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| *Loan,banking and credit>>>mortgage loan |
Assume VA Loan mortgages in Chicago IL? |
my husband and I wants a home bad our credit isnt good because of things that happen in the past we make good income I heard that there is a way to assume someone mortage or va loan how do you find someone who is willing to do it? You have received some good answers - but please be careful, letting everyone pull your credit - why? Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down. When you Decide to buy, decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you... Go to these websites http://www.nehemiahcorp.org/ http://www.fanniemaefoundation.org/...... http://www.fha-home-loans.com/ http://www.freddiemac.com/ Welcome to the USDA Income and Property Eligibility Site http://eligibility.sc.egov.usda.gov/elig... 1. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA. To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA's home loan programs. To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected. To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected. To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program. Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans. 2. Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Elderly and disabled persons applying for the program may have incomes up to 80 percent of area median income (AMI). Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government鈥檚 cost of money. However, that interest rate is modified by payment assistance subsidy. Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application. Basic Instruction: 7 CFR Part 3550 and HB-1-3550 Section 502 Guaranteed Loan Program: 1. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories. Approved lenders under the Single Family Housing Guaranteed Loan program include: Any State housing agency; Lenders approved by: HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities; the U.S. Veterans Administration as a qualified mortgagee; Fannie Mae for participation in family mortgage loans; Freddie Mac for participation in family mortgage loans; Any FCS (Farm Credit System) institution with direct lending authority; Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs. Terms: Loans are for 30 years. The promissory note interest rate is set by the lender. There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt. Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan. Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests. Basic Instruction:7 CFR Part 1980. http://www.propex.com/c_mort_progva_warn... Veterans who sell their homes by allowing the purchaser to assume an existing VA loan must be extremely cautious to avoid potential problems later on. By law, any veteran who obtains a VA guaranteed loan, is legally obligated to indemnify (pay back) the United States Government for the net amount of any guaranty insurance claim (loss) the VA may incur and be required to pay to the lender in the event of borrower default. Current law and regulations do however, provide for the release from liability when the veteran sells the property and allows the new buyer to assume the VA loan. Only if the loan is current and the qualified purchaser (transferee) assumes the loan and also assumes the indemnity obligation, can the veteran can be released from any future liability. Pursuant to Public Law 100-198, veterans who received their VA loan under commitments dated March 1, 1988 or later, must execute a release of liability. Failure to do so may result in foreclosure of the loan even if the loan is not in delinquency. A veteran will remain responsible for any loan balance that has been assumed even if they sell their home unless they obtain a release from liability. Some veterans obtaining VA loans prior to March 1, 1988 and who sold their home subject to the loan being assumed by a non-veteran, found themselves obligated for the full repayment when the subsequent buyer defaulted. Homes having VA assumable loans can be sold multiple times which puts the original selling veteran at great risk. A buyer could assume the veterans VA loan and sell the property the next day and no matter how qualified or willing the veteran's buyer may seem, another buyer might not be as creditworthy. Obtaining a release of liability is the prudent option for the selling veteran and it prevents the VA or the mortgage lender from suing the veteran in the event of default by the subsequent buyer. The release does not however, allow the veteran to reuse his entitlement until that loan is paid off. If, of course, the veteran resells to another veteran, this exempts him from the original obligation as long as the new purchaser (veteran) executes a Substitution of Entitlement. Veterans with loans committed prior to March 1, 1988 should be especially cautious about allowing a new buyer to assume their loan since these loans do not require a release of liability by the VA. Sometimes, in the rush to sell, veteran sellers may not realize the ramifications of allowing an assumption which could also deny them future eligibility. Any veteran considering the sale of their home should obtain counseling from a VA lender or consult with an attorney familiar with VA benefits. Also: Assumable mortgages not always best option HOUSTON (AP) - After all that searching, you've finally found your dream home at the right price. What's even better, the seller says the mortgage is assumable. Should you go for it? Not so fast. It seems so simple: When you assume a mortgage, you take on the mortgage payments of the former homeowner. This isn't the kind of interest-rate market that makes these kinds of loans attractive. This option is attractive when interest rates are high. Back when mortgages carried double-digit rates, the chance to assume a mortgage with an affordable interest rate was really worth something. But given today's relatively low, stable interest rates, the rate you assume could be close to what's available from the bank. ''There is no advantage to assuming a loan anymore because interest rates are down so much,'' said Bob Kerlin, a mortgage broker in Fairfax, Va., and mortgage adviser to the United Homeowners Association, a consumer group. ''There are very few people who assume loans anymore.'' The allure of assuming a mortgage also has been reduced by lenders' first-time buyer programs that allow borrowers to put down as little as 3 percent. ''There are so many opportunities that a home buyer can make that they typically don't necessarily want to limit themselves,'' said Gary Garrett, chief lending officer at Coastal Banc. During the 1980s, lenders who had made fixed-rate loans got burned when market rates rose sky-high. The fact these loans are assumable forced them to endure these losses even longer as the loans were assumed by home buyers. As a result, lenders and other mortgage-related organizations made it harder to assume fixed-rate loans. ''Anyone who did fixed-rate loans realized they had to change the way fixed-rate loans were structured,'' Garrett said. ''They changed it so that the fixed-rate loan document precluded an assumption.'' The other thing to watch out for is assuming a mortgage when the value of the home you're buying exceeds what's owed on the mortgage. In that case, you'll have to pay the difference or take out a second loan. For example, if you're buying a $150,000 house and you assume a $100,000 mortgage, you'll have to pay $50,000 to the seller to pay off the difference. You're really buying out the equity that's built up. ''The down payment could be larger under an assumable mortgage,'' said Donna McAda, manager of mortgage outreach at Texas Commerce Bank. ''You want to look at what benefit it would be to assume that mortgage.'' Many adjustable-rate mortgages are assumable, but you've got to make sure you're not going to get caught in a trap. These mortgages typically have an initial teaser rate, which means nearly automatic rate increases in the early years of the loan. If you assume the loan after the initial teaser rate period has lapsed and market rates have gone up, you've lost the benefit of that low rate. However, there are some loans worth assuming. ''There are lots of loans that were originally written at 6 or 7 percent,'' said Rick Pischalski, vice president at Bank United. ''You just have to look at what the underlying mortgage rate was and figure it out from there.'' If it turns out to be a good opportunity to assume a mortgage, take some steps to protect yourself against any surprises. Lenders typically have to consent to a mortgage being assumed. Ask the seller for a letter from the lender stating that the financial institution has given its OK for you to assume the loan, presuming that you qualify for the loan. Source(s): Wanda Ellis, Branch Manager Charterwest Mortgage, LLC wellis@charterwestmortgage.com www.mycharterwestmortgage.com there are limitations, but when u see a house u like ask the agent if the mortgage is a va loan. it's not up the owner to give the ok its up the bank. to approve u. also try to get a loan thru a mortgage co. not a bank. banks charge thru the nose on interest rates. here's some # that might help national city mortgage (773) 645-7070 wilson assoc.mortgage 773-286-1193 ( 3437 N harlem) chicago united mortgage 773-346-2623 (2144 w roscoe) good luck & godess bless You need to work with a specialized lender... You can assume a loan from someone, but it has harder qualification parameters, and it limits you to the house you can buy... Also, if you qualfiy to assume a mortgage, then you will qualify to get amortgage as well.. What you need to do is talk with a specialized lender...THE LENDERS THAT THE LAST RESPONDER LISTED WILL NOT APPROVE YOU!! A specialized lender is someone who specializes in low credit borrowers, 100% financing, bankruptcy and foreclosures, etc. They aren't your typical lender, and ONLY owtk with people with below average credit... I work with Providetnial Bancorp..We are a specialized lender serving most of the US... What i can do is take a look at your credit, gather some basic information, and give you a detailed analisys of what you wualify for.. I have helped many people who post responses here, ALL with similar situations as yours... You are not out of luck, you just havent talked with the right type of lender... You can reach me direct at any time at 312-264-6448, or email me at jasonf@providentiall.com.. My name is Jason Fry, and I am A licensed Mortgate Consultant.. Thanks, and good luck! Jason Fry Licensed Mortgage Consultant Providential Bancorp 312-264-6448 www.providential.com Heres one here http://www.homeloans.va.gov/pamphlet.htm... heres another to contact http://www.va.gov/ http://www.homeloans.va.gov/pamphlet.htm... http://www.va.gov/ |
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