- Wells Fargo Refinancing For Existing Customers
- 2015 Government Mortgage Help targets FHA Programs
- How to Find Cheaper Closing Costs on your Mortgage
- Obama Extends the HARP Refinance Program for 2013
- IRS Supplies Guidance on Home loan Modifications
- Indiana State Mortgage Help for Those in Danger of Foreclosure
- Mortgage Assistance Available in Oregon
- Wisconsin Mortgage Assistance Programs
- How to Write the Mortgage Hardship Letter
- CHFA EMAP Program for Homeowners
DSHA Mortgage help
The premier state organization providing mortgage assistance in Delaware is the Delaware State Housing Authority. The Organization was established in 1968 and was later incorporated into the Community Affairs Department in 1970, and the Delaware Economic Development Office in 1987. Finally, it was incorporated in 1998.
In 1968 the DSHA started with a working budget of $100,000. Those initial assets have since grown to $500 million, mainly thanks to the issuing of tax-exempt revenue bonds.
The loan assistance which the South Dakota Housing Development Authority provides is known as LAP which is The Loan Assistance Program. The idea is that down payment and closing costs when buying a home can be prohibitive. For this reason they are taken care of by the program as long as the first mortgage for the property is financed through a lender who is participating with the South Dakota Housing Development Authority (SDHDA). Because the LAP loan has a very low interest rate (5.0%) and the monthly payments are reasonable, it makes owning your home a real possibility. The maximum loan available is $5,000 over a period of five years. SDHDA provide the assistance loan on condition that your take Homebuyer Education classes with an approved center to ensure that you really understand all the steps you are required to take when buying property. The actual monthly payments you make for your LAP loan will be included in your regular mortgage repayments each month. In effect the LAP loan is a second mortgage as is EMAP which is the Employer Mortgage Assistance Program. However with EMAP the amount you may borrow is a minimum of $600 up to the maximum of $6,000 over a period of 5 years and the interest rate is 2% only. To apply for this type of loan you will need to contact a participating lender and have an eligibility certificate which you can get from your employer, who must be a participating employer. As is the case with the LAP loan the EMAP loan is repaid together with the first mortgage loan and you can have it paid automatically from your bank account to the lender each month if you wish. If you obtain an EMAP loan with the cooperation of your employer but before the end of the 5 years period you change employment and therefore no longer work for the same boss your interest rate will be changed from the 2% to the prime rate plus 5%. This arrangement is provided for in the “Addendum to the Promissory Note” which you sign when you close the loan. Your participating lender might have other important details which you will need to take into consideration when you take out the loan. With the Down payment Assistance Loan there is not a prepayment penalty to worry about. If you sell your home you are required to settle the amount of the Down Payment Assistance Loan. SDHDA will inform the person who closes the sale of the amount to be paid so that the loan can be paid off. In this way SDHDA is able to assist many people to purchase their own home. The Homebuyer Education classes are very important in helping you to know what to expect and how to go about your property purchase in the best way. Please take advantage of these provisions.
The state of Mississippi knows that one of the main difficulties people face when trying to find a suitable home is the upfront money needed for the down payment. People require help in this regard and also when it comes to the payment of closing costs. For this reason the Mississippi Home Corporation has arranged for a Down Payment Assistance Program designed to help those of low to moderate income to buy their first home. First time homebuyers with a low or moderate income and who have an acceptable credit rating are eligible if they meet the credit eligibility requirements and have need of a second mortgage to pay the down payment.
They are also required to complete an 8 hour homebuyer training course.
The Down Payment Assistance Program consists of a first mortgage (FHA, VA, or RD qualifying guidelines) and a second mortgage with a ten year fixed rate f 7%. The maximum down payment assistance is 3% of the loan amount and it can be used for closing costs too. It is required that the applicant´s liquid assets not exceed $4,500. The property must be the primary residence of the owner.
The Mississippi Home Loan Plus Program Grants of up to $14,999 are available for low income homebuyers who meet the requirements. The funds provided to the Mississippi Home Corporation (MHC) by the Mississippi Development Authority(MDA), Community Service Division are to make it possible for those who otherwise could not purchase a property of their own to acquire their first home. There are certain requirements that are to be met in order for the grant to be awarded. For example the property to be purchased must meet section 8 Housing Quality Standards so must have written clearance from a US HUD approved appraiser or it must meet local housing quality standards in areas that have their own local building codes. It should be noted that the whole County of Harrison and the City Hattiesburg as well as the City of Jackson are not eligible for this program. The grant can be used with the MHC programs Mortgage Revenue Bond with no cash advance (MRB) and Mortgage Credit Certificate(MCC).
The applicant must be a US citizen or qualified registered alien who has a social security card and it is required that the homebuyer have Homebuyer education with a housing counselor approved by HUD. The household income must be below 80% of the average household income according to the size of the family. The limit as to Purchase Price is $150,000. The buyer must purchase the property by permanent fixed-rate mortgage through a lender approved by MHC. As for the property itself it must be located in an area that is eligible for the grant and it must be the primary residence of the buyer. The home to be purchased must not be in a flood zone. To qualify the property has to be a site built single family home. Condos and town homes do qualify. If the construction is newly built it must be complete. Properties built before 1978 will be subject to a lead based paint inspection and test. Anyone who would like to participate in the program can find a participating lender list as well as a homebuyer guide on line.
Applying for a mortgage can be a daunting exercise, especially if you have made financial mistakes in the past and feel that your credit score may interfere with your loan application. This also applies to government subsidized loans through agencies such as the Federal Housing Administration which offers low-cost mortgages to medium- to low-income families. However, if you feel your credit rating will get in the way of your home purchasing dreams, take heart, this is not necessarily the case. Although your credit score is a significant factor when applying for an FHA loan, it is not the only factor. The FHA lending and underwriting rules allow for flexibility with reliable lenders which may have had some credit hiccups in the past.
So what are the FHA rules on lending? This article provides a brief overview on what the FHA looks at when assessing a loan.
There are four factors that determine the eligibility of a borrower to a loan: credit history, steady employment, debt-to-income ratio and your payment history in the last 12 to 24 months. This means that if your credit score is low because of a financial problem or mistake you made several years ago, but you score well in the other areas, you may still qualify for an FHA loan. Nevertheless, what constitutes a good or acceptable credit score for the FHA? This depends on the loan, but the FHA does have a general standard for most of its loans.
The FHA and Credit Scores
The FHA applies a sliding scale rule on loans depending on the credit score of the borrower. Borrowers with a higher credit score can apply for a higher loan to value percentage of the purchasing price of a property. For example, credit scores between 500 and 579, which would be considered very low by commercial lenders without the insurance of the FHA, can qualify for a maximum of 90 percent of the loan to value rate of the property. If your credit score is higher than 580, you may be eligible for the maximum FHA loan financing, as long as the other areas are also satisfied. If your credit score is below 500, you are not eligible for an FHA loan.
Therefore, the answer to the initial question of this article, the minimum credit score to be even considered for an FHA loan is 500. Anything less and your application will not even be considered. However, even applicants with credit scores as low as 500 to 600 can qualify for loans as long as the other elements the FHA looks into are above board.
The American dream of owning your very own home is, in most cases, just that: a dream, if you do not have the required down payment to buy it. Down payments are a useful instrument for lenders who want to ensure the borrower has the financial wherewithal to pay the loan’s monthly payments. By paying a down payment the borrower is immediately creating equity for the lender so that if the borrower defaults on the mortgage some of the expenses of foreclosure and reselling the property are covered. Of course, a down payment also helps buyers reduce the interest paid on their mortgage and speeds up the repayment process.
However, down payments are also a huge barrier for many families who may be able to afford the monthly payments of a mortgage but struggle to put together the money for a down payment. Nevertheless, owning your home continues to be one of the main financial goals of American families. In the United States two-thirds of all households own their home. So, if you feel you will never be able to buy a home because you don’t have the cash for a down payment, you can be sure that many others have been in your position and are now homeowners.
This series of articles will look into one of the main obstacles to getting a mortgage and buying a home: the down payment and how buyers can go about finding the resources to pay for it. However, our first question is much more general and one all home owners should ask themselves before applying for a mortgage. The question is: Why Buy A Home? The truth is buying a home is not for everyone. Although buying your own home can provide personal satisfaction, tax savings, a sense of community, stability and an investment in the future, it doesn’t come without its issues. Buying a home comes with added expenses, such as property tax, general maintenance and repair expenses.
However, if you are reading this article, you are probably already sure about the benefits of buying a home and simply require a little help to find the down payment you need to get the ball rolling. The truth is the typical 15 to 20 percent down payment is simply too much money for most families to save. For instance, a family might be able to afford an $800 to $1,200 mortgage payment for a $300,000 home, but find it impossible to cover the $60,000 down payment traditional lenders require. Thankfully there are methods you can follow to reduce a down payment to 5 or even 3 percent of the property’s price. Our next article will explain how you can get lenders on board and pay less for your down payment regardless of where you live and the value of your home. .
Owning a home has challenges many people do not consider until they have a home and mortgage of their own. Often, it is this very lack of information that causes homeowners to fall behind in their payments and lose their home to foreclosure. This article describes three programs available to Wisconsin residents which will help you find and keep a home.
Home Buyer Education
This free program trains potential homeowners to be home ready, that is, understand the ins and outs of home ownership in Wisconsin. This program is especially important nowadays because of the changes brought by new lending guidelines. Learn what lenders are looking at when they assess your loan application. Find out which loans provide the best terms and how to decide how much you can afford to pay for your new home. Discover what taxes, insurance and other housing expenses you will have to pay once you are a homeowner. You can also attend a free landlord counseling course which helps you understand the rights and responsibilities you will have if you rent a property or a section of your home. If you use a federal or state program to buy a two-unit home, you may be required to attend a landlord counseling session as well as a basic home buyer education course.
Free Counseling Program
HUD sponsors hundreds of mortgage counseling agencies throughout the United States to help homeowners find help when they are facing foreclosure. These counselors can prove invaluable if you do not know what foreclosure avoidance programs you are eligible for and what you should do to qualify for them. You can find a list of certified counseling agencies in Wisconsin by clicking here. Note these counseling agencies will not charge you for their services nor try to sell you financial products they are invested in. Use these free counselors and avoid loan modification agents who require a payment for their services.
Down Payment Assistance
WHEDA, the Wisconsin Housing and Economic Development Authority provides eligible Wisconsin residents who wish to buy their first home with a ten-year loan of up to $3,000 to pay for the cost a home’s down payment. Down payments are on of the main reasons why people cannot afford a home. This program can be a great resource for households who have the necessary income to pay for a mortgage, but do not have the necessary savings to finance a down payment. The program provides a low interest and flexible eligibility requirements. The loan should only cost $34 a month for 10 years.
The New Mexico Mortgage Finance Authority is the main agency responsible of improving access to housing for low to moderate income households in New Mexico. Although not run directly by any government agency, it is an agency of its own which uses both taxes and alternative sources for its everyday management, it is responsible as the state’s official housing agency for over 35 programs, which provide help and assistance to homeowners, the homeless and families that need help finding their first mortgage.
The New Mexico Mortgage Finance Agency was first created in 1975 by the state legislature as a tool to distribute affordable mortgages to low and moderate income families. The funds for these mortgages, or more accurately the insurance for these mortgages, was generated by the sale of tax-exempt bonds. However, since 1997, the New Mexico Mortgage Authority also became the state’s housing agency, which brought under the same roof all housing departments in New Mexico. Now the MFA is responsible for all housing programs including section 8 and other federal projects. The Agency continues to be managed without any funds from the state, although it does manage programs which rely on federal taxes for funding.
The growth of the MFA from its humble beginnings in 1976 is noteworthy. When it started in 1976, the MFA had two employees, in 2008 it had 66. It started selling $20 million in bonds a year, now it sells over $214 million.
The services offered by the New Mexico Mortgage Finance Authority include:
First-Time Home Buyers Loans.
The Agency offered $221 million to over 1,700 first-time buyers in New Mexico in 2008. These loans allow low to moderate income households to qualify for loans to finance their first home.
Down Payment Assistance
The Agency also helps households find the funds to pay for down payments and other mortgage expenses. In 2008, the MFA distributed $4.6 million in down payment assistance and grants. The difference between a grant and assistance is grants do not have to be paid back as long as certain requirements are met by the borrower.
Construction of Homes
The MFA does not only provide funds for mortgages, it also gets involves in the construction of rental and homeownership homes. In 2008, the organization invested $53 million in the construction and maintenance of over 1,400 homes.
Households who cannot at this time afford to buy a home can also receive help to pay for rental expenses. In 2008, the MFA granted over $22 million towards rental assistance programs in over 5,400 rental units.
Pennsylvania Foreclosure Help
The state of Pennsylvania Housing Finance Agency and the US Department of Housing and Urban Development (HUD) have approved counselors who can help you free of charge to access programs and services for homeowners in danger of foreclosure. Pennsylvania Foreclosure Help is not just something that is important to keep our People in their Home during this housing crisis. The Pennsylvania Mortgage Help Hotline is 1-8669845108. This way you are sure that the counselors you choose can really provide the help you need to evaluate your financial situation, explain the available options and work with your lender to arrive at a viable solution. So don´t leave your home-stay and call the hotline for help without delay.
The longer you wait and the further behind you fall in mortgage payments the harder it will be to catch up. If you don´t get up to date with mortgage payments your lender could be allowed to sell your house to pay off the debts and this is a situation that too many, who find themselves in financial crisis have to face.
One of the programs is HEMAP Homeowners Emergency Mortgage Assistance Program from which thousands of families have gained much needed help. This is the only program of its kind created by Act 91 of 1983 to prevent homelessness among the citizens of Pennsylvania and funded by state appropriations and repayment of existing HEMAP loans. The program assures regular mortgage payments making it possible for the house owners to look for employment or train for other work or receive needed education.
This program is in fact a loan which must be repaid and it is not available for FHA Title II (purchase) mortgages. Those who are approved for HEMAP have the property in danger of foreclosure secured by a mortgage so creating a loan. There are two types available according to the financial situation of the owner. These are continuing mortgage assistance loans and non-continuing mortgage assistance loans. Those qualifying for a non-continuing mortgage loan have their mortgage brought up to date from which date the owner is responsible to keep up the payments to the lender as well as monthly repayment to HEMAP.
It is possible that there may be an additional cash contribution toward the mortgage delinquency when the HEMAP loan closes. Those who are eligible for a continuing mortgage assistance loan have the mortgage payments brought up to date and then subsequent payments to the lender are subsidized. Both types of loans are limited to a maximum of 24 months from the date of the mortgage delinquency or a maximum of $60,000,00 whichever comes first. The homeowners benefitting from the loan are required to pay up to 40 percent of their income toward their housing expenses. $25,00 being the minimum monthly payment allowed by law. Thus the mortgage is paid and the family do not lose their home.
PHFA Mortgage Help Programs
The Pennsylvania Housing Finance Agency (PHFA) has programs which offer help with closing costs when buying a home. PHFA Mortgage Help Programs are available to those in need in Pennsylvania. Although there are certain requirements to qualify for these programs, the benefits you can receive far outweigh the time and effort you must invest. For example The Keystone Home Loan Program would make you eligible for a loan of up to $1,500 from the Keystone Assistance Loan Program at zero percent interest. Those who qualify for the Keystone Home Loan Plus Program could be eligible for up to $3,000, again at zero interest.
Those who are in the “Homestead” program have the possibility of borrowing anything from $1,000 to $14,999 toward down payment and closing costs. People using the Access Modification Program have the Access Down payment and Closing Cost Assistance Program available.
To be considered a First Time Homebuyer you must not own another house or even a mobile home if it is deeded and taxed and considered a real estate. The PHFA would reimburse you if you were called upon to pay recapture tax when you sell your home.
This could only happen if you sold your home within 9 years, your income was more than the government limit and you made a profit on the sale of your home. This is for those who apply for a loan after January 1 2004. To give you confidence while looking
for a home and a mortgage PHFA have a network of counseling agencies which provide information at no cost to you about the whole process of home buying. PHFA have many participating lenders throughout Pennsylvania who will guide you from start to
finish. You can fill in an application form with a participating lender on line or by phone though applications directly with the PHFA can not be processed on line.
There is a special program called The Access Home Modification Program which is offered with any PHFA first mortgage program, to help people with physical disabilities or who have family members who have physical disabilities and who need to make Accessibility modifications. It is a loan with deferred payment and with no interest. It is possible that those who are eligible for the Access Modification Funds could also qualify for the Access Down payment and Closing Cost Assistance Program. The Keystone Home Loan has the least restrictions and the highest purchase price and income limits. The Keystone Home Loan Plus has the lowest available rate and the income limits and purchase price are lower too. Down payment and closing cost assistance in the form of the Homestead Program has different income and purchase price limits.
Getting a PHFA loan will not take any longer to process than any other mortgage. The length of time depends on many factors such as the condition of the property, the seller´s timeline, the lender, the real estate agent, the documentation supplied and so on. You
can be sure that there will be a program for your needs and situation that will make it easier for you to become a homeowner, so please get in touch with the PHFA.
Homeowners are losing their properties to foreclosure at a faster rate than ever before in the history of Pennsylvania. If you own a home, this is not a time to procrastinate. Get in the driving seat and find out how you can save your home from foreclosure. The State of Pennsylvania provides help to families struggling to pay their mortgages through the Pennsylvania Housing Finance Agency.
The Pennsylvania Housing Finance Agency (PHFA) has programs you can apply for if you are struggling to make ends meet and are worried you might lose your home. This three article series on Pennsylvania’s State Mortgage Aid will focus on providing practical guidance and advice on the current Pennsylvania Mortgage Assistance programs available to residents.
Pennsylvania Low Income Energy Programs
One of the biggest expenses of running a home is paying for the energy we use to keep it warm and run our energy-thirsty utilities. The State of Pennsylvania sponsors several programs to help low-income homeowners reduce their energy expenses.
The Low-Income Rate Assistance program grants a lower rate for gas and electric utilities for qualifying low-income families. The program determines the rate a family pays towards their utilities based on its total income.
The Low-Income Energy Efficiency is a program set by the Low-Income Usage Reduction Program and supported by the main gas and electric utilities companies in the state. The program provides low income users with free training, payment restructuring (when users are behind in their payments) and assistance towards making homes more energy efficient.
Keystone Renovate and Repair Program
The Keystone Renovate and Repair program protects homeowners from fraudulent lenders who prey on the most vulnerable and guarantee homes receive the work they need at fair price. This program offers successful applicants up to $35,000 loans or 120 percent of the homes value (whatever is highest) with 10, 15 or 20 fixed-rate terms as well as affordable fees and interest rates. To qualify, your family income must be below the income limits set by the state of Pennsylvania for your area. Click here for a list of renovate and repair income limits for your region. For example, if you live in Chester, your income limit is $117,450, while if you live in Pike it is $96,300.
The loan must be used to improve the basic livability of your principal residence. Repairs must be to critical areas in the home, such as safety, water, sewage and other code violations.
To apply for this program you must contact your local Pennsylvania Housing Finance Authority program administrator. Click here to find the contact details of one near you.Newer Posts »