Mortgage Blog

Home Funding Corp. has received Unconditional Direct Endorsement Approval from the Federal Housing Administration. This designation as a "Full Eagle FHA lender" means the bank can now originate, fund, hold, service, purchase and sell FHA-backed mortgage loans.

The big thing for a borrower about the Full Eagle designation is that it streamlines the mortgage process for applicants. Becoming a full Eagle lender makes us stand.

There is a popular misconception that FHA-backed mortgage loans are for people who have poor credit or low incomes. There really are no income restrictions and a only few guidelines on credit for FHA loans.

An FHA mortgage can also help people who do not have sufficient money to put down on the house. Saving enough for a down payment is a major deterrent to home ownership, especially in California. FHA-backed mortgages can help people get into a house with as little as three percent down.

Measure seen to bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize declining home values in certain neighborhoods, the Bush Administration today announced a temporary policy that will extend government-backed mortgage insurance and allow for the immediate sale of vacant foreclosed properties.

For one year, the Federal Housing Administration (FHA) will insure foreclosed properties marketed and sold by property disposition firms on behalf of lenders. The properties, which must purchased by owner-occupants, will no longer be subject to the customary 90-day waiting period.

"A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community's recovery," said Brian D. Montgomery, Assistant Secretary of Housing-Federal Housing Commissioner. "The action we take today will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes in neighborhoods across the country."

FHA's new temporary policy will help stabilize neighborhoods experiencing high rates of foreclosure by reducing the inventory of unsold properties. Many foreclosed properties remain vacant for months, inviting vandalism and reducing values of surrounding homes. To address that sizeable inventory, lenders have hired companies that specialize in the marketing and disposition of foreclosed homes. It's reasonable and appropriate that these firms have the ability to sell the properties to borrowers using FHA financing.

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This prohibition is intended to prevent property "flipping," a predatory practice that strips a home of its equity before being quickly resold at an inflated price to an unsuspecting buyer. FHA's new policy will permit the immediate sale of foreclosed properties to legitimate borrowers wishing to use FHA-insured financing.

Unless you drive a hybrid car or ride your bike to work, there’s no way to escape the high gas prices. But there are ways you can get better gas mileage out of our vehicles – which will save you money in the long run, according to Edmunds.com, an online resource for automotive information.

Here are 10 to help you get better gas mileage:

1. Follow the Recommended Maintenance - A well-maintained vehicle will operate more efficiently. Fouled spark plugs, dirty air filters and clogged fuel filters will diminish fuel economy.
2. Keep Tires Properly Inflated - Under-inflated tires require more energy to roll; properly inflated tires can improve fuel economy by as much as 3 percent.
3. Take a Load Off - Heavier vehicles require more energy to move. Pack light and remove unnecessary items from the car.
4. Don't Drive Aggressively - Hitting the gas pedal hard after stopping, slamming on the brakes and speeding all decrease fuel efficiency.
5. Use the Highest Gear Possible - Lower gears use more power, so manual transmission drivers should switch to a higher gear when driving at a steady speed, and automatic transmission drivers should avoid using "sport" mode.
6. Use Cruise Control Selectively - Cruise control is a great asset on flat roads, but isn't the most efficient on hilly terrain.
7. Think Clean - Keeping your car washed and waxed improves its aerodynamics, thereby improving fuel efficiency. On a long trip, a quick run through a gas station car wash might more than pay for itself.
8. Avoid Excessive Idling - An idling car burns fuel. Whenever possible, turn your car off while waiting, and try to avoid drive-through windows and long toll booth lines.
9. Think Before You Ventilate - Air conditioning consumes more fuel, while rolled down windows decreases aerodynamics. Roll down windows when in slow-moving traffic; use the air conditioner when traveling at high speeds.
10. Combine Your Errands - Cold engines use more fuel than warm engines. Combining errands means the engine will be warmer for more of the trip.

We all know the importance of being informed before taking out any loan, and as more and more people take out FHA Loans it’s critical to understand your obligations before starting the process. A simple way to do this is by using a mortgage calculator. One of these such tools can be found at the Mortgage Loan website. You plug in your information and the calculator provides an estimate of the loan amount you could be approved for and your monthly payments. The information to be plugged in includes:

• Yearly Salary
• Other Income
• Property Tax
• Hazard Insurance
• Monthly Auto Payment
• Credit Cards and Other Payments

The Calculator already has the Loan Term (30) and Interest Rate (6) plugged in, but these can be changed to fit your plans. Tools like this one are a great way of understanding what you can expect before starting the FHA lending process.

WITH DECLINING real estate values in many parts of the country, now is the time for home owners to explore opportunities that may exist to reduce their occupancy cost through a reduction in their real-property taxes.

Our nation's current economic woes have translated into a tax-revenue shortfall for many local and regional governments throughout the country. Stagnant or shrinking tax bases are also putting pressure on these public entities' budgets. When property values are declining, chances for tax rates to drop also decline. However, constant vigilance and an understanding of market conditions can ensure that home owners don't overpay.

Here are a few points to keep in mind:

1. Property tax valuation will only be reduced IF the fair market value of the property has dropped to below the tax basis for that property. If you purchased a home for $1,500,000 last year (so tax basis is $1,500,000) and it is now only worth $1,300,000, you almost certainly would be granted a reduced tax basis. But if you purchased your property for $800,000 ten years ago and the basis has increased the full 2% per year allowed in each of those ten years, your tax basis will still only be $975,196 and your property value would have to drop below that amount to qualify for a reassessment;
2. The reduced valuation is temporary. If prices go back up again, your tax basis will go back up again;
3. As property values start to increase again (and they will!!) reassessments are not limited by the 2% rule until you basis gets back to where it was before, at which time the 2% annual cap is reinstated. So, if there is a dramatic upturn in home values it is possible your tax relief may be short lived. Still, nobody likes paying taxes and even temporary relief is welcome.

Please contact me if you need comps in your area.