program visit www.homepath.com.  While there, search for the home of your dreams and then contact or call me directly at 407-733-6425.  Let’s  make sure you are qualified for this very popular FL mortgage  loan.

Successful FL Realtors depend on  FL Mortgage Professionals to stay informed of current mortgage related guideline changes.   Last week we were speaking with the top producing Realtor team in West Volusia County.  We learned that many home buyers were asking for low down payment options; so we broke it down from one question that must be asked:

• Are you a United States Veteran? 

If the answer is yes; then we can discuss the advantages of obtaining a guaranteed FL VA home loan.  With loan amounts under $417K, there is no down payment requirement, no PMI (private mortgage insurance) and of course no down payment.  And sellers can contribute up to 4% towards the buyers closing costs.  What a great program!

The savvy  FL Realtors, however, bring up the cost factor of the VA Funding Fee.  This is usually rolled into the loan amount and costs 2.15% of the mortgage amount borrowed.  If the Veteran has used his Entitlement on a previously owned home; the VA Funding Fee can jump to 3.3%.  That can be over $10k for FL home purchases over $300k.  But there is a VA solution.

Have the Veteran put down 5% and the VA Funding Fee drops to 1.5% for subsequent Entitlement users.  A 5% down payment VA home loan still has no PMI which can save the Veteran thousands over the life of the loan.  Compare that with any, if available, conventional loan with PMI.

I am getting carried away – but I truly love sharing specific VA home loan information.  Remember, if down payments are an issue, ask if your buyer is a Veteran.  If not, lets look at USDA Rural Housing or an FHA home loan.

So much more to talk about.  Call me if you have any questions regarding pre-qualifying your next home buyer.  My name is Stephen Thaggard and I can be reached at 407-733-6425.

Starting January 1st, 2010, Realtors, Title Companies and Mortgage Professionals are going to engage in entirely new procedures with their first time home buyer clients.  We are not only going to experience new mortgage Good Faith Estimate formats and final HUD-1 Settlement Statements; but the way we do business will shift entirely. The revised requirements, compliments of new RESPA rules for 2010, will change  the way FL Realtors, first time home buyers and their FL Mortgage Professionals function.  Our mortgage industry is about to change dramatically.  Are you ready for January 1st?

Here is a just one example of change to come.  We are all used to getting “pre-approved” for that new home and perhaps even receiving an upfront Good Faith Estimate all while searching for that new dream home.  Starting January 1st, Good Faith Estimates cannot be provided unless you have a complete mortgage application.  A complete application is not an application unless there is a property address recognized.  So much for pre-approvals while searching for that dream home.

We will start seeing more pre-qualifications and Good Faith Estimates that are for illustration purposes only.  Without a property address home buyers get practically nothing.  Realtors and home buyers are going to have to depend on experienced FL Mortgage Professionals with specific knowledge of current FHA, VA and conventional  mortgage programs. 

Change is good; and in just a few days the mortgage arena will change and how a first time buyer shops for their new home will never be the same.  Fun times – for Mortgage Professionals who always disclose everything upfront to their home buying clients.

Aimed at providing clearer upfront mortgage disclosure with easily comparable standardized Good Faith Estimates;  the RESPA 2010 rules begin January 1st.  One of the enhancements is enforcing quoted lender or bank fees, with a “no tolerance” rule.  That is, once you have received your Good Faith Estimate, the mortgage lender or banks charged fees cannot be changed; period.

This is tough news for those mortgage knuckleheads who were ambiguous with changing initial quoted interest rates and/ or adding additional discount points and other miscellaneous mortgage fees at closing.  You know, the ones who preyed on first time buyers who perhaps didn’t know that changing the mortgage terms at closing violated laws already written. 

For career minded and experienced Mortgage Professionals, however, the new RESPA changes are welcomed.  Disclosing upfront closing costs and delivering the same at closing is par for the course.  It’s interesting that the entire Good Faith Estimate had to be reinvented with tolerance laws when we could have simply enforced laws already in place.  Besides, these new RESPA changes are about 5 years late and most of the rogue rip-off mortgage bankers and brokers have left the industry.

2010 is destined to be a great year for those who have survived the FL mortgage market.  Let’s embrace the RESPA changes which are simply trying to put first time home buyers in a better position, and saving them money, while shopping for their new mortgage.

When a first time home buyer chooses a Realtor and begins the search for their new dream home; most are hoping to keep as much of their savings to furnish or spruce up their home.  There are a few mortgage programs with low down payment requirements, and scenario considerations as follows.

The best mortgage program available with no down payment requirement, is a VA home loan.  Our hero Veterans  may qualify for their first home without the need of any down payment.  In fact, the seller can even contribute up to 4% towards the Veterans closing costs and prepaid interest, property taxes and homeowners insurance.  With little or no out of pocket expense, Veterans can keep more of their savings and earn interest instead of paying interest.

Another practical first time home buyer program is the use of an FHA mortgage loan.  FHA mortgages allow first time buyers to put as little as 3.5% towards a down payment.  Keep in mind, HUD is considering changing the 3.5% to 5% soon – so get your Realtor and call your FL Mortgage Professional to secure a contract soon.  Also, sellers can contribute up to 6% towards the buyers closing costs, prepaid interest, property taxes and homeowners insurance.  At a loan-to-value of 96.5%, FHA has proven to be the most popular mortgage loan of first time home buyers.

Although there are more  mortgage programs with little or no down payments; the VA home loan and FHA mortgage loan seem to serve first time buyers the best.  For more information on these mortgage loans and more please contact your favorite FL Mortgage Professional.