Joe's Blog

Generally speaking, lenders are only going to consider loan modifications with people who are in jeopardy of foreclosure and where the value of their home is worth less than their current loan.  Even this fact does not insure that the lender will work with you.  First of all, lenders are inundated right now and are far less motivated in most cases to modify than the average client.  Also, the process is complicated by the fact that many lenders do not own the loans but are merely servicing the loans for others.  In my opinion, it can be next to impossible for the average person to try and get their loan modified by themselves.  For most people, they need the help of a loan modification company who can work on your behalf.  These firms specialize in this and can act on your behalf with the lender.  Reputable firms will review your case without charging you and attempt to provide you with the information necessary to see if a potential modification may be attainable for you.  The first step is to fill out a financial checklist and then to have a consultation.  Please contact me and I can give you more specifics on this process.

Last week the President signed in to law the Housing and Economic Recovery Act.  A few pertinent items in the bill as it relates to purchasing are as follows: First of all, new buyers will receive a $7500.00 tax credit for purchasing for the tax year that they purchase.  The credit is then paid back over a fifteen year period at 500 dollars per year.  Basically, it is an interest free loan for fifteen years.  In addition, FHA, is doing away with 100 percent financing as of September 30th.  Many borrowers with the help of non profits and loan officers, have been able to finance 100 percent of the sales price with the seller crediting back the down payment to the buyer via a 501C non profit corporation.  Well, that is all but gone.  So if you want to take advantage of 100 percent, it has to be done by September 30th of this year.  Lastly, it appears that the mortgage insurance premium that FHA charges the borrower to secure an FHA loan will increase.  Overall, the fee that most borrowers pay for the upfront mortgage insurance premium is between 1.25 and 1.5.  In the near future, that premium looks like it will go up to a flat 3 percent.  There will be more to come regarding this legislation.  There are 796 pages to the legislation so we will keep you posted as time goes on.

Joe Engle

FHA is absolutely the best deal going for first time home buyers or home buyers who want to put a small percentage down for down payment.  The FHA loan alllows you to put as little as 3 percent down when buying or refinacing.  Also, FHA insures loans up to $729,750.  Rates are competitve and the approval process is not that difficult.  The key is getting approved and selecting a purchase price that fits within your budget.  In addition, unlike conventional loans where you need A plus credit to get approved, the FHA loan allows for less than a perfect credit history in the past.  For people who currently have a subprime loan, FHA can also be a viable solution.  I recently refinanced a couple with a credit score below 600.  This couple got out of their high interest subprime loan and got the FHA loan that was fixed and with a great interest rate.

Joe

LoanSmart, Inc.

FOR IMMEDIATE RELEASE Contact: Joe Engle

805-915-2600, ext. 108

joe@loansmartinc.com

LoanSmart, Inc. Now

Processing FHA Loans

Loan limits increased to $729,750

(Thousand Oaks, CA) June 24, 2008 – LoanSmart, Inc. is now processing FHA loans. FHA loans have not been available to homebuyers in California for the last 10 years because of their low dollar limits. However, with the recent passing of the Economic Stimulus Act of 2008 by Congress, limits were raised from $362,790 to $729,750. “In a declining market this is especially good news,” said Joe Engle, president of LoanSmart, Inc. “This opens up lots of opportunities for homebuyers, as well as current homeowners looking to refinance.”

FHA loans are government insured and offer buyers competitive rates. They feature more flexible credit guidelines than that of conventional loans and allows up to 100 percent financing with down payment assistance. Additionally, down payments as low as only three percent are accepted. “In many cases, FHA loans are the best available loan options. This should help to boost the California real estate market,” said Engle.

For those considering applying for FHA loans, LoanSmart offers buyer readiness reviews and reverse mortgage readiness reviews for all prospective clients. “With every client, our first priority is ensuring they fully understand the loan process and readiness is a big piece of the puzzle,” said Engle.

LoanSmart processes VA loans as well, which are similar to FHA loans. VA loans are federally guaranteed. Just as with FHA loans, a VA loan allows home purchases with no down payment up to $417,000; with a down payment veterans can be approved for higher loan amounts.

Other services provided by LoanSmart include, reverse mortgages, credit education, loan modification and property tax relief. LoanSmart has been a vital part of the Ventura County business community for the last six years, processing residential and commercial loans. The company recently relocated to 3623 Old Conejo Rd., #204, Thousand Oaks, CA 91320. For more information about FHA Loans contact LoanSmart, Inc. at 905-915-2600 or visit www.loansmartinc.com.

LoanSmart, Inc. is the smart way to shop for your residential and commercial loans.

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