For homeowners who are 62-years-old or older, the FHA also offers a reverse mortgage program known as the Home Equity Conversion Mortgage (HECM). Through this program, seniors can withdraw some of the equity in their homes. While some use the funding to supplement Social Security, others use it to make home improvements or to pay for unexpected expenses. Regardless of how the funding is used, the program is available to eligible seniors whether they originally purchased their home with an FHA loan or not.

Borrowing Money Through the HECM Program

Through the HECM program, seniors can borrow money even if they do not have a regular stream of income. Unlike second mortgages and home equity loans, you do not have to meet income qualifications and you do not need to make monthly payments when you take out a reverse mortgage.

Rather, you receive monthly payments or a line of credit based on the amount of equity in your home. Through the HECM program, you have five payment plans to select from. These include:

• Tenure – you receive equal monthly payments for as long as you live and continue to occupy the residence
• Term – you receive equal monthly payments for a fixed period of time
• Line of Credit – you can take out unscheduled payments whenever and as often as you like until you have fully exhausted the amount available
• Modified Tenure – you receive scheduled payments while also having a line of credit available to you for as long as you remain in the home
• Modified Term – you receive scheduled payments while also having a line of credit available for a fixed period of time

If you sell the home or if the home is no longer used as your primary residence, the cash, interest and other HECM finance charges you have accumulated must be repaid. Any equity left in the home after the loan is repaid will belong to your spouse or your estate, but no debt is passed on to your heirs.

Qualifying for the FHA’s HECE Reverse Mortgage Program

To be eligible for the FHA HECM program, you need to be a homeowner who is at least 62 years of age. You must also have a low mortgage balance that can be paid off at closing and you must own your home outright. Furthermore, you must actually reside in the home for which you wish to obtain the loan. The amount that you can borrow with your FHA reverse mortgage loan will depend on several factors. Some of these include:

• The age of the youngest person borrowing the money
• The current interest rate
• The lesser of either the appraised value of your home or the HECM FHA mortgage limit or the sales price of the home
• The Initial Mortgage Insurance Premium, with the option to choose from between the HECM Standard or the HECM SAVER

Keep in mind that you will be able to borrow more money if you choose the HECM Standard option. Also, the more valuable your home, the lower the current interest rates and the older you are, the more you will be able to borrow.

Examining the Length of Your Credit History

In looking at the length of your credit history, there are several things that are taken into consideration. These include how long ago your current accounts were opened, the type of accounts you have open and the amount of time that has passed since you had any activity on your account. The longer you have had a particular account open and active, the better it will impact your overall score.

This is because an account with a long history is able to more effectively tell a story about your financial responsibility than an account that has only been opened recently. If you have managed to responsibly handle an account for several years, it will have a positive impact on your overall credit score.

Keeping Your Length of Credit History Score High

Since the length of your credit history will have an impact on your credit score, you want to be sure to keep your longstanding cards in place. While it is certainly bad to have too many credit cards and too many open lines of credit, a subject we will discuss in more detail later in this series, you also need to keep your long credit history in place.

Therefore, if you choose to close out credit accounts in order to reduce your line of credit or because you are trying to get your financial situation under better control, be sure to use some caution regarding the accounts you choose to close. Closing out an account that you have had for several years could potentially result in a negative impact on your credit score.

The same is true when it comes to use of your accounts. If you have had a credit card for several years, but you have not used it for a very long time, it is doing nothing toward helping you improve or maintain a high credit score. Therefore, if you do have credit cards, you should use them on a regular basis in order to keep building your credit rating.

Of course, accumulating debt on your credit cards is also a bad idea. To get the most out of your credit cards while remaining debt-free, consider setting up your bills so they are automatically paid out of your checking account. Not only will this ensure your bills are paid on time, but your credit cards will be used regularly, and you only need to make one monthly payment toward your credit card.

Buy a home in Las Vegas, Nevada!

One of the most happening cities in the whole of the United States, Las Vegas is the home of the hip and the hop. People who want to stay in the loop and enjoy their life to the fullest live here, and with beautiful places such as the Grand Plaza Hotel and the world’s largest casinos, this is like a heaven on earth.

Those who think that buying a house in Las Vegas, NV will require a huge budget are sorely mistaken, because help them in getting the best deals that are available! Even if you are looking for a house on rent or an affordable piece of land, our real estate agents will help you in getting the best possible deals in this city!

Why should you buy a house in Las Vegas, NV?

Did you know that in 2009, more than 37.3 million visited this city? The amount of activities and enjoyment that you can choose possibly endless, so rather than becoming a visitor, why not own a home? Property prices are different from place to place, and we will help you in getting the best deal according to your requirements.

There are 20 bus services, as well as around 350 limousine companies that are currently operational within the city. The Citizens Area Transit also provides 31 routes throughout Las Vegas. The city has some of the regions best museums that house a range of historic items and artifacts, making it extremely easy for children to learn about area history.

Attractions such as the Grand Canyon, the Bonnie Springs, Mt. Charleston, Death Valley, Red Rock Canyon and the Valley of the Fire State Park also add extra incentive. There are over 184 primary schools as well as the University of Nevada in this city.  Recreational activities are extremely abundant throughout the city.

Property Facts in Las Vegas, NV:

The average listing price for houses in this city is $273,110, which is very affordable. Prices can also go as low as $100,000 in value towards the eastern side near the Hazelcrest District. The Median Sales Price  in the city is around $109,000. Each year, over 12,000 houses are sold.

The most popular neighborhoods in Las Vegas include Summerlin, Rainbow Boulevard and Homestead Road.  You can also build your dream home by buying land, the prices of which generally start from $87 per square feet on an average.

We can help you in getting the best deal in Las Vegas, NV, so why not buy a home today in Sin City? Speak with one of our Las Vegas experts today!

If you are interested in purchasing a manufactured home, there is an FHA program available to help you get the funding you need. While some lenders are reluctant to loan money for manufactured homes or manufactured home lots, the Title I loan program available through the FHA can help you obtain approval for your loan.

Purchasing a Manufactured Home with the Help of the FHA

With a Title I loan, you can borrow money to help purchase a manufactured home only, a manufactured home lot, or a manufactured home and lot. While the maximum dollar amount can be increased by up to 85 percent in certain areas that have been designated as high-cost, the loan maximums that can be borrowed under the program are typically as follows:

• Manufactured home only: $69,678
• Manufactured home lot only: $23,226
• Manufactured home and lot: $92,904

When borrowing for a manufactured home only, you may obtain a loan for up to 20 years. For a manufactured home lot, the term can be as long as 15 years, while the maximum term for a manufactured home and lot is 25 years.

Furthermore, while you will have to negotiate the interest rate with the lender, obtaining an FHA-insured loan means the lender is required to keep the interest rate fixed throughout the entire term of the loan.

While the funds borrowed for a manufactured home may not be used to purchase furniture, you can finance the funds necessary to purchase wall-to-wall carpeting, equipment and built-in appliances for the home.

Determining Your Eligibility for a Title I Manufactured Home Loan

To be eligible for a Title I manufactured home loan, you and the home or property must meet certain eligibility requirements. As the borrower, you must have the necessary funds available to make the required down payment and you must demonstrate the ability to make payments on your loan while other paying toward your other expenses. Furthermore, you must live in the manufactured home as your principle residence.

For the property to be eligible for a Title I manufactured home loan, you must select a suitable site for the home to be located. The home may be placed on an individual homesite that you either own or lease, or it may be in a manufactured home park that meets the necessary FHA guidelines.

The home itself must meet the Model Manufactured Home Installation Standards that have been determined by the FHA and it must be covered by a one-year manufacturer’s warranty if it is a new unit. Furthermore, the home must have adequate water supply and sewage disposal facilities available.

We at the Snyder Group wish

you all a Happy Mother's Day!

May your day (and the days ahead)

be filled with much laughter,

love, family and friends!

While the type of credit you have opened in the past will have an impact on your credit score, the amount of new credit you have will also have an effect. Like the types of credit category discussed in the first part of this series, your new credit will also account for 10 percent of your credit score. Unfortunately, this is where you can negatively impact your credit score if you are not careful about your current financial activity.

Exploring Your New Credit History

When calculating the new credit category of your credit score, several things are taken into account. Primarily, the core is determined by examining the number of financial accounts you have recently opened.

Not only does this involve looking at the number of accounts that were opened, but it also involves examining the proportion of new accounts to those that you already had opened as well as the type of accounts you have recently opened and how much time has passed since your most recent accounts were opened.

In addition to examining the number and type of new accounts that have been recently opened, the new credit category also considers the number of recent inquires into your credit history and the amount of time that has passed since your most recent credit inquiries. This portion of your credit score is also impacted by whether or not you have re-established a positive credit history after having experienced payment problems in the past.

Keeping Your New Credit Inquiries Under Control

In order to keep this portion of your credit score favorable, you should take steps to avoid opening any new accounts prior to taking out a mortgage loan. This way, you will not have to worry about experiencing any negative consequences related to having too many credit inquiries or new accounts.

Keep in mind that a credit inquiry will be noted on your credit report every time you apply for a loan or a credit card. Therefore, if you are doing a lot of shopping around for the best rates on a credit card or loan, this may have a temporary negative effect on your credit score.

If you have no choice but to shop around for a loan or credit card shortly before getting a mortgage loan, be prepared to write a short narrative explaining why you have had so many recent inquiries into your account. This information will allow the lender to better determine your overall credit risk.

Whether you are purchasing your first home or not, you may be eligible for an FHA loan if you are interested in purchasing a fixer-upper. Also referred to as a “Handyman Special,” these homes are in need of repairs and improvements. While most lenders will not issue loans for these types of homes because they are in disrepair, the FHA 203(k) loan program can help you obtain the money you need to purchase a fixer-upper.

Buying a Fixer-Upper with the Help of the FHA

Just as with the 203(b) FHA program, the 203(k) program allows you to purchase a home with a down payment of as little as 3.5 percent of the cost of purchase plus the cost of repairing the home. Therefore, before you can obtain a 203(k)-backed loan, you will need to first provide the lender with an estimate of the repair cost.

Still, unlike a traditional loan where you cannot obtain a loan until after the repairs are complete, as 203(k) loan allows you to obtain the money you need to purchase the home as well as to make any necessary repairs.

Obtaining a Loan for Your Handyman Special

Since a 203(k) loan involves calculating the price of the home as well as the cost of repairs. Therefore, the first step in obtaining one of these loans is to conduct an analysis of the property in order to determine the extent of the work that needs to be done. With the help of a real estate agent, you can then enter into a contract with the seller.

The contract should specify that you are seeking a 203(k) loan and that the contract is contingent upon approval. Next, you will need to provide a detailed proposal to the lender. Your proposal should include the cost of the house as well as an estimate for each repair and improvement you intend to make.

After you provide the necessary information the lender, the lender will then appraise the value of the home after the renovations are complete. If the appraised value is high enough and if you demonstrate the required creditworthiness, you will receive a loan in the amount needed to purchase the home, to pay for remodeling and to cover the allowable closing cost. 

The loan will also include a contingency reserve of anywhere from 10 to 20 percent of the remodeling costs. This way, if any work is needed beyond the costs covered in the original proposal, the funds will be available to you. 

At closing, the cost of purchasing the home is paid to the seller. The rest of the funds are then placed into an escrow account and are released throughout the construction process. Each time a project is initiated, the lender releases part of the escrow funds for the cost for completion. After that stage is completed and the lender determines there are no additional liens on the property, these funds will be released to you.

Clarification was offered Monday on misconceptions regarding the REO-to-Rental Initiative, currently in pilot stages. Meg Burns, FHFA’s senior associate director for housing and regulatory policy, explained in a testimony to lawmakers the purpose and intent of the pilot program, which involves the bulk sale of Fannie Mae REO properties to investors who will then convert their purchases into rental units.

Calling the initiative “highly inappropriate on a national scale,” Burns said the “markets are carefully selected, based on obvious market characteristics – an oversupply of single family homes for sale and a strong demand for rental housing.”  Burns also added that “the pilot will not result in severely discounted sales,” and said the properties won’t be sold to investors if they aren’t purchased at prices close to what Fannie Mae can get through a retail execution.

As a pilot program with many unknowns, deliberate decisions were made regarding the selection of just one company and the sale of already occupied properties.  Burns said “uncertainty surrounding the outcomes of the pilot” led to the involvement of just Fannie Mae.

And why Fannie Mae properties? For one, the GSE holds a concentration of homes in specific markets. Also, FHFA decided only one company should use its resources to test the new model, and three, “legal and operational challenges associated with bundling a group of properties in any given market” led to the decision to have just one company.

This “uncertainty” is also why Burns said a decision was made to sell already renter-occupied homes. When Fannie Mae first announced it put up 2,490 REOs up for sale earlier this year, about 85 percent of them were already occupied by tenants.  “Fannie Mae and FHFA decided to assemble pools composed mainly of rental properties to ensure that large numbers of vacant properties were not held off-market for the significant period of time required to execute a sale,” said Burns.

As for the program’s ability to increase the supply of affordable rental housing that’s available or improve the rental housing stock through “green” home improvements, Burns said this was never the intention of the program, but those outcomes could become an indirect result.

As part of the first transaction announced in February, the nearly 2,500 REOs up for sale are divided into eight sub-pools, located in Las Vegas, Nevada; Phoenix, Arizona; various communities in Florida; Chicago, Illinois; Riverside and Los Angeles, California; and Atlanta, Georgia. The window for completion of the first pilot is sometime in the next few months.

While the program has been well received by many, in California, some lawmakers and the California Association of Realtors (C.A.R.) expressed objection to seeing the program in their state.  In April, 19 California lawmakers sent a letter to FHFA Acting Director Edward DeMarco asking that California be excluded from the Initiative, stating housing inventory throughout the state is “extremely low and demand is high.”

According to data from C.A.R., 600 of the bulk REOs are located in Los Angeles and Riverside counties, and bank-owned homes are already closing in an average of less than 60 days, often above the list price.  So far, Burns said an independent third party has been hired to review applications and the process should be finished in the next few weeks. Then, eligible bidders will be notified and the bidding process will begin.

As for involving others, Burns said, “the Enterprise portion of the REO market is limited, so the future benefit of the program may be more applicable to private financial institutions that choose to sell their inventory in this manner.”

Pilot Objectives Outlined in the Testimony

• Gauge investor appetite for a new asset-class – scattered site single family rental housing – as measured by how much investors are willing to pay.
• Determine whether the disposition of properties in bulk presents an opportunity for well-capitalized investors to partner with regional and local property management companies and other community-based organizations to create appropriate economies of scale, yet provides civic-minded approaches that can stabilize and improve market conditions.
• Assess whether the model can be efficiently replicated to make it a worthwhile addition to the standard retail and small-bulk sales strategies in place at the Enterprises and other financial institutions with large inventories of properties to sell.

*This article originally appeared in DSNews.com

If you are ready to purchase a home, it is essential to learn more about how your credit score is determined. While your credit score is only one factor that is used to determine whether or not you receive a mortgage loan and how much your interest rate will be, it is one of the largest factors used to make this determination.

By having a better understanding of how your credit score is calculated, you can take the steps necessary to help improve your credit score and thereby improve the terms of your mortgage loan.

In determining your credit score, several factors are used to calculate your overall score. These include: the type of credit used, information about new financial accounts, the length of your credit history, the amount you owe and your payment activity. In this five part series, we will explore each of these factors and discuss the steps you can take to help improve your credit rating.

Exploring Types of Credits

The types of credit you have used will account for approximately 10 percent of your credit score, making it tied with information about new accounts as the least important factor in determining your score. Nonetheless, information about types of credit will have an impact on your overall credit score.

When exploring types of credit, several different things are considered. For example, the number of different types of accounts you have opened in your name will be taken into consideration. This doesn’t only include those that you have recently opened, but also all of those accounts you have opened in the past. When considering the various types of accounts that you have opened, however, the score is affected by recent information as well as the prevalence of one type of account over another.

Giving Your Types of Credit Score a Boost

If you plan to purchase a home in the very near future, there isn’t much you can do to address this part of your credit score. If you are planning for your future, on the other hand, keep in mind that you are better served by opening a variety of different types of financial accounts. Examples of different types of financial accounts include:

• Auto loans
• Consumer finance accounts
• Credit cards
• Installment loans
• Mortgage loans
• Retail accounts

The more varied your accounts and the more frequently you use them, the better your credit score will be if you have used these accounts responsibly and have repaid them as agreed upon.