More Road Signs Toward Foreclosure in Palmdale, CA.
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Housing Market in Delicate State
The news has been increasingly unanimous lately on foreclosure triggers. Loan modification programs in Palmdale, CA. are struggling to keep people in their homes. Unemployment is causing others and once-solvent homeowners to fall behind with their payments. Even auxiliary components, like ACORN, are imploding into themselves with disorder.
By and large, loan modification efforts are not translating into sustainable, affordable home loans for those who are at risk of foreclosure. Blame seemingly cascades back and forth between unwilling banks and unsalvageable homeowners, while the state and federal governments attempt to bridge the two sides.
Effects in areas of high unemployment are gaining momentum. Many rural towns, like Palmdale, CA., are simply isolated from quick solutions, like new business moving into town to hire, or workers or non-profit agencies that assist those in danger of foreclosure.
While ACORN has been on the receiving end of jokes for the past year, other agencies have remained in the trenches(NACA.com), slugging it out for troubled homeowners. Meanwhile, other third-party hucksters have surfaced in the form of refinancing scams, creating situations where people not only are not receiving help, they are also being pick pocketed very, very slowly by white-collared criminals.
One of this summer’s nagging questions has been, “Has housing hit bottom?”
Certainly, a lot of homes in Palmdale, CA. changed hands this summer, but then again, there were a lot of homes available at lower than usual prices, made even more affordable by low interest rates. And to top it off, August came in lighter than expected, and the $8,000 tax credit is for all intents and purposes off the table by now(Last day is November 30,2009).
Home prices should remain low, and properties available via foreclosure are likely to increase in the coming months.
For those of you that are experiencing, or know someone who is experiencing foreclosure and need help, please visit NACA for help. They are touring the country right now with events where the major lenders are there with them, and they are offering loan modifications on the spot!
Absolutely!! Before you have even picked out homes to visit, it is important to get qualified and approved for your Palmdale mortgage loan. When we qualify you, we will help you see how much home you can afford for your desired payment. We will give you more than most banks and brokers do because our process does not stop at just giving you a pre-qualification letter. We will issue you an actual Fannie Mae or FHA desktop underwriting approval for your new Palmdale mortgage loan.
When your find a house that you want to make an offer on having our underwriting approval will put you in a much better position than just having a pre-qualification letter. The approval will show the seller whether it is a bank or private party that your credit and debt profile was already approved by the funding lender of your Palmdale mortgage loan.
At the time that your Realtor presents the offer with your approval the sellers will not have to wonder if the escrow will close or not due to financing. They will know that you have an acceptable borrowers profile and that you can do the deal now.
Call us today at (818)402-1879 or fill our the form below to start the process of buying your new Palmdale home!
Many more Palmdale home buyers are going with FHA financing than in past years and the FHA loan fundings are growing. At this point the number one question that I get these days from buyers is “Should I use FHA for my Palmdale mortgage loan?”. The answer is not standard for every buyer in every situation but hopefully by explaining what the FHA loan program can do, you can better see if it is a good way or possibly the ONLY way for you to finance your new home.
Here are some of the benefits of getting a FHA backed Palmdale mortgage loan:
· FHA loans require as little as 3.5% down payment.
· FHA guidelines will allow for a credit score as low as 620.
· FHA guidelines will allow a home buyer that had a Bankruptcy 2 years ago.
· FHA will allow for some or ALL of the down payment money to be gifted by a family member.
· FHA can be used for up to a 4 unit building as long as you will be living in one of the units.
These flexible guidelines and the $8000 government tax credit are helping renters that thought they would not be able to buy with today’s more strict lending standards. When shopping for your Palmdale Mortgage Loan, we will make sure to explore all options including FHA to help you make the most informed decision on your new home purchase.
4 Tips To Help Raise Your Credit
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Raising you credit score is not as difficult as you may think. It’s a well known fact that, people with higher credit scores can easily obtain lower interest rates on mortgages, insurance and credit cards. If your credit score falls under 620 just getting loans and credit cards with reasonable terms is difficult.
According to statistics, there are more than 30 million people in the United States that have credit scores under 620 and if you’re probably wondering what you can do to raise credit score, here are five simple tips that you can use to raise credit score:
1. Pay Your Bills On Time
Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.
Missing just one months payment on anything can knock 50 to 100 points off of your credit score.
#1. Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.
#2. Get a copy of your credit report from the major credit bureaus
Each consumer is entitled to at least one FREE report a year from each of the credit bureau – Experian, Trans Union and Equifax. Obtaining a copy of your credit report is a good idea because if there is something on your report that is incorrect, you will raise credit score once it is removed. Make sure you contact the bureau immediately to remove any incorrect information. It’s important to know that each service will give you a different credit score.
2. Pay Down Your Debt
Your credit card issuer reports your outstanding balance once a month to the credit bureaus. It doesn’t matter whether you pay off that balance a few days later or whether you carry it from month to month. Credit bureaus don’t distinguish between those who carry a balance on their cards and those who don’t. So by charging less you can raise credit score even if you pay off your credit cards every month. In addition, lenders prefer to see a lot of of room between the amount of debt on your credit cards and your total credit limits. So the more debt you pay off, the wider that gap and the better your credit score.
3. No Need To Close Old Accounts
In the past people were told to close old accounts they weren’t using. But with today’s current scoring methods that could actually hurt your credit score. Closing old or paid off credit accounts lowers the total credit available to you and makes any balances you have appear larger in credit score calculations. Closing your oldest accounts can actually shorten the length of your credit history and to a lender it makes you less credit worthy. If you are trying to minimize identity theft and it’s worth the peace of mind for you to close your old or paid off accounts, the good news is it will only lower you score a minimal amount. But just by keeping those old accounts open you can raise credit score for you.
4. Avoid Bankruptcy At All Costs
Bankruptcy is the single worst thing that can absolutely destroy your credit score. It will lower your credit score by a minimum of 200 points and it is also very difficult to recover from.
Once your credit score falls below 620, any loan you get will be far more expensive. Bear in mind that a bankruptcy on your credit record can be retained for up to 10 years.
The reality of a bankruptcy is it will limit you to high-interest lenders that will squeeze out high interest rate payments from you for years.
It is better to get credit counseling to help you with your bills and avoid bankruptcy at all costs. By getting credit counseling instead of declaring bankruptcy you can raise credit score over a much shorter period of time.
FHA Home Loans for Palmdale CA Homes for Sale
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FHA home loans for Palmdale CA homes for sale, have basic requirements that must be met before qualifying for an FHA loan. FHA home loan requirements are standards that allow first time homebuyers the opportunities to meet mortgage qualifications. FHA home loans are easier to qualify for than conventional loans offered by lending agencies. The Federal Housing Administration (FHA) is a mortgage program that helps those who would not normally qualify for a mortgage loan from a bank or other mortgage company, buy a home. FHA home loans are not loans granted by the government, but FHA home loans are mortgage loans that are guaranteed by the Federal Government.
While the qualifications for an FHA home loan are easier to attain, the FHA home loan program still has specific criteria that must be met in order to get an FHA home loan. FHA home loans require that an FHA applicant have a good credit report reflecting the ability to make debt payments on time. An acceptable score is approximately 620, but can even be lower with compensating factors. Applicants for FHA home loans can also claim income from non-conventional sources, such as unemployment and child support. There is a low down payment required with an FHA loan of 3.5%, but homebuyers can pay more than the minimum, if they so desire. Also, the down payment can be a gift from a relative or another source. Mortgage companies offering FHA home loan services will also calculate an applicant’s debt to income ratio and make sure that it falls within the guidelines set forth by FHA.
FHA home loans also offer a variety of innovative financing options for homebuyers’ consideration. There is an FHA home loan program that allows a homebuyer to include the costs of remodeling an older home into their mortgage note. There are FHA programs that appeal to older homeowners, generally 62 years of age and older, that offers cash for equity in a Reverse Mortgage, helping the elderly have an income. And, most energy improvements to a home can be included in the FHA home loan contract.
FHA home loans for Palmdale CA homes for sale, offer consumers a great option in mortgages. FHA home loans are generally competitive with those rate on conventional loans, and guarantee the mortgage company that the loan will be paid. To find out more about an FHA loan and how to apply for an FHA loan in the Palmdale/Lancaster or surrounding area, feel free to contact us below. At Kyden Home Loans, we are considered experts in the field of FHA and VA loans.
Palmdale CA homes for sale tax credit
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Did you know that the $8,000 tax credit will expire soon? The last chance to claim it will be to purchase your new home by November 30, 2009! The days are ticking by fast – so now is the time to to start looking at the Palmdale and Lancaster CA homes for sale. Once you add in the days that you need to look at the homes, find your Real Estate Professional, your Mortgage Professional, get your appraisal done, and your loan underwritten – the majority of that time is now gone.
FHA is now adding extra verifications and double checking a lot of the factors in your loan as well. This adds even a bit more time. Rates are still near the all time lows. Experts have said they will not go back down to the 4.50% mark again. The markets are starting to see a rebound of values on homes. So, prices will start going up in the Palmdale CA homes for sale.
Now is the time to use all of the tools available to you and purchase your new home.
Credit Tip You Probably Didn’t Know
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Did you know that if you pay off an old account that is in collections, it will damage your credit even more?
You see, when it went into collections the first time it lowered your score. But over time your score would eventually go back up. But, if you pay any money toward that account, even if it’s only a dollar, it makes the account current again. So it will knock your credit score again. So that makes two hits on your score for just one account.
Does that mean I suggest never paying the debt off? No, not at all. If you do have the money to pay it off, tell the collection agency you will do it under the condition that all negative remarks about the account will be removed from your credit report. And get this in writing!! If you don’t get it in writing they will probably leave it on there. It is your job to get it in writing and then double check your credit report to make sure they removed it. Keep in mind credit reports can take up to 30 days to get updated.
I can’t stress how important it is to get it in writing. Collection agencies will stop at nothing to get money from you. They don’t always play by the rules. So you must stay on top of things and get everything in writing. And then check your credit report to make sure.
Once you take care of this problem, you are now ready to pursue the purchase of your dream home or refinance! By the way, if your in the Antelope Valley area, we can assist you with either!
Short Term or Long Term Mortgage?
By · CommentsSome people who feel financially secure are considering a mortgage for a shorter duration than the traditional 25-30 years. This can drastically reduce your overall payments, but can also mean that if your situation changes, you will be locked in at a high mortgage payment. Is it worth it to take out a longer mortgage and make extra payments? Here in Palmdale and Lancaster, most poeple are converting over to 30 year Notes.
One definite advantage of short term mortgages is the interest rates, which can be several points below that of a 25-40 year mortgage. If you are confident that the rates are going down or will stay level, a short term mortgage that repeats may be a smart choice. However, it is difficult for even the most knowledgeable financial analysts to completely predict interest rates, so you should be prepared in case rates take a jump.
If you know you will be moving in the next few years or think you may, a shorter mortgage is going to cost you less in the long run. The disadvantage to this is if you decide to stay in your home for longer than you expected or can’t sell by the time the short-term period runs out. For people in a hot home market who are looking at “flipping” a home – selling it relatively quickly after renovation, a shorter mortgage makes sense, as you know you won’t be keeping the house around for long.
Life changes affect everybody and it makes sense to be prepared. A death or birth in the family, relatives or friends in need and personal life events can make previous plans for a home suddenly less feasible. While no one wants to dwell on the loss or worsening condition of a loved one, it behooves you to consider how this will affect your home mortgage plans. The loss of your job; how do you plan to pay for the mortgage if you have a drastic reduction in income for several weeks or months? A birth may be a joyful occasion, but it is also an expensive one and one that may make you rethink moving. These things need to be taken into consideration.
It seems obvious that shorter-term mortgages are best for people who keep track of interest rates and current events and know what they plan to do with their home. It is also wise to have liquid assets that can be used to cover your living expenses in case of loss of income, unexpected events and the possibility that interest rates will go up when you need to refinance.
Naturally, you already knew that you can get an $8,000 federal tax credit, right? That is, if you’re purchasing your first home in Palmdale or Lancaster, or at least the first home in the last three years. Some people don’t realize, though, that they can use their tax credit as a down payment.
For anyone who’s hasn’t heard about it yet…. President Obama created an $8,000 tax credit to kick-start the national housing market. This incentive is doing wonders for the market. As of June 2009, as many as 40-45% of home buyers are buyers who are taking advantage of this offer. That’s up from 19-22% as of a couple years ago. A good deal of that momentum is as a direct result of the Obama tax credit. The housing market led us into the recession. President Obama is doing all he can to have the housing market lead us back out of it!
You must close on your home by December 1, to take advantage of this outstanding offer. So, you should take care to have found the home and gotten an accepted contract no later than October 15, 2009. Which means you need to start your home search by mid-September, 2009. Inevitably, the lenders are going to be swamped as December 1 draws near.
Don’t run the risk of losing your $8K tax credit because the lender can’t process your loan quickly. Time is running short – get going! Until now, a big problem was that you still had to come up with a down payment and closing costs, in order to buy a home.
About Using your Tax Credit as your Down Payment
On May 12, the secretary of Housing & Urban Development allowed that the FHA will allow you to use your $8K tax credit for your down payment.
That’s just icing on the cake to stimulate home sales. Because the biggest thing holding up first time home buyers has been the down payment. Not too many people in today’s economy can save 3-10% of the cost of a new home!
How does this work?
You’ll need a bridge loan for up to $8,000. You’ll sign for this loan at closing, and pay it off in full when you get your tax credit, after when you file your taxes next year.
The type of bridge loan we’re talking about here amounts to a second mortgage on your new home. But you don’t want to end up paying through the nose for a bridge loan, right? Second mortgages typically carry some pretty steep costs – a couple points at closing, and interest rates generally a couple percentage points higher than a first mortgage. If interest rates are typically at around 6%, that means you might have a bridge loan interest rate around 8%. That amounts to about $60/month on an $8,000 loan… plus around $160 at closing.
I don’t know of another time in history when you’ve had so many incentives to buy a first home. Here’s three reasons why I say that:
1. Never before has the federal government given a tax credit for buying a home. If you’re a first time home buyer, you have a small window of opportunity to put up to $8,000 in your pocket.
2. Interest rates on 30 year loans – if your credit is OK – are generally below 6% – historic lows! Actually, I’ve seen 30 year mortgage rates as low as 5% in the last few months!
3. There is more inventory – i.e., more homes on the market in Palmdale and the Lancaster area – and thus a better selection of homes today than ever. In most regions of the country, there is up to ten months of inventory (homes for sale) on the market. Six months’ inventory usually represents a balanced market… so we’re still clearly in a Buyer’s Market territory. And if you’re willing to do a little work, you can buy a foreclosed home from a lender… and save even more.
How to save on mortgage costs in Palmdale and Lancaster
By · CommentsA Palmdale mortgage loan or a Lancaster mortgage loan is the largest debt most people will have. The most common length of the loan is 30 years before it is paid off. The ability to pay off a mortgage early or to just lower the payments is very seductive to most people.
If you were able to get a fixed rate loan with the lowest available interest rate then refinancing is not for you. Most people were not able to get a fixed rate loan, and this makes refinancing the best possible answer for them. Sometimes it is not having an adequate down payment or it could be a low credit score. For these people refinancing can offer some great reduction in payments if they have a good credit rating now.
Even if your interest rate is not that bad you should consider refinancing if you are in an ARM or balloon loan, anything other than a fixed rate loan. If you are considering refinancing you should make sure that no missed or late payments have been reported to your credit history and that your score is high enough to get you a better rate.
In order to get the best possible interest rate and lower your monthly mortgage costs with refinancing you have to have a good credit score. Equity in the home from living there awhile or by upgrades will also benefit you in obtaining the lower interest rates. The home equity is used to balance the loan and gain leverage for a better rate.
Just like if you were selling the home you need to stage it properly for the appraiser. The rooms should be free of clutter and well organized. There should be no signs of damage and any project or repairs that are needed should be attended to before having the appraiser out to your home.
So when looking for that Palmdale mortgage, remember, with a lower interest rate you save thousands and thousands of dollars over the lifetime of the loan and hundreds on the monthly payments alone. If you are paying less than you are used to, you can easily keep paying the original amount to have more go on principal or even go to a bi-weekly payment plan that will reduce the life of the loan considerably. So aim high when getting that appraisal and make sure everything looks great and complete when they walk through the home.