Archive for the 'Julie's Mortgage Tips' Category
Jefferson Parish Bond Money is Availiable for Homes and Condos, Maybe you qualify?
March 16th, 2011 categories: Julie's Mortgage Tips
Jefferson Parish Bond money is available for those who can qualify for the Money. If you fit the criteria it is money in your pocket. The one major change that I see is that the loan will have to be an FHA, VA, or Rural Development Loan. For homes it is much easier than condos as each home is check to be FHA ready. This is not so with condos as they have to be on the FHA approved list.
For those that can meet the criteria its a great deal. Find something for $150,000 and ask the seller to pay the 1% origination fee and you get $6000 as a credit on your purchase. The program is designed for the first time buyer who needs the extra money to make the sale work. Not all lenders sign up for the program. Add an extra week for processing.
The rules and numbers change fro Bond issue to bond issue so it good to review the qualifications to see that you fit the criteria. The State of Louisiana will have a Bond Issue as well that can be used in the City of New Orleans with a few different rules.
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Louisiana State Bond Money 2010 helps First Time Buyers !
October 1st, 2010 categories: Buyers Agent, Julie's Mortgage Tips
Louisiana state Bond money is now available on a first come basis with an accepted contract for first time home buyers. Those who have not owned a home in the last 3 years would be eligible. The LHFA State bond money carries an interest rate of 3.95% for 30 years. You also get a 3% down payment assistance as well. This is like a gift. The rates are great and everyone likes a gift as well. There is a .75% origination fee.
This can folded into a an FHA or VA where you are allowed to ask the seller to pay your closing cost and pre-paid up to a certain point. This will normally fall between 3% and 4%. On a $200,000 loan you can get $12,000 with 3% assistance and 3% sellers concessions to off set your cost of buying.
There are income limits will vary by Parish along with limits on the purchase price. The best I can tell is that the maxium purchase price is $258,690. The income limits for two or less is $61,200 and $70, 380 for three or more. The State has 20 million for this so it may not stay around for long.
For additional information you should call my favorite lender Julie Baudier at 504-583-1793 cell to check out the details. She gives quality service plus the best deal that she can. She works for Standard Mortgage in Metairie. If you fish then you can give her your best fish story. Tell her Eric sent you…………
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New Orleans Condos have had little appreciation in the last couple of years! But there are other advantages to owning !
August 29th, 2010 categories: Condo Knowledge, Julie's Mortgage Tips
The yesterday, today and tomorrow flowers is much like the Condo Market in New Orleans. We know what has happened in the past. We know what is happening now even though we may all have a different take on it. None of us know what the future may hold. We do know a couple of things about buying a condo in today’s market. Here are a couple of things we tend to forget when financing a condo in today’s condo market.
Low Interest Rates of 4.5% mean….Lower notes monthly. You borrow 200k and your principal and Interest are $1013.37 per month. One of the things many forget is that you are paying your principal down quicker and building equity faster. In month one you will pay your principal down by $263.37, in the first year it will decrease by$ 3226.44. At the end of five years you would have increased your equity by $17, 684 leaving a loan balance of $182,313. Your total note in not just interest but principle as well.
Tax benefits of owning puts money in your pocket…. In year one you will pay $8934 in interest and that is deductible on your state and federal Income tax. If you are paying 25% income tax rate as an example this saving is 25% of $8934 or $2233.50. On a monthly basis the savings are 186.12 per month in year one. One thing we are certain about is that taxes are not going down from here.
Sweat Equity is also something that can work in your favor…. You may buy a condo that needs some updating or areas where you can improve on the value of the condo. Many of the things you can do yourself to improve the price of the condo. This sweat equity is sweet. It is all yours to keep if you live in the condo for more than two years. No capital gains taxes if this was your home.
Adding thes numbers up in the first year will give you over $400 in tax saving and in equity. Its almost $450 in the first month and actually increases after this point as the loan balance gets smaller as each month passes. At the 36 month the mortgage payment you are paying the loan down at $300 per month. That is the good news about the lower rates………
The largest reason to own is that it is your place to do with what you wish. You can enjoy it and treat it like its your own place. You own it and when yous sell you have a good chance of leaving with something. You rent and you certainly will walk away with nothing. Paying rent for 60 months at $1300 per month is $78,000 that you will not see again. That is certain……….
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The Landscape of lending and lending to condos is in a state of flux.
February 27th, 2010 categories: Julie's Mortgage Tips
As each month goes by there is always a new wrinkle in the mortgage business. It may be new forms. It may be higher credit scores. It may be new appraisal rules. It may mean more of a down payment. It may mean a more expensive mortgage insurance. The FHA loan is making a big comeback as it may be cheapest route if the condo association can be approved.
This means that less people can buy homes or condos. It is getting harder by the month to get purchasers qualified for a loan. As a seller or buyer you need to start the process earlier and learn what to expect from a lender. Sellers need to know how their property can be financed. The buyers need to know as there are more and more forms to fill out and hurdles to overcome.
Lenders- They have much more work to do on each loan. Most have more time on their hands as many are just not busy. Many have dropped out of the business. Experience does matter in 2010. They need to have to condo experience as its gotten harder. Staying with a local office is highly recommended as the entire work can be done within the company. Ask for the people who are busy, there is a reason.
Sellers of Condos- Sellers need to see if their complex can be on the FHA list that will attract more buyers as the down payment and fees tend to be lower. You as a seller cannot wait but need to be proactive especially if the majority of the condos on the association are less than 300k. Your condo can just be more competitive to the buyer. The new rules took effect Feb. 2010. The federal government has not put many on the list in the last 15 years where people actually want to live. Think ahead and ask questions.
Condo Buyers- Start early and know the kind of loan you are getting. Give yourself more time to complete the process. Add ten days to get the deal done. Knowing the steps to purchasing is essential to a successful purchase. An agent with experience is more essential than ever. First time buyer, second home buyer, and move up buyer its all different in 2010. Do not rely on luck !
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New Orleans Mortgage Tips! Credit Scores are more Important than ever.
August 20th, 2009 categories: Julie's Mortgage Tips
Last week I was talking to one of my favorite Lenders Julie Baudier of Standard Mortgage about the quality of borrowers that she is getting. Many buyers cannot buy because they have low credit scores. Most loans now require higher credit scores. They are requiring more on FHA loans as well. So if you are in the thinking process now is the time to check your score and learn the ways you can improve your score.
The two main points are that your scores can be raised and they need to be checked every now and then. You need to have them checked on a regular basis as the credit agency’s make mistakes. Its easy to put things on but not so easy to take them off. Do not wait until you want to buy to get started. Starting earlier is better.
Tips to improve your FICO score: Increasing your FICO score may take time and often there is no quick fix. FICO scores reflect credit payment patterns over time with more of an emphasis on recently reported information that older information. · Pay off your bills on time. Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO score. · If you have missed payments, get current and stay current. The longer you pay your bills on time after being late, the more your fico score should increase. Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your FICO score fades as time passes and as recent good payment patterns show up on your credit report. And good FICO scores weigh any credit problems against the positive information that says you’re managing your credit well. · Keep balances low on credit cards and other “revolving credit”. High outstanding credit card debt can negatively impact your FICO score.
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Using a local lender can save you a lot of headaches!
July 19th, 2009 categories: Condo Knowledge, Julie's Mortgage Tips
Using a local lender that has a local back office can save you a lot of money, time and aggravation. Having the entire process local makes the people much more accountable to you and your needs. They have to deal with us on a local basis. They are just more accountable plus they are often time the most cost effective way to finance.
Making the call to an unknown person in Dallas or Atlanta is much like talking to the IRS, they just do not want to be bothered. The decisions are last minute. They do not understand our our local market and issues.
The interest rates are generally going to be the same or better. The cost are also gnerally going to be cheaper as well. Always ask for a good faith estimate to check out the cost. Ask if they have a lock in period and if the rates drops can you take advantage of the lower rates.
If your lender is late you may just blow the deal. Many sellers will wait for the loan but they do not have to wait. There are times when they will move to the next person or deal.
Ask around to see who has received good service and who has not. The out of town lenders can cause big problems. We will never hear from them again so the incentive to be crediable is long removed. This happens time and time again. That is why I am bringing it up. Tired of last minute suprises. We as agents have our favorite lenders becuse they get the job done for us and give our clients the attention the deserve.
It is especially true with condos to get the local person who knows the various condo associations and knows how to get the imformation they need. More and more deals are falling apart because the lender does not know the market. Just my point of View ! Eric
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The FHA loan, what are the Advantages in today’s Market?
June 19th, 2009 categories: Condo Knowledge, Julie's Mortgage Tips
The New Orleans real estate market has come alive in the last 4-5 weeks. Interest rates are still good closing at 5.5% today. One of the things I have learned in the last two to three months is the value of the FHA loan when it comes to condos and homes. There are several advantages which I will touch on briefly so you can get some ideas. It may save you thousands.
You still may be eligible for the $8000 tax credit that ends this November so check this out as well. Real Estate season started late this year but is now in full swing.
- The downpayment is 3.5% for an FHA loan where as Conventional financing is at least 10% and more. This has to be your primary home.
- The credit scores are relaxed and you do not pay extra for a loan if you have average credit as you may have to do with a conventional loan.
- The Mortgage Insurance is almost half of what a conventional mortgage is at this time. This is an insurance premium you will pay if you put less than 50% down. On a $200,000 loan the FHA fee is about $110 per month with the 3.5% down.
- The seller can give you up to 6% of the loan amount in concessions. For a condo this is going to be much less since insurances are in the condo fees. This will also help you pay for the FHA upfront insurance fee along with your other closing cost. This means you can get in for 3.5% if we figure the numbers correctly. This means if you borrow 200k, they you need $7500 of your own money.
The one big issue is weather the condo association can be financed by being on the FHA condo list or by doing a spot approval. Please chose a local lender as they will be far more knowledgeable than an out of town person. An agent can help you with the questionnaire to see if the condo may pass the requirements before starting.
Its always better to know that you will have a high probability of success. This is where a knowledgeable condo agent and lender are very valuable. Here is the questions that are asked to condo association to determine if you can do a spot approval. Spot Approval Process.
There are some very good lenders but there is a special one in Jeff Bollinger ” The FHA Expert ” is one who is an FHA expert in my eyes. He has a weekly blog that can answer many of your questions just by reading his thoughts and many comparisons he makes. A true expert indeed. This is where I go to look for answers when I need to have a question answered. He is not local but has the answers for everyone to read and think about.
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New Orleans Interest Rates Drop to New Lows! 4.6% What does that mean to you?
March 20th, 2009 categories: Julie's Mortgage Tips
The market is telling us we need more buyers to buy homes and condos. The rates plus willing sellers is making for some nice deals. You should also be thinking about refinancing possibilities if you plan to stay for two years as the payoff is quite nice. Here are some numbers. You save a lot per month. In two years at 200k you will save $4224 which is much more than the cost to refinance. Refinance Article Earlier on Cost of new loan.
Per 100k of loan your payment of principal and interest at 6% was $600 per month.
Now, at 4.6 % its dropped to $512 per 100k of loan, you save $88 per month
100k-save 88, 200k save $176, 300k save 284 per month
As a buyer your money is just going to go further these days. People with good credit are in the drivers seat as buyers. These low rates will last for a period of time. Then with the government spending over a trillion dollars per year more than they take in the cost of money will rise. I just cannot tell you when its going to happen but know it will happen.
There are a number of developers who need to clear their books of properties that are new or almost new in some great price ranges in Uptown New Orleans. Part of their problem is the slow market and the facts that people cannot get loans for new projects using conventional loans. This this adds to some very nice units that I have not seen before at these prices. There are not massive amounts but they are out there. Check it out!
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Jefferson Parish Grant Money for first time home buyers! Great way to start!
February 17th, 2009 categories: Grants and Incentives, Julie's Mortgage Tips
Jefferson Parish has several programs that can help you as a first time buyer for a home or condo. You have to be able to qualify for a loan and meet the income requirements. The purchase price has to be below $200,160. You start by getting qualfied for a loan through an approved lender. This will let you know what you can afford and if your credit score is sufficient for a loan. The loan itself can be FHA, VA, or Conventional. Call Julie Baudier at Standard Mortgage to get you started with the loan process 504-583-1793. This is your first step.
The home or condo has to be in good shape and should not need major repairs. Then you call the Jefferson Parish Community Developement Office. They will give you information on the classes and a certificate to get started.
A Real Estate Agent like Eric can then help you in selecting a property. Its well worth the time and effort as its a big, big help in getting started towards home ownership.
As per the Jefferson Parish Website ”The HOME Program funds assist first-time homebuyers in purchasing their homes by subsidizing closing costs and/or down-payment requirements in conjunction with loans obtained through the Jefferson Parish Finance Authority or other qualified lenders.
Qualified applicants may receive a level of assistance up to $50,000 determined by Community Development to be applied for the down-payment and normal closing costs. Participants will be required to grant a mortgage to the Parish in the amount of the assistance provided. This mortgage will be for a term determined by the amount of money received, non-interest bearing, and will be non-repayable if certain conditions are met. Eligible participants purchasing homes in the City of Kenner will receive a $10,000 grant secured by a deferred mortgage of 10 years.
Eligibility
Eligible participants include households that have not owned a home during the past three years. The annual maximum allowable household income limits, based on family size, are as follows. The annual income of a family of four cannot exceed $47,850.
1 – $33,500 2 – $38,300 3 – $43,050 4 – $47,850
5 – $51,700 6 – $55,500 7 – $59,350 8 – $63,150
Applicant Requirements
Applicants are required to complete a Preliminary Application with supporting documentation before being funding will be considered.
Applicants are required to attend two classes and must present an acceptable certificate of training completion before loan closing.
The monthly payment required to service the contemplated mortgage(s) may not exceed 30% of the monthly household income.”
You should also be able to get a federal tax credit as well if you buy by the end of the 2009 of $8,000.
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New Orleans Condo Buyers can get tax a credit of $8,000, something for Free !
February 16th, 2009 categories: Grants and Incentives, Julie's Mortgage Tips
Congress had a great opportunity to really jump start the housing market with a $15,000 tax credit open to everyone and anyone. Its hard to believe they thought it would cost too much. This move could have saved people tons of money and would have helped us with the bank bailout. Any incentive to increase demand is welcome.
I would have made it very simple and open to everyone buying a home or condo. Why put all these strings attached when we need to increase demand. It would lighten the load on sellers and banks costing American less in the long run. Incentives do work and when we need immediate spending this is the fastest way to make it happen. Much less than the bailout of Citi Bank alone by 10’s of billions. Where are the Nation’s thinkers?
However if you fall into this niche its something to take advantage of. Its like free money along with the tax advantages of owning.
“The good news is that there is an $8000 tax credit available for first time home-buyers! On Friday, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early next week.
$8000 tax credit highlights include:
- The $8000 tax credit is available only to first-time home buyers, no purchase in last 3 years.
- The $8000 tax credit is available only when the first-time home buyers buy a primary residence
- The $8000 tax credit is available only to first-time home buyers buying a primary residence between January 1, 2009 and December 1, 2009
- The $8000 tax credit does not require repayment after 3 years.
- The $8000 tax credit is claimed on a tax return and reduces the tax liability. If the credit is more than the tax liability, the unused credit will be issued as a check to the person claiming the credit
- If you sell the home within 3 years, the entire $8000 tax credit is recaptured
- Income limits of $75,000 for one and $150,000 for a couple.
For those of you who have been asking questions about the possible tax credit – the good news is that we now know what has been passed into law.
What this legislation should do is encourage first time home-buyers to buy a condo or home. What it will probably not do is encourage everyone who isn’t a first time home-buyer to buy a home.
And it remains to be seen exactly how much it will help the overall real estate market turn around.”
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