Florida Home Loan Advice

Are New Homeowners Paying the Cost of the Payroll Tax Extension?

Steve Bilbo — Tue, 17 Jan 2012 21:47:30 +0000

In late December Legislation was passed that extended the payroll tax cut through the end of February 2012. The payroll tax cut extension helps employees by reducing their Social Security deduction from 6.2% to 4.2%. This puts more money in the consumers pocket without affecting their social security benefits long term.

So who is going to pay for the shortfall of funds created by the extension?

As a result of the extension, FHA premiums will be increasing permanently starting sometime in April according to many sources. In addition, Conventional loan pricing will be impacted as the government has passed some of the cost over to the Government Sponsored Entities, FNMA and FHLMC. The anticipated cost to the consumer on a conventional loan will be about $750 to $1000 on a $200,000 home loan.

If you are in the market to purchase a home using FHA financing, there is still time to beat the increase. The increase is expected to be 10 basis points annually, raising the annual mortgage insurance premium to 1.25% vs the current 1.15%. Though the exact implementation date has not yet been announced, it should be announced soon. In the past, FHA typically gives a 60 day warning of the change. It can save you quite a few dollars if you are able to go to contract and get your FHA Case Number issued before the change. Time is money!

And if you think rates should keep going down on your conventional mortgage, think again. There is never a guarantee rates will continue to drop. This recent change will impact conventional long term rates if it hasn’t already done so.

Buy before the increase! Home prices are amazing and rates are at all time record lows!

Veterans Costs for Home Financing is Dropping on October 1st

Steve Bilbo — Tue, 13 Sep 2011 20:20:40 +0000

On October the 1st, qualified Veterans can purchase homes with lowered VA costs.

Currently most Veterans purchasing a home pay a VA Funding fee of 2.15% if they are using their VA entitlement for the first time. Effective October 1st, 2011, the VA Funding fee drops to 1.40%.

This is a sizeable decrease in the VA Funding fee and makes VA guaranteed home loans even more attractive to an eligible Veteran.

With a VA guaranteed home loan an eligible veteran can purchase a home with no down payment. With a VA loan, the veteran is not required to pay mortgage insurance unlike FHA loans, so it makes much more sense for a qualified borrower to utilize their VA benefits with a VA guaranteed home loan.

If a veteran is receiving service connected disability income, he or she is exempt from paying the VA Funding fee. In addition. if the veteran is putting down 5% or more, the funding fee is only .75%, and if the veteran is puttind down 10%, the funding fee is only .50%.

I’ve been helping Veterans take advantage of their VA benefits for years. If you have any questions about VA guaranteed home loans give me a call.

It’s an entitlement that a Veteran should consider using when purchasing a home. After all, they earned the benefit.

For details please contact me directly at 561-228-6178. Steve Bilbo NMLS#297744

FHA Loan Limits are Changing – Don’t get Caught!

Steve Bilbo — Tue, 30 Aug 2011 17:13:02 +0000

What’s Happening?

This change by FHA lowers the maximum amount that FHA will insure in South Florida.

Currently in Palm Beach County the buyer can finance $423,750 when using FHA financing with as little as 3.5% down payment. This would allow and FHA buyer to purchase a home with a sales price of $439,150 and still make a 3.5% down payment.

With the new limits that go into effect after October 1st, the price would be limited to $357,600 to purchase with the 3.5% down payment.

What does this mean?

A buyer’s FHA loan must be fully approved by the Direct Endorsement Underwriter before the end of September. This means that the appraisal must be complete, and all credit documents must have been submitted for underwriter review. The loan must be fully underwritten including the appraisal and be approved before the end of September.

This means that a buyer’s contract must be accepted very soon- I would estimate you would need a fully executed contract by September 9th for there to be sufficient time to have the file fully approved before the cutoff.

How long will this new limit last?

The new maximum insurable limits apply until December 31, 2011. They may change after that date. If it changes, I’ll let you know.

What should you do?

If you are considering purchasing with a purchase price above $357,600, or know of anyone that is in the market, or on the fence, let them know. The clock is ticking fast. Lenders may stop accepting applications any day unless they fall under the new, lower limits.

If you’d like more details, or have questions or comments, feel free to post.

The Timing is Right!

Steve Bilbo — Wed, 17 Aug 2011 20:38:32 +0000

Recent activity in the US Economy has created a very unique opportunity to own a home with the lowest mortgage rate in years!

While the stock market has had some recent volatility, it has created a unique opportunity to grab up some very cheap mortgage money. Mortgage rates are just one of the factors that drive the cost of home ownership. By combining the low rates that are currently on the menu with the fact that the housing market has become very affordable this year, it is cheaper to own than it is to rent in today’s market!

And if you haven’t taken advantage of the current rate environment to refinance your current mortgage, now is definitely the time to do some homework and see if it is possible and profitable to refinance your home. It’s not always smart, nor is it always possible to refinance.

This is a fun time to be in our business helping our clients buy homes at very affordable prices with fantastic rates!

Give me a call today at 561-309-7416 to discuss your options.

Steve Bilbo

NMLS#297744

THE REWARDS OF OUR BUSINESS

Steve Bilbo — Tue, 24 May 2011 17:10:21 +0000

We all came into this business by different means. We stay in it for different reasons.

For me, I like the idea that the guidance and services that I’m able to provide change people’s lives in some way.

Here are a few examples that come to mind-

A few months ago I helped out a young veteran, his lovely wife, and new baby boy finance their first home. It’s rewarding to be able to attend that closing and see the excitement it brings to their lives. He worked hard to be able to get to the point that he could purchase his first home. As a Marine, he had to serve his country in ways most of us cannot really understand. That service gave him the ability to purchase a home with no down payment. He earned it, and I am fortunate that I was able to be there and be part of his life changing experience of buying his first home.

Just this week, I was able to help a retired couple relocate from North Carolina back closer to their family so they could be closer to their grandchildren and experience their lives and everything it brings. It took many months as they they tried to purchase home after home and eventually found the right home for them. I’m fortunate for having been introduced to them by one of my favorite realtors, Elizabeth Heyman from Keller Williams in Wellington.

Yesterday I had the pleasure of helping some repeat clients better their financial position by refinancing to a 20 year term, and improving their monthly cashflow by over $1000 per month. In the process, I was able to hook them up with an awesome insurance agent that put them into a more reasonably priced insurance policy for their home, saving them lots of money monthly in addition to the benefits of the new financing. That is a life changer for my clients.

The rewards of our chosen profession aren’t always as lucrative as they could be, but there are other rewards that help to make us richer. The people, the lives we touch, and the ways we improve those lives are what makes it worthwhile.

What are the rewards of your business?

So the Consumer Financial Protection Bureau wants our opinion?

Steve Bilbo — Thu, 19 May 2011 21:22:05 +0000

One of the new government entities that was recently formed out of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is The Consumer Financial Protection Bureau (CFPB). On July 21, 2011 (just around the corner) it becomes active and some of it’s pieces become effective.

This new bureau will supervise banks, credit unions, financial companies, and enforce Federal consumer financial laws. They intend to educate consumers and promote financial education among other things.

If you’re in the mortgage industry or real estate industry, you definitely heard about lenders challenges in early 2010 when the new Good Faith Estimate 2010 was made mandatory. Lots of grumbling was made about how inefficient, incomplete, and somewhat incomprehensible the new 3 page GFE 2010 was after it was created without input from the very industry it served.

Well, now we get to voice our opinion before the new combination Good Faith Estimate / Truth in Lending form is finalized. From now until May 27th, the consumer, as well as those of us in the lending industry will be given the opportunity to comment on the proposed new forms and add comments, suggestions, etc.

Don’t miss the opportunity to voice your opinion. We’re told it will matter, so I’ll do my best to believe it at this point, and offer up my opinion, etc.

Here’s a link to the CFPB website and the page that can get you started.

http://www.consumerfinance.gov/knowbeforeyouowe/

Let me know what you think after you have had time to review the form by commenting below.

This should be interesting….

Steve

FNMA HomePath Program Relaxes Standards

Steve Bilbo — Wed, 18 May 2011 18:26:54 +0000

FNMA has built quite an inventory of homes through foreclosure over the past few years. In order to help clear out their properties, the HomePath program was born.

Under the program, FNMA has relaxed several of it’s standards . The buyer doesn’t need to obtain a new appraisal (though I’m not so sure that is a good thing necessarily). The buyer is not required to pay private mortgage insurance. The buyer is only required to put down 3% of the purchase price if they will be occupying the property. Buyers can finance up to 90% of the purchase price if they will be renting out the property or using it as a vacation home. Condominiums are not required to have the standard FNMA approvals.

Currently FNMA has special incentives for owner occupied buyers of these properties that close by June 30th. FNMA will pay 3.5% towards the borrowers closing costs. The realtor must request the incentive when they present the offer.

Properties acquired out of FNMA’s inventory are not required to obtain the HomePath financing, and qualify for other types of financing as well.

You can access the inventory of homes available at www.homepath.com

It’s a great idea to contact us prior to starting the home shopping process to obtain a pre approval letter and determine if you are qualified for the HomePath program, or if you need one of the other many loan financing options we provide. We can help with your HomePath financing request, or assist with an FHA, VA, or other loan type depending on your situation.

If you’d like information, just send a comment below and I’ll get back to you right away.

Hello World!

Steve Bilbo — Wed, 18 May 2011 18:23:57 +0000

Florida Home Loan Advice is born, created by Steve Bilbo, a Florida home lending expert.

The idea behind this blog is to provide relevant information about financing a home in Florida to my clients, referral sources, friends, and family. Over time, hopefully you’ll keep up with some of the information being posted, share it with your friends, family, and co workers as you see appropriate.

For most people, financing a home is one of the largest financial commitments they will ever undertake. This blog will hopefully help someone in need, spark their interest to do business with me, and create some new friendships and shared clients and interests.

Feel free to share and respond. Be gentle, this is new…

Have a great day!