If you are ready to make the choice to become a home owner, here are some guidelines to help you make the best decision for your circumstances.
The Federal Housing Finance Agency has extended the Home Affordable Refinance Program (HARP) by two years. This allows the continued use of Fannie Mae’s DU Refi Plus and Freddie Mac’s Relief Refinance Mortgage (also known as Open Access) through December 31, 2015. This program was extended last year and was set to expire December 31, 2013.
Washington, DC – The Federal Housing Finance Agency (FHFA) today directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program (HARP) by two years to December 31, 2015. The program was set to expire December 31, 2013.
“More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,” said FHFA Acting Director Edward J. DeMarco. “We are extending the program so more underwater borrowers can benefit from lower interest rates.”
Read the full announcement here: http://www.fhfa.gov/webfiles/25112/HARPextensionPRFINAL41113.pdf
The modern era has seen a new phenomenon not previously experienced in this country. People are waiting a bit longer to get married and have children. Gone are the days of individuals marrying at 20 or 22 and having a couple of kids by 28. Now, people may not get married until they are almost 30 and then have kids. The longevity of the Baby Boomer generation means that these people in their 30′s and 40′s are now trying to raise their own kids while also caring for their elderly parents. This situation has led many people to either buy one large house to combine with their senior aged parents or help their parents buy a home very close to them. For these families a reverse mortgage is usually a better idea than a bridge loan.
At the present, over 20% of American homeowners feel that their home’s value is actually lower than the balance of their mortgage. Thankfully, a program has been designed to help these people that are “under water” on their mortgage. The HARP (Home Affordable Refinance Program) was introduced by the Federal Housing Finance Agency in an effort to help homeowners stay in their home and avoid a costly loss.
People considering a home purchase often feel the pressure of many emotions. They want to get out of their current living situation and into a presumably better home. Having a place to call their own, and make their own choices, is very enticing for many people. So what should a buyer do if the seller asks for money to make repairs?
Typical Scenario
Here is a common situation. A young couple wants to buy their first home and they are considering a FHA mortgage. They find a home that they like, in their price range, but the home needs a few updates. Perhaps the interior paint does not suit their taste, or the carpet is outdated, or the couple would prefer energy saving windows. Whatever the case, the buyers approach the sellers and ask about these improvements. The seller says “sure, I can do these improvements, if you pay me the cash for it.”
What should the buyer do?
While the sub-prime mortgage industry has all but evaporated and many people fight to get a conventional loan, the number of VA home loans has increased by 50 percent in 2012. The number of loans approved is the highest number of loans since the year 1994.
