Feasterville Mortgage | Allied MG Blog

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Credit Scores-How FICO scores your credit score

November 30th, 2009 9:10 AM

Today, I thought it would be appropriate to discuss credit scores and how they are scored. This past weekend I read one of the best known secrets how FICO corporation scores your credit. Below is the link to the article I found on YAHOO!®

http://tinyurl.com/ycplx2v

I hope everyone's Thanksgiving Day holiday was safe, pleasant, and plenty of eats. Until next week, Have a great and profitable week.

Posted by Art Verbit on November 30th, 2009 9:10 AMPost a Comment (0)

The "Purchase-Refinance Rehab" Loan

November 24th, 2009 9:24 AM

In today's economic climate of bank owned homes, foreclosures, and HUD properties, which are in such disrepair located in some of the nicest neighborhoods and housing divisions comes a sigh of relief for those homebuyers who want to purchase a home for less than the market value and doesn't mind having a contractor rebuild their new dream home. This loan program for homebuyers is not new at all. It has been around for some time. It is called the FHA 203k.

The 203k or "rehab" loan has 2 parts to the program. The first part is the mortgage loan and the second part is the construction/rehab loan. Do not be confused if this is 2 separate loans. It is not. It is actually 1 loan with 1 closing. The 203k has 2 loan programs which is based on the construction/rehab costs. The first loan program is called the "Streamline 203k" and the second is the "Full 203k". There are a couple of differences between the 2 loans. The first difference is the "Streamline" requires the construction/rehab project to be less or equal to $35,000 and the "Full" to be above $35,000. The second difference is the "Streamline" does not require a 203k Home Inspector consultant. It only requires estimates from a licensed contractor, who will be doing the work. The "Full" requires a certified 203k consultant/Home Inspector. The third difference is the "Streamline" only requires a 1x inspection once the work is completed to pay the contractor the remainder of the balance due for work performed. The "Full" requires an inspection throughout the process depending on the schedule the contractor sees fit. After each inspection the contractor gets paid. The final payment is given after the final inspection. If you are looking to make the home more energy efficient the homebuyer or owner can allocate funds for that specific project.

The 203k is a government-sponsored loan in the FHA family. This means that rates will remain low compared if the borrower would obtain a construction loan and would have 2 settlements. One for the construction loan and then the settlement for the actual mortgage. For the 203k there is 1 settlement.

To apply for the 203k loans click here Apply Now

Posted by Art Verbit on November 24th, 2009 9:24 AMPost a Comment (0)

Homebuyer Tax Credit Extension Changes

November 6th, 2009 3:18 PM

National Association of REALTORS® Government Affairs Division

500 New Jersey Avenue, NW, Washington DC, 20001

Congress has extended and expanded the homebuyer tax credit. The modifications in the column labeled December 1 – April 30, 2010. All changes made to the current credit become effective on that date, as well.

                             FEATURE
Jan 1 – November 30, 2009

Rules as enacted February 2009

December 1 – April 30,

2010 Rules as enacted November 2009

Firsttime Buyer –

Amount of Credit

$8000 ($4000 married

filing separate)

$8000 ($4000 married

filing separate)

Firsttime Buyer –Definition for Eligibility

May not have had an interest in a principal residence for 3 years prior to purchase
                  Same

Current Homeowner –Amount of Credit
               No Provision
                    $6500

      ($3250 married filing separate)

Effective Date –Current Owner                 No Provision              Date of Enactment

Current Homeowner –Definition for Eligibility             No Provision Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years

Termination of Credit Purchases after November 30, 2009. (Becomes April 30, 2010 on Date of Enactment.) Purchases after April 30, 2010

Binding Contract Rule              None So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

  Income Limits (Note: Increased income limits are effective as of date of enactment of bill)
                $75,000 – single

                $150,000 – married

    Additional $20,000 phase out

       $125,000 – single

        $225,000 – married

    Additional $20,000 phase out

Limitation on Cost of Purchased Home                     None
                   $800,000

Effective Date of Enactment

Purchase by a Dependent                 No Provision
                     Ineligible

Effective Date of Enactment

Antifraud Rule                         None
Purchaser must attach documentation of purchase to tax return

Posted by Art Verbit on November 6th, 2009 3:18 PMPost a Comment (0)