Entries Tagged as 'las vegas mortgages'

Las Vegas Mortgages-FHA Energy Efficient Mortgages

Energy Efficient Mortgages

Energy efficient mortgages are for one to four unit existing and new construction properties. Standard credit underwriting guidelines are used requiring the borrower to have a three percent investment into the transaction. The borrower is able to finance the costs of energy efficient improvements on their loan. The amount added to the mortgage does not require additional down payment and borrowers do not need to qualify for the addition to the payment.

The amount of energy efficient improvements allowed to be financed is the greater of: 5% of the property’s value, or $4,000. Financing cannot exceed $8,000. The improvements must be cost effective in order to be included for financing. Cost efficiency is determined by the total cost of the improvements to be less than the total present value of the energy saved over the useful life of the energy improvement. The cost of the energy improvements and the estimation of the energy savings are determined by a report from an energy consultant.

The energy improvements are installed after the closing of the mortgage. The amounts of funds, which are financed in the mortgage, are placed in an escrow account. Once the borrower has the energy improvements installed, they are then inspected for completion and verification of energy savings. The lender will then release the funds upon satisfactory review of the inspection.

FHA allows the mortgage amount plus the cost of the energy improvements to exceed the maximum mortgage limits by only the cost of the improvements. For example, if the maximum mortgage limit for your area is $202,500 and the cost of the improvements is $4,000, a total mortgage amount of $206,500 is allowed for this program.

For more information regarding the FHA Energy Efficient Mortgage contact me directly by phone at 702.526.3133 or e-mail at mgarnes@garnesmortgage.com. Thank you for reading and make it a great day!!

Tags: FHA, las vegas mortgages by Matt Garnes
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Making Home Affordable-Summary of Guidelines

Hello Las Vegas and Henderson… the MAKING HOME AFFORDABLE program finally took effect March 4, 2009 and will offer assistance to as many as 7-9 million homeowners. This bill will make their mortgages affodable and help to prevent the negative impact of foreclosures on families, communities and the national economy. I have compiled a list of bullet points pertaining to the program’s guidelines.

ELIGIBILITY AND VERIFICATION:

  1. Loans must have been originated on or before January 1, 2009
  2. First lien loans for owner-occupied properties with unpaid principal balances up to $729,750. Higher limits are allowed for owner-occupied properties with 204 units
  3. Borrowers must fully document their income with two most recent pay stubs and most recent tax return. Borrowers must also sing an affidavit of financial hardship.
  4. Occupancy status will be verified through borrower credit report and other documentation.
  5. Modifications can start from now until December 31, 2012 and can only be modified once under this program.

TERMS AND PROCEDURES:

  1. Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive -meaning that the net present value of expected cash flow is greater in the modification scenario -the servicer must modify absent fraud or a contract prohibition.
  2. Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI)
  3. The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%(, then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners refinancing are acceptable alternatives.
  4. The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner’s association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income.
  5. Servicers must enter into the program agreements with Treasury’s financial agent on or before December 31, 2009.

PAYMENTS TO SERVICERS, LENDERS, AND RESPONSIBLE BORROWERS

  1. The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.
  2. Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.
  3. The program will include incentives for extinguishing 2nd liens on loans modified under this program.
  4. No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasury’s financial agent.
  5. Similar incentives will be paid for Hope for Homeowner refinances.

Well there it is Las Vegas…what is your opinion? Do you believe this will help pull us out of this mess we are in? Do you believe this new program will help you personally? With the Las Vegas, Henderson Nevada housing market being one of the hardest hit along with California, Florida and Arizona I hope to assist many homeowners in qualifying for this program thus keeping my clients in their homes and making a change for the better. I would love to hear your comments on this matter so let me know how you feel about.

For those of you who have specific questions regarding this program or if you would like to attempt a refinance of your property contact me directly by phone at 702.526.3133 or via e-mail at mgarnes@garnesmortgage.com. You can also chat with me at yahoo ID ‘thefinancemaster’

Thanks for reading and make it a great day!!

 

Tags: las vegas mortgages, mortgage loan modification by Matt Garnes
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Homebuyer Tax Credit

 

The Treasury Department has implemented the Homebuyer Tax Credit which falls under the American Recovery and Reinvestment Act of 2009, or the stimulus act. The Treasury Department and Internal Revenue Service managing the Homebuyer Tax Credit says forms and regulations are in place and available at website www.irs.gov and the form number is 5405.

Here are the finer points of the Homebuyer Tax Credit:

  • Available to homebuyers purchasing a home before December 1, 2009 (you may claim this credit on your 2009 returns or immediately on your 2008 tax returns due in April)
  • tax credit is equal to 10% of the purchase price of the home up to a maximum $8,000 or $4,000 for mairried taxpayers filing separate returns. (the tax credit does not have to be repaid by the borrower unless you sell your home in less than 36 months or if the property ceases to be your principal residence during the same 36 month period)
  • this Homebuyer Tax Credit is available to first time homebuyers which is defined as one who has not owned a home for the 36 months ending on the date of purchase
  • the credit is available to taxpayers with adjusted gross incomes up to $75,000 or $150,000 for married taxpayers filing jointly
  • homeowners who purchased a house between April 8 and December 31, 2008 are not eligible for the new credit but are eligible for the $7500 repayable credit

For further information regarding the new Homebuyer Tax Credit contact me directly by phone at 702.526.3133 or by e-mail at mgarnes@garnesmortgage.com  I am licensed to do mortgage loans in Nevada, California and Arizona as well as 12 other states.

Thank you for reading and make it a great day!!

Tags: las vegas mortgages by Matt Garnes
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