Perfect Timing for Refinancing Off Your Mortgage Insurance In Today’s RED HOT Colorado Market!

For those of you who have refinanced in 2010 to 2012 and who have Mortgage Insurance on your home loan, either through FHA or conventional, might want to seriously consider refinancing now, while the market here in Colorado is Red Hot!!

A $400,000 loan with FHA Mortgage insurance is $450 per month, and that is for the life of the loan. FHA has made some recent changes which make that absolutely beneficial to refinance out of that loan, into a conventional loan at 80% LTV, which means your home has to have 20% equity in it, and the mortgage insurance will fall out. It is important to run an AVM, or Automated Valuation Module, to make sure the likelihood of your home’s appreciation will be enough to drop the mortgage insurance, and we here at The Mortgage Network, will give you a complimentary AVM to see if you qualify today!

PERFECT TIMING

Some homeowners, who have put as little as 5% down 2 years ago, can reap the huge benefits of this market with strong home sales, and refinance out of their mortgage insurance during this perfect cycle. Another benefit is that you can refinance under flex terms, in that we can refinance you into a 28 year mortgage, if you purchased 2 years ago, to keep track with your 30 year amortization.

Regarding the huge savings, of the above example, let’s look at this example.

$400,000 Loan

Rate – 4.5%, PMI $450 a month

$2026.74 Principal and Interest

Taxes and Insurance $300

TOTAL PAYMENT ON $400,000  is $2776.74

FLASH FORWARD TO TODAY, and now that home has an AVM of $500,000, and that is very typical in many neighborhoods in Denver and surrounding counties.

So now the home is at 80% LTV and we are able to get a rate of 4.125% with no mortgage insurance.

Take this one step further because the borrower wants a 20 year fix now. Dump the MI, and shorten the mortgage by 10 years.

Whats the payment?

$2450.35 plus $300 taxes and insurance

$2750.35 NEW PAYMENT —

As you can see, there is huge benefit with the way rates are right now, coupled with home appreciation, that is makes perfect sense to refinance out of your mortgage insurance today!

If you are any of your family or friends would like a complimentary AVM on your property, and consultation to see if this will work for your financial situation in a positive way, call Brian Quigley at 720-524-3215 or email him at loans@brianquigley.com

 

Construction Lending Available In Colorado with as little ZERO DOWN

It is no question that the real estate market in Colorado is hot! hot! hot! This can frustrate many buyers who show up to an open house with 10 other buyers, and a seller who is only interested in highest and best offer. It is definetely a seller’s market out there, and that can really discourage someone who is an FHA buyer with only the alloted 3.5% down, who cannot afford to pay above contract.

It is saddening how many FHA buyers I have that cannot put in an offer, simply because the seller does not want them as buyers. They want conventional or cash, who can absorb a low appraisal, and have no problems paying above market value. Before I ramble on about this, the true spirit and nature of this article is to discuss a brand NEW product that we offer right NOW, that will get more smart buyers into homes, hopefully at a better value, then getting into a bidding war with other buyers, driving up prices, which become inflated.

Enter The Construction LOAN

This is an FHA and VA product that has been offered for years, however many, if not all lenders refuse to touch it. Until TODAY. The loan works like any other VA or FHA Loan. Zero down for VA and 3.5% down payment for FHA.

Here is an example of how exactly this would work.

Step #1 ——-FIND a lot you would like to build on. Seller makes a contract with you for land at $150,000.

Step #2 ——Have your General Contractor put together plans and specs to put together price of construction loan, which in this case is $240,000

Step #3—–Your base loan amount is $390,000, as this includes the $240,000 Construction Cost plus $150,000 lot cost

Step #4 —-Close your LOAN!  You will be required to put dont 3.5% for FHA, or ZERO DOWN FOR VA.

Here are some of the program highlights and guidelines for you to review initially

  • Down to 580 Credit Score
  • 10-30 year terms available
  • Modular, Condo, Townhomes, Manufactured, and Single Family Residences okay
  • Owner Occupied Only
  • Loan Amount limits by County for FHA and VA

For any questions on how to get approved for this loan, and how to take the proper steps, call Brian Quigley at 720-524-3215 or email him at loans@brianquigley.com

 

No Money Down USDA Purchase Loans In Colorado Are Amazing Tool For HomeOwnership

USDA Rural Development’s Single Family Housing Direct Loan Program provides loans to assist low and very low income families in rural area’s achieve their dream of home ownership in Colorado. This is a 102% max LTV loan with absolutely no money down. The properties under USDA have to be located in a rural area, and meet the address requirements through USDA’s website by clicking here.

If you meet the following requirements, then you might just find yourself in a new home, with a fraction of the closing costs versus FHA and conventional loans. If you live in a rural area in Colorado, or are potentially moving to a rural area, please check out USDA first! This is an amazing loan for low income families and will save you thousands of dollars in the long run. Here are some of the main requirements:

  • Purchase or Refinance down to a 580 Credit Score. 
  • Minimum loan amount $75,000 maximum loan amount $417,000
  • 2 years seasoning on any Bankruptcy under extenuating circumenstances, 3 years seasoning otherwise
  • 3 years seasoning on any foreclosures
  • Debt to Income Ratios not to exceed 32/44%
  • Collections over 12 months old with approval, ok
  • Tax Liens, Judgments, must be paid

Here is an example of a $250,000 home with using the USDA program with no money down at all.

$250,000 Purchase Price

$255,000 Loan Amount, as you have to have a 2% UPMIP for mortgage insurance rolled into purchase price

4.125% Interest Rate at $255,000 is a payment of $1235.86

$150 Taxes estimated, $100 Homeowners Insurance estimate, and .40% Mortgage insurance of $85.00

TOTAL PITI Payment with MI is $1,570.86

If you have any questions about how to get qualified for this amazing loans, you can call Brian Quigley directly at 720-524-3215, or email me at loans@brianquigley.com

 

When Debt Attacks! Debt Consolidation Home Refinancing Makes Complete Sense

Debt. When it rears it’s ugly head you realize that you have amassed a snowball of bills, and do not have any idea of how to pay them off. The minimum payments on credit cards are pure interest, and interest is charged on top of interest, and the fees. If you have a credit card, there are over the limit fees, late fees, and sometimes, even inactivity fees.

The worst thing about credit card debt is that it is not tax deductible. Couple that in with some student loan debt, and auto loan, and you have a monthly liability spreadsheet that is an absolute nightmare.

Luckily, with the recent surge in home prices in Colorado, many of these once unlucky homeowners who might have been in a flat or upside down equity position, now actually have equity in there home. I am not saying to rush out and refinance your home in any means. What I want to take a look at however is a scenario, where it might make sense to refinance, and consolidate all of your non-tax deductible debt, and erase your debt, by consolidating it within the mortgage. This will definetly do 3 things right away.

  • The Debt Consolidation Loan will lower your monthly overall payment, as now all of your debts are wiped clean, and you are just paying off the mortgage
  • Your credit score will greatly improve because you will now have more revolving credit with zero balances
  • You are now making one payment on a tax deductible debt

 

Here is an example scenario. Homeowner has a $250,000 mortgage, and has recently seen home sales in his area skyrocket, and now his home is worth $410,000.  Here is his overall monthly expenses

Mortgage – 3.75% – $1157.69 – Principal and Interest

Taxes and Insurance  - $300

Total Mortgage Payment – $1457.69

Student Loan Debt – $30,000 – Monthly payment – $300

Auto Loan – $20,000 –Monthly Payment – $350

Credit Card Debt – $28,000 – Monthly Payment – $500

Overall Monthly Payment with all DEBTS- $2707.69

——————————————————————

Now look at this situation with a Debt Consolidation Cash Out Refinance

Mortgage – $250,000

All other Debt – Auto, Credit Cards, and Student Loans – $78,000

Total New Loan Amount  at 80% Loan To Value – $328,000

New Mortgage Rate – 4.5%

New Payment -$1661.93  plus $300 in taxes and insurance

TOTAL NEW MONTHLY PAYMENT CONSOLIDATION ALL DEBT – $1961.93

You will be saving $745.76 a month. Yes you moved around the debt, however now it is all at 4.5%, and it is tax deductible!

What can you do with an extra $745.76 a month?

  • Save for Retirement
  • Create an Emergency Cash Reserve so you don’t rack up more credit card debt
  • Live within your means
  • Invest it!

If you would like me to review your current mortgage situation to see if you are in need of a debt consolidation refinance, you can reach me at 720-524-3215 or at loans@brianquigley.com

 

 

 

Down Payment Assistance Program For Colorado First Time Home Buyers

It is no question that Colorado is on the map as the top places to live in 2014. Rental prices have absolutely skyrocketed the last five years, with home prices continuing to rise as well. For the homeowner, they are feeling the recovery and getting back the equity they lost in the Housing Crisis. They also realize that they can rent out their homes for quite a cash flow profit, and this is NOT good news for the RENTER.

This article is not about the benefits of Renting Verusing Buying, but more about the programs and resources available to that buyer who might not have the immediate access to a down payment. A resource that will avoid you having to save up for a down payment, ask a family member, or worse, start borrowing against your 401K!

The Colorado Housing Assistance Corporation (CHAC), is focused on HomeOwnership and helping these types of borrowers. The make homeownership affordable to those with low to moderate income. They provide education, counseling, financial assistance for down payment of up to 6% of the purchase price or $10,000 which ever is less.

The down payment will show up as a second mortgage, and you will be required to make monthly payments, however it

gives you the immediete benefit of being able to buy a home now, take advantage of the tax incentives, and rest your head somewhere where you can finally call HOME!.

If you have any questions about CHAC, and the qualifications, please call me at 720-524-3215, or email me at loans@brianquigley.com

Colorado Family Opportunity Mortgage Program For Elderly Parents And Children

A great mortgage program here in Colorado that has always been around for quite some time, is the Family Opportunity Mortgage program. Not many people inquire about it, however it can literally save you tens of thousands of dollars upon the purchase of a home, and even more in interest over the life of the loan.

Why?

  • There are no distance requirements between the elderly parent and the individuals (their child).
  • Adult child may already own their own home (primary residence)
  • Adult child will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

Assisting a Disabled Adult Child

  • Disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
  • The parents qualify for the loan.   The parents can be on the mortgage although it is not required.
  • There are no distance requirements between the elderly parent and the individuals (their child)
  • Disabled adult child occupies the property as their primary residence.
  • Parents may all ready own their own primary residence.

Freddie Mac and Fannie Mae products are eligible for these long overdue programs. If you are interested in this program for a home located anywhere in Washington, please contact me.

Because you get to buy another home, and not have to classify it as a Second Home or Investment Property. You can actually classify the property as Owner Occupied, so in essence you have 2 properties that can be owner occupied. So instead of 20% down, you only need to put down 5%. A program way better then FHA, because with a 640 score, you can obtain a 95% loan with no mortgage insurance. There are some caveats, and they apply ONLY in 3 situations.

Assisting your College Bound Son or Daughter

  • Son or Daughter must be enrolled in college.
  • Property must be located close to the college student is enrolled in.
  • Property must be a reasonable distance from the parent’s home
  • Property cannot be rented and the child must occupy the property for a period of one year
  • Parents cannot own another second/vacation home in the same location as the student’s home
  • Parent’s qualify for the loan, the child does not. If the child is old enough, they can be on the mortgage with the parents, however it’s not qualified.

Assisting an Elderly Parent

  • Elderly parent must have insufficient income to qualify for a mortgage or be unable to work.
  • A simple 4506-t will be ran by us to verify through the IRS that elderly parent cannot qualify on their own.
  • The individuals (children) qualify for the loan. The parents can be on the mortgage although it is not required.
    • There are no distance requirements between the elderly parent and the individuals (their child).
    • Adult child may already own their own home (primary residence)
    • Adult child will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

    Assisting a Disabled Adult Child

    • Disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
    • The parents qualify for the loan.   The parents can be on the mortgage although it is not required.
    • There are no distance requirements between the elderly parent and the individuals (their child)
    • Disabled adult child occupies the property as their primary residence.
    • Parents may all ready own their own primary residence.

    Freddie Mac and Fannie Mae products are eligible for these long overdue programs. If you are interested in this program for a home located anywhere in Colorado, please contact Brian Quigley at 720-524-3215 or email me at loans@brianquigley.com

FHA GOLD Program Loosens Credit Guidelines for Subprime Borrowers

FHA has recently introduced a new program for borrowers with less then good credit. This will greatly open up the floodgates to people who could not qualify for a new home mortgage in the past. Some of the highlights of this program are the following.

  • FICO scores down to a 500. 1 score is acceptable for Purchase, Rate and Term, and Cash out Refinance.

Any score under a 580 and you will need to put at least 10% down on your new home purchase. A score of a 580 or higher, you will only need the standard 3.5% down. If you are concerned about your down payment, and do not have 10% with a score lower then 580, we can point you in the right direction in regards to getting your credit reestablished.

Other highlights of this amazing program are

  • Non-occupying co-borrowers allowed
  • No tradeline requirements
  • Non traditional credit accepted
  • Back to Work Program Okay

 

If you have further questions and would like to inquire more, you can reach Brian Quigley at 720-524-3215.  This is an amazing product, and FHA understands that your credit history is not a true reflection of your ability to repay a mortgage.

 

 

FHA Back To Work Program Eliminates Seasoning on Bankruptcy, Short Sale, and Foreclosure

An FHA loan program that is flying under the radar since August 2013 can help many previous homeowners who were a victim to the recession, or experienced unemployment or other severe reductions in income, a second chance in obtaining a home loan, without having to wait the standard 2 -3 years, if they have filed a bankruptcy, or experienced a short sale or foreclosure. The program is called the “FHA Back To Work Program.”  Many retail banks do not have this program offered, so you will want to seek out a Colorado Mortgage Broker like myself.

Second chance

FHA recognizes the hardships that many of these borrowers faced, and realize that their credit history may not fully be a reflection of their true ability to pay back a mortgage. This is a huge stride in lending, and many wholesale lenders have this program in Colorado. To be considered for this program is not as difficult as you might think. What needs to have happened is an “economic event” in your life, and you will need to document the following:

  • Certain Credit Impairments were the result of a Loss of Employment or more then a 20% drop in household income beyond the borrowers control.
  • The borrower has demonstrated full recovery from the event.
  • The borrower completes a housing counseling class

This would be an FHA loan, so the max LTV would be 96.5%, or simply 3.5% down. These loans are available with credit scores down to a 580.

If you would like to apply for this program to see if you qualify for this amazing new loan program designed to give responsible homeowners a second chance, click here.

To learn more about me and the services I provide to the people of Colorado with my Mortgage Services, click here.

 

Waiting Period For Short Sale, Bankruptcy, and Foreclosure to buy a House with FHA financing

With the recent improvements in the economy and almost all economic reports coming back positive, it looks as though we have weathered the storm, and are on the upswing. We have been through a major housing crisis, a recession, and record high unemployment rates in the last 5-6 years. During this time, many people filed for bankruptcy in an effort to restart their lives again. Many others had to let their homes go, either because of predatory lenders who sold them high spiking adjustable rate mortgages after 2-3 years, or because they were so upside down on their mortgage due to neighboring short sales and foreclosures.

Thousands upon thousands of these individuals went back to a very basic way of living. They went back to renting, and for a good reason.  We all know the advantages of home ownership. If you don’t know them, you should read my blog on buying here. The waiting period for buying a home after a devasting event like a foreclosure, bankruptcy, or short sale will surprise you, and many people, maybe even you, can get mortgage financing now, with as little as 3.5% down.

For Bankruptcy – FHA

FHA CH 7 – You will need to wait 2 years from the discharge date, and then you will be able to purchase a home with as little as 3.5% down. If you qualify for the FHA back to work program, where you experienced an “economic event”, which resulted in a 20% loss in income for over 6 months, and resulted in your filing bankruptcy, or having a short sale, deed in lieu of foreclosure, or foreclosure, then you can purchase a home 12 months after any of those events. Updated August 2013.

FHA  CH 13 – You will need to have made at least 12 on time payments to your creditors, and the court will need to approve you getting  a home. This is rather easy, and you can apply after this 12 month period has been met.

For Short Sale – FHA

Short Sale seasoning to get a new FHA loan can be as little as 1 day after your short sale, if it is executed in a manner, where you had no 30 day mortgage lates to have the short sale completed. This is tricky if you have an FHA mortgage, where HUD might require you to go 30 days lates, and this has been done much easier the conventional route. With all of the recent loosening of guidelines, HUD might not now reuqire you to go 30 days late.

If you did go late, the period will be as little as 1 year, or at most 3 years, if you cannot fulfull the FHA back to work program guidelines.

For Foreclosure -FHA

If you fulfill the FHA “back to work” program, you might be able to buy after a 12 month waiting period, or at most 3 year waiting period.

 

RENT VERSUS OWN – 5 FACTS THAT WILL MAKE YOU WANT TO BUY NOW

Rent in the Denver market the last couple of years has absolutely skyrocketed. See a listing for an apartment on Craigslist, and be prepared to show up with a check if you are planning on securing an apartment to rent. A 2 bedroom apartment in Capital Hill is running about $1200 a month, up year over year the last 5 years. But what are you actually getting for your money when you rent? What are the benefits? The belows 5 facts will really be an eye opener for you, as you decide more closely, if you want to RENT or OWN.

1. Your RENT is not tax deductible, which means if you pay $1500 a month in rent, you through away $18,000 a year, and $90,000 over 5 years. That is dumb. Plain and simple. It is not securing your future, giving you an asset, or helping your legacy with your family.

2. You cannot RENT out your place on Airbnb, when you want to travel abroad, and make money while you travel. For example, if you rented out your condo for $90 a night for 20 nights out of 30, that would be $1800 in gross rental income. Say your condo costs about $1200 a month to own with HOA. You just got your mortgage paid, plus made $600 in the process for travelling for a month.

3. The money you invest in fixing up your place, painting, adding lighting, finishing touches, etc, is of no benefit to you, because you are leaving this to your landlord when you leave, or worse, they will make you put everything back to the way it was before you leave.

4. You are left with nothing – A memory. No investment, no asset. Nothing to add to your legacy. All the money you spent on all those years is simply wasted, thrown out the window. A 10 year history of renting a $1500 condo will cost you $180,000, and help pay down the landlord’s mortgage. Why would you want to do that.

5. It is more expensive to RENT then OWN.  Take a $300,000 house in Highlands Ranch, CO, which is a suburb in south Denver. The rent is $1900 a month. If you bough that same home with 5% down, and no mortgage insurance the loan would be $285,000. At 4.5% for a 30 year mortgage, your Principal and Interest payment is $1444.05. Add another $300 for taxes and insurance, and your full payment is $1744.05; Less then your rent payment.

All you would need is $15,000 down, and 2% of that can be a gift from a family member. As long as your credit score is a 680 or higher, this loan is available for you today in Colorado.

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