So, if you are not one of the lucky ones to get in on low mortgage rates in today's buyers market then you can potentially still get the same low rate in five to ten years from buying a home from a seller who has an FHA or VA loan. As an example of today's rates, there are builder homes being sold at steep discounts in Arizona. The TV commercial showed a 30 year fixed rate at 3.875%. That is unheard of. If you miss the boat due to having bad credit, maybe due to an unfortunate short sale it is still possible down the road.
As a homeowner, this really is a great tool when trying to sell your home in a few years. Inflation means an increase in your home value. The professional real estate agents can separate themselves from the part-timers and uninformed through their knowledge of mortgage financing. Anxious first-time home buyers will appreciate that an agent is letting them know of potential ways to sell their home quicker. Although the attractive low rate FHA loan is assumable, the buyer will still have to get an additional loan to make up the difference. As an example, the seller paid $100,000 for their house with a $96,000 FHA mortgage. He wants to sell 5 to 7 years from now for the market value of $150,000. The buyer will assume the $93,000 loan (it was $96,000 initially) but still have to secure financing for the difference or come up with cash. So, although it is assumable there are additional solutions to consider.
Here are a few disclosures that must be mentioned:
"The original borrower (the seller) is "still responsible" during the first five years of the mortgage; if the new borrower (the buyer) makes late payments, the buyer and seller each have their credit damaged. And one of the top derogataries on your credit is a mortgage late after foreclosure and bankruptcy.
"FHA loans require the borrower to have mortgage insurance; this is approximately 0.50% each year. In comparison, a 5% fixed rate FHA loan, which is really 5.5%, is far better than a 9.625% the market's mortgage rate.
"Permitting a veteran to assume a VA home loan freezes the selling veteran's eligibility for a new VA loan.
As with most things in government it is not perfect but it is better than what rates will be in 5-10 years.
Ray Heinson is an investor in real estate and suggest these resources for
FHA Mortgage Loans and to find FHA Streamline Mortgage Refinancing from trusted lenders in your area.
Comments
If anyone has had any luck with any of these companies, could you please post it for the ones that cannot find one to work with you. We've almost lost once and just got a second chance that want last long so I need to get something done now, so if anyone knows the right number to call, i am sure a lot of people that hasn't found them would appreciate it but check out www.obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com
Mr. President why are the banking,and loan company not making loans as you promised they would do for the american people we are all hurting and not getting any help. Time for them to answer to you for not helping us the little people that keep them in business, maybe we should boycott their business. Check www.obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html#comments
This whole stimulus package is just part of the governments long term plan to take away the power of the people. Are we going to do something about it or be lazy and think someone else is going to do it for us? It is time for a revolution. We need to overthrow the government and take our power back. Before there is nothing we can do about it. you should check www.obamamortgage2009.blogspot.com/2009/03/obamas-ortgage-modification-do-you.html#comments
I own a condo and have an outstanding balance of $140k, consisting of $104k primary and $36k secondary. I took the home equity to consolidate debts. At the time the property was valued at $163k but now it is valued at $134k. I'm looking to sell because i am engaged and will be moving into my fiancee's home. Check www.obamamortgage2009.blogspot.com/2009/03/obamas-mortgage-modification-do-you.html If I have a buyer who offers me within say $5-7k of the outstanding, can i agree to assume a loan on the residual and pay the bank the difference over time with interest? The same bank holds both mortgages.
Check out www.obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com There needs to be a program for the elderly but not quite to retirement age for mortgage modification when the have lost their job during this particular recession. I made a decent wage because I put my time into a company and now have no job. I am looking at $10 - to $12 hr jobs after working all my life. You can't make a mortgage payment on that kind of money. I will eventually lose my home.
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