Category Archives: Property Taxes

Hoping to Buy a Home? Have Student Loans? Consider “HomeReady” Financing from Fannie Mae …

Hoping to Buy a Home?  Have Student Loans?

 

Consider “HomeReady” Financing from Fannie Mae …

 Loosening Guidelines Can Help You Qualify! Contact Me!

 

After years of warranted tightening of guidelines in the Mortgage Industry, there are some new changes taking place that help to “relax” some guidelines, as they pertain to Fannie Mae (Conventional Loans) …
Come mid-July, 2017, Fannie Mae’s Automated Underwriting Systems will be “tweaked” to allow up to a 50% Total Debt-to-Income Ratios (DTI) … in some cases, not all.
I think there will be a sort of “learning curve” that takes place during the early days of this “tweak” … but, you can probably safely assume that the following will NOT fall within those scenarios considered for the new higher 50% DTI:
  • Low Credit Scores
  • Low Down Payments/ Limited Assets
  • Unstable Employment Histories
In addition to its upcoming increased Debt-to-Income Ratios, Fannie Mae just recently took a more flexible (generous to Borrowers) stance on calculating of Student Loan Debt. (Should you have Student Loans, please contact me to discover if this change benefits you.)
A third change by Fannie Mae was put into place last year with its implementation of a 3% (minimum) down payment program known as HomeReady * …
Below you’ll find the major highlights of Fannie Mae’s “HomeReady” program:
  • Forgiving Credit Scores
  • Reduced Private Mortgage Insurance(PMI) rates
  • PMI is cancellable, per Servicing Guide policy
  • Interest Rates as favorable, if not lower, than traditional Conventional Loans
  • Flexible Income Guidelines allowing:

A.  Non-Borrowing Spouse

       B.  Non-Borrowing Boarder/Rental Income Investigate Options Available to You!
  • Flexible Funds for Down Payment and Closing Costs, allowing Gift Money and Seller-Paid Credits for Closing Costs, etc.
  • There is no minimum contribution required from the Borrower’s own funds
  • Allows Buyers that have been homeowners previously (Do NOT have to be First-Time Home Buyers)
  • Expanded Debt-to-Income Ratios to 50% (in certain cases)
  • ALL property types are allowed, i.e. Condominiums, Townhomes, Single-Family, 2-4 Units (Properties must be Owner-Occupied)

It’s my opinion that “HomeReady” is a financing option that’s presently being under-utilized.  HomeReady’s cousin at Freddie Mac (“Home Possible”) is included in my assessment, as both Programs can be smartly and responsibly implemented to enhance financing options for a segment of Borrowers that might not qualify for other traditional financing programs.  “Home Possible”  and “HomeReady” may also allow some Buyers to qualify for a purchase/ownership of a higher-priced home … something that had eluded them previously.

For those that might fear a return to the more free-wheeling lendingguidelines in play prior to the housing downturn:  Neither of these programs is a reckless, no documentation, “look the other way” financing option.  The financing offered via these programs requires Home Ownership Counseling … an educational session that the overwhelming majority of participants have reported as a great benefit to them.
“HomeReady” can prove to be a very viable option for those Borrowers challenged financially by Student Loan Debt.  It also addresses challenges for those that rely on more non-traditional income sources.  For both scenarios, it certainly is worth consideration.
For those that find themselves in these circumstances and are hoping to buy a home in the New Lenox – Will County – Chicagoland area, reach out.  I’ll investigate all your options and get you on the path to buy and finance a home successfully …
Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I’ll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I’m easily found at:

Gene Mundt
Mortgage Originator – NMLS #216987 – IL Lic. #031.0006220 – WI License 216987
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
Get Answers .. Contact Me NOW!
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        Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Greatly Appreciated and Welcomed!

The Effect Real Estate Taxes and Insurance have on Mortgage Loan Approvals and Monthly Mortgage Payments

The Effect Real Estate Taxes and Insurance have on  Mortgage Loan Approvals 
and Monthly Mortgage Payments
     There is an acronym in the Mortgage Loan Industry known as PITI.  This stands for:
  • Principal
  • Interest
  • Taxes
  • Insurance(s)   (Insurance for Homeowners Premium and Monthly Mortgage Insurance must be calculated and included in an Estimated Housing Payment.  Mortgage Insurance is required if a Down Payment is less than 20%).

     If buying a property within a Homeowners Association, you can add an “A” to the end of that list/word, so it becomes PITIA.
https://1609956119.secure-loancenter.com/FreeConsult.aspx 
     PITI/PITIA is the actual total housing payment that is arrived at when a Loan Officer is “pre-approving” a Home Buyer.  

     As Mortgage Lenders, we tend to focus mostly on the Sales Price or Loan Amount for Home Buyers’ Pre-Approvals.  But I’m ultimately trying to pin down the Maximum Payment of PITI/PITIA.  This payment is then compared to the Home Buyer’s gross monthly income for what’s called the Housing Ratioor Front-End Ratio.  

     To arrive at the Total Debt Ratio, or Back-End Ratio (ideally 43% in this day and age), I add the Mortgage Payment (PITI/PITIA) to the other monthly debt my Borrowers have … that debt coming from Auto Loans, Student Loans, Installment Payments, Credit Card Payments, Child Support (if applicable) that my Borrower may have.

     So what is the significance of this seemingly straight-forward lending exercise??

     I want to illustrate how important it is to know if the piece of property my Borrower is considering for purchase lies within a Homeowners Association … and if it does, what the corresponding Association Dues are.

http://www.genemundt.com/ContactUs.aspx     Knowing the last available Real Estate Tax Bill is also important for a Mortgage Lender and Borrower.  That bill is needed in order to calculate a Monthly PaymentIf Mortgage Insurance is needed, there are various factors that impact and figure into the cost of that Insurance (i.e., Credit Scores, Down Payment Percentage, Owner-occupied VS Investor, etc.).  

     And lastly, the Principal and Interest (P&I) Payment is calculated based on the appropriate combination of Loan Amount and Interest Rate.  Add the Estimate for monthly Homeowners Insurance … and I get a reliable PITI/PITIA.

     Without a “reliable” and accurate PITI/PITIA, I’d be gambling with your Approval in Underwriting, especially when you’re approaching the Maximum Allowable Debt-to-Income Ratio (DTI).  Debt-to-Income Ratios are best kept at 43% to 45% (or less), for your optimum chance of receiving Loan Approval. 

     The Effect Real Estate Taxes and Insurance have on  Mortgage Loan Approvals and Monthly Mortgage Payments.  Home Buyers need an accurate calculation of their total Monthly Mortgage Payment in order to make sound decisions surrounding their Mortgage financing and home purchase.  It may seem like I’m asking a lot of questions when we’re in the Pre-Qualifying stage of your Mortgage Process.  But as you can see from above, the success of your Approval depends on me asking them. 
     *  Hoping to Buy, Refinance, or Construct a Home within a Lincoln-Way Community (Manhattan, New Lenox, Mokena, Frankfort), Will County, or elsewhere in ChicagolandContact me today!  I’ll put my 36 years of Mortgage experience and expertise hard to work on your behalf.
     I can be easily found at:
Direct:  815.524.2280
Cell or Text:  708.921.6331
eFax:  815.524.2281
Click HERE for a FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx
  Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   Digg Acct. of Gene Mundt, Mortgage Lender
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Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL
 

Real Estate Round Table #1: Making Chicagoland First-Time Home Buying Easier

Real Estate Round Table #1:     Making Chicagoland First-Time Home Buying Easier

     They say stepping out of your “comfort zone” and showing a willingness to do new things is good.  That lesson is valid whether you’re talking about buying a first home … or doing your first webinar.  I did the latter just  this morning …

     With the assistance of small business and real estate consultant, facilitator, and wonderful friend Carra Riley, I tackled my first online webinar today.  A webinar that addresses the other “first” I speak of above … Buying a First Home.  

     There were a few minor hiccups with sound (at first), but all in all this first video webinar went well.  Many of the fears I had previously have now disappeared.  Truth is, the unknown was far more scarey than the actuality.

     Much the same can be said about Buying your First Home in Chicagoland.  Education and preparation are key, as is who you choose to work with during your transaction. I learned during the making of my first video that sometimes it’s best to learn as much as you can, make your preparations, and then dive into the waters. 

     I had great professionals at my side … and that made all the difference to my mindset and to the outcome.  Do the same during your First-Time Home Buying transaction … and you’ll end-up successful too.

     My new webinar featured two of my Chicagoland referral partners … 

Anne McMillin of Starting Point Realty …

Anne McMillin 
Real Estate Broker
Starting Point Realty
anne@StartingPointRealty.comCell:   708.601.1530 

   

Richard Stringham of Stringham Insurance Agency in Mokena … 

Richard Stringham – Owner/Agent
Stringham Insurance Agency
19646 South Wolf Road
Mokena, IL  60448
dick@stringhaminsurance.com 

Office:   708.479.2526  

     We hoped that the info and assistance provided within the video would aid Chicagoland First-Time Home Buyers.  Each of us was hoping to take the “fear factor” out of first-time home buying transactions for our viewers.  I hoped we accomplished that and more.

     Here’s my video/link:

Image

     I know I learned a lot today.  And again, I must say thank you to Carra Riley for that.  Making this video certainly reinforced a lesson about the “comfort zone” thing too.  Because of Carra’s generosity and efforts I know I’ll definitely be much more relaxed and educated about the ins-and-outs of video, webinars, and Google+ Hang-Outs in the future.  

     I’m looking forward to adding even more informational Mortgage financing videos and webinars in the future.  Be watching for them as I hope to share more on the topics of Mortgage financing, Credit/Credit Scores, Mortgage Pre-Qualification, preparing to Buy a Home, Mortgage Application, Chicagoland Construction financing, and more soon. 

     *  Have questions about what you heard in the video above?  Contact Me!  I’ll be happy to hear from you, answer your questions regarding Mortgage financing, refer you to  great professionals within the Chicagoland area, and more.
     I can be easily found at:

Direct:   815.524.2280
Cell or Text:   708.921.6331
eFax:   815.524.2281
Click HERE for your FREE Mortgage Consultation!
Ready to Apply for your Mortgage?
https://1609956119.secure-loancenter.com/WebApp/FullAppLogin.aspx

Think Your Property Tax Bills are Too High? Attend My FREE Real Estate Property Tax Reduction in IL Seminar, July 25th in Naperville

Think Your Property Tax Bills are Too High?
Attend My FREE Real Estate Property Tax Reduction
in IL Seminar, July 25th in Naperville
    Frequently, I am asked in my capacity as a Mortgage Lender …   “What, if anything, can I do about my high real estate taxes?”
     The answer they really seek, lies in their real estate property’s ASSESSMENT, not their tax bill.  It’s the assessment of a property’s value that must be addressed in order to find tax relief.
     The good news is, I’m finding when working with new home buyers during their  mortgage processing and Closing,  that many of our IL municipalities and governmental bodies are trying to address this issue.  But the re-assessing of properties is taking place very slowly, still leaving many property owners frustrated.
     So in order to best address my clients’ concerns and need for property tax relief, and to assist them pro-actively in seeking a reduction

Click 4 More Info on the FREE Real Estate Property Tax Reduction in IL Seminar

in their property assessments, I am hosting a:

FREE
Real Estate Property
Tax Reduction in IL Seminar
 July 25th 
6:30 – 8 pm
at my office located in  Naperville.
     I am co-hosting this seminar with one of Chicagoland’s leaders and experts in the field of Residential and Commercial Real Estate Property Tax Reduction … Atty. Anastasia M. Poulopoulos.
     Anastasia Poulopoulos has helped thousands of Illinois property owners in their quest to lower their property assessments, which in-turn, has lowered their tax bills.
     Following the expert guidance provided from myself and Attorney  Anastasia Poulopoulos  at the FREE Real Estate Property Tax Reduction in IL Seminar on July 25th, attendees of the seminar can seek and find the property tax relief they need and desire.
     If  you  own an Illinois property, please take advantage of this FREE educational opportunity … and learn how to save yourself money on your future tax bills!
     Let everyone you know that are interested in finding savings on their own property assessments and real estate tax bills … friends, relatives, co-workers … about this FREE  helpful seminar.
     Go to the website below to RSVP for this FREE  Seminar Today:

–  or TEXT  –
               “RSVP”  to:   708.921.6331 
   
        I look forward to seeing you on July 25th!
     * Work with a  Mortgage Lender  that has a thorough knowledge of real estate, real estate appraising, tax appeal experience, and mortgage services from the beginning of your home search through successful loan Closing and beyond.
        Contact me todayand I will put my 35+ years of experience and expertise to work on your behalf.
        I can be found at any of the following:
Cell/Text:    708.921.6331
Skype:   630.219.1316

gmundt@thefederalsavingsbank.com