After a fair amount of backlash and letter writing, the government this week raised the mortgage limits for loans guaranteed by the Federal Housing Administration in several high cost California counties, including Santa Barbara CA. The maximum amount of $729,750 will now be allowed for the Santa Barbara area and only time will tell what effect this will have on the housing market here. For many residents here in the Santa Barbara area where the average price of a single family home is over $ 1 Million, this will allow homeowners with high-rate sub-prime mortgages to refinance into federally insured loans. Additionally, it will allow buyers that are out there to obtain better loans for the lower end market.
Overall the market here in Santa Barbara has seen a significant increase in activity during the first 2 months of 2008, with pending sales abound across the board. I have talked with many lenders and Realtors in the last several weeks and the assumption is that this stimulus package will only increase activity in the market.
The Washington AP stated, "The package also includes a temporary increase in the cap on mortgages that the government-sponsored mortgage companies Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) can buy or guarantee from $417,000 to $729,750. The idea is to stoke investor demand for securities made up of more expensive mortgages -- so-called jumbo loans -- backed by Fannie and Freddie, the two biggest mortgage financers in the country. That would drive interest rates lower and spur home buying and refinancing."
Other California high cost counties that received the maximum level for FHA loans are Alameda, Contra Costa, Los Angeles, Marin, Monterey, Napa, Orange, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz and Ventura.
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Tuesday, March 11, 2008
Barclays Launches A New Mortgage Products
Barclays and ABSA has launched a new mortgage product that will allow UK citizens to buy property overseas and non-UK citizens to buy property in the United Kingdom.
ABSA is the largest mortgage provider is South Africa. Together with Barclays the make the perfect team in providing expert mortgage advice and offer the best mortgage products for Barclays and ABSA costumers.
There are some aspects that affects the mortgage applicants like the foreign exchange control rate when they decide to purchase a property in a foreign country. For example, if a UK resident wants to purchase a property in a foreign country, they can only do so if Barclays or ABSA is present in that specific country. They will also need to comply with the exchange control rulings which states how much money you are allowed to take abroad. UK residents or any other resident, where Barclays is present can qualify for loans up to 50% of the total loan value in South Africa.
Barclays international mortgages will introduce you to experts who will give you the necessary advice on tax implications, exchange control regulation, legal contracting across borders, credit lending policies and economic outlook on interest rates and exchange rates.
For international investors, whether they decide to buy a home in South Africa, a holiday home or just invest, will be given the necessary expert advice and guidance from ABSA international mortgage. They will also be given tools, designed and developed to best meet their needs.
South African residents who wish to purchase a home in the UK or any other territory where Barclays is present will be assured to be assisted by a reputable financial institute that has an established pedigree in financing international purchases.
Barclays and ABSA joined together are now your perfect solution for to international mortgages.
ABSA is the largest mortgage provider is South Africa. Together with Barclays the make the perfect team in providing expert mortgage advice and offer the best mortgage products for Barclays and ABSA costumers.
There are some aspects that affects the mortgage applicants like the foreign exchange control rate when they decide to purchase a property in a foreign country. For example, if a UK resident wants to purchase a property in a foreign country, they can only do so if Barclays or ABSA is present in that specific country. They will also need to comply with the exchange control rulings which states how much money you are allowed to take abroad. UK residents or any other resident, where Barclays is present can qualify for loans up to 50% of the total loan value in South Africa.
Barclays international mortgages will introduce you to experts who will give you the necessary advice on tax implications, exchange control regulation, legal contracting across borders, credit lending policies and economic outlook on interest rates and exchange rates.
For international investors, whether they decide to buy a home in South Africa, a holiday home or just invest, will be given the necessary expert advice and guidance from ABSA international mortgage. They will also be given tools, designed and developed to best meet their needs.
South African residents who wish to purchase a home in the UK or any other territory where Barclays is present will be assured to be assisted by a reputable financial institute that has an established pedigree in financing international purchases.
Barclays and ABSA joined together are now your perfect solution for to international mortgages.
Foreign National Mortgages Are Easy To Qualify For In The US
If you're one of many foreign nationals looking to pick up residential properties in the United States dirt cheap you are more than likely going to need a foreign national mortgage to help you purchase those US properties. The good news is that it is fairly easy for a foreign national to get approved for a foreign national mortgage in the US. Lenders will usually only go up to a loan to value of 65% on foreign national mortgages, so you will have to put a large down payment on the property. That means if the home is selling for $200,000, you would need a $70,000 down payment. If you have US credit and verifiable work income in the US the loan to value could be higher because you may be able to qualify for a Fannie Mae conventional mortgage although most foreign nationals use the stated income program at 65% LTV. A stated income foreign national mortgage means that they will not verify your income. They will also not verify your assets if this is the only property that you own in the US.
Interest rates on a foreign national mortgage are going to be a little higher than a Fannie Mae mortgage because it is a riskier loan for the lender to make. Think about it, you reside in a different country. The mortgage lenders offer 30 yr fixed rates and 3 & 5 yr adjustable rate mortgages if you think that you will not be holding onto the property that long.
If you are a foreign national and you purchase a home for cash in the US, you will have to wait at least a year to refinance and take out any equity that you may have. That is why foreign nationals are better off purchasing the homes with a foreign national mortgage instead of paying cash. I receive calls all the time from foreign nationals that paid cash for a US property a couple of months ago and now want to get that cash back out. I have to say, sorry, we can't do it. You'll have to wait a year from the date that you purchased the US property to pull out any cash.
It will take about 2 to 3 weeks to close on your foreign national mortgage once you submit your information to a mortgage broker so be sure and fax your signed sales contract to your mortgage broker as soon as you get it otherwise you could delay the closing.
Interest rates on a foreign national mortgage are going to be a little higher than a Fannie Mae mortgage because it is a riskier loan for the lender to make. Think about it, you reside in a different country. The mortgage lenders offer 30 yr fixed rates and 3 & 5 yr adjustable rate mortgages if you think that you will not be holding onto the property that long.
If you are a foreign national and you purchase a home for cash in the US, you will have to wait at least a year to refinance and take out any equity that you may have. That is why foreign nationals are better off purchasing the homes with a foreign national mortgage instead of paying cash. I receive calls all the time from foreign nationals that paid cash for a US property a couple of months ago and now want to get that cash back out. I have to say, sorry, we can't do it. You'll have to wait a year from the date that you purchased the US property to pull out any cash.
It will take about 2 to 3 weeks to close on your foreign national mortgage once you submit your information to a mortgage broker so be sure and fax your signed sales contract to your mortgage broker as soon as you get it otherwise you could delay the closing.
Balloon Mortgages - What You Need to Know
This article will go over the basics of balloon mortgages - explaining how they work, the benefits and drawbacks of balloon financing and how you can apply for one. Keep reading to learn more.
What are balloon mortgages?
Balloon financing is intended to be short-term financing, but the initial monthly payments work like a fixed-rate mortgage. Basically, a balloon mortgage has a short term loan agreement, from just a short year to a more typical term of five or seven years, but the total amount borrowed reflects a longer term loan.
In such an agreement, the remaining balance is due at the end of this short term. So, while the regular payments would typically match that of a fixed-rate mortgage, the remaining balance is due as the final payment, meaning the last payment is your "balloon" payment. Balloon financing is popular for people dealing with commercial or investment real estate properties, but not usually residential properties.
How do you apply for one?
First, ask at the financial institution to see if they offer balloon financing options. If so, you can proceed with the application. If you're familiar with the loan application process, you'll find that applying for a balloon mortgage is similar - you'll need to provide the same documents and sign similar forms as in other borrowing situations.
What do I need to know when applying for a balloon agreement?
Before you sign anything, make sure you have a clear understanding of exactly when the balance is due and how much your final, balloon payment will be. You will pay part of your balance in payments over the course of your term, but once that term is up you will be required to pay the remainder in full.
Can I refinance at the end of the loan?
This is a question you should ask your lender before you agree to any terms. Typically, there is an option to refinance your final payment, provided there have been no late payments or liens against the property. Check with your lending institution to find out what conditions you must meet in order to retain your refinancing options.
Do I need to prepare for a worst-case scenario?
Before agreeing to a balloon mortgage, you need to analyze all the worst-case scenarios to make sure you can handle them. Whether it's losing your job, not being able to find a buyer on an investment property or a general downturn in the economy, will you still be able to maintain the payments (including the balloon payment) on the property? If not, you may want to consider other financing options.
I've gone over every detail and I feel confident - what now?
The next step is to file for the loan. Again, be sure you understand all the requirements and never be afraid to ask questions. Once you're ready, you can sign the application form with confidence and proceed with your financing.
It is not uncommon for enthusiastic buyers to enter a balloon agreement with undue confidence in their ability to repay the final payment at the end of the loan term. So weigh the balloon option with a sober mindset before signing a contract.
What are balloon mortgages?
Balloon financing is intended to be short-term financing, but the initial monthly payments work like a fixed-rate mortgage. Basically, a balloon mortgage has a short term loan agreement, from just a short year to a more typical term of five or seven years, but the total amount borrowed reflects a longer term loan.
In such an agreement, the remaining balance is due at the end of this short term. So, while the regular payments would typically match that of a fixed-rate mortgage, the remaining balance is due as the final payment, meaning the last payment is your "balloon" payment. Balloon financing is popular for people dealing with commercial or investment real estate properties, but not usually residential properties.
How do you apply for one?
First, ask at the financial institution to see if they offer balloon financing options. If so, you can proceed with the application. If you're familiar with the loan application process, you'll find that applying for a balloon mortgage is similar - you'll need to provide the same documents and sign similar forms as in other borrowing situations.
What do I need to know when applying for a balloon agreement?
Before you sign anything, make sure you have a clear understanding of exactly when the balance is due and how much your final, balloon payment will be. You will pay part of your balance in payments over the course of your term, but once that term is up you will be required to pay the remainder in full.
Can I refinance at the end of the loan?
This is a question you should ask your lender before you agree to any terms. Typically, there is an option to refinance your final payment, provided there have been no late payments or liens against the property. Check with your lending institution to find out what conditions you must meet in order to retain your refinancing options.
Do I need to prepare for a worst-case scenario?
Before agreeing to a balloon mortgage, you need to analyze all the worst-case scenarios to make sure you can handle them. Whether it's losing your job, not being able to find a buyer on an investment property or a general downturn in the economy, will you still be able to maintain the payments (including the balloon payment) on the property? If not, you may want to consider other financing options.
I've gone over every detail and I feel confident - what now?
The next step is to file for the loan. Again, be sure you understand all the requirements and never be afraid to ask questions. Once you're ready, you can sign the application form with confidence and proceed with your financing.
It is not uncommon for enthusiastic buyers to enter a balloon agreement with undue confidence in their ability to repay the final payment at the end of the loan term. So weigh the balloon option with a sober mindset before signing a contract.
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