Archive for the ‘Financing/Mortgage’ Category

 I came across the below paragraph in a publication of “Live Valuation”.  Talks about Freddie Mac’s outlook for the real estate market and mortgage rates.

“According to Freddie Mac, housing will see a “modest improvement” with a big risk of rising interest rates.  The average mortgage rate is projected to be at 5.20%.  Although quantitative easing has not kept rates from rising, it has been said that it did put a damper on the ascending rates.  Mortgage refinancings will slow as a result of higher rates and the projected 5.20% mortgage rate for 30-year fixed rates in 2011 is a full percentage point above the 2010 lows.  This will be the third lowest average since the annual began being recorded.”

Read Full Post »

I write today in my blog as a result of three phone calls I received over the last 4 days.  Each of the three calls were from friends who received notices that there home has gone into foreclosure.  Each of these people are good, honest, decent people who for different reasons are experiencing a hard time.   Each case is different, but I gave each of them advise and recommendations based on their individual situation.  To be honest, all three would have had more options had they contact me (or someone) much sooner.  I tell you this because I know that there are MANY of you reading this post who are having a tough time and need help.  Financial problems is like disease in many ways and like diseases have a much better “survival” rate if detected and treated early.   Alternatives include; loan modifications, forbearance, short sale, deed in Lieu of foreclosure or selling your home.   Solving real estate problems can be a complicated issue which requires you depend on your real estate and financial “power team”.   This team needs to include; a trusted financial advisor, an attorney experienced in workouts/bankruptcy, a real estate consultant and a close friend.    I am not an attorney or a financial guy, but I welcome all of you to seek me to be on their power team as a friend or real estate consultant.  If you are ONE payment behind PLEASE reach out to someone you trust and get the information you need to create a smart game plan for you.

Read Full Post »

I just went and did an appraisal for a bank owned Concord NH property and was “pleasantly” surprised when I arrived and the house was still winterized and there was no heat or running water.  The place was Frooooooooozeeeeeeeen!!! lol   The problem is that FHA requires that the appraiser verify that all utilities are working and functional.  Since they were off, I need to make my appraisal “Subject to” the utilities being turned on and verify later (and before the closing) by doing a “Final Inspection”.  Luckily for these first time buyers they are confident the bank will turn on the utilities at some point so I may go back.  Lesson learned is…..  If you are buying FHA, make sure that you will be able to get the seller to turn on all utilities.  If you would like to know anything about special financing programs in New Hampshire whether it be Portsmouth, Manchester or the Lakes Region, give me a shout at 603-644-1000 or email me   jack@jacklavoie.com

Read Full Post »

Informative article from bankrate


Read Full Post »

You have heard the news about the mortgage crisis and the tightening of credit on the news; therefore I won’t get into it here. What I will tell you is that there are several options available for people with limited down payments.

 FHA – The Federal Housing Administration (or HUD) offers a terrific loan program with competitive rates. They have more relaxed qualifying guidelines than conventional loans and have become the “New subprime” lender of choice. FHA does require a 3.5% down payment, but it can be a gift from a family member, employer etc. Closing costs can be rolled into the loan. Therefore if you get a gift, it is possible to go “No money down”. On the negative side, all FHA loans have a monthly “Mortgage Insurance premium” (MIP). MIP is FHA’s version of private mortgage insurance (PMI), which makes the effective rate of the loan higher (than if MIP was not required).

U.S.D.A. Rural housing has a true 100% financing program that will also allow you to roll in closing costs and up to $10,000 in repairs, since the loan amount is based on the appraised value and not the sales price. I have completed quite a few appraisals on this type of loan and the loan originators I speak with say that nearly 50% of the loans they write are USDA/Rural housing loans. Now, don’t worry…. This doesn’t mean you have to buy a house out in the sticks!!…lol… In fact rural housing loans are available in nearly all towns in New Hampshire except for the few of the cities such as Manchester, Nashua, Portsmouth etc. That means you can live in a town such as Bedford, NH which is adjacent to Manchester and has 25K residents and still qualify for “rural housing”.

New Hampshire Housing Finance Authority (NHHFA) offers the American Dream Program. This program allows buyers to purchase the property with only 1% down. Like the other programs, the closing costs can be rolled in. The best thing about this loan program is that NHHFA offers a grant, which is applied toward the sales price. Unlike the other loan programs, there are income limits to qualify for the loan. The limits vary based on the number of people in your household and the specific town. Here are a few examples….

4 person household in Goffstown…$61,500 limit

2 person household in Epping……$49,200 limit..

But HOLD ON…. If you buy a property in a “targeted” community, the income limits are WAIVED. If you buy in Manchester, Nashua, Laconia and several other communities you do not need to be a 1st time homebuyer to qualify.

 These are just a FEW of the many loan programs that are targeted toward people with limited down payment. In a few days I will write how and tell you how people with BRUISED CREDIT can buy a home for themselves.

If you would like information on what loan program fits your situation, please contact me at:  jacklavoie@comcast.net

Read Full Post »