HUD - St Louis Real Estate News

Revisiting Credit Scores; St Louis Mortgage Interest Rate Update

By Robert Fishel, on March 24th, 2011

WHAT IS A CREDIT SCORE?

Simply stated, credit scores are a statistically-based tool to assess the future performance of a borrower. Scores are derived from the history of a borrower as it is reported to the credit repositories from any creditor. Credit scores are a proven indicator of the likelihood to repay a loan or credit obligation. The lower the score; the more risk from a borrower to repay a loan, on time and in full. Scores range from 400 to 850.

This process was started by Fair, Isaac and Co., which is why credit scores are also Continue Reading →

11 Reasons to Own a Home; St Louis Mortgage Interest Rate Update

By Robert Fishel, on March 16th, 2011

Why rent when you can own?

Over the past couple of years there has been much talk about home ownership losing it’s luster and asking the question if it is better to rent than own a home at this point. Today, I want to share with you 11 reasons to own a home:

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New home construction sinks to 25 year low

By Dennis Norman, on March 16th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for February 2011 showing a 9.3 percent decrease in single-family home building permits from January, and a 27.0 percent decrease in new home starts compared to the year before.

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An overview of the 2010 Housing Market

By Dennis Norman, on March 15th, 2011

HUD just released it’s “2010 Overview of U.S. Housing Market Conditions which gave a recap of the housing market for 2010. I’ve previously reported on most of the data and information that HUD included in the report however I thought this report did a good job of giving a complete and concise look at the market for the year so I wanted to share it.

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Do you know who you are dealing with? St Louis Mortgage Interest Rate Update

By Robert Fishel, on March 9th, 2011

There have been many changes in the mortgage banking industry in the last couple of years. New regulations and laws now stipulate exact procedures, timetables and specific lending requirements to obtain a home mortgage. Mortgage bankers must obtain a federal license and state licenses for every state in which they originate loans.

These changes in lending policies are designed to protect and aid borrowers when making mortgage decisions to purchase or refinance a new home.

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What are Seller Concessions?; St Louis Mortage Interest Rate Update

By Robert Fishel, on March 2nd, 2011

Seller concessions can be any negotiation where the seller, builder, developer or any interested party gives something up to the buyer…The concession can help lower or eliminate the amount a borrower is required to bring to the closing table. In some cases, a seller-paid concession can mean the difference between closing a home sale and losing one.

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FHA Increases monthly mortgage insurance premiums; St Louis Mortage Interest Rate Update

By Robert Fishel, on February 23rd, 2011

New regulations signed into law by the President allow HUD to increase the amount of premiums charged for FHA single family housing mortgage insurance programs. Assistant Secretary of Housing & Federal Housing Commissioner, David H. Stevens, has authorized an increase to help build back FHA’s capital reserves to their statutory level. There will be no increase in the Upfront Mortgage Insurance Premium (UFMIP): UFMIP for purchase money mortgages remains at 1.0%.

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St Louis Mortage Interest Rate Update

By Robert Fishel, on February 16th, 2011

St. Louis MORTGAGE RATES for February 16, 2011:

Conventional 30-Year Fixed 5.125% Conventional 15-Year Fixed 4.25% Conventional 5/1 ARM 3.750% FHA/VA 30 Year Fixed 5.00% Jumbo 5/1 ARM 3.875% Jumbo 15 yr Fixed 4.625% Jumbo 30 yr Fixed 5.750% Continue Reading →

New home construction starts off 2011 with a ‘fizzle’

By Dennis Norman, on February 16th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for January 2011 showing a 4.8 percent decrease in single-family home building permits from December, and a 1.0 percent decrease in new home starts compared to the month before.

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First Time Homebuyer Monies are still available… Why rent when you can own?; St Louis Mortage Interest Rate Update

By Robert Fishel, on February 9th, 2011

Missouri Housing Development Commission offers first-time home buyers a forgivable 3% Cash Assistance Loan (CAL) for down payment and closing costs. Terms of this program include:

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Brookwood Man Faces 34-Count Federal Indictment in Mortgage Fraud Scheme

By News Desk, on February 5th, 2011

A federal grand jury indicted a Brookwood man yesterday on wire fraud and false statement charges related to a more than $1 million mortgage fraud scheme in the Birmingham area, announced U.S. Attorney Joyce White Vance.

A 34-count indictment filed in U.S. District Court charges SCOTT ERIC PERRY, 34, with 17 counts of wire fraud and 17 counts of making false statements to lending institutions in connection to real estate transactions between February and December, 2006.

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St Louis Mortage Interest Rate Update

By Robert Fishel, on February 2nd, 2011

St. Louis MORTGAGE RATES for February 2, 2011:

Conventional 30-Year Fixed 4.875% Conventional 15-Year Fixed 4.250% Conventional 5/1 ARM 3.250% FHA/VA 30 Year Fixed 4.750% Jumbo 5/1 ARM 3.500% Jumbo 15 yr Fixed 4.250% Jumbo 30 yr Fixed 5.375% Continue Reading →

FHA Condominium Recertification Requirements

By Dennis Norman, on February 1st, 2011

Yesterday my wife received a letter from the condo association for a complex she owns a rental in with “OWNER ALERT!!!!!!!” (yes, that many exclamation points) at the top of it in big letters. The reason for the “alert” was to let condo owners know that FHA certification for this condominium complex expired December 31, 2010 (as it did for many complexes across the country) and that, in order to be eligible for FHA-insured financing the complex would have to obtain re-certification.

Now, in this particular case, the board is using this as a scare tactic to try to convince Continue Reading →

FHA Extends ‘Anti-Flipping Waiver’

By Dennis Norman, on January 31st, 2011

The Federal Housing Administration (FHA) announced the temporary waiver of the “anti-flipping” rule has been extended through December 31, 2011. In my opinion the “anti-flipping” rule was a bad idea to start with and in the current housing market the last thing we need is anything to discourage investors from buying homes so this is a good move by FHA.

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The Benefits of ARM’s; St Louis Mortgage Rate Update

By Robert Fishel, on January 26th, 2011

Even though over the past few years, ARM’s (adjustable rate mortgages) have received somewhat of a “bad name”, there are truly benefits to them including:

ARM rates are now more attractive than ever before. Rates have fallen to 3.50% for a 5/1 ARM. ARMs are predictable. Rates are capped so there are no surprises for borrowers. Rates adjust only on the remaining principal of the loan. Rate adjustments could decrease (increases are limited to the prevailing index in which the ARM is based). Lower Monthly Payments – Increases the buying power of borrowers which attracts buyers to new homes. Continue Reading →

Private Mortage Insurance helps you get the loan; St Louis Mortgage Rate Update

By Robert Fishel, on January 19th, 2011

Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.

Mortgage Insurance isn’t a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to Continue Reading →

New home starts drop in December; down 14 percent from year before

By Dennis Norman, on January 18th, 2011

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued a their report on New Residential Construction for December 2010 showing a 5.5 percent increase in single-family home building permits from November, but a 9.0 percent decrease in new home starts compared to the month before.

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Buy and Rehab Using an FHA Loan; St. Louis Mortgage Rate Update

By Robert Fishel, on January 12th, 2011

The FHA 203K rehab program is intended to promote and facilitate the restoration and preservation of existing homes. It enables borrowers to finance the acquisition and rehab of a property in one step; the loan value is based on the projected value of the home at the completion of the rehab.

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Mortgage Interest Tax Deductibilty Extended Through 2011; St. Louis Mortgage Rate Update

By Robert Fishel, on January 5th, 2011

The President has signed the bill extending Mortgage Insurance tax deductibility through December 31, 2011. Borrowers can use Mortgage Insurance (MI) to buy a home sooner and enjoy predictable payments, while benefiting by deducting the premiums from their income taxes. And MI can be canceled once the home buyer builds enough equity. MI is required on all mortgage loans that exceed an 80% loan to value.

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Co-Signing for your childs loan; St. Louis Mortgage Rate Update

By Dennis Norman, on December 30th, 2010

As your kids grow up, you support them through their bumps and bruises, pay for their braces, school and much, much more.

Over the past few years, I have run into the issue of young adults not being able to qualify for a mortgage without a parent’s help. So, the big question is: should you offer to co-sign on your child’s loan? Your kid may need something more than your money…

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Justice Department Settles Disability Discrimination Case Against Property Management Company for $1.25 Million

By News Desk, on December 27th, 2010

The Justice Department today announced a $1.25 million agreement with Warren Properties Inc., Warren Village (Mobile) Limited Partnership and Frank R. Warren to settle allegations that the defendants violated the Fair Housing Act by refusing to grant a tenant’s requests for a reasonable accommodation. This settlement is the largest ever obtained by the department in an individual housing discrimination case.

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MHDC’s Cash Assistance Loan; St. Louis Mortgage Rate Update

By Robert Fishel, on December 23rd, 2010

First-time home buyers receive a forgivable 3% cash assistance loan for down payment and closing costs.

The Missouri Housing Development Commission (MHDC) provides a competitive interest rate on a safe 30-year fixed rate 1st mortgage. Your 3% advance loan is treated as a 2nd mortgage completely forgivable after five years of continuous occupancy. New, Constant Funding means MHDC will have the monies available for the borrowers regardless of bond issuance.

For more information about this program, go to http://www.box.net/shared/s2x9zriz1g or www.MHDC.com .

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Online Mortgage Qualifier; St. Louis Mortgage Rate Update

By Robert Fishel, on December 14th, 2010

The first step in buying a house is determining your budget.

This calculator steps you through the process of finding out how much you can borrow. Fill in the entry fields and click on the “View Report” button to see a complete amortization schedule of your mortgage payments:

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Reverse Mortgages: Advantages and Disadvantages

By Bob, on December 13th, 2010

I have been hearing a lot of talk about Reverse Mortgages (aka Lifetime Mortgages) lately so I decided I wanted to find out a little bit more about them. Upon first hearing about them, I thought that they were a terrible idea, but after finding out a little bit more, I can now at least see some of the potential advantages to having one. Either way, I am not a mortgage expert and most of what is included in the article was what I found during a couple hours of research about them – so if you see anything that Continue Reading →

Are Reverse Mortgages Safe for Seniors?

By Dennis Norman, on December 10th, 2010

Ah, the reverse mortgage battle continues…Consumers Union says their risky and dangerous; RetireSafe, a grassroots organization that advocates on behalf of seniors says they provide financial independence to Seniors…so who’s right?

First off, I have to say that I personally feel reverse mortgages offer an excellent opportunity for seniors to live a better life, or get them through a tough financial period, by tapping the equity in their homes. I have written before about a friend of mine, Tom Carter, who has helped dozens of seniors over the years with reverse mortgages. Having said that, obviously, like almost Continue Reading →

Justice Department Reaches Settlement with Prime Lending to Resolve Allegations of Lending Discrimination

By News Desk, on December 9th, 2010

Settlement Provides $2 Million to African-American Borrowers Who Paid Higher Interest Rates

PrimeLending, a national mortgage lender with 168 offices in 32 states at the end of 2009, has agreed to pay $2 million to resolve allegations that it engaged in a pattern or practice of discrimination against African-American borrowers between 2006 and 2009.

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Cash-In Refis; St. Louis Mortgage Rate Update

By Robert Fishel, on December 8th, 2010

CASH-IN REFIS…

Over the past years, many of Americans pulled money out their homes through “cash-out” refis. Today, many of my clients are bringing cash into their refinance transactions. Money is flowing in the opposite direction.

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Freddie Mac Suspends Evictions Over Holidays; St. Louis Mortgage Rate Update

By Robert Fishel, on December 1st, 2010

Freddie Mac announced today it has ordered all evictions involving foreclosed occupied single family and 2-4 unit properties that had Freddie Mac mortgages to be suspended from December 20, 2010 to January 3, 2011.

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Additional payment paydown calculator and St. Louis Mortgage Rate Update

By Robert Fishel, on November 24th, 2010

How much interest can you save by increasing your mortgage payment? Check out the link below and the financial calculator will help you determine your savings. Click the “View Report” button to see a complete amortization payment schedule, and how much you can save on your mortgage!

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Mortgage Loans 101 and St. Louis Mortgage Rate Update

By Robert Fishel, on November 17th, 2010

Obtaining a mortgage to buy a home, or to refinance an existing mortgage, can sometimes be a little intimidating to borrowers, but it needn’t be. Granted, this is something the typical person only does every few years at most and regulations continually change the process, but that’s where lenders such as myself come in to the picture, to provide you the info you need and to guide you through the process.

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