Best Oregon Home Loans

An FHA 203K Loan Makes Financing Lender Required Repairs Simple

admin — Wed, 26 May 2010 03:01:31 +0000

The FHA 203K loan is a type of financing that is insured by the Federal Housing Administration. It is a unique type of financing that allows homeowners to obtain both a purchase loan and rehabilitation financing in the same transaction. Before this transcendent loan program, a homeowner had to obtain an initial, temporary loan to purchase the home and a separate rehabilitation home loan to make any necessary repairs. Only after the repairs were complete could the homeowner gain permanent financing for their newly improved home.

FHA 203K: How does it work?
The FHA 203K loan was designed to streamline the process of buying a home in need of repairs. In order to provide funds for the repairs, the loan amount is based on an expected future appraised value that takes into consideration how much value the completed repairs will add to the current value. The streamline version of the FHA 203k will allow for up to $35,000 over the purchase price of the home to be financed into the loan to cover the cost of repairs. The full version has no limits except that the total cost cannot excced the FHA loan limits in your area.

The contractors chosen by the borrower to do the repairs will receive the money for their work in two draws. One draw is for 50% of the work and is disbursed at the beginning of the repairs while the remaining 50% will be disbursed after the work is completed. The repairs must begin within thirty days of the closing of the loan and must be completed within six months. The amount paid to the contractor(s) must be determined before the loan closes by obtaining written bids on material and labor costs. The homeowner can do the work himself provided that he is a licensed and bonded contractor.

What types of repairs will the FHA 203K cover?
Some of the repairs eligible to be completed with the funds from an FHA 203k loan include: roof replacement, electrical or plumbing work, kitchen remodeling, accessibility renovations, appliance purchases, and painting. Although many cosmetic renovations are allowed, luxury items and upgrades are not permitted. Also, any funds needed to repair to any detached structures, like sheds, swimming pools, and gazebos, may not be included in this loan amount.

FHA 203K: Qualifications
The FHA 203K program has the same types of eligibility requirements that exist on any FHA home loan. A homeowner must qualify on the basis of both credit and income to be eligible and the property must be FHA approved. As a general rule, the monthly mortgage payment cannot exceed 41% of the borrower’s monthly income and most lenders require at least a 620 credit score. Homes that qualify include: FHA-approved condos, 1-4 unit homes, and planned urban development homes (PUDs). The construction of the home must have been completed at least one year prior to financing in order for the home to qualify.

The FHA 203K program can be a great tool for any homeowner looking to renovate or repair his or her home. In a housing market that has seen foreclosures reach record highs, the FHA 203k loan can not only provide potential home owners with more opportunities to purchase a home, but can also help rebuild the housing market by facilitating the rehabilitation of foreclosed properties.

Our Mortgage Advice for the Week of May 24th

admin — Thu, 25 Mar 2010 16:19:09 +0000

Present Market Conditions
“Mortgage rates last week were the lowest this year. Rates on 30-year fixed loans were not this low since the week of December 20, 2009, and 15-year fixed mortgages hit an all-time record since data began in August 1991” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “In addition, rates on 5/1 hybrid ARMs broke a second consecutive record low last week since the survey started collecting them in January 2005 and traditional 1-year ARM were the lowest since November 4, 2004.”

Expectations
This week is shaping up to be fairly busy for financial reports. It begins with Existing Home Sales on Monday, New Home Sales and Durable Goods Orders on Wednesday, Gross Domestic Product (GDP) revisions on Thursday and the Chicago PMI and Personal income due on Friday along with Consumer Sentiment and Confidence.

Guidance
With the housing market slowly rebounding and rates dropping, now is the best time to meet with The Best Oregon Home Loan team to discuss a mortgage solution to meet your financial goals.

Salem Oregon Mortgage Rates and Loans, best mortgage rates in Oregon

admin — Tue, 16 Mar 2010 20:37:48 +0000

http://bestoregonhomeloan.com, Do you live in Salem, Oregon? Do you want the best mortgage rate available, then you owe it to yourself to call your local experts, The David Chandler Team at 503-816-6350.

http://bestoregonhomeloan.com, A brief video highlighting why a customer would want to work with The David Chandler Team at Prospect Mortgage. I have been in mortgage lending for 10+ years and I have developed an expertise for closing loans on-time and for making my clients happy. We are experts in Fannie Mae and Freddie Mac conventional mortgages as well as local experts in FHA loans and VA loans as well. If you live in Salem, Oregon and need the best mortgage rate available coupled with some of the lowest mortgage fees in the industry, then you owe it to yourself to call The David Chandler Team at 503-816-6350 or visit us online at http://bestoregonhomeloan.com

Our Mortgage Advice for the Week of March 15-19, 2010

admin — Mon, 15 Mar 2010 23:06:13 +0000

What happened last week?

Weaker than expected economic data moved the thirty year fixed rate slightly lower early in the week but a stronger than anticipated Employment report left rates relatively unchanged as of close of business Friday. “ 30 year fixed mortgages are helping to maintain affordable home-purchase conditions,” said Frank Nothaft, Freddie Mac vice president and chief economist. “In fact, monthly principal and interest mortgage payments for a typical family buying a median-priced home of $163,800 were just $709 in January, the lowest amount since February 1998, according to the National Association of Realtors®. For first-time homebuyers, the fourth quarter of 2009 was the third most affordable quarter since 1981 behind the first and second quarter of 2009.

What might happen this week?

Monday morning the markets moved in little direction after data fell in line with expectations, and overseas markets traded with lackluster results; most investors are standing on the sidelines ahead of tomorrow’s meeting. Tomorrow we have the FOMC rate decision. The markets expect the Fed to keep the rates untouched, however comments they make regarding a tighter monetary policy may influence investors. We also have housing data with Building Permits and Housing Starts tomorrow, inflation numbers with the PPI reports on Wednesday and CPI reports on Thursday, employment data with the weekly Jobless Claims report on Thursday, and the announcement of next week’s auction amounts also on Thursday. Currently mortgages are roughly unchanged from Friday morning.

And what should you do now?

Rates are still at historic lows and now is an incredible time to investigate the purchase of a home or refinance of your existing mortgage. Get with your mortgage professional today to structure a loan to meet your needs.

How to get a quality paint job by Salem Oregon’s best painters.

admin — Thu, 04 Mar 2010 02:31:16 +0000

http://thetrafficceo.com, If you’re looking for a quality interior or exterior paint job, by Salem Oregon’s best house painters, and you don’t want to get ripped off in the process, request our FREE report.

Should you pay your mortgage or just walk away?

admin — Wed, 24 Feb 2010 18:04:05 +0000

Without a doubt the toughest decisions you will make as a homeowner if you’ve lost your job…or seen your values wiped out by a wave of neighborhood foreclosures…. is whether to keep on paying your mortgage….or not. Here are two articles that highlight this very issue.

Let me know what your thoughts are.

http://www.housingwatch.com/2010/01/25/the-new-mortgage-revolution-walk-away/

http://online.wsj.com/article/SB126100260600594531.html?mod=WSJ_newsreel_realEstate

Our Mortgage Advice for the Week of Febuary 22-26, 2010

admin — Wed, 24 Feb 2010 17:03:37 +0000

What happened last week
“Mortgage rates eased for the second week, while economic data releases suggest that the housing market may be in a slow state of recovery.” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “The National Association of Realtors® (NAR) reported that existing home sales rose in 48 states and the District of Columbia between the third and fourth quarters of 2009; 32 states experienced double-digit growth. In addition, 67 metropolitan areas saw positive annual house price growth in the fourth quarter; more than double that in the third quarter, according to the NAR.” “New home construction is also slowly improving. One-family housing starts rose to an annual pace of 484,000 homes in January, which is up almost 36 percent from January 2009, based on the U.S. Census figures. Moreover, homebuilder assessments of market conditions over the first half of 2010 improved in February, according to National Association of Homebuilders/Wells Fargo Housing Market Index.”

What could happen this week
The economic week will start slowly and end with a flurry of activity. It all starts on Wednesday with New Home Sales along with Fed Chief Ben Bernanke’s speech; Thursday is the release of the Durable Good Orders; Friday closes out the economic calendar with the Existing Home Sales, Preliminary GDP, Chicago PMI manufacturing index, consumer Sentiment and finally the Consumer Confidence report.

What should you do about it
With the housing market slowly rebounding and rates holding low, now is the best time to meet with us to discuss a mortgage solution to meet your financial goals.

U.S. is going to look to foreign investors to help fund our housing market

admin — Tue, 16 Feb 2010 18:29:53 +0000

As the U.S. housing market boomed in the past decade and fueled a bull market in mortgage investments, Norway’s government-owned fund went along for the ride — and the fall. And now that the Fed is set to back away from buying mortgage backed securities we could be in for some bumpy times in the very near future.

Here’s a link to an excellent article written by Howard Schneider. It appears in today’s Washington Post:

http://www.washingtonpost.com/wp-dyn/content/article/2010/02/15/AR2010021503143.html?hpid=topnews&sid=ST2010021602611

Our Mortgage Advice for the Week of Feb. 8-12, 2010

admin — Mon, 08 Feb 2010 18:42:58 +0000

What happened last week
The biggest influence on mortgage rates this week came from outside the US. Concerns about the possible default of sovereign debt in smaller nations caused investors to seek the relative safety of US fixed income securities. This week’s economic data was roughly balanced in terms of positive and negative surprises. The added demand for safer investments helped mortgage rates move lower during the week.“Mortgage rates held steady last week ahead of the Federal Reserve’s (Fed) policy committee meetings” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “The Fed announced on January 27th that economic activity has continued to strengthen. It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.”

What might happen this week

It will be a light week for economic data next week. The biggest report will be Thursday’s Retail Sales data. Retail Sales account for about 70% of economic activity. The Trade Balance will come out on Wednesday, and Consumer Sentiment will be released on Friday. There will be Treasury auctions on Tuesday, Wednesday, and Thursday.

What we think you should do
With rates hovering at historical lows and housing prices remaining extremely affordable, now is the best time to meet with The DC Team to discuss a mortgage solution to meet your financial goals.

Our Mortgage Advice for the Week of Feb. 1-5, 2010

admin — Mon, 01 Feb 2010 21:08:11 +0000

What Happened last week:

“Mortgage rates held steady last week ahead of the Federal Reserve’s (Fed) policy committee meetings” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “The Fed announced on January 27th that economic activity has continued to strengthen. It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.”

What we think might happen this week:

Friday’s Unemployment Report highlights this week’s economic news. Investors will be watching to see if the early estimate of the number of job increases is accurate. Other factors that could impact rates this week are: Personal Income and Institute for Supply Management (ISM) Manufacturing Index on Monday, Pending Home Sales on Tuesday, and ISM Services along with the Treasury announcement on Wednesday.

What we think you should do:

With rates hovering at historical lows and housing prices remaining extremely affordable, now is the best time to meet with us to discuss a mortgage solution to meet your financial goals. Call the DC Team at Prospect Mortgage at 503-816-6350.