Donald W. LaPlume Jr.'s blog
Buying a Foreclosure & Rolling construction Work in with a USDA Loan
Wed, 03/16/2011 - 18:07 by Donald W. LaPlume Jr.One of the few true 100% financing loans available today, The USDA Rural Development Guarenteed Loan also allows you to escrow money for repairs and work on the property you are buying.
The key is to know what can and can not be rolled in to your loan.
If you are buying a home which needs cosmetic work or work that does not involve the house systems (Electrical, Plumbing, Heating) or safety issues will usually be fine.
The USDA Rural Development loan allows you to roll up to 10% of the loan amount or $10,000 of work which ever is lower into your purchase loan.
So here is an example of how the numbers might work on a USDA purchase of a Foreclosed home for a home buyer.
Purchase price 120,000
Work needing to be escrowed $10,000
Apprasied value after completion $140,000
Save Money by Buying a Home BEFORE 4/18/2011
Tue, 02/15/2011 - 12:44 by Donald W. LaPlume Jr.What do I mean by Save money? FHA loans, those mortgages most often used by First Time Home Buyers to purchase a home have a new fee increase taking place with all new loan case numbers after 4/18/2011. If you are a home buyer and you plan to buy this spring than please get off the fence now and start looking. Here are the changes taking place and how they will increase your fees should you choose an FHA mortgage:
An increase of 25 basis points on the annual mortgage insurance premium. This is know as PMI.
Using FHA's own example posted in their Mortgagee Letter 11-10 this will increase your monthly payment on a 163,000 purchase by more than $4,500 over the projected life of the mortgage insurance premium.
Do First Time Home Buyer Loans Still Exist?
Sat, 01/15/2011 - 20:21 by Donald W. LaPlume Jr.In a way, they still do.
The mortgage loan universe has shrunk beyond what anyone whould have believed just a couple of years ago. We still have zero down loans and low down payment loans. These are what most people think of as First Time Home Buyer loans. However, they are not really exclusive. FHA loans can be used for anyone buying a home they will be living in as their primary residence. You can even own another home as long as the one you are using the FHA loan for is your primary residence. (Where you will live the majority of your time.)
Today let's discuss FHA for a first time home buyers -
Top 5 Pros
1. Low Down Payment - as low as 3.5% down payment
2. Can be used for a 1 family home up to a four unit home (again, with multi family homes it must still be your primary residence.
How Could Mortgage Rate Go UP Almost 1/2% In The Past 5 Days?
Fri, 11/12/2010 - 22:38 by Donald W. LaPlume Jr.This is a call to action!
Have you noticed that mortgage rates have gone up by almost a half of a percent in the past week. If your not in the housing or mortgage market probably not. However, no matter who you are in America, this will affect you.
In the past 5 business days mortgage bonds have dropped by 175 basis points. 1 basis point is 1/100 of a percent. For every 100 basis points mortgage rates move up or down about a quarter of a percent. Since bonds and rates run opposite each other bonds dropped by 175 basis points and mortgage rates went up by almost 1/2 of a percent.
Government Bailout Mania and FHA/HUD
Sat, 08/14/2010 - 13:19 by Donald W. LaPlume Jr.Yes there is a bailout coming for almost everyone. At least that what the politicians say before the November elections. While we agree that many people have been hurt in the current recession and more will be, what we don't agree on is what limits there should be on bailouts.
It always scares me when someone says, "We are the government and we are here to help!"
The government was always the American people and the ones who ran things were the ones we hired by electing them. (Remember - Government of the people, by the people and for the people) It used to be that our elected representatives worked hard to represent us and not to provide handouts. They worked hard for the future of our nation and not to ensure their re-election.
In our nations history we had representatives who would make the hard, tough decisions which would benefit our nation. They would do the right things.
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