Tim Storm, Sr. Loan Consultant, FHA Expert
Tim Storm, a Loan Officer with Frost Mortgage Lending Group, located in Orange County, CA, has worked helped home buyers with their mortgages since 1989. Tim Storm is a lifelong Orange County, CA resident and holds a Bachelor of Business Administration from the The University of San Diego. Tim holds a Brokers license with CA Department of Real Estate, as well as being a Certified Mortgage Planning Specialist, a designation issued through the Certified Mortgage Planning Institute. Tim and his team make sure the home buyers they work with, especially First Time Home Buyers, are well informed of all the loan programs available to them, including FHA, VA, Fannie Mae loans. Frost Mortgage Lending Group is a Direct endorsed FHA and VA lender. This means that Frost Mortgage will process, underwrite, and fund FHA and VA loans in our Orange County, CA office. This includes the FHA 203K Rehab mortgage and the FHA Reverse Mortgage. We also fund Fannie Mae, Freddie Mac, and a few other types of loans in our office.Syndicate
IRS Rules Regarding Home Buyer Tax Credit for Orange County First Time Buyers
Examples of Tax Credit Fraud
In 2009, people were claiming to have bought homes but never did. Also, people who did not qualify as First Time Buyers were claiming the first time buyer $8,000 tax credit.What Is Needed to Claim the Tax Credit
The first time buyer will need to fully execute IRS Form 5405, which asks for the purchase price, income, and date of the purchase, all important information in relation to the tax credit. The tax credit has income limitations, and is based on 10% of the purchase price, or $8,000, whichever is less. A copy of the final closing statement or HUD-1, needs to be submitted with the tax return.
The tax credit cannot be claimed by filing taxes online. Unfortunately, the return will need to be mailed in, which means it could take between four and eight weeks to receive the check. Still, better late then never.
Time is Running out for Orange County First Time Buyers
Orange County first time buyers who want to take advantage of the $8,000 tax credit need to act quickly. Home buyers have until April 30, 2010, to have a signed contract to purchase a home. They will then have until June 30 to close escrow. With housing inventory levels so low, it is taking some time for home buyers to get an offer accepted. The first step is to talk to an Orange County Loan Expert who is specializes in FHA and VA loans who can walk you through the PreApproval process quickly and easily.Authored by Tim Storm, an Orange County, CA Loan Officer - Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
First Time Buyer Tax Credit Deadline Approaches for Orange County Home Buyers
Two Dates to Be Aware of
The expiration of thefirst time home buyer tax credit will occur in two parts. The first time home buyer needs to have a signed contract to purchase a home by April 30, 2010. The Orange County First Time home Buyer then has until June 30, 2010, to close escrow. 60 days should be plenty of time to close a typical escrow. However, there are many reasons why an escrow can get delayed, which gives all the more reason to find a home before the April 30 deadline. To make things even more difficult, finding a home has not been easy for Orange County First Time Home buyers. Inventory levels have been low right when property values are down and affordability levels are higher than in years.
What's the First Step for an Orange County First Time Home Buyer
The first step for anOrange County first time home buyer is to talk to an FHA loan expert who can walk you through the initial prequalification stage of the loan process. These days, sellers will not even entertain an offer from a first time buyer without an accompanying PreApproval Letter from a Direct Lender. Finding a local Orange County Direct Lender who can answer a first time home buyers questions is important. Most lenders will not charge a fee for prequalification, and there is nothing requiring a home buyer stay with the lender who does the initial prequalification.
Authored by Tim Storm, an Orange County, CA Loan Officer - Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Placentia Real Estate for Sale! FHA Financing Available on the Placentia Townhome
This property is not subject to normal FHA condo guidelines because it is not a condo. The great thing about a townhome is you own the land. This helps to keep protect the property value and makes getting a loan easier.
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Authored by Tim Storm, a Placentia, CA Loan Officer - Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Placentia FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Great News for Orange County FHA Borrowers as HUD Waives 90 Day Flip Rule
How Did the Flip Rule Work?
Why Did FHA Change their Mind About Flip's?
Conditions That Need to Be Met for the FHA Waiver of 90 Day Flip Rule
There are a few conditions that do need to be met in order for an Orange County First Time Buyer using FHA financing to purchase a property that has changed hands within the past 90 days.
- <:od>All transactions must be "arms length" with no relationship between the buyer, seller, or other parties taking part in the sale of the property. The lender will need to verify the chain of title for the property to make sure there has not been a pattern of flipping over the past 12 months. Also, the property must of been marketed openly, either on MLS, For Sale By Owner, or some other means.
- The sales price cannot be more than 20% above the sellers purchase price without meeting additional conditions. If the property is being sold for more than 20% above the sellers purchase price, the lender may require an additional appraisal and property inspection. The lender needs to make sure there is a legitimate reason the property is valued 20% higher than the recently acquired price.
- The 90 Day No Flip Rule waiver is only for the "forward" FHA loan program. The waiver will not effect the Reverse Mortgage, or HECM in Orange County.
Who in Orange County will Benefit from the FHA Waiver
Not only Orange County First Time Home Buyers, but also real estate investors will benefit from their waiver. First time buyers will have more homes to make offers on, and investors will have more buyers to potentially sell to. FHA is just about the only loan program available for home buyers that allows a down payment of less than 10%. FHA only requires a 3.5% down payment, and the down payment can be a gift. The first thing an Orange County First Time Buyer needs to do is talk with an Orange County FHA loan officer who can prepare loan scenarios based on your qualifications and goals.
Authored by Tim Storm, an Orange County, CA Loan Officer - Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Changes to FHA will Have Some Effect on Orange County First Time Home Buyers
What are the Changes to FHA Financing and how will it effect Orange County First Time Home Buyers?
- The Upfront Mortgage Insurance Premium (UFMIP) will be increased from 1.75% to 2.25%. The UFMIP is financed into the loan, so realistically this will not be a big deal. For example, on a $300,000 base FHA loan, the UFMIP would currently be $5,250, resulting in a total FHA loan of $305,250. Assuming a 5.5% interest rate, the principal and interest payment would be $1,733. Using the new 2.25% figure, the UFMIP would be $6,750, resulting in a total FHA loan of $306,750. The payment, using a 5.5% interest rate, would be $1,741 per month. That is only a $8 payment increase. Not a big deal.
- FHA is updating the combination of FICO scores and loan to value maximum. Currently, FHA does not have a minimum FICO score requirement for a home buyer putting the minimum 3.5% down payment down. Now, a minimum FICO score of 580 is required for 3.5% down payment. If the FICO score is lower than 580 then a down payment of 10% is required. Reality: So what. Most lenders have already instituted a minimum FICO score requirement of 620. Some won't go below 660. This change should have not effect on Orange County First Time Homebuyers. If a homebuyers score is less than 580 then they probably need to work on their credit before buying a home anyway.
- Seller contributions will be reduced from 6% to 3%. Reality: Not a big deal, at least for Orange County First Time Buyers. A first time buyer purchasing a home for $350,000 in Orange County, and who needed the seller to pay for closing costs, could have the seller pay as much as $21,000 under the current guidelines. That would be excessive. Under the new guidelines of 3%, the seller could pay $10,500. That would be enough to coverall closing costs (assuming 1 point Origination) and most of the prepaid expenses in most cases. Maybe in areas with lower priced homes, like Tennessee, where you can buy a home for $50,000, will be effected by this, but not Orange County.
Upfront Mortgage Insurance Premium Information
<:od>FHA did release Mortgagee Letter 2010-02, which discusses the effective date for the increased UFMIP. The effective date will be April 5, 2010. The increase does not effect the Title 1, HECM Reverse Mortgage, or Hope for Homeowners. It does effect all purchase and refinances, including the FHA Streamline program. This should give more incentive to anyone considering an FHA Streamline program right now. Do it before the UFMIP changes. May as well take advantage of currently low Orange County mortgage rates and save the extra .5% in UFMIP that you know will be there on April 5.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
2010 Will Be Another Big Year for Orange County First Time Buyers and the FHA Loan Program
Advantages of FHA Financing for Orange County First Time Buyers
One year ago most lenders allowed FICO scores on an FHA loan to be as low as 580. Now, at the beginning of 2010, most lenders require a minimum FICO score of 640, with a few even wanting scoresof at least 660. This is still more flexible that Fannie Mae and Freddie Mac. Also, while Fannie Mae recently decreased their debt to income ratios to 45%, FHA will still approved buyers will debt to income ratios as higher as 55%, and that is even with the minimum 3.5% down payment.
FHA Interest Rates Remain Low
For most of 2009, mortgage interest rates in Orange County were very low. Most Orange County First Time Buyers were able to get an interest rate in the 4.5% to 5.5% range for the last 12 months. We have started 2010 in the same range, although edging towards the upper end of that range. It is difficult to forecast where interest rates will go as year progresses, but for now rates remain extremely low.
First Time Buyer Tax Credit of $8,000 is Still Going!
The First Time Buyer Tax Credit continues into 2010. New home buyers have until April 30 to have a signed purchase contract, and then June 30 to close escrow on their new home to qualify for the credit. This credit essentially means the government is giving money to home bueyrs to purchase a home. Taken in conjunction with the fact that home prices in Orange County have dropped to levels that make a home payment comparable to a rent payment, why wait any longer.
The first step in buying a home is FHA or VA Loan PreApproval. Home buyers need to find an experienced Orange County Loan Officer who can give them several loan options and scenarios, and walk them through the process. FHA and VA PreApproval is an easy process and doesn't cost a dime. Once Approved, the home buyer will know what price range to shop for, saving time and frustration.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Placentia Home For Sale. Only 3.5% Down Required with FHA Loan on this Orange County Home For Sale
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Mortgage Interest Rates Remain Low for Orange County Home Owners in 2009
Interest rates have remained low through most of 2009, which has been great for Orange County home owners. Except for the typical fluctuations from time to time, mortgage rates have been very low all year.
FHA Mortgage Rates for Orange County
FHA mortgage rates have been in the 5% to 5.5% range for most of the year, with a short term dip to 4.5% in April. Rates tend to be slightly higher for “Jumbo” FHA loan amounts between $417,000 and $729,750. In this higher loan amount range, rates have tended to be between 5.25% and 5.75%.
VA Mortgage Rates for Orange County
VA mortgage rates tend to mirror FHA mortgage rates. Lenders do have a bump in pricing or rate when the loan amount goes over $417,000. VA offers 100% financing in Orange County to a loan amount of $737,500. Amazing.
Conventional Mortgage Rates for Orange County
Conventional mortgage rates for the 30 year fixed program (assuming loan amounts under $417,000) have been in the 4.75% to 5.5% range for most of the year. Pricing on Conventional loans can be tricky. The best pricing is available to borrowers with FICO scores above 740 and loan amounts at 60% of the properties value or less. If a borrower is looking to pull cash out, or if their FICO score falls below 740, the rate or fee will be higher, as mandated by Fannie Mae and Freddie Mac. 15 year fixed programs have lower rates by as much as .25% to .5%. Also, the 5 year fixed program has been in the 4% range for much of the 2nd half of 2009.
Forecast for 2010
Mortgage rates can’t stay this low forever, but there is not an expectation that they’ll dramatically increase in 2010. As the economy recovers (we all hope), mortgage rates will begin to go up. The current environment of low home prices and low interest rates has worked to create an excellent time to refinance or purchase a home. Couple that with the First Time Buyer Tax Credit and now the Move-Up Buyer tax credit, and how much better can it be.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
Orange County Home Buyers will Benefit from Extension of Loan Limits Through End of 2010
What Does This Mean for Orange County Home Buyers?
The increased loan limits have added liquidity to the Orange County real estate market. FHA only requires a 3.5% down payment, which means home buyers can purchase a home for $756,000 with only 3.5% down payment. That's only a $26,460 down payment. For those home buyers who have a bigger down payment, going with a Fannie Mae/Freddie Mac loan with 20% down will make more sense. The purchase of a $912,000 home, with 20% down, will work with these loan limits.
Orange County Move Up Home Buyers Taking Advantage of High Loan Limits
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
An FHA Loan is Not Just for Orange County, CA First Time Buyers
Why Do People in Orange County, CAThink FHA is only for First Time Buyers?
- Flexibility with Credit - While Conventional Financing requires higher FICO scores, most lenders offering FHA will go down to a 620 FICO score.
- Small Down payment - California is considered a "declining market", and as such, conventional financing requires 10% down payment. And to get that, you'd better have a 740 FICO. Realistically, anyone with less than 20% down will probably benefit by going with FHA. Plus, FHA only requires 3.5% down payment.
- Flexible Underwriting - Alright, these days lenders will ask for more than you could ever imagine. "First born and a pint of blood" is not far off base. But there is still some flexibility with FHA when it comes to job history, especially for recent college grads with less than 2 years of employment history.
- Down Payment can be from gift - Conventional financing allows this, but only with a 20% down payment. FHA will allow the entire down payment (all 3.5% of it) to be a gift from a relative.
Just a quick note. The only thing better than an FHA mortgage is a VA mortgage. In Orange County, CA, A Veteran can buy a home for $737,500 with $0 down.
Why FHA is Good for Orange County Move-up Home Buyers
This is the best time in years to move up into the dream home you've always wanted but maybe couldn't afford. The only problem is you've lost most of the equity in your current home. A few years ago an Orange County, CA home owner could have sold their home for (we're just estimating here) $600,000. Lets assume they would have had $250,000 of equity to pull out and put down on a new home. The price range they were interested in was $$900,000. Now, there $600,000 home is only worth $375,000. After selling their home, they will only have $25,000 to $30,000 for down payment. Not the 20% down payment they are thinking they need. But the home they liked a few years ago, worth $900,000, is now worth $550,000. Using an FHA loan they will only need $19,250 for the down payment. Not only that, the total mortgage payment, counting taxes and insurance, will be much less than it would have been if they had bought the home 2 years ago with 20% down. ($900,000 price and $720,000 loan.)
So yes, now is a great time to consider making a "move up" into the dream home. And FHA may be the best loan program for the job. First things first. Have an Orange County FHA Expert prepare loan scenarios to see if it make sense.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Frost Mortgage Lending Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com
*Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
