Mortgage Matters (Notes from a Mortgage Ninja)

Top things that make mortgage deals very difficult!

2012-02-07T10:29:00.000-08:00

Periodically I see patterns of loans that just are not getting done and are too difficult to work on. This is just the tip of the iceberg of loan problems. To ensure you are getting the best mortgage advice from an experienced professional, I higly recommend working with a mortgage broker with minimum 5 recent years in the business and having done at least 100 loans of more. That ensures they have are knowledgeable and focused on the details that kill deals.

Currently, these issues are making some loans not worth trying. I highly recommend not working on them. In addition, t ties up processors and takes up excessive time and worse, do not close. If you see any of these indicators, please be very careful about originating them.

Problems:

1. Credit scores on ANY loans less than 640. That is Conventional, FHA, or VA. In know lenders they can do them. We have tried repeatedly and they can not deliver or the time lines are so long the deals die on their own.

2.       Manufactured homes. Forget it. They don’t get approved with most of the lenders today we have.

3.       One off deals. You know the type; 2^nd home, owned by a corporation, that assumed the note from the prior borrower and now grants it to the employee as a bonus.

4.      Commercial loans – While these can be done, the unique nature of each loan and difficulty of finding the right lender, precludes most mortgage brokers from being effective in this area. If you need a commercial loan, find an expert in that area. It will save you time, and increase the chances of a successful funding and satisfied client.

5.       Hard Money loans – We can do them but they are expensive, and I have yet to have a borrower agree to the terms. Unless the borrower is a bona-fied short term investor, it is typically not worth the time pursuing these. Having said that, there are times when private party funds are exactly they right thing. Read my blog article here: http://www.mortgagedave.blogspot.com/2011/03/private-party-financing-ppf-when-to-use.html

6.       Broken income, non reported income, non-occupant co-borrowers, second homes in the same city to get owner occupied rates, etc. Forget all these. They are far too difficult and most of them end up dead. Waste of your time, and more importantly distracts our processors from deals that can close.

7.      Non ARMS length short sale transactions – IF you become aware of one of these in your deal, don’t do it. The short sale lenders and new investors are getting very good a detecting these and fraud now under NMLS and/or FHA is a federal offense “felony”. Not worth it for you or the company for a few thousand dollars.

8.       Loan Amounts under $100,000 – Not enough “juice” in most of these. If they are out of state through don’t even try.

9.   High LTV refis – Most of the lender guidelines pretty much kill refinances where the LTV is over 90% except FHA/VA streamline refis.

10.   Be careful of condos. Be sure the project is FNMA or FHA/VA approved. No more spot approvals. Now some lenders will not do high rise (over 7 stories) or mixed use.

Rate Locks: In addition to these difficult deal killers, the other issue we fneed to be aware of keenly as I have mentioned before is rate locks. Rate locks generally should be ollow some general rules to insure they are likely to lead to a completed loan and satisfied client:

Have a completed, signed application, and signed full set of disclosures and accepted GFE.
Complete package of documents from borrower in the office (pay stubs, tax returns, bank statements, etc). You know the list.
At least a preliminary DU / AUS approval from the lender where the loan is going. No sense locking a loan that is not getting approved.
Borrower has paid for appraisal and it has been ordered it.
Minimum 30 day locks. Due to unknown issues that often extended underwriting and close times, I would give everything and extra 10-15 days.

Lenders all track pull through and are not happy when brokers or Loan Officers fail to deliver on locks. If you work with good lenders and can not afford to be cut off.

Yes, I know there are many variations on all these issues. But, taking the time to analyze deals and properly pre-package them makes the financing move much better. In addition, cances of sucessful transactions increase exponentially when we stick to what we know and are good at.

Dave Van Waldick
Mortgage Broker - 22 years and growing
Western Realty Finance
Home Ownership Financing ExpertsOff/Cell: 760-599-1261
NMLS#345616 / CA DRE# 01065844

Home Buyer pre-Approvals in 5 minutes: www.ePrequal.com

Housing and Economic Forecast Points to Rising Activity

2011-07-23T07:14:00.000-07:00

WASHINGTON, May 12, 2011
Home sales are expected to stay on an uptrend through 2012, although the performance will be uneven with mortgage constraints weighing on the market, according to experts at a residential real estate forum today at the Realtors® Midyear Legislative Meetings & Trade Expo here.
Lawrence Yun, NAR chief economist, said existing-home sales have been underperforming by historical standards and will rise gradually but unevenly. “If we just hold at the first-quarter sales pace of 5.1 million, sales this year would rise 4 percent, but the remainder of the year looks better,” Yun said. “We expect 5.3 million existing-home sales this year, up from 4.9 million in 2010, with additional gains in 2012 to about 5.6 million – that’s a sustainable level given the size of our population.”

Mortgage interest rates should rise gradually to 5.5 percent by the end of the year and average 6.0 percent in 2012 – still relatively affordable by historic standards.
“A huge volume of cash sales, supported by the recovery in the stock market, show that smart money is chasing real estate. This implies that there could be a sizeable pent-up demand if mortgages become more readily accessible for qualified buyers,” Yun said. “The problem isn’t with interest rates, but with the continuation of unnecessarily tight credit standards that are keeping many creditworthy buyers from getting a loan despite extraordinarily low default rates over the past two years.”
Yun said that if credit requirements returned to normal, safe standards, home sales would be 15 to 20 percent higher. He added that some parents are buying homes with cash for their children, and offering them loans which provide better returns than bank accounts or CDs.
Yun projects the Gross Domestic Product to grow 2.5 percent this year and 2.7 percent in 2012, adding 1.5 million to 2 million jobs yearly over the next two years. The unemployment rate should decline to 8.8 percent by the end of 2011 and average 8.6 percent next year, returning to a normal level of 6 percent around 2015.
Housing starts are forecast to rise but remain below long-term trends, reaching 603,000 in 2011, up from 595,000 last year, and continue growing to 908,000 in 2012. New-home sales are seen at a record low 320,000 this year, rising to 487,000 in 2012. “A recovery in new homes will be slow because of the extra price discount in the existing home market,” Yun noted. In March, the typical new single-family home cost $53,300 more than an existing home.
Inflation appears to be relatively modest for now, with the Consumer Price Index rising 2.9 percent this year. “We’ll be closely watching the impact of fuel costs on consumer spending and inflation – that would slow economic growth, job creation and home sales,” Yun said.
Apartment rents are trending up, and are likely to rise at faster rates as vacancies decline. Following the correction in home prices, it has now become more affordable to buy in most of the country. “Twice as many renters had enough income to buy a home in 2010 in comparison with 2005, so we have a much larger pool of financially qualified renters,” Yun said. “Rising rents and excellent housing affordability conditions will encourage potential buyers who’ve been on the sidelines.”
Yun expects the median existing-home price to remain near $170,000 over the next two years, which would mark four consecutive years of essentially no meaningful price change.
Frank Nothaft, chief economist at Freddie Mac, holds similar views on the outlook. “Economic activity will accelerate this year – there will be no double dip in the economy,” he said. Nothaft is more optimistic on job growth, expecting 2.0 million to 2.5 million jobs created in 2011 with unemployment dropping to 8.4 percent by the end of the year.
Nothaft expects the 30-year fixed-rate mortgage to trend up to 5.25 percent by the end of the year, and for home sales to rise 5 percent. “National home price indices are close to a bottom and prices are likely to bottom sometime this year,” he said.
Refinancing activity in 2011 will be only half of what it was last year. “As a result, banks may become more willing to lend to home buyers,” Nothaft said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

FHA squeezed, but still in game

2011-07-04T10:19:00.000-07:00

May 01, 2011 07:00AM

By Kenneth R. Harney

Is the Federal Housing Administration losing some of its post-boom, post-bust oomph? Is the Obama administration's plan to gradually throttle back FHA's home mortgage insurance volume already having effects -- and if so, what might this mean to buyers?

There are definitely signs that something's brewing:
• Total applications for FHA-insured single-family mortgages are down 30 percent year-to-year through March, according to the agency's data. Applications from prospective home purchasers are down 35 percent. FHA's popularity with buyers previously had sustained its high origination volumes.
• FHA put its second increase in premium charges in six months into effect on April 18. Higher premiums mean higher monthly payment requirements for buyers, and could have the effect of squeezing some consumers with tight budgets out of the market entirely.
• The private mortgage insurance industry, which competes with FHA for borrowers who make low down payments, is touting its newly resurgent conventional mortgage products, which may offer significant monthly savings when compared with FHA.

• Some of the agency's long-standing advocates are wondering aloud whether the administration's policy tilt toward more private-sector involvement in the mortgage arena may be hurting first-time buyers who can't bring large cash resources or high credit scores to the table.
For example, Mario Yeaman, senior loan officer for Milestone Mortgage in Manhattan Beach, Calif., said, "Here you have our last refuge for ordinary people to buy a home, and the government is making it tougher to qualify" by raising insurance premiums.

Brian Chappelle, a principal of Potomac Partners, a Washington, D.C.-based mortgage banking industry consulting firm, said he worries about the direction FHA has begun pursuing.
"FHA's role was designed to be the first rung on the homeownership ladder. If you raise fees, increase down payments and lower mortgage limits, it would be a serious impediment for future buyers and the economy," he said.
Chappelle's concern about higher down payments stems from the Obama administration's February "white paper" on housing reform, in which policymakers called for higher down payments across the board -- including at FHA. To date, no increases have been proposed by the agency, but some analysts believe that a move to a 5 percent minimum down -- up from the current 3.5 percent -- would not be surprising in the months ahead. FHA's maximum loan amounts might also drop significantly this October if Congress does not renew the current economic recovery law ceilings, which now top out in high-cost areas at $729,750. Given these developments, how does FHA financing stack up against rivals in the low down payment space right now? Private mortgage insurers have a quick response: They say their lower monthly costs already are winning back some of the business they lost to FHA during the rough times of the recession.

For instance, Radian Guaranty Inc., a major home loan insurer, claims that in the wake of FHA's premium increases, a low down payment conventional mortgage carrying its insurance coverage now requires monthly payments 15 percent lower than FHA-insured mortgages for borrowers with FICO credit scores above 720. Radian provided this cost-comparison example to illustrate: Say a buyer has got FICOs above 720, and you need a $285,000, 30-year loan with 5 percent down at a 5 percent interest rate.
The FHA mortgage would cost $1,806 in principal and interest per month. The same loan insured by Radian would cost anywhere from $1,530 a month to $1,753, depending on the type of premium payment plan the buyer chose. The cheaper alternative would involve an up-front cash payment of the insurance premium; the higher-cost alternative would involve standard monthly payments of the premium.
Brien McMahon, chief franchise officer of Radian, said in an interview that as a general rule, private insurance on low down payment loans will now beat FHA whenever the buyer puts down 5 percent and has a 720 or higher FICO, or puts down 10 percent and has at least a 680 FICO.
So does this mean that all buyers with low down payments should now abandon FHA in droves and switch to conventional loans? Hardly.
David Van Waldick of Western Realty Finance in Carlsbad, Calif., said the majority of FHA users can't fit into the private insurers' high-FICO, strict underwriting model, so those vaunted savings may be illusory. FHA, by contrast, continues to offer much higher and more flexible maximum debt-to-income ratios, far more generous underwriting and lower down payments, and will accept FICO scores that conventional lenders and private insurers won't touch.
Bottom line: If a buyer is purchasing a home with a small down payment, they should check out both FHA and the private alternative with their loan officer. It's true that FHA has just gotten a little more expensive. But it may still have the total package needed to do the deal.
Ken Harney is a syndicated real estate columnist.

Private Party Financing "PPF" - When to use it vs. a FNMA/FHA Loan

2011-03-21T09:11:00.000-07:00

Brokers, Agents, Investors, and Network Affiliates:
With over 5 million people having lost their homes in the past 3 years, and many millions more who have lost jobs and income and seen their credit ratings shot to heck, the question rises over and over, Is Private Party Financing “PPF” i.e. “Hard Money” an appropriate loan for real estate buyers?

The short answer is yes. More now than ever. While there are scenarios that lend themselves to PPF better than others. A growing portion of real estate sales will be financed with some version of PPF. There are of course various categories of PPF, that come up.

1. Seller Carry “WRAP” financing. - This is typically a case where the seller does not need the equity upon sale, or has no equity and is able to sell the home at a price that will eventually get the out of ownership without the buyer needing conventional financing at time of initial sale. The carry period for these can be anywhere from 2 years to 5 or more.

2. Lease w/ an Option to Buy. - This is in fact a type of private party financing of a sale yet to be determined. The structure can even be recognized in some cases as a “financing” for IRS tax purposes. Thus giving the Lease Option Buyer the rights to take a tax write off as an interest deduction. (Check with you CPA or Tax Advisor before trying this one.).

3. Asset Based or Private Party Financing. Better know as “Hard Money”. This is the area that I have become most interested in recently. While it is certainly nothing new, the growth of this type lending and the opportunities it opens up have become significant. Below I will illustrate how well it fills the void in particular for those with recent short sales, foreclosures, B/K’s, and other credit issues. What makes PPF financing attractive is that the lender is typically looking to the equity in the property and some measure of income or appreciation and profit from sale of the property. In simple terms, the PPF lender is your financing partner in the transaction. You should consider them as such. Hence, like you, they are investing their funds into something they reasonably anticipate to make a profit from and if necessary will in fact take possession of the property to liquidate there position if necessary. This is what brings to mind the term hard money. A bit of a misnomer to me, but a reminder that they will look to the property for exit strategy if necessary.

Let me illustrate an example that my office is currently working in that shows why the PPF terms not only make sense to do the deal, but make it fun again instead of having to deal with FNMA and FHA lenders and underwriters. The following example assumes an investor purchasing a single family detached home for investment income and appreciation.

Acquisition Scenario #1 – Conventional

Purchase Price: - $145,000
Down Payment: 43,000 (30%)
1st TD Loan Amt: $102,000 (70%)
P&I Payment: 579/mo (@5.5% fixed)
Tax & Ins 145
HOA Fee: 150
Total Housing: 869/mo
Rental Amt: 1,500/mo
Assumed Selling Price: $205,000 (3-5 year hold
5 Year Hold Rate of Return “IRR” : 26%
Cash on Cash annual Coupon Rate: 4.5%
*(Complete Financial Analysis available on request.)

Acquisition Scenario #2 – Private Party Financing “PPF”

Purchase Price: - $145,000
Down Payment: 43,000 (30%)
1st TD Loan Amt: $102,000 (70%)
P&I Payment: 1,062/mo Year 1 (Interest Only @ 12.5%)
P&I Payment 579/mo Years 2+ (Prin & Int @ 5.5%)
Tax&Ins 145
HOA Fee: 150
Total Housing: 1,375/mo
Rental Amt: 1,500/mo
Assumed Selling Price: $205,000 (3-5 year hold)
5 Year Hold Rate of Return “IRR” : 23%
Cash on Cash annual Coupon Rate: 1.0% yr 1, and 4-5% subsequent years
*(Complete Financial Analysis available on request.)

This analysis compares a typical conventional financed purchase as non-owner occupied vs. a Private Party Financing. The PPF financing assumes a refinance in 12 months to conventional rates after stabilization of rent and full loan qualifying. The investment assumes we purchase the property for a 3-5 year investment horizon or beyond.

The net effect seen in the Internal Rate of Return “IRR” or Investment Managers Return for the hold period is reduced from 26% down to 23% when we use PPF. And while this is a reduction of the investment real return, the flexibility of private party funds can not be over emphasized. The benefits range from quicker, easier funding, easier qualifying, relaxed credit standards (for clients with short sales, B/K’s, foreclosures in the last 36 months!), no concerns about junior financing (2nd td’s, mattress money, etc), easier appraisal process, and in most cases lower closing costs aside from points paid. Thus my analysis, over and over is that 25% of investment purchases and some lesser percentage of owner occupied purchases are better financed with Private Party Funds “PPF”, other wise known as Hard Money. Most importantly, YOU GET THE DEAL DONE!

There are many lenders available these days who provide Private Party or Hard Money loans. The one I have find over and over that provides attractive good pricing, fees, loan to value as high as 70-80%!, funding in 5-10 days, and just good service is a company out of San Diego called Thor Financial, Inc. Attached is a marketing flyer which talks a little about them. You can also visit their web site at http://www.thorfinancial.com/ . I know the President, Brock VandenBerg from our previous work together at Key Bank and can tell you he is a straight up guy interested in lending on reasonable investments at reasonable terms. Thor Financial has substantial funds to invest and is aggressively looking for the right investments.

For more information on Thor Financial loan programs or to pre-underwrite your transaction, email me here or call me directly to help you assess your transaction or desire to find and finance the investment that may be right for your portfolio and retirement planning.

Dave Van Waldick
Principal/Broker
P: 760.599.1261
Western Mortgage
Western Realty Advisors
Office: 701 Palomar Airport Rd., #300 Carlsbad CA 92011
CA DRE. Lic#01065844
NMLS#304870 / Co. #345616

President 2011 - San Diego Chapter - California Association of Mortgage Professional “SD-CAMP”. http://www.sd-camp.org/

"Home Buyer pre-Approvals" http://www.eprequal.com/, ePrequal.com, LLC is trademarked.

ePrequal.com gets a face lift and added features with it's soon to be released 2.0 version.

2009-09-18T08:29:00.000-07:00

ePrequal.com, the revolutionary home buyer pre-approval system developed by Dave Van Waldick is about to be released with a fresh new look and feel.
Once again, home buyers, Realtors and Loan Officers will be able to get buyuers pre-approved to buy a home online in just a few shot minutes. They simply go to the short interview screen, answer the qustions to the best of their knwwledge, submit the request to our automate underwriting system "AUS" and they recieve a pre-approval back within 1 minute. If they are approved they receive a high value report including a Preapproval Certificate, a detailed Financial Summary of the transaction, an (Optional) Creit Report with Scores, and more. All this for FREE! In addition to the home buuyer applicant receiving thier pre-approval, any designated Realto, Loan Officer of other affilate designated by the buyer/agent will immediately be notriifed of the preapproval and recieve the information relavant to thier need to know.

ePrequal.com streamlines what has traditionally a lenthy cumbersome process taking hours to days to get a response to, and turns it into a 5 minute online event that anyone can comlete in the privacy fo their home or office 24/7.

Listen while the President and eveloper of ePrequal.com describes the benfits of this great new online service.

Home Owners For Hope Foundation

2009-08-28T07:32:00.000-07:00

Dave Van Waldick recently started a non-profit organization called Homeowners For Hope Foundation, to help voice the frustrations of millions of Americans at risk of foreclosure in the next 6-12 months. This after the government gave $120 BILLION dollars to the 4 major banks (B of A, Wells Fargo, Chase, and Citi) to help homeowners, the banks continue to ignore, confuse, and intimidate homeowners so they can be more profitable.

Dave recently organized and led a home owner support rally in downtown San Diego in front of Chase Bank. With supporters holding signs and walking in demonstration they were able to attract local news Channels 10 and 4 for interviews. Channel 10 news anchor Steve Fiorini and his crew spend almost an hour interviewing the H4H.org group, as well as noontime pedestrians and homeowners who have been foreclosed on. We thank the news stations for the coverage and support of millions of hard working taxpayers who only want to prevent losing their homes to foreclosure and move on with taking care of their families and re-gaining financial stabilty.

Fore more on Home Owners For Hope Foundation please visit http://homeowners4hope.org/

Why Aren’t Lenders Doing More Loan Modifications?

2009-08-27T10:07:00.000-07:00

What type of help can be expected from the lenders and servicers?
Typically, when a borrower falls behind on a mortgage, there are few programs available to help them get current. Refinances are generally out of the question, and bankruptcy is not a viable option for most people. What can homeowners then expect from the Servicer?

Read more here: http://tinyurl.com/nc6kew

First Time Homebuyer Tax Credit

2009-03-09T06:55:00.000-07:00

HOUSING AND ECONOMIC RECOVERY ACT OF 2008

The Treasury Department has moved at record speed to implement one piece of the new American Recovery and Reinvestment Act of 2009 Act aka the stimulus act.

The Department and the Internal Revenue Service which will manage it announced on Wednesday, February 25, that forms and regulations are already in place for homebuyers who wish to claim the first-time credit enabled under the act.

The credit is available to homebuyers who purchase a home before December 1 of this year. In an effort to make the effects of the credit felt quickly in the economy, homebuyers can claim the credit either on their 2009 tax return or immediately on the 2008 return due in April.

The tax credit represents 10 percent of the purchase price of a home up to a maximum of $8,000 or $4,000 for married taxpayers filing separate returns. The $7,500 credit that was authorized under earlier legislation last year was actually a 15 year loan; the new tax credit does not have to be repaid by the homeowner under ordinary circumstances.

The credit does have to be repaid if the homeowner sells the home in less than 36 months or if the home ceases to be his principal residence during that time.

For the purpose of this credit, a first time homeowner is defined as one who has not owned a home for the 36 months ending on the date of purchase.

The credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly. Above those income levels the credit is phased out gradually.

Homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit. They are covered by the earlier legislation and can claim the $7,500 repayable credit.

Forms and instructions for claiming the credit on 2008 tax returns are available at http://www.irs.gov.

Think like an Investor! "Look where the puck is going to be."

2009-02-03T06:29:00.000-08:00

Refinance now, or wait for the perfect rate?

People ask a lot these days what the best refinance rate is they can get. And, will the rates get lower? My crystal ball is no clearer than anyone else’s. One of my mentors at Wells Fargo Bank years ago claimed, “The best predictor of where interest rates will be is where they are right now”. True as it may be, it doesn't answer our question. Financial theory also proposes that market prices reflect all currently known information. As borrowers and investors in real estate, we must then make assumptions about what the future holds.

With that in mind, what does the future hold for each of us and the collective market? What impact on mortgage rates, and should we lock today or wait? We know we are at historically low interest rates due to the economic upheaval and reduced demand for products that require financing such as mortgages, autos, credit cards, etc. This has created a great opportunity based on history to lock in these low rates. The question is - can it get better? We simply don’t know for sure. I could argue both sides of that question and come up with plausible reasons to wait for the perfect day to lock in the lowest possible rate. We recently had such a day, and a market frenzy. No sooner than we thought we were about to get the best, the market abruptly reversed itself for varied and competing reasons, rates have rapidly trended back up. So, here we sit again at about 5.0% , wondering when and if it goes back down to 4.75% or even 4.5%? Wouldn’t that be great!

As consumers we are always looking for that extra small discount or a special sale. We should be thinking and acting like investors. Investors seek out stable, predictable, low cost credit to finance real estate investments for the 10-20 year long run. Since our real estate is truly a large investment in our future in many ways, we should perhaps pay attention to those who have dedicated long careers to making smart moves and locking in sure things for the future.

This past week I had the pleasure of listening to a rare dialogue with two investment managers who some consider perhaps the best in the business of guessing the direction of interest rates for their near trillion dollar investment portfolios, Bill Gross, the CEO of Pimco bond funds, is the largest bond fund manager in the world. His life revolves around interest rates, credit, and bond instruments like treasuries and mortgages. The other is a less visible investment manager who’s name escapes me but was described as one of the most successful over the past 40 years.

Both managers are investing hundreds of millions right now, on the assumption that interest rates will rise dramatically within 3-5 years. They will likely reach the double digit level of the late 70’s and early 80’s. Largely due to the huge need of the government to finance the 2-4 trillion economic stimulus now being promoted stabilize the economy. In addition, the ever growing baby boomer retirement needs will add a financial burden to an already over taxed government budget and entitlements. Bill Gross’s position is that treasury rates, which directly impact mortgage rates, will rise again to 8% or more. That easily places mortgage rates of 9-10% or more. The other individual was even more concerned and suggests long term treasury rates could go to 17% as they have before. Ouch!

Hence the answer to the question. Think like an investor, lock in today’s rate and plan for the sure thing. The risk of waiting another 3-6 months to time the market, leaves one exposed to dramatic upward rate moves if the housing market shows even the slightest indication of a recovery and, or, the stock market and oil prices turn upwards again. To emphasizes the point, a loan amount of $300,000 saves approximately $23/mo. for every 1/8 percent rate decrease. The typical borrower now has a rate of around 6.25%. The payment savings of reducing that to 5% is about $237/mo. Or, $2,844 per year and roughly $56,880 over 20 years, etc. Waiting to save an extra 1/8 – 1/4 percent to save an additional $46/mo or $11,040 over that same 20 years could cause a missed opportunity to save $56,800, plus the additional benefit of investing that money or paying off high interest rate credit cards, etc that could double that return over 20 years.

For those with adjustable rate loans, the temptation is to keep their now low rate for a couple of years and then lock before the rates go up. Chasing upward interest rate moves is like chasing the outgoing tide. It is always just ahead of you and you are afraid to jump in until it is too late. If interest rates indeed do go up dramatically, ARM rates could go over 10%. This would be painful for those planning on retiring in their homes with low payments. Is an extra 1/8 percent or a couple hundred in costs worth the risk? Think like an investor and where you may be in 5, 10, or 20 years. Lock in a great fixed rate for long term benefits and financial security in retirement.

If someone you know needs to refinance their mortgage, I can quickly provide a detailed financial analysis showing the new loan terms, closing costs, and monthly savings and long term return on investment.

Dave Van Waldick
Principal / Broker
Western Realty Finance
888-930-4223
http://www.wrfco.com/ – We make home loans easy!
http://www.eprequal.com/ Get prequalified in 5 Minutes online.
Twitter: http://twitter.com/MortgageDave - You have questions. I have answers.

Fix our Mortgage Credit Now!

2009-01-13T07:24:00.000-08:00

Proposal for Housing Market Stimulus via a mortgage "Credit Moratorium"...

Dave Van Waldick, a mortgage and real estate industry veteran, has proposed a mortgage credit moratorium platform that ensures a sorely needed short term stimulus to the housing market. His proposal has been submitted to a local Congressman, as well as mortgage and housing industry participants and advocates. His proposal below, summarizes his belief that as many as 2-3 million potential home buyers could re-enter the housing market in a responsible manner within 6-24 months without having to wait 3-5 years as has been suggested by HUD and FNMA in recent undwerwriting changes.

"As a 25 year participant of the mortgage industry, and 18 year owner of a residential brokerage, Western Realty Finance, I have provided thousands of mortgage loans to home owners over the past 18 years. As such I am acutely familiar with the virtual destruction of much of the housing and mortgage markets. We have watched intently for the past 3 years as housing sales have collapsed, and contributed significantly to the broader economic demise of the national economy and the world wide recession.

We have watched closely the news coverage as both industry and national political figures wrestle with the problems and propose solutions. Arguably, no one really knows how to fix this in a clear and meaningful manner. Fiscal and monetary stimulus is the traditional macro-economic tools employed by the Federal Reserve, the Treasury, and Congress to manage the economic cycles. This one has us all largely confused as it is so closely tied to consumer behavior that has been directly impacted by rapidly declining home equity and the multi trillion dollar loss of real wealth.

The proposal has the potential of quickly and significantly increasing housing sales by as many as two million units or more, and can benefit industry participants without being mired in mortgage industry complexity. It is relatively straight forward and has an immediate cause and effect to stimulus home buying. It is clear, simple, and relatively low cost.

I propose a “Credit Moratorium” for would be owners who’s credit and home buying ability has been impaired by mortgage late payments and/or short sale and foreclosure actions during the period between 2007 and 2009. Essentially, set back the credit clock for homeowners who have experienced mortgage delinquencies, and/or foreclosures due to market circumstances largely beyond their ultimate control. These proven buyers can then more readily become homeowners again, as long as their overall consumer credit is current, and they have the verifiable income and assets to buy a home that fits their budget. This has a huge beneficial impact on millions of homeowners who are locked out of the market for 3-5 years due to unfair current credit guidelines regarding mortgage foreclosures and short sales in this unprecedented time. It has a host of benefits, and is easily and inexpensively implemented by federal mandate. The national credit repositories would, within approved guidelines, restore mortgage late reporting to zero or no more than a minimal 30 days late, between 2007-2009.

I believe this to be worthy of federal level consideration and would certainly be a strong beneficial position and solution for the housing sector and all it’s the interested constituents and parties. This may be one of the most powerful consumer demand side tools available, at a minimal cost and could be quickly and clearly implemented. "

David Van Waldick,
President
Western Real Finance
760.599.1261
email: Dave@wrfco.com

First Time Home Buyer Tax Credit

2009-01-12T10:24:00.000-08:00

First Time Home Buyers are eligible for a $7,500 Tax Credit

What is the definition of a first-time home buyer?
The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

How do I claim the tax credit?
Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

What types of homes will qualify for the tax credit?
Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

For more information.. www.federalhousingtaxcredit.com

Prequalify to Buy a Home Instantly Online 24/7

2009-01-06T08:58:00.000-08:00

WRFCO, Interactive launches ePrequal.com, instant mortgage Prequalifying service for home buyers and agents...

Home Buyers, Real Estate Agents, Loan Officers, and Affinity Groups, will now have Internet access to powerful loan qualifying and real estate closing services... Carlsbad, Ca. --WRFCO, Interactive an innovative developer of internet based mortgage and real estate business development tools and technology, and provider of mortgage and real estate brokerage services and announced the release of their much awaited Internet based service ePrequal.com. www.ePrequal.com ePrequal is a mortgage pre-qualifying and real estate transaction analysis tool. Designed by professionals for professionals and home buyers.

Developed by field experienced experts for today’s fast paced E-commerce real estate and lending environment. It is for closing agents (realtors, loan officers, attorneys, financial advisors, etc.) to provide home buyers immediate knowledge on how to how to get to the closing table and what to expect when they get there. It is an Internet delivered, interactive service that provides consumers and their sales agents immediate answers when considering mortgage options and buying decisons. "It’s like having immediate access to an experienced loan officer, an underwriter, at your fingertips". The agent and consumer are afforded an opportunity to make early informed decisions, in a low stress environment with no sales or closing pressure, either at their home or the agents office where questions can be asked and answered in short order. The service analyzes the buyers loan needs and attempts to match then with the best overall loan options from multiple available direct lenders nationwide.

The exclusive service will extend ePrequal.com’s unique mortgage and real estate related services to consumer and business subscribers. Sales Agents or consumers fill out an easy, secure, online interview form and their secure profiles are analyzed for prequalification and loan choices, and the results are returned to them immediately for further action. It also offers an industry unique warranty for re-imbursement of up to $1,000 to the home buyers for out of pocket expenses such as appraisals, inspections, credit reports, etc., in the event they are unable to obtain credit within 90 days. ePrequal.com was developed by WRFCO, Interactive, an Internet marketing company dedicated to empowering home buyers and real estate and mortgage industry professionals in identifying, negotiating, financing, and closing the residential real estate transaction. ePrequal.com offers an integrated suite of Web-based tools, including SmartAnalyzer, RealCert, SureClose, QuikUDW, SmartQualifyer, SmartCloose, SmartCloseStatements, and QuikApprove. These tools combine to make ePrequal.com a valuable service for consumers as well as real estate and mortgage industry professionals nationwide.