Important Questions

Q.  What is happening with the $8000 Buyer Tax Credit?

A.   It has been extended till April, so hurry, and has been expanded to included repeat buyers up to $6500 to qualified buyers. 

Q.   Is a Reverse Mortgage good for Seniors?

A.   It is a great way for Seniors to stay in their home without the burden of a mortgage.  And now it is not just for refinancing, if you want to sell that big 2 story for that cozy ranch....this mortgage can help.  Shoot me an email for more details.   

Q.  Do I need Flood Insurance? 

A.  It depends on the elevation of your property, generally determined by a survey.  Additional information can be found:

WHAT DO THE FLOOD ZONE LETTERS MEAN    -    FEMA: FLOOD ZONES

Q.  Do I need a home inspection? 

A.  It is highly recommended, even with new construction.  There are all kinds of potential problems; everything from improper installation, material defects to lack of permits.  Additional information can be found:

 ASHI     -    Home Inspection Checklist 

Q.   Can I keep my current home, rent it, and buy another?

A.  Yes, but the guidelines (hoops you have to jump through) have increased substantially.  Be sure to call your lender before making that decision.

Q.  How many investment properties can I own?

A.  As many as you want BUT you can only own up to 10 financed properties per FNMA guidelines and the (hoops are large). FNMA

Q.  Is a "short sale" a good buy?

A.  A "short sale" is a pre-foreclosure of some sort.  It is either a home where the owner is behing in the payments or the owner has to sell & is upside down in the mortgage (the mortgage is higher than the market value.  So, in order for the short sale to be approved by the lender, the owner has to prove financial need, inability to pay, and the lender must approve the price and terms.  If there is more than one lender, multiple mortgages on the property it must be approved by all parties.  This process can take up to 6 months and the lender can disapprove the sale at any time prior to issuing their "short sale approval letter."  That is why there are so many foreclosures, the short sales are not working well.

Q.  What is the difference between a "short sale" and a foreclosure?

A.  A short sale is owned by the current property owner, and the sale and terms must be agreed to by the owner and approved by all lenders involved.  A foreclosure is owned by the lenders and or investors involved, the process is much shorter and definitive.

Q.  Can I get a mortgage on a foreclosed home?

A.  Depends on the condition of the property.  The lender is looking at the general condition, windows in tact, roof in good shape, siding ok, all  major systems working etc.  If it is not you must resort to a fix up loan, FHA has a loan FHA203k.  It is a little tricky but can work well.

Q.  What are points? 

A.  Points are fees charged by the lender.  Each point is 1% of the loan amount being financed.  The lower the interest rate the higher the points (they are charged to offset the lower interest the investor will be earning on that loan.)

Q.  Can I buy a home with no money down?

A.   Except for our Veterans, the No Money Down loan has disappeared.  Risk is being assessed, and low down is considered a riskier loan than one with an investment to loose.