Hawai Mortgage Help

The Department of Hawaiian Homelands DHHL accepts applicants who wish to participate in programs which help those who qualify for aid that is Native Hawaiian Families who have an income of 80% or less of the HUD local area average. They must also be eligible to live in Hawaii. The applicants who wish to develop programs with the aim of helping in this regard can be local, non-profit or for-profit organizations. The programs can receive funding grants starting at $10,000. The programs can be eligible for funding if they are for Development including making affordable housing available, giving down payment or closing cost loans or direct lending.

Housing Services which could include payments to prevent foreclosure. Housing Management such as loan processing and managing projects for affordable housing. There are other categories too. The Projects are to help the beneficiaries who meet the requirements over a year or more if necessary and must be related to the DHHL Native Hawaiian Housing Plan objectives. These objectives include making reasonably priced housing available for Hawaiian families of low income.

To understand the process of home buying and especially of first-time home purchase Homebuyer Education is vital. In Hawaii, those who are not too seriously disadvantaged financially and who can with the help of a counselor go through the necessary steps to property purchase, are directed to Level 1-Basic Management Homebuyer Education. Clients at level one will find that within six months to a year they are prepared to manage a mortgage. They are helped to prepare a plan of action, to develop a budget and shown how to achieve better credit scores. Aid is provided toward debt reduction as well as improving savings and income so that once they are on track with a mortgage the counselor won´t need to do very much to help the client to successfully buy the chosen property. If the client needs longer than a year to be prepared to take on a mortgage then the Level 2 Intensive Case Management Homebuyers Education Program is followed. The counselors will help the client to improve his credit rating and greatly reduce his debt as well as to save money and earn more so that the mortgage loan is a possibility.

This is the same as in Level 1 but it will take more time to achieve the desired result. Due to the present financial crisis it is increasingly difficult to access credit and to qualify for a mortgage people have to meet quite strict qualifications. For this reason Post Home Ownership Counseling and Lease Cancellation Prevention is very important for those who are for the first time taking steps to buy a house. Counseling is available so that clients can be prepared in advance and ready to deal with financial difficulties such as losing employment, medical expenses or heavy debt. So that they can adapt successfully to the situation and avoid foreclosure service providers will help find different solutions toward financial planning which will go a long way to prevent mortgage foreclosure or lease cancellation. Hawaii is in this way helping Hawaiians become responsible homeowners.

South Dakota Mortgage Help

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.

There are different products from which to choose according to your circumstances. In particular we mention 1^st Gold which is suitable for the majority of buyers. Then there is OHFA (Oklahoma Homeownership Financial Assistance)Shield especially designed for police officers and fire fighters. Those who work in the field of education may find that OHFA 4 Teachers would be a good alternative. These are the OHFA advantage products which include low interest, 30 year loans and 3.5% down payment assistance for homebuyers in the state. If you meet the requirements for OHFA advantage and you would like to take advantage of the offer you should apply for a loan from a participating lender(list on the website). These lenders accept all those who have the minimum income and a good credit rating as long as the price of purchase is within the limits – that is not over $189,607. If you call the Homebuyer Hotline we can give you more information. The number to call is 1-888-937-1122.

In Oklahoma it is feasible for those who are at present receiving housing assistance, and are using the payments to pay rent to change to mortgage payment and thereby purchase their own property. This is the Homeownership Program called the Section 8 Housing Choice Voucher Homeownership Program. This program is available to you if you want to own your first home and you participate in both, The Family self Sufficiency Program (FSS) at the time as well as the Section 8 Housing Choice Voucher. The FSS is a program that helps you to grow financially. You make a contract to progressively reach certain objectives helped along by OHFA and FSS workers. You learn how to use an Escrow Saving Account among other things.

To be accepted for the program the main wage earner of the household must have an annual income of at least $14,500 and must have had a job for one year working on average 30 hours a week unless the head of the household is disabled or elderly in which case the minimum annual income is $8,088. You can choose any type of property if you qualify for the program. It could be a new home or it could be an older single family home. You might prefer a condo or a manufactured home or a town house. The property must be inside the area that OHFA operates and it must be within your price-range. Those with a disability may buy their property from a member of their family but otherwise this is not permissible. Neither is it allowed that the property be a means of earning money.

The OHFA may inspect the house to be purchased so as to decide whether or not it qualifies for assistance. In order to arrange for a loan you may have help from OHFA staff when you decide upon a mortgage lender. OHFA will help in the whole buying process giving assistance too when it comes to down payment and closing costs. Once the home is purchased assistance will continue as long as you are entitled to section 8 Housing Choice Voucher Program. As soon as this terminates you are responsible to continue payments and the mortgage lender will be informed of the situation. To find out more call (800) 256-1489 ext. 171

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.

Forget the adverts. Forget who your broker recommended. Forget who has the nicest offices. If you are searching for a mortgage refinance company to improve the terms of your loan, you need to forget about the gimmicks and look at what really matters in a refinance lender. This article summarizes some of the most important tips on selecting the best company for your refinance mortgage.

First Step. Forget the Annual Percentage Rate.

Many finance advisors encourage borrowers to check the annual percentage rate, or APR, of a mortgage refinance loan when deciding which is the best deal. On the surface, this is good advice. After all, the APR claims to provide a benchmark with which to compare loans by converting the total cost of the loan as a yearly percentage. If there was a standard method to calculate the APR this would be a great method, unfortunately there are no set standards to calculate a loans APR. Some lenders include certain costs and expenses while others choose to leave them out. This is not to say the APR of a loan is a worthless measure of a loan’s cost, but you do need to check what has been included in the APR. This means you cannot judge a loan by its advertised APR until you request a breakdown of how the APR has been calculated.

Second Step. Use the best mortgage brokers, but don’t let them use you.

Good brokers have access to a wide variety of mortgage providers and to the lowest mortgage refinance rates. Unfortunately brokers also have a, often deserved, reputation of charging expensive fees and offering little value to customers. However, a reputable broker with good connections can help you avoid lender junk fees and give you access to wholesale mortgage rates. How can you tell the good brokers from the bad ones? There are no easy solutions. Look for brokers with a good and long standing reputation, use brokers people you trust recommend and prefer brokers who operate as brokers and not as a mortgage banker or broker bank. Why? Because broker banks and mortgage bankers are protected from key disclosure laws which allow them to sell mortgages without the need of disclosing markup or profit margins on your loan. A broker, however, is not protected from the Real Estate Settlement Procedures Act and must comply with the Act’s disclosure laws.

Final Step. Ask for a complete breakdown of your mortgage rates.

Whoever you end up choosing, make sure you request a complete breakdown of the costs, fees, and rates applicable. Don’t let the banker or broker blind you with jargon and well scripted speeches. Ask for hard facts, in writing, and compare it to the information other lenders offer. This way you will get the best mortgage refinance lender, not the one with the best salesperson.

If you are living from paycheck to paycheck and never seem to have enough money to pay your bills, you may be a candidate for credit counseling. However, credit counselors may not be what your thinking they are. You see, there are many types of “professionals” offering you help to get back on your feet, financially speaking, and most of them will do exactly the opposite. After the real estate crisis of 2008 an army of foreclosure avoidance and debt relief “consultants” appeared out of thin air just as the business for subprime mortgage lenders ran into the ground. Needless to say, these are not type of counselors we are talking about when we mention credit counselors. The trouble is they are hard to set apart sometimes.

The government is offering struggling borrowers who are at risk of defaulting on loans or need a hand to get their financial matters in line the opportunity of speaking to debt relief specialists who know how to help you reduce debt without resorting to more high interest loans that only offer a short term relief. These are counselors financed by government subsidies who are not in it for your money. So, how to set them apart. Here are some things to look out for.

Choose credit counseling companies that help you organize your finances by creating a budget and offer you free credit workshops and educational material. Choose credit counselors that employ certified operators in consumer credit, debt management and budgeting. Avoid like the plague any company that requires you to provide personal information before they can help you. Call your state Attorney General, your local consumer protection agency and the Better Business Bureau. Find out what they have to say about the credit counseling companies you are looking into. You should only consider accepting the help of government approved credit counseling companies. How do I know if they are government approved? Easy, visit the Department of Justices’s U.S. Trustee Program website and see if your potential companies appear on their list of approved credit counseling agencies.

Strike out any company that does not pass these tests. Once you are left with an approved shortlist of credit counseling agencies ask the following questions.

What services do you offer? Avoid companies that push a debt management plan down your throat as your only option.

Do you offer information? Avoid agencies that charge for debt management information.

How are your employees compensated? Avoid agencies who offer commissions to agents who sell certain debt management products.

The Federal Trade Commission provides valuable information on how to improve your credit score. As your credit score is the benchmark lenders, investors, employers and service providers use to assess your reliability as a customer, it is kind of important to make sure your credit score is in good health. In our previous article we discussed how it is a legal right to check your credit score for free with each of the national credit reporting agencies once a year, if you are unemployed, on welfare, feel you are the victim of identity theft or have the suspicion the information on your credit report is not accurate. So let us assume you are smart and have requested your free credit report, what now?

According to the Federal Trade Commission, the first step you should take is to check if the information on your credit report is accurate. If it is accurate, there is not much you can do. You cannot delete accurate data from a credit report legally. However, you may find solace in the fact that credit scores focus more on your latest credit score reporting steps than the black spots in your distant past. Although missing mortgage or other loan payments will always be somewhere on your credit history file, the credit reporting agencies focus more on the more recent events of your financial life than with the black spots in your report which are now ancient history. Back to our point. You can only find out if your credit history and report are accurate if you check it.

If you do find inaccuracies in your credit report, you have the right to contact the relevant consumer reporting agency in writing and explain where the mistake is and what is the correct information. Make sure you provide accurate information and keep a record of your meetings with the reporting agencies. A main reporting tool against incompetence in the credit history industry is to send a dispute letter.

Dispute Letters

Dispute letters have the following sample format. This format was provided by the Federal Trade Commission.

Sample Dispute Letter

Date
Your Name
Your Address,
City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.

This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.

Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.

Sincerely,
Your name

Enclosures: (List what you are enclosing.)

The first step to repairing your credit is to know what you are facing. It is not only important to know what your current credit score is, but also what black spots on your credit history are lowering it. Credit repair clinics may offer you this service: finding out your credit score and a report of your credit history, but the truth is you can find all this yourself for free. The Fair Credit Reporting Act, also known as FCRA, dictates everyone has the right for a free credit report if a) a company denies you service or takes adverse action against you based on your credit score, or b) if 12 months have passed since the last time you applied for a free report. Let us look more closely at the details of these rights .

Imagine you apply for a mortgage loan and your bank denies your application based on your credit score or some problem with your credit history. In that case the bank has the legal obligation to tell you why they denied your application and you will have the option of asking for a free report. If this happens, you would be well advised to make use of this right and request your free credit report. Of course, there are some rules you must take into account. You must apply for the free credit report within 60 days of your loan or service denial. You also have the right for a free credit report if you’re unemployed and considering looking for a job within 60 days. You see, your credit report is no longer only used to assess loan applications, it is also a factor when you apply for a job. If you are on welfare, you fear you have been the victim of identity theft or you believe your report is inaccurate, you also have the right for a free report.

In effect, you have the right for a credit report with each of the main credit reporting agencies in the United States: Equifax, Experian and TransUnion. What is more, you have the right for a free report from each of these organizations once every 12 months. You just have to ask for it.

How do you do that, you may ask. Does it involve a long and tedious process requiring sending coupons or waiting for hours on the phone? It can, or you can go to annualcreditreport.com and do it online. The other option is to call 1-877-322-8228 or send a credit report request form to 

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

You have probably heard the rates for refinancing a mortgage are at historical lows. If that is the case, you may ask, why are the rates I am getting from my bank so high? Is it my fault? Unfortunately the quick answer is yes. However, have heart, there might be something you can do about it.

First, your information was good. Refinance rates are mighty low right now. They have risen a little since the 2010, but only slightly. However, these record low rates are not for everyone. I know that, you say, but why?

Well, although refinance rates of well below 5 percent are to be found, they are only available to those with good to great credit scores. So there you have it, your credit score may be to blame for your not so great refinance rate quotes.

Refinance Rate Variability

The Washington Post recently published an interesting article on how refinance rates vary from householder to householder based on their credit  score. For instance, a home owner with a $200,000 mortgage with a credit score of 850, a rather good score, is likely to get a refinance interest rate of around 4.27 percent. This means that by the time he pays of his mortgage he will have paid $131,350 in interest, which translates to payments of $986 a month. However, what happens if your credit score is not so amazing. Maybe you missed a few payments on a credit card, or there is a bankruptcy or foreclosure looming in your far past, or you are new to the credit market an you don’t have much history to base a credit score, what then? There’s no nice way to say this…get ready to pay more. For example, if you have a credit score of 620, the bare minimum if you are to get your mortgage refinance application approved, you will be doing well if you find an interest rate of 5.86 percent. This translates into interest payments over the lifetime of the loan of $183,521 and monthly payments of $1,181.

So, a difference of 1.6 percent in your refinance rate means you have to pay around $52,000 more over the life of the mortgage and around $170 more a month than your neighbor with a 850 credit score. That teaches us one thing: we need to get our credit score in line. How do we do this? That will be the theme for a new series of articles on Government Mortgage Help.

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.