Having chosen South Carolina as your home, you’re now ready to find the cheapest first, second, or refinance mortgage rates available. The process of finding and comparing low-cost mortgages can be summarized into the following steps:

• Learn the options.
• Know the rates of interest.
• Determine your budget.
• Collect quotes.
• Compare your offers.

Horizon Financial is here to help. Our content is informative, and our information is accurate. You can request free quotes online, crunch numbers on the mortgage calculators, or calling Horizon Financial directly.  Take advantage by using our thorough South Carolina broker/lender mortgage loan programs knowledge to get the mortgage loan that is right for your situation.  Whether you are just starting to research or have a written offer on your dream home, we have Conventional, FHA, VA & USDA Rural Housing expects ready to assist with your hassle free options.

Posted by Bob Dangelo, a senior Loan Officer with over 20 years mortgage lending experience.  You can reach Bob toll free at Horizon Financial (877) 627-9211 ext 110 in Greenville, SC 864-527-8900 ext 1100 or email at bdangelo@horizonfinancial.org

The reason Fannie Mae has started its Loan Quality Initiative is to improve its loan pool’s performance.    

Better loan quality should help keep conforming mortgage rates down, while reducing the taxpayer’s burden for foreclosures. Unfortunately, it’s also going to lead to more mortgage denials and a lot of busted purchase closings. Therefore, be extra careful with your credit between the date of application and the date of closing. If you must buy something “big”, consider paying cash.  Anything that goes on a card can be used against you as grounds for revoking your approval. Even if your loan is underwritten and ready to close.   

What the bank will do: Look at the Credit Inquiry section of your credit report to look for “non-disclosed liabilities”. If items are found, the bank will ask for supporting documentation on the inquiry, and will use the information to re-underwrite your mortgage.

What you should do about it: Don’t go looking for new credit until after your loan is funded.  Period.  Now re-read the prior sentence, please, to help it sink it.

 For help with your mortgage approval, or questions about the Loan Quality Initiative, let us explain your options in easy terms.

Posted by Bob Dangelo, a senior Loan Officer with over 20 years mortgage lending experience.  You can reach Bob at Horizon Financial (877) 627-9211 ext 110 or email at bdangelo@horizonfinancial.org.

In the past year the government has enacted several new rules to protect consumers and stop appraisal coercion by evil bankers and brokers.

HVCC (the appraisal code of conduct) has already forced many experienced and qualified appraisers out of the business.  It has also helped to propel home values lower by allowing Appraisal Management Companies to seek out the cheapest appraiser (inexperienced, out of area appraisers who have no knowledge of the local market) so they can fatten their profits.

The new Good Faith Estimate has certainly helped to confuse more consumers when they try to compare financing charges for purchasing or refinancing a home.

Of course, the lenders and regulatory agencies (Fannie, Freddie, FHA) have helped too by tightening up on their financial requirements to purchase or refinance.

All this consumer assistance hasn’t been totally successful.  Consumers are still slipping through the cracks.

WILY, CUNNING AND DETERMINED CONSUMERS ARE STILL MANAGING TO PURCHASE OR REFINANCE HOMES AT EXTREMELY LOW MORTGAGE RATES!  THIS IS TOTALLY UNACCEPTABLE!

If the government really wants to help consumers, they could force everyone who wants to purchase or refinance a home to take a two month training course so that the consumer clearly understands how the government has helped them.  Consumers should have to pay for this training and a final test.  The training and test money could be used as a much needed income stream for further government housing assistance.

The government could get Homeland Security involved as well.  By requiring all consumers to provide fingerprints and hair follicle samples we might well prevent a covert terrorist cell from purchasing a safe house. And if Homeland Security coordinated with the local DMVs to collect unpaid traffic/parking tickets from consumers attempting to purchase or refinance, another income stream would be generated so that local politicians could go on more Global Warming junkets to exotic places.

Lenders and regulatory agencies could also assist consumers by demanding more skin in the game.  Instead of a 20% down payment, how about a 50% down payment?

I’m confident that, working together, we can force all of the greedy and diabolical loan officers, appraisers, inspectors, real estate attorneys, homeowners insurance agents, etc, out of the financing business once and for all.  We can shut down the housing industry altogether.  All we need is a little more “HELP”.

Posted by Terry Brunner.  Terry is a Senior Loan Officer with Horizon Financial.  Terry can be reached toll free @ (877) 627-9211 x150 or email TBrunner@HorizonFinancial.org.  Visit Horizon’s website at www.horizonfinancial.org

In a statement issued Wednesday, the Federal Housing Authority outlined policy changes to its mortgage assistance program. The shift is meant to both reduce the government group’s portfolio risk while strengthening its overall financials.

For consumers, the changes mean higher costs. As listed in the official announcement, there are 3 major guideline updates for the FHA:

• Upfront mortgage insurance premiums are increasing to 2.25% from 1.75%
• Minimum downpayments for applicants with sub-580 FICOs are rising to 10%
• Seller concessions are being limited to 3%, down from today’s allowable 6%

Furthermore, the FHA has appealed to Congress to raise an FHA borrowers’ monthly mortgage insurance premiums. To read the FHA’s statement, it’s clear what the group is trying to balance. On one side, the FHA wants to provide affordable financing to families that need it. That’s its mission statement. On the other side, though, the FHA must manage the risk that comes with insuring lesser-quality loans.   To that end, the FHA is stepping up its enforcement of “bad lenders” in hopes of stopping problems where they start.

Also in its new policies, the FHA is introducing a “termination clause”. If banks or loan officers that produce more than their fair share of bad loans, they lose their right to originate FHA mortgages. As a result, homebuyers in Simpsonville should expect tougher FHA underwriting in 2010. Not because the FHA says so, necessarily, but because banks don’t want to do “bad loans”. Lenders are incented to turn down at-risk applicants and, already, we’re seeing examples of this.

Despite FHA allowing 580 FICOs and lower, many banks have made 620 their minimum. Some have other guideline overlays, too. The FHA’s new guidelines don’t go into effect until spring. So, between now and then, the old guidelines will apply. Therefore, if you know you’re going to need an FHA home loan in the next few months, consider moving up your time-frame. If nothing else, you’ll save some money at closing.

Posted by Scott Fowler.  Scott can be reached @ 864-527-8900 x 104 or SFowler@HorizonFinancial.org

The maximum allowable total expense ratio will be lowered to 45% with flexibilities offered up to 50% with strong compensating factors.

Fannie Mae is modifying the minimum representative credit score requirement for all loans delivered to Fannie Mae to 620.

There are several other industry changes that will be implemented as of December 12 but these two items are the major highlights  for potential borrowers. As always if you have any questions regarding these new changes please feel free to consult myself or your trusted mortgage professional.

Posted by Randy Ratchford Mortgage Planner/Partner. Randy can be reached toll free 877-627-9211 ext107 or email RRatchford@HorizonFinancial.org

FHA’s market share was 3% as recently as 2006.  Now, 30% of purchases and 20% refinances are FHA.

As a result, the Federal Housing Administration ( FHA ) is in the process of drafting new policies to address the quality of  FHA’s current portfolio and improve the performance of future loans.

Changes under consideration include:  

• Reduce the maximum permissable seller concession from 6% to 3% – current 6% level exposes FHA to excessive risk by creating incentives to inflate appraised values.
• Raise the minimum borrower FICO score ( currently 620 or higher with most FHA lenders )
• Increase down payment requirements ( currently @ 3.5% )  FHA wants borrowers to have more “skin in the game.”
• Increase funding fee ( currently 1.75% )

This is not good news for home shoppers and homeowners.  When these proposals pass it will become increasingly more difficult to obtain financing. 

So, if you’re in the market to buy a home or refinance the time is now! 

• Sub 5% 30 yr fixed mortgage rates
• Tax credit for home buyers 
• Home affordability near all time low 

What are you waiting for?

Posted by Scott Fowler.  Scott can be reached @ 864-527-8900 x 104 or SFowler@HorizonFinancial.org.  Visit Scott’s website @ www.ScottFowlerTeam.com

Beginning November 17, 2009, the FHA will make it harder to qualify for its Streamline Refinance program.

Available exclusively to homeowners with existing FHA home loans, the streamline program is meant to help homeowners reduce mortgage payments as simply as possible.

The current program carries minimum eligibility requirements.

In fact, the FHA Streamline Refinance is more notable for what it doesn’t require from applicants.

• There’s no income verification
• There’s no asset verification
• There’s no employment verification
• There’s no appraisal required

The two biggest qualifiers, really, are the homeowner meets a minimum credit score and the new loan doesn’t exceed the original balance of the old loan.

The new program guidelines, however, are much stricter. 

Effective next month, among other requirements, applicants must show evidence of employment and income, plus proof of cash required at closing. 

Furthermore, homeowners can’t finance closing costs into the mortgage without a complete home appraisal.  In areas of declining value, this may render refinancing with the FHA impossible.

Therefore, if you’re a homeowner with an FHA mortgage, consider contacting your loan officer before the November 17 deadline to explore your Streamline Refinance options.  Mortgage rates are low and you never know for what you’ll qualify.

The worst thing you can do is to wait too long to find out.  Once the deadline passes, the old guidelines will be history.

Posted by Scott Fowler.  Scott can be reached @ 864-527-8900 x104 or SFowler@HorizonFinancial.org.  Visit Scott’s website @ www.ScottFowlerTeam.com.