New Mortgage Help From the Obama Administration

After months of discouraging news on the state of the housing market, a new initiative unveiled by the Obama administration on Oct. 19 may just be what Americans need these days. The initiative is designed to support new lending among state and local housing finance agencies (HFAs), so low-and-moderate-income Americans can have access to low-cost housing.



For a long time, the state and local HFAs have helped over three million working families obtain financing for new homes, and have helped finance over three million affordable rental homes.



However, because of the housing crisis and credit crunch, HFAs experienced difficulties in raising money to help low-income Americans afford housing. The new initiative is expected to increase the number of mortgages supported by HFAs.



Under the initiative are two programs: the New Issue Bond Program (NIBP) and the Temporary Credit and Liquidity Program (TCLP). It is administered by the Department of the Treasury and the Department of Housing and Urban Development (HUD), in coordination with the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac.



The NIBP will provide temporary financing for HFAs to issue new mortgage revenue bonds. Fannie Mae and Freddie Mac will issue securities backed by these new mortgage revenue bonds. These bonds will in turn be purchased by the Treasury Department (using the authority granted under the Housing and Economic Recovery Act of 2008 [HERA]). Funds generated through these bonds may support several hundred thousand new mortgages for first-time homebuyers this coming year, provide opportunities for at-risk homeowners to refinance, and support the development of tens of thousands of new rental housing units for working families.



The TCLP is administered by Fannie Mae and Freddie Mac. Fannie and Freddie will provide replacement credit and liquidity facilities to HFAs. These will reduce the costs of maintaining existing financing for the HFAs. This program will enable HFAs to continue their work in providing affordable housing to low-and-moderate-income working families. In the event of loan defaults, any losses will be covered by fees paid by the state agencies.



It is not clear how much the Obama administration will be spending on the HFA bonds but it is estimated to be between $15 billion and $20 billion.



The duration of the program is also not announced.



Just like the other programs developed by the federal government, this new initiative entails some risks. One of these risks is that it encourages loans to individuals, who are really unable to qualify, which some critics point out is one of the causes of the housing meltdown. However, this initiative will certainly allow HFAs to offer Americans a product that not only provides flexibility and promotes sustainable homeownership but also fits the current economic circumstances.



Whether this program will provide a temporary or permanent solution to the housing crisis remains to be seen.

Poor Credit Mortgage Leads, To Avoid Or Not To Avoid

These days with the mortgage industry being the way it is, mortgage brokers and loan officers may be finding it tougher and tougher to close deals for people with poor credit.



Although avoiding poor credit mortgage leads all together may not seem like such a bad idea these days for some loan officers, all may not be lost.



If you are willing to reconsider the purchasing of mortgage leads with poor credit, here are a few things to look for.



For starters, look for a mortgage lead company that allows for you to view your mortgage lead before you buy it.



Also, make sure the mortgage leads you buy are fresh mortgage leads. Avoid the recycled mortgage leads because the information will be dated and inaccurate.



Most mortgage lead companies have a comment section on their mortgage leads. The comment section allows for the consumer to get a little more specific so a loan officer such as yourself will have a better understanding of their needs.



By having the ability to view a mortgage lead in its entirety including a comment section, you will be able to get a good handle on the customer's situation, what their needs are and wether or not you believe you have the resources to help them.



For instance, if the customer lists their credit score in the comment section of the mortgage lead, you will have a very clear idea of what you will be working with and if you have lenders available to go to should you buy the mortgage lead.



If the customer posts a comment such as "In foreclosure, the bank is coming tomorrow, need help fast," You will know that it is too late to help this person and to avoid buying the mortgage lead.



In short, viewing a mortgage lead with a comment section can give you the best indication as to wether or not you have the resources available to you to help the person.



As you already know, the LTV plays a huge role when it comes to a financial institutions decision as to wether or not they will fund the loan.



So look for the mortgage leads where the customer has a lot of equity in their home. This will help soften the blow when it comes to poor credit, or at least help their chances of being approved.



Another thing you can do is expand your resources, seek out the wholesale lenders who will still consider working with poor credit.



I realize finding these lenders will be tough, but the more tools you have to work with and the more lenders you have relationships with, the more deals you will close.

What Is A Home Loan Broker?

If you have shopped for a mortgage or are considering doing so, it can be difficult given the amount of advertising information floating around. This is where home loan brokers come in.



What Is A Home Loan Broker?



If you are considering the purchase of a property, refinancing your current loan or even getting a home equity line of credit, you have to work your way through the morass of mortgage advertising material. Given the vast amount of information on the web, radio commercials and television advertisements, how do you know which loan is best for you?



Well, you have to do a lot of homework.



You need to gather up the various information provided by the lenders and start comparing the offers. Issues to consider include points, interest rates, length of the loan, prepayment penalties and fees. Frankly, it is a lot of work and makes preparing a tax return look like a walk in the park.



One way to avoid this mess is to get someone else to do the work for you. In this case, the person is known as a home loan broker or mortgage broker. These home loan brokers are independent agents who shop through the various offers from lenders ever day.



All they do is mortgages, so they know the difference between a good loan and a bad loan. In simple terms, they do all the research for you.



When you use a mortgage broker, the process is so much simpler than doing it yourself. The broker will talk to you about your lending needs and pull your credit report. He or she will then tell you how a lender will view you in evaluating an application for a loan. The broker will then either suggest steps to be taken to improve your profile or provide you with the various options available to you.



The next step is actually applying for the loan.



Appling for a home loan is the ultimate in red tape and paperwork. A stunning amount of forms must be filled out and documents provided. If you hate to waste your time with this stuff, a broker is definitely going to help. Home loan brokers have a person called a processor on their staff. This person's job is to gather all of the relevant information and forms. They then put together your loan package per the lender's requirements and submit it.



When the lender inevitably loses something, the process is right there to get them the information. Essentially, it makes your life much easier.



The final advantage of a home loan broker is communication with lenders. If you have ever applied for a loan, you know the lender representatives are hard to get a hold of and rarely call you back. Brokers do not have this problem. Since brokers place a lot of loans with lenders, they get preferential treatment. They are a business source for the lenders, so you can bet the phone calls of the broker get returned immediately.



This, of course, is beneficial to you since the broker will be able to keep you appraised of where things stand with the loan.



Even a quarter percent savings on a home loan can save you thousands of dollars in payments over the life of the mortgage. Mortgage brokers are the best way to find that loan that is going to create those savings for you.

How Do I Get a Mortgage Loan Modification Fast?

Homeowners are about accepting accommodation modification approvals in 90 days. This fast about-face about amount is bidding added individuals to admission into this blazon of mortgage abatement program. There is no abracadabra in accepting advice in a few months if homeowners acknowledgment the questions in a reliable manner. Income and costs will charge to be absolute for accuracy, so it is astute to acknowledgment all advice to the best of your ability. This will annihilate the accommodation administrator from abiding any forms for added information.



Banking hardships charge to be accounting in detail anecdotic the accurate accident or contest that advance to authoritative mortgage payments burdensome.



Unemployment, bacon cuts, illnesses, and injuries are all acceptable affidavit for accommodation modification hardships. Accumulate all affidavit in a book that you can accredit to calmly if needed. The accommodation can advance after a block if all abstracts are accustomed to the accommodation aggregation in a appropriate manner.



Modification lenders are befitting their clip to ensure that homeowners will accept the aid they charge as bound as possible. Many homeowners are just a transaction abroad from foreclosure. This affairs can stop the foreclosure carelessness and accumulate homeowners in their homes.



Check over all advice afore sending or faxing it to your accommodation modification agency. Accumulate a archetype of all forms and affidavit for your records, just in case something is misplaced. Accumulate up with how your accommodation is processing with a simple buzz alarm or internet admission if available.



This affairs is meant to advance after any surprises, so break in blow with your lender to accomplish abiding your accommodation is candy in the actual and fastest time frame. Accomplish a absolute change in the aftereffect of your banking approaching by allotment to get a mortgage accommodation modification in the accepted 90 days. This is a admirable befalling to be able to advance your affairs in the address you desire.

Real Estate Terms For Buyers To Keep In Mind

If you are getting into the real estate market for the first time, a little knowledge can go a long way. Following are some lesser known, but key terms you should be familiar with.



Real Estate Terms For Buyers To Keep In Mind



If you are buying a home for the first time, it can be an emotional rollercoaster. On the exciting side, you are buying a home to live in and joining in on the American Dream. On the down side, you are committing to the payment of more money than you probably have ever made in your life, which can lead to sleepless nights till you get used to the idea.



To keep things in control, it helps to know a bit about certain terms you might run into the first time.



When buying your first home, you are undoubtedly going to take out a mortgage. There are a lot of issues that go into mortgages, but one is particularly important. In that vast swath of paperwork, there is a clause talking about acceleration. We are not talking about a car. Instead, this is the clause that lets the lender demand that you immediately pay the loan in full.



Don't panic. This can usually only happen if you miss payments, but make sure you read the clause to understand exactly where you stand.



On a more positive note is the idea of the cost basis of your home. This one is all about tax, particularly tax deductions. As far away as it may seem, you will actually sell the property one day. When you sell it, you have to figure out your tax on any profit. There are lot of things that go into that calculation, but it is important to understand that any improvements you make to the home while living there are added to your initial cost to come up with your deductible amount.



In practical terms, this means save every receipt related to home improvements and repairs. When it comes time to sell, you will be glad you did.



Finally, we will end with something positive that you will want to keep track of on a yearly basis. Owning real estate is all about return on investment from a financial point of view. To get a big smile on your face, just calculate the value of your home each year and divide by the value at the end of the previous year. For most people, this is the most fun they will ever have doing math.



Real estate can be overwhelming when you first get into it. This shouldn't keep you from jumping in feet first.

Things To Remember Before Selecting Mortgage Loans

Mortgage loans are the easiest way to own your house or

property. New low down payment and longer mortgage terms allows

people with low income or low cash to purchase their home by

taking home mortgage loans. The mortgage amount is the amount of

money you borrow from a lender to pay for your house.



Home mortgage loans are offered against collateral security of

the property you purchase. However, you possess the house you

purchase and have its ownership as well; the lender also has an

"ownership interest" on it until the loan has been paid.



The mortgage loan rates have come down, which makes the mortgage

loans attractive for borrowers. Mortgage loan rate varies

according to loan plans. Fixed interest loans have an interest

that is fixed for the entire loan tenure. Here the mortgage loan

rate never changes.



Another type of mortgage loans is flexible-interest mortgage

loans. The interest rate of flexible interest mortgage loans

increase or decrease depending on the market condition and the

national economy.



Consequently, your mortgage loan's term may go

up or down but the monthly mortgage payment will remain same.



Mortgage Loan Application Process



Mortgage loan application is filled in after deciding the

mortgage loan plan. This application for mortgage loans has

columns related to your personal details, income details, credit

history and the details of the property that you propose to buy.

You may be asked to submit documents as proof of information you

provided along with your mortgage loan application form.



On receiving the mortgage loan application, a mortgage loan

advisor will contact you for verification of the details. After

verifying your details and your income source, a surveyor will

survey the property and evaluate it. On successful verification,

you will be granted the mortgage loan amount to purchase your

home.



Things To Remember Before Selecting Mortgage Loans



Your home mortgage loans will be amortized in regular monthly

instalments.



The most popular term for home mortgage loans is 30

years. The choice of mortgage loan term depends on your repaying

capacity. A long-term mortgage loan plan has low monthly

repayments. However, you end up paying more interest on your

loan.



A short-term mortgage loan such as 10 or 15 years has high

monthly payment. However, the total interest that you pay on

that mortgage loan is lesser. Before you apply for a home

mortgage loan, calculate your current and future income and then

decide the period for which you need the mortgage loans.



We suggest you to choose a term for mortgage loans that has

comfortable payment plan to let you own the house and still have

sufficient funds to enjoy your life.

Mortgage Leads, Increase Your Closure Ratio

If you are a loan officer or a mortgage broker, and you are currently using a mortgage lead provider, or you are considering investing with one, one of the most important things you should take into consideration, is the closure ratio.



If you are closing anywhere from 5% to 12% of the leads you purchase, than you are doing very well according to the industry's standard.



Here are a few helpful hints to increase your closure ratio.



Keep in mind that a lead provider does just that, they provide leads.



It is entirely up to you to make the sale. Just because you were provided with a fresh lead doesn't mean you don't have to work to close the deal.



Most lead companies will sell their leads up to five times, so you are competing with other loan officers.



So, if you come across an objection over the telephone such as "I am no longer interested," it is most likely because they are dealing with somebody else at that point.



Here is something you can counter with . . .



Oh, that's to bad, after looking at your on-line profile, I was able to fit you into a really nice mortgage program with one of our lenders.



I can just about guarantee this will get their attention.



If this approach does not work, e-mail them with some attractive programs that you offer, or mail them out a flyer with a list of your products.



Whatever you do, do not give up after the first objection.



Remember, home buyers, and people refinancing their existing homes are very apprehensive, they are embarking on perhaps the largest financial transaction they have ever made, so put yourself in their shoes.



So, the friendlier you come off, and the more knowledgeable you sound, the better your chances of making the sale.



If you fail to have someone answer the telephone, and you have to leave a message, make sure the message is short, friendly, and informative.



Ask them to call back at their convenience to discuss a great product you know they will be interested in.



Remember. It is all in the approach and the inflection in your voice. The lead provider can provide the lead, but you have to work to get the sale. Best of luck with your leads.