JBLM Military Spouses Pampering Event a Huge Success

 A Special Thank You goes out to The Ranger & Northwest Military for hosting a great "Pampering Event" in Lakewood, WA, supporting Military Spouses at 
Joint Base Lewis McChord!

Guest Homeowner University Blogger:

Michael Patterson, Branch Manager Land / Home Financial Services

I recently interviewed Kerri Baltzell, Advertising Account Executive with The Fort Lewis Ranger newspaper at the "Pampering Event" in Lakewood, WA near Joint Base Lewis-McChord, hosted by Northwest Military. Kerri said that there were over 1100 military spouses that RSVP'd for the event. Judging by the crowd and contant flow of people at the event, I'd say there were well over that amount of people who attended.

The Video of our Interview can be viewed Here: VALoansNW.com or by clicking on the Video Image below.

I was honored to be invited to help Rose Porter and Bo Foster from Signature Service Real Estate in Rainier, Washington run their booth for the event. It was a lot of fun, and the gals gave away over $1000 in Gift Baskets to some VERY thankful military spouses. What a way to give back and show support for our military families at Joint Base Lewis McChord!

As an additional benefit, Rose at Signature Services Real Estate offers all military families a Free Foreclosure Property Report List. Just mention that you are military and Rose Porter can get you the report. Complimentary! (Rose can be reached by calling their office at 360-446-4646 or by Rose Porter's Email Address)

As my way of also showing support for our military families, I'm offer a Free One Year Home Warranty on every loan I close for active military or Veteran buyers. In fact, I'll even offer it on qualifying refinances. This is up to a $405 retail value and a great service. We have it on our own house. Forget the "Honey-Do List", too! If something under the warranty breaks, you're covered! (Additional coverages are extra. Contact Michael Patterson for more details.)

Again, thank you to The Ranger and Northwest Military for hosting such a great event!

~Michael

Michael Patterson

Branch Manager
NMLS ID / MLO #69386

Land Home Financial Services, Inc.
Issaquah, WA 

425-289-1102 Office
206-423-4000 Direct

Email

Equal Housing Opportunity Lender. Offer subject to change without notice. Not a commitment to lend. *One Year Home Warranty applies to Michael Patterson’s applications only, up to a $405.00 maximum value given at the close of the loan, added coverage is not included in this offer. Land Home Financial Services 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan License #CL-89331. NMLS ID # 89331. 3-1-12

Economic Outlook 3/5/12

Real Estate Outlook 3/5/12

What is HARP 2.0?

What is HARP 2.0? (And why should I care?)

HARP stands for "Home Affordable Refinance Program". 

HARP is a federal government program announced March of 2009, but has recently been re-launched with new "HARP 2.0" guidelines. These guidelines should interest you as a Homeowner, whether you personally benefit or not.

You see, HARP was initially designed to help an estimated 5 million underwater or near-underwater homeowners refinance into a fixed loan with a lower monthly payment. HOWEVER, as of Aug. 31st, 2011, only approximately 894,000 borrowers have refinanced through HARP. That is a far cry from 5 million, isnt' it? 

On Oct. 24, 2011, HARP was announced with an overhaul to the existing program with the intent of reaching more underwater homeowners. This expanded the HARP program guidelines and criteria, and is now being known as "HARP 2.0".

SO! Do you qualify?

Watch this short video to see a step by step questionaire to see
if you could benefit from a HARP 2.0 refinance!

HARP 2.0 revised guidelines took effect on December 1, 2011 for borrowers with mortgage loans that are less 125 percent of their home value.

For Homeowners who have loans that are above 125% of the value of their home, beginning in March, 2012, they MAY be able to refinance for the first time. 

This could mean that millions of homeowners could reduce their monthly mortgage payments and take advantage of the HARP 2.0 program. This could mean thousands of dollars in other available money in their household budgets can then be used to stimulate the economy by:

A), their consumer spending, thereby

B) showing increased confidence and economic stability, which results in

C) creation of new jobs and less unemployment, which leads back to

D), a potential surge in first time homebuyers.  

It's a general concensus with economists and experts across the board that in order to have an economic recovery in our country (and the world), we've got to first have a good housing recovery. When confidence levels are back up, there will be more first time homebuyers, which will release the existing homeowners to sell and move up to homes that better suit their needs. With a strong first time homebuyer market, combined with a stronger economy, the housing recovery is more likely to happen. This means that this loan program has the potential to have long reaching positive effects in your home value!

Homeowner University is committed to educating current and future home buyers, as well as existing homeowners with the purpose of fostering sustainable homeownership. Just because you CAN qualify to buy, doesn't always mean you should... and once you're in a home, it's critical that you have the knowledge and resources to maintain your success! Homeowner University is commtted to this cause.

What makes HARP 2.0 different? 

The original version of HARP didn't work very well, mainly because the program only assisted those with mortgages with a loan-to-value ratio between 80 percent and 125 percent. Many people were above that 125% mark. In addition, there were few investors and banks on wall street willing to take the risk of these higher loan to value loans. This made it difficult for borrowers to find banks or mortgage lenders that could help them out. When many markets across the country had seen up to 50 percent  or more drops in home values, there were many great borrowers that just couldn't qualify for the program. Doing the right thing, they hadn't walked away from their homes... up until now with HARP 2.0, there wasn't much anyone could do for people who had above 125% Loan to Value. Now, for the first time, there is a possible solution for these borrowers. 

While the guidelines are listed below, there is no guarantee that this will be well-received by wall street and mortgage backed security investors. This is why many in the lending community are still walking cautiously with this information and are justifably skeptical, based on past experience and performance of many "bailout" type programs.

Below are some main bulletpoints of the new HARP Guidelines:

• No underwater limits - Borrowers may now be able to refinance regardless of how far their homes have fallen in value. Previous loan-to-value limits were set at 125 percent.
  
  
• Eliminating appraisals and underwriting - Many homeowners may not have to get an appraisal and/or have streamlined underwriting, making their refinance process smoother and faster.
  
  
• Modified fees - Certain risk-based fees for borrowers who refi into shorter-term loans will either be eliminated or modified. There is a push to encourage homeowners to stay with shorter loan terms and build equity faster.
  
  
• Extended deadline - The end date to get a HARP refinance has been extended to Dec. 31, 2013.

Again, these guidelines are subject to mortgage lender and investor's approvals and possible overlays. (Overlays are when an investor adds additional criteria to the loan program guidelines - normally in order to reduce risk.) There are some restrictions and criteria involved. It's best to talk to a professional who can help you weigh your alternatives. 

Many leading mortgage professionals do agree that while saving a client money per month in their budget is a good thing, lowering their interest rates and spreading their loan term out over 30 years again is just a bandage on a larger problem. The true issue is that many homeowners don't have equity in their home. Knowing that this is the root cause, a much better alternative to consider is in obtaining the lower rate, but not extending the term again past how many years are left in your loan.

For example, if you've been paying on your loan for 3 or 4 years, consider going to a 25 or even 20 year term. The amount of interest you'll pay over the life of the loan will be considerably less. Many people close to the source are indicating that Fannie Mae will be giving big incentives in rates for people who choose 10, 15 or 20 year terms. In the long run, this will be a better remedy for the bigger issues of negative equity. 

 
Lastly, when it comes to HARP 2.0, the suggestion across the board from lenders and people in the industry is DON'T WAIT TO APPLY!

Find out NOW if you might qualify, and beat the rush by talking to a lending representative you trust so you can see if you can benefit!

This program is sure to be wildly popular and lenders may get bottlenecked with the amount of refinance applications coming in for HARP 2.0 loans. ACT NOW and get in the front of the line. Then, once the final investor guidelines are announced, you won't be behind!

******* 

One of our sponsoring lenders, Michael Patterson has provided some valuable information and resources for Homeowner University subscribers. Land / Home Financial is a direct mortgage lender and will be offering "HARP 2.0" loans without many of the additional overlays to underwriting requirements that other lenders may require. Feel free to contact him below!

Michael Patterson
Branch Manager
NMLS ID / MLO #69386

Land Home Financial Services, Inc.
Issaquah, WA 

425-289-1102 Office
206-423-4000 Direct

Email

This is for informational purposes only and is not meant to be legal advice. Underwriting guidelines are subject to change. Land/Home Financial Services, Inc. currently provides loans in 41 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

How Can HUD's 2012 Goals Help YOU in 2012?

How can HUD's Goals for 2012 help YOU in 2012?

Reading through HUD's 2012 Budget* admittedly isn't all that exciting, however when reviewing Secretary Donovan's goals for 2012, there's some good news for this upcoming year... especially for homeowners and investors in real estate. We're excited that some of HUD's 2012 Goals match up with our own Homeowner University 2012 Goals.

HUD's 3 Core Principals for 2012 Goals:

1. Continuing to provide critical support for the housing market while bringing private capital back into themarket;
2. Protecting current residents – and improving the programs that serve them; and
   
3. Proposing no new initiatives – while continuing to invest in initiatives that have been part of our budget the last two years and are critical to winning the future.

This points to HUD's 2012 Goals for strengthening the housing market. Without a housing recovery, we won't see a true economic recovery in the United States. More than just helping new buyers get into debt... it's about helping families fit a home purchase into their budgets, and benefiting from owning a home. Stronger neighborhoods, pride of ownership, and the opportunity to create stronger financial positions long term.

In his Testimony regarding the 2012 Fiscal Year Budget Request earlier this year, Secretary Shaun Donovan discusses his mission to ensure that HUD meets these 2012 Goals:

HUD's 2012 Goals:

• Goal 1: Strengthen the Nation’s Housing Market to Bolster the Economy and Protect Consumers
  
• Goal 2: Meet the Need for Quality, Affordable Rental Homes
  
• Goal 3: Utilize Housing as a Platform for Improving Quality of Life
  
• Goal 4: Build Inclusive Sustainable Communities Free from Discrimination
  
• Goal 5: Transform the Way HUD Does Business

One of the things we're excited about at Homeowner University is HUD's message stressing the importance of education for new and existing homeowners. Knowledge is key to creating a sustainable housing market.

"The Department is equally focused on assisting consumers throughout the homeownership process, from increasing their knowledge of the mortgage products they are considering to protecting them from fraud in any phase of that process."

One of the 2012 Goals we have at Homeowner University is to continue to bring educational opportunities to the community with "ease of use". Providing Free Online Homeowner Workshops is one of the best ways to meet people at their level, on their schedules. With a variety of free classes to choose from, as well as a growing library of workshop topics, Online Workshops are easy to attend and are extremely educational.

At Homeowner University, we will continue to do the lengthly research needed to be able to drill down information about all of the housing and lending programs and make it easier to understand. There is a lot of help available to homeowners today, but one of our 2012 Goals is to "keep it simple".  Imagine the benefit of us taking a 47 page government document and highlighting the main bulletpoints that really matter to ALL of us, real people.

We're looking forward to a great 2012 and our 2012 Goals are all geared towards helping YOU succeed this next year, as well as years and years to come!

Happy New Year!

~Homeowner University Staff

*Source Document

How long must I be on the job to qualify for a USDA Rural Housing Loan

We were recently asked, "How long must I be on the job in order to qualify for a USDA Guaranteed Rural Housing loan?"

The answer may surprise you.

Many people believe that you have to have 2 years work history in order to qualify for a mortgage loan. That's not always the case. In fact, with FHA and USDA Government Loan Programs, there are some exceptions allowed, according to the underwriting guidelines.

When asked about a particular borrower's scenario where the person had been laid off of work for a period of months but had recently been given a new job offer, here is the response that was given by a representative at a USDA Rural Housing Development office:

This comes from AN 4543

 

 

Approved lenders must determine stable and dependable monthly income

from verifiable sources. Refer to sections 1980.345(b) and 1980.345(c)(2)(i).

There is no minimum length of time an applicant must have held a position to

consider employment income as dependable. Obtaining two years of

documentation for an applicant’s employment and income history will assist

lenders in their analysis regarding probable stability and continuance of the

present income source.

The applicant should not have any gaps inmployment of more than a month
within a two year period of loan application. The lender may consider
reasonable allowances under the following circumstances:

(1) a recent graduate, as evidenced by college transcripts, or a recent member of the military, as evidenced by discharge papers, entering the civilian workforce. Caution must be utilized when the applicant’s employment includes a probationary period;

(2) an applicant has recently re-entered the workforce after an absence to care for a family member or minor child, extended medical illness, or other circumstance reasonable to the lender;

(3) an applicant will begin a new job with a firm offer letter from the employer indicating a start date within 90 days of loan closing (lenders must verify the applicant will have sufficient income, or cash reserves, to support mortgage payments and other obligations during the time between loan closing and the start of employment), this type of allowance is commonly represented by an applicant enterin a teaching position with a contract from the school district; and

(4) an applicant that frequently changes jobs but demonstrates income continuity.

Sources of income the lender cannot verify are not acceptable for the purpose of qualifying applicants for guaranteed loans. Income that is verified, but not considered stable and dependable by the lender, may be considered as a compensating factor for meeting debt ratios. It remains the lender’s responsibility to fully document their analysis and basis for stable and dependable income utilized. The lender must be able to determine the applicant’s income stability based on the available documentation.

 

 

[Therefore,] RD would review the underwriting as to the basis for stable and dependable income. RD cannot give you a yes/no, it’s going to be up to your underwriter.

So, what does this all mean?

Government loan program underwriting guidelines can be clear as mud, right? While the Rural Development representative's answer was less than concrete about this borrower's specific situation, they did point out some areas within the guidelines that allow for less than two full years of steady employment. There may be some situations where you can obtain an exception to the 2 year employment rule when applying for a USDA Guaranteed Rural Housing Loan.

In layman's terms, some possible scenarios that may work would be:

• Recent College Graduates obtaining a new job directly related to their Degree / Field of Study (evidenced by transcripts)
• Re-trained workers after a period of unemployment
• Moms re-entering the workforce after an extended maternity leave (new employment should be in similar career field unless schooling was involved)
• Borrowers re-entering the workforce after a divorce (new employment should be in similar career field unless schooling was involved)
• Military personnel re-entering the civilian workforce
• Using a new, higher paying job income right away instead of averaging the last 2 years of income documentation - Requiring the offer letter, Verification of Employment signed by new Employer and proof of a new paystub. (Must be a strong case, and preferably in the same career field as prior work history.)

Michael Patterson, Branch Manager at Land Home Financial Services in Issaquah Washington says,

"The main thing to consider on FHA and USDA loans is that it truly comes down to a make-sense underwriting decision. Is there a major risk factor on the employment stability? Or, can it be documented that the income is more likely than not to be stable and continue in the future? The reason an underwriter looks back 2 years is so they can polish up their crystal ball and forecast for the next 3 years, determining if there is a risk or cause for concern from an income standpoint. If there is a plausible explanation for a gap in employment, and the new employment / income source is deemed to be stable, then we can make a case for it to the underwriter. A good loan officer is your best advocate for helping you properly document this and prove your case to the underwriter. At Land Home Financial Services, Inc. [in Issaquah, Washington], 80% of the initial underwriting decisions are made first at the branch level before we submit a loan to an underwriter."

We at Homeowner University sincerely hope this article helps. Everyone's situation may be a little bit different so it's important to contact a trusted advisor if you have questions.

If you're unsure of where you stand in your own situation and would like to get a free no obligation opinion from a loan professional, Michael Patterson at Land Home Financial Services in Issaquah Washington has made himself available to answer your questions. Feel free to contact him below.

Michael Patterson
Branch Manager

206.423.4000
Email Michael Patterson

Applicable state disclosure regulations require the above licenses and information to be explicitly disclosed. Land/Home Financial Services, Inc. currently provides loans in 40 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

How to Properly Document Good Rental Payment History for a Mortgage

Are you wondering how much a good rental payment history affects your ability to get a new mortgage loan? It definitely can have a big impact on your ability to qualify.

So, how can you properly document a good rental payment history? Follow these steps and you'll be on the right track!

First, we have to ask some clarification questions...

1. Are you paying rent to a Private Landlord or to a Property Management Company?
2. Do you pay by check? Or, do you pay in cash?
3. Is your name on the rental agreement / lease?

If your answer to Question #1 was "Yes", CELEBRATE! Your job is going to be pretty easy. You'll simply need to provide your lender with the name and contact information of your Property Manager. Michael Patterson, Branch Manager at Land Home Financial Services Inc says that their process is to contact the Property Management Company directly with the borrowers permission to obtain what's called a "VOR" - also known as a "Verification of Rental Payment History". This is usually done by fax or email with the Property Manager or their assistant, and seldom is there a fee to obtain this documentation on behalf of the borrower.

If your answer to Question #1 was "No", then some additional work is needed:

If you pay your rent to a Private Landlord, the lending underwriters will typically ask for the last 12 months of cancelled rent checks. You can obtain these usually directly from your bank. Many are available online for a period of time, but some banks do charge a small fee to obtain these cancelled check images. The lender will want to see the front and back of the cancelled checks, not just a carbon copy image of the front of the check. This can also take a little bit of time to track down for some borrowers. It involves finding out what check numbers were written, and then requesting copies from the bank. This process can take a couple weeks or even longer at times. It's important to start this early if this is your situation.

Now, what if you have a Private Landlord and you pay in cash? Can't they simply sign a form stating that my rent has been on time?

That would be better than not providing any rental payment documentation at all, but with Private Landlords, there is opportunity for mortgage fraud. The underwriter doesn't know if the landlord is a family member, close friend, etc... and just telling the lender what they want to hear. Without further documentation, a "Private Party Verification of Rents" doesn't hold the same weight as cancelled checks or an "Institutional VOR - aka Verification of Rents". (Welcome to lending guidelines these days.)

What if I pay by Money Order or Cashier's Check?

That proof will definitely suffice if you can gather 12 months worth of rental payments.

If a borrower doesn't have a checking account though, which can be somewhat of a red flag to an underwriter if funds are needed for closing or to show asset reserves after the closing of the home purchase loan. It can be seen as a borrower's lack of ability to properly manage their money and balance their household budgets. Showing that a borrower has attended an Educational Workshop for First Time Homebuyers can help remedy this, and give the underwriter more confidence in approving a loan.

Note: This is an entirely different topic, but when it comes to sourcing funds used for down payments and closing costs in a real estate transaction, the USA Patriot Act requires lenders to source and document all funds used for closing. Using "coffee can" or "mattress money" is not allowed. (Stating the reason as anti-terrorism money laundering). This is another reason why having a checking account is important.

(If you've had prior negative banking history that is prohibiting you from getting a new bank account, this information may not only be on your credit report with Transunion, Equifax and Experian. It may also be listed in something that the banks use called, Chex Systems. If you've had unpaid bounced checks or bank fees that are still outstanding, ask Michael Patterson the Branch Manager at Land Home Financial Services how to obtain a Chex Systems report and start cleaning that history up so that you can put your best foot forward when applying for a new mortgage loan.)

If your answer to Question # 3 was "Yes", then it can be helpful as well if you had to answer "No" to Question #1. Providing additional documentation in lieu of cancelled rent checks or an Institutional VOR all lends additional credibility to the loan approval process. Keep in mind that the underwriter will also cross reference the addresses listed on the borrower's credit report(s) to ensure that the rental history provided is true and accurate.

Now, here's one exception to the rule:

What if I simply don't have ANY rental payment history? (I live rent free or with family).

FHA does allow for rent-free situations when a borrower is in between rental locations or is living with family members. Providing a household budget would be very important so the Underwriter can feel comfortable that the borrower won't have what's called "Payment Shock". (Meaning a person goes from zero or lower rents to a much higher mortgage payment. This can be a "shock" to the borrower's budgeting ability to pay their bills on time.)

When someone is living rent free, it's best to be able to document that the borrower has been able to successfully set aside liquid assets in a checking or savings account in lieu of a monthly rental payment. If a borrower consistently was putting away money into savings in preparation to buy a house, then it can offset the higher risk of "payment shock". This is what's called an "Offsetting Factor" when obtaining "Exceptions to Underwriting Guidelines".

SO, properly documenting good rental payment history CAN take a little bit of planning. If you're paying cash for rents right now, either go get a checking account and start writing checks for rent, or worst case, obtain money orders and save the receipts. It's best to show that the monies used to obtain the money orders was withdrawn from a bank account however. Not having a bank account as mentioned earlier, can put doubt in an underwriter's mind when approving or denying a borrowers loan application.

Thanks goes out to Michael Patterson, Branch Manager at Land Home Financial Services in Issaquah WA. Much of this information was provided by Michael personally. Understanding not only what is needed, but also the "why" behind it can shed some light on what an underwriter is really looking for when it comes to loan documentation.

If you'd like more information on what other documentation is needed to apply for a mortgage loan, see this article:

Homeowner University Blog:
What Documentation Do I need to Provide When Applying for a Home Mortgage?

In addition, if you have any questions about the Chex Systems reports and how to obtain a copy so you know what needs to be cleaned up, contact Michael today.

Feel free to contact me today:

Michael Patterson
Branch Manager
206.423.4000
Email Michael Patterson

Applicable state disclosure regulations require the above licenses and information to be explicitly disclosed. Land/Home Financial Services, Inc. currently provides loans in 42 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

What do I need to apply for a mortgage? Easy! Follow the Rule of Two!

Are you unsure of what documents you need to gather to apply for a mortgage loan?

Follow the simple "Rule of Two" and you'll be able to easily remember what you need to get together when you apply for a mortgage loan.

(List provided Courtesy of Land Home Financial Services in Issaquah Washington.)

The "Rule of Two" is as follows:

• Last 2 Years Federal Tax Returns, with all Schedules

• Last 2 Years W2's / 1099's for all employers

• Last 2 paystubs, showing Year To Date Income

• Last 2 months' bank statements, including all pages (Even the blank or balancing my checkbook pages.)

• Last 2 years residency address(es), and last 12 months good payment history

Pretty easy, right? 2, 2, 2, 2, 2... See a pattern here? ;)

It's easy to become overwhelmed when applying for a loan when you have to start gathering your paperwork and documentation together, especially if you've never done it before. As a First Time Homebuyer, you simply don't know what you don't know!

Michael Patterson, Branch Manager at Land Home Financial Services located in Issaquah Washington suggests:

"Starting with the basic information of Income, Assets, and of course Credit History is the foundation of all mortgage loans these days. If you follow the simple "Rule of Two" when gathering documents together, it will be much easier to remember what you need. If you're missing some items, don't wait to get all of your ducks in a row to begin the process though. Sometimes it can take a while to get the right documentation together or work towards it. I know... I know... some of you don't even know you OWN a duck! That's ok, we can get you on the right track to start putting your documentation together!"

When it comes to proving good rental payment history for instance, there are also some guidelines to follow when applying for a mortgage with a lender such as us, Land Home Financial Services. There can definitely be some hangups to overcome if you haven't properly documented your rental history.

It also depends heavily as to whether you rent from a private landlord, or from a property management company. The documentation can change, depending on your circumstances. Or, what if you don't actually pay rent right now? How's that work? For more info, please read the article on:

"How to properly document good rental payment history"

Of course, there are some other items that may be added as conditions to your loan approval. If you are Self Employed for instance, some additional items may apply such as business licenses, or if the business is a corporation, business tax returns MAY be required.

Prior Bankruptcy, Foreclosure or Short Sale can have an affect on what documentation you need to provide. See the recent article posted on how long you must wait after a negative credit event such as a BK or foreclosure to qualify for a new mortgage:

When Can You Get a Mortgage After a Negative Credit Event?

There are a variety of standard Federal and State Loan Disclosures that will be provided to you when you apply for a mortgage loan. These are required by law and are meant to protect you as a consumer. These can be slightly confusing however, so it's very important to go through them and make sure you understand them. Don't just trust what someone tells you, but actually read through and know what you're signing. Especially when it comes to the Truth In Lending Statements and Good Faith Estimates. While we are all pulling from the same ponds so to speak when it comes to mortgage rates these days, there can be major variances between lenders in how they structure their fees. It's best to ask a trusted professional and make sure you feel comfortable with the answers you're being given.

We hope this helps answer some of your questions. Keep checking back for more great educational articles at Homeowner University!

If you're ready to apply for a mortgage loan, feel free to contact Michael Patterson at Land Home Financial Services today! We have a Secure Online Application as well, so if you're comfortable applying online, we get immediately notified when an application is received. This can also be a big time saver when putting in the loan data into our loan origination software. However, if you don't know how to answer some of the questions, don't give up... call us at Land Home Financial Services and we'll make sure you know how to proceed... and Follow the "Rule of Two"!

Michael Patterson
Branch Manager
Land Home Financial Services, Inc. in Issaquah, WA
206.423.4000
Email Michael Patterson

Applicable state disclosure regulations require the above licenses and information to be explicitly disclosed. Land/Home Financial Services, Inc. currently provides loans in 42 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

When can you get a Mortgage again after a Negative Credit event?

What is an H-06 Insurance Policy and why do I need it on my Condo?

What is an H-06 Insurance Policy and why do I need it on my condo?

Condominiums all have what's called a "Master Policy" that has insurance coverage that guarantees the replacement of buildings in the condominium project, the common areas and clubhouse if applicable. The primary concern of not only a Lender in Washington State, but just about every lender in the nation now, is that the building of the subject unit is covered. This Master Policy premium is in the name of the Condominium Association, and the cost of it is spread among the owners in the condominium project, all covered by the monthly Homeowners Association Dues. (Ever wonder why some HOA dues are higher than others? This could be one reason...)

In the past, all lenders cared about was obtaining a copy of the Condo Association's Master Policy, and left it up to the individual owner to obtain dwelling coverage... if they so chose. No one twisted their arms, and many people on a tight budget did not purchase one on their own. This interior Dwelling Coverage (similar to a renter's policy) covers the part of the condominium units from the "Walls In". Affectionately referred to and known within the industry as an "H-06 Walls-In Coverage Policy". (Now you know!)

With new Fannie Mae and FHA guideline requirements, all Lenders in Washington State and across the U.S. originating condominium loans (either purchases or refinances) must either show proof that their Master Policy has the proper  walls-in replacement coverage, plus room for any additional improvements that the owner has made to the unit. Otherwise, the buyer must obtain this dwelling policy on their own, and this HO-6 insurance policy must provide coverage in an amount that is no less than 20 percent of the condominium unit's appraised value.(More if you put in that super rare zebra skin carpet maybe? Yep, that increased your appraisal value and definitely the replacement cost for sure, right?)

Fannie Mae and HUD are essentially now forcing condo buyers to assume some of the risk for rebuilding a condominium unit. I suppose this is good to have if the owner really did a lot of work fixing up their unit. Otherwise, if something happened and the unit had to be re-built, the owner would rarely get out what they had put into the condo. The downside? Yep. Additional expense to the buyer.

The good news is that this coverage is relatively inexpensive to obtain. Combine it with another policy like a home or auto, and bing! Discount! (Ok, too many commercials lately. You get the idea.) Average monthly premiums aren't that expensive when added to your monthly mortgage payment. If you need a referral to some good insurance agents that we work with, let me know. Glad to help and I can vouch for them. (No affiliation agreements either.)

All this to say, just make sure that if you're looking to buy or refinance a condominium with a Lender in WA State, (Or any other State for that matter), make sure you get pre-approved through a lender who knows and understands the ins and outs of condominiums. Definitely ask your loan officer the tough questions. If you don't get an answer you are comfortable with, get a second opinion.

The first question you should also be asking your Real Estate Agent when they are showing you a property is, "What are the monthly HOA Dues?" and "Do they include "H-06 Walls In Coverage?" Both of these questions are important so you can prepare for them if they need to be included in your monthly budget and your loan approval debt ratios! Some condos look great until you see how much you're paying in dues and insurance. Weigh the pros and cons, and use this knowledge when negotiating your price.

Need a Condo Purchase Pre-Approval?

By the way, I'm also a direct mortgage lender in WA State, and have a lot of experience with condominium financing. Beyond the H-06 Walls In Coverage issues, there are other qualifying factors on every Condominium Project. Just because a condo association was approved a year ago, doesn't mean it is still able to be financed with FHA, VA or Fannie Mae programs. There are some specific questions we have to ask as a lender. Want to know what they are? Give me a call.

Let me know if you'd like a free, no obligation pre-approval and rate quote as well. (I also offer a "Free 2nd Look Program" as well where I'll review your other lender's offer and give you an honest answer as to whether or not you have a good deal or not. I'll be the first one to say if you have a good loan scenario or not. )

Call me today at:

206-423-4000

Michael Patterson
Branch Manager / Sr. Loan Consultant
MLO- 69386
CL-89331

Call me to find out about how to avoid some of the Condominium Association Requirements on Bank Owned Properties!

Applicable state disclosure regulations require the above licenses and information to be explicitly disclosed. Land/Home Financial Services, Inc. currently provides loans in 42 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

How to get an FHA Loan with an FHA Lender in WA after a Foreclosure

How to get an FHA Loan with an FHA Lender in Washington State after a Foreclosure

Michael Patterson
Blog Author / FHA Lender in WA State
Call me at 206-423-4000

There is a lot confusion out there regarding how long it actually takes after having a Short Sale, Bankruptcy or Foreclosure until a person can apply for a new FHA Loan with an FHA Lender.

Want to make a bet on the right answers? Any takers? (I know the guidelines and even I would be hesitant to take that bet with things changing so rapidly these days.)

Depending on the circumstances surrounding the event, there are possibilities for shorter lengths of time. As a direct FHA Lender in Washington State, I'm often asked by borrowers and real estate agents this exact question. While this post is a little technical in nature, it will shed some light on just what the mortgage lenders and investors want to see.

Ideally, speaking with a lender about your specific situation is probably best, but here's the basics listed below. Call me if you need more info! Everyone's situation is different.

How to Get an FHA Loan with an FHA Lender in WA after a Foreclosure

A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage with an FHA Lender.

However, if the foreclosure was the result of documented extenuating circumstances that were beyond the control of the borrower and the borrower has re-established good credit since the foreclosure, the FHA lender may grant an exception to the three-year requirement.

Extenuating circumstances include serious illness or death of a wage earner, but do not include the inability to sell the house because of a job transfer or relocation to another area.

Many times, foreclosures also involve Bankruptcy. The guidelines are different than for the Foreclosures. If this is you, I recommend these posts below:

How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

A Chapter 7 Bankruptcy (liquidation) does not automatically disqualify a borrower from obtaining an FHA mortgage...

Read more: How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

How to get an FHA Loan with an FHA Lender in WA after a Short Sale

When a previously owned property was sold for less than what was owed (aka short sale), borrowers are considered eligible for a FHA insured mortgage IF...

Read more: How to Get an FHA Loan with an FHA Lender in WA After a Short Sale

I hope this information has been helpful. If it's raised more questions than answers, WELCOME TO MY WORLD AS AN FHA LENDER! Everyone's circumstances are slightly different so it's very important to review your situation with a qualified mortgage professional.

In addition to being an FHA lender, I am also well versed on VA, USDA and Conventional Loan Guidelines. Call me at (206) 423-4000 if I can be of assistance!

Michael Patterson
Branch Manager / Sr. Loan Consultant

MLO - 69386
206-423-4000
Email Michael Patterson

This is for informational purposes only and is not meant to be legal advice. Underwriting guidelines are subject to change. Land/Home Financial Services, Inc. currently provides loans in 41 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

How to get an FHA Loan with an FHA Lender after a Bankruptcy

How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

Michael Patterson
Blog Author / FHA Lender in WA State
Call me at 206-423-4000

There is a lot confusion out there regarding how long it actually takes after having a Bankruptcy, Foreclosure or a Short Sale until a person can apply for a new mortgage with an FHA Lender.

Want to make a bet on the right answers? Any takers? (I know the guidelines and even I would be hesitant to take that bet with things changing so rapidly these days.)

Depending on the circumstances surrounding the event, there are possibilities for shorter lengths of time. As a direct FHA Lender in Washington State, I'm often asked by borrowers and real estate agents this exact question. While this post is a little technical in nature, it will shed some light on just what the mortgage lenders and investors want to see.

Ideally, speaking with a lender about your specific situation is probably best, but here's the basics listed below. Call me if you need more info!

How to get a new FHA loan with an FHA Lender after a Bankruptcy

A Chapter 7 Bankruptcy (liquidation) does not disqualify a borrower from obtaining a new loan with an FHA Lender if at least two years have elapsed since the date of the discharge of the bankruptcy. Additionally, the borrower must have re-established good credit or chosen not to incur new credit obligations. The borrower also must have demonstrated a documented ability to responsibly manage his or her financial affairs.

EXCEPTIONS?

An elapsed period of less than two years, but not less than 12 months may be acceptable if the borrower can show that the bankruptcy was caused by extenuating circumstances beyond his or her control and has since exhibited a documented ability to manage his or her financial affairs in a responsible manner. Additionally, the FHA lender must document that the borrower's current situation indicates that the events that led to the bankruptcy are not likely to recur.

A Chapter 13 Bankruptcy does not automatically disqualify a borrower from obtaining a loan with an FHA lender, provided the FHA lender documents that one year of the payout period under the bankruptcy has elapsed and the borrower's payment performance has been satisfactory (i.e., all required payments made on time). In addition, the borrower must receive permission from the court to enter into the mortgage transaction.

When involved in a bankruptcy, there are many times other factors involved. If you had issues with a short sale or a foreclosure, you'll want to read these additional posts:

How to get an FHA Loan with an FHA Lender in WA after a Short Sale

When a previously owned property was sold for less than what was owed (aka short sale), borrowers are considered eligible for a FHA insured mortgage IF...

Read more: How to Get an FHA Loan with an FHA Lender in WA After a Short Sale

How to get an FHA Loan with an FHA Lender in WA after a Foreclosure

A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage. However...

Read more: How to Get an FHA Loan with an FHA Lender in WA After a Foreclosure

I hope this information has been helpful. If it's raised more questions than answers, WELCOME TO MY WORLD AS AN FHA LENDER! Everyone's circumstances are slightly different so it's very important to review your situation with a qualified mortgage professional.

In addition to being an FHA lender in WA, I am also well versed on VA, USDA and Conventional Loan Guidelines. Call me at (206) 423-4000 if I can be of assistance!

Michael Patterson
Branch Manager / Sr. Loan Consultant

MLO - 69386
206-423-4000
Email Michael Patterson

This is for informational purposes only and is not meant to be legal advice. Underwriting guidelines are subject to change. Land/Home Financial Services, Inc. currently provides loans in 41 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

How to get an FHA Loan after a Short Sale Bankruptcy or Foreclosure

How to get an FHA Loan with an FHA Lender in WA after a Short Sale, Bankruptcy or Foreclosure

Michael Patterson
Blog Author / FHA Lender in WA State
Call me at 206-423-4000

There is a lot confusion out there regarding how long it actually takes after having a Short Sale, Bankruptcy or Foreclosure until a person can apply for a new FHA Loan with an FHA Lender.

Want to make a bet on the right answers? Any takers? (I know the guidelines and even I would be hesitant to take that bet with things changing so rapidly these days.)

Depending on the circumstances surrounding the event, there are possibilities for shorter lengths of time. As a direct FHA Lender in Washington State, I'm often asked by borrowers and real estate agents this exact question.

While this post is a little technical in nature, it will shed some light on just what the mortgage lenders and investors want to see.

Ideally, speaking with a lender about your specific situation is probably best, but here's the basics listed below. Call me if you need more info! Everyone's situation is different.

How to get an FHA Loan with an FHA Lender after a Short Sale

Besides the simple obvious fact that you need to put your best foot forward, have as clean a loan application file as possible, solid employment, etc... and be able to give your loan officer and underwriter the best information possible to approve your loan... There are some FHA guidelines that allow you to obtain a new FHA Loan with an FHA Lender in Washington State.

#1 When a previously owned property was sold for less than what was owed (aka short sale), borrowers are considered eligible for a FHA insured mortgage IF, as of the loan application date, all mortgage and installment debt payments were made within the month due for the twelve months preceding the short sale.

Now, let's face it. Sellers who are doing a short sale are RARELY on time on all of their payments for a year prior to the short sale. If they weren't in default, why would they be selling their home at a loss and WHY is this guideline in place? There are some rare circumstances where someone is forced to move and sell their home, but hasn't missed a mortage payment in the last year. Lender Short Sale Approvals for Sellers in these types of situations is rare, (I've never come across one yet), but I suppose it could happen.

#2 More commonly, Borrowers that were in default at the time of the short sale (or pre-foreclosure sale) are not eligible for three years from the date of the sale.* (Note my asterix? Read further for clarification)

*NOTE: Borrowers who sold their property under the FHA pre-foreclosure sale program are not eligible for three years from the date that FHA paid the claim associated with the pre-foreclosure sale.

So, what does THAT mean? Well, let's say you did a short sale... It can take a while after closing for FHA to pay back the FHA Lender for the loss they incurred. You see, FHA insures the loans against losts for the FHA lenders. Just like any insurance claim payout, all of the proper documentation needs to be in hand before the claim can be paid. Being it is a government program... well, need I say more? Suffice to say, it can take a while after closing.

Here's another example: Let's say instead of a Short Sale, you turned your home back to the FHA Lender and just gave them back the keys. This is called a "Deed In Lieu". In lieu of a foreclosure or short sale, the bank agrees to take back the keys and transfer ownership right away. Sometimes called sending the lender "jingle mail"... you know, sending the keys in an envelope? Ok, bad joke. (Note, a Deed In Lieu doesn't necessarily release your responsibility on the loan however. I suggest discussing this with legal counsel if you are considering this route.)

SIDE STORY: What is an REO?

Even after the title is transferred to the bank, it takes some time for the home to be sold, right? First it needs to be reviewed and placed in the bank's REO List inventory. (REO = Real Estate Owned, aka Bank Owned Inventory.)

If you're interested, you can click here for a WA REO List of Bank Owned Properties for sale in Washington State.

When a property goes back into their REO Inventory, the bank has to 1), figure out what the market value is, 2) Obtain a Broker's Price Opinion from a local Real Estate Broker, 3) they then have to decide what value to list it at in the MLS so it will sell quickly. If it's not priced correctly, or needs a lot of work, it could take months to sell... Then, if it doesn't sell, eventually the bank may even decide to just let it go to county auction to the highest bidder.

How to get an FHA Loan with an FHA Lender in WA after a Short Sale (Continued...)

As you can see, it could take a long time for this whole process to happen, and FHA to pay out the claim to the FHA Lender. Only after the home is finally sold and "off the books" does the clock start ticking.

FHA's rules state that if the prior loan was an FHA lender mortgage, then the borrower has to wait 3 years from the date that FHA/HUD finally PAID OUT THE CLAIM to the FHA lender and paid off the loan to the FHA lender.

Real life Stories / Examples:

I recently had a borrower who had waited 18 months from the time they had turned over their keys for the claim to be paid out. Fortunately, they were now buying with a VA Loan and we were able to get them approved. Ask me more about THAT one... Great story.

Here's an additional example... I got a call from a potential buyer who found out last week that the home he thought had all been transferred and included in a Bankruptcy three years ago hadn't even been transferred yet to the FHA lender servicing his old loan... That's right. THREE YEARS LATER. Bank A sold the loan to Bank B... Bank B sold the loan to Bank C, Bank C gobbled up by Bank D, and now Bank D is trying to figure out what the deal is with the house... three years down the road, and the 3-year waiting period hasn't even started for this poor guy yet! Think there may be a problem in the system?

You may be saying, "OK, now I'm not really sure if I'm three years out! How can I find out when FHA actually paid out the claim on my FHA loan?"

If you're wondering if you may be within that 3 year window but you're just not sure, simply contact me. As a Direct FHA Lender in WA, we can access the FHA's information system on your behalf to find out very quickly. It's important to know this information BEFORE you get under contract on a new home purchase... Trust me.

ARE THERE ANY EXCEPTIONS TO THIS 3 YEAR RULE?

Yes. Per FHA Guidelines, FHA Lenders may make exceptions for borrowers in default at the time of short sale if:

1. The default was due to circumstances beyond the borrower's control (such as death of a primary wage earner, long term uninsured illness, etc.);
2. And the credit report reflects satisfactory credit prior to the circumstances (beyond the borrower's control) that caused the default.

Some Fine Print: Borrowers who pursued a short sale agreement on their principal residence to take advantage of declining market conditions and purchase a similar or superior property within a reasonable commuting distance are not eligible for a new FHA Lender insured mortgage. (Translation? Just because your home was under water doesn't mean you can sell that one on a short sale and go buy another home at better market values. You have to wait three years... unless you can convince an underwriter that it was a financial hardship outside of your control.)

Many people also have Bankruptcies involved with their Foreclosures or Short Sales. If that is you, be sure to read these other posts:

How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

A Chapter 7 Bankruptcy (liquidation) does not automatically disqualify a borrower from obtaining an FHA mortgage...

Read more: How to get an FHA Loan with an FHA Lender in WA after a Bankruptcy

How to get an FHA Loan with an FHA Lender in WA after a Foreclosure

A borrower whose previous principal residence or other real property was foreclosed or has given a deed-in-lieu of foreclosure within the previous three years is generally not eligible for a new FHA-insured mortgage. However...

Read more: How to Get an FHA Loan with an FHA Lender in WA After a Foreclosure

I hope this information has been helpful. If it's raised more questions than answers, WELCOME TO MY WORLD AS AN FHA LENDER! Everyone's circumstances are slightly different so it's very important to review your situation with a qualified mortgage professional.

In addition to being an FHA lender in WA, I am also well versed on VA, USDA and Conventional Loan Guidelines. Call me at (206) 423-4000 if I can be of assistance!

Michael Patterson
Branch Manager / Sr. Loan Consultant

MLO - 69386
206-423-4000
Email Michael Patterson

This is for informational purposes only and is not meant to be legal advice. Underwriting guidelines are subject to change. Land/Home Financial Services, Inc. currently provides loans in 41 States. Some products may not be available in all states. Restrictions apply. Mortgage Lending in Washington State is authorized under WA Dept of Financial Institutions Consumer Loan License # CL-89331. Land/Home Financial Services is an Equal Housing Opportunity Lender and lends only in states we are licensed in.

Freestone Station Lacey Washington - The Orcas

New Home Communities Near Joint Base Lewis McChord

Freestone Station Lacey, Washington - New Home Community

With communities located in Lacey, Yelm and Graham, Washington near Joint Base Lewis McChord (JBLM), Freestone Companies' homes are one of the best choices for northwest living and providing great values in the Thurston County and Pierce County real estate markets.

With locations within an easy commute to Seattle, Tacoma, or Olympia combine vibrant city life with easy access to the natural wonders of the Pacific Northwest. Close to the office, yet nestled in the midst of the great outdoors, Freestone Homes are the ideal place to call home.

Today's Feature Community: Freestone Station

Freestone Station offers convenient access from I-5 to Joint Base Lewis McChord (JBLM). This new new home community therefore offers an easy commute, in addition to excellent value. Freestone Station is a showcase development by a premier new home builder that provides you as a buyer many choices and options, making it easy to find the home of your dreams.

The spacious floor plans and cost-effective building techniques provide real value. With this and other great locations, Freestone Communities offer areas close to South Sound's metropolitan centers, close to Joint Base Lewis McChord (JBLM), and excellent school districts. All make the dream of northwest living a reality within your reach.

Today's Featured Floorplan: The Orcas

The Orcas Floorplan features a spacious 3,115 Square Feet two story home with 4 bedrooms (From 4 to 6), 2-1/2 baths and a 2 car garage w/extra storage. Generous areas of rich, hardwood flooring, and attention to detail. 

The Kitchen features Granite slab countertops with full height backsplash, stainless steel appliance package, walk-in pantry and Butler's pantry.

The Family Room offers a gas fireplace & built in custom bookshelves. There is a Formal Dining & Living Rooms, and the fantastic Master suite has its own fireplace and a 5 piece bathroom. Complete with granite slab countertops and walk-in closet.

These and more come as standard features! Ask about the luxury option features available. Model homes are open daily from noon to 5pm. (Link to more information below)
 

Click here to see more HD Quality Photos of The Orcas Floorplan, Pricing and Availability as well as other new homes in the Freestone Station Community.

Click the image above or link below for an Interactive Map to:
Freestone Station's convenient location for new homes near Joint Base Lewis McChord (JBLM).

Tim Abbey, Sales Associate

(360) 704-0514



4621 Lacey Boulevard
Lacey, WA 98503

www.AbbeyRealty.com

Call Tim Abbey today at (360) 704-0514 for available homes or to schedule a showing today. Don't forget to ask about available Military Buyer Bonuses and Incentives!


Special Military Financing Provided By:

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1507 Farina Lp SE Lacey, WA 98513 Freestone Station - New 4 Bed 2.5 Bath near JBLM

Price : $312,450 Bedrooms : 4 Bathrooms : 2.5 Square Foot : 3,115 County : Thurston Property Type : Detached Year Built : 2011 click for more information and pictures Property Description Freestone Station - New 4 Bed 2.5 Bath near Joint Base Lewis McChord Located in Lacey, Washington near JBLM (Joint Base Lewis McChord), Freestone Station is one of the best choices for Northwest living, providing great values in the Thurston County Real Estate Market. This location combines vibrant city life, with easy access to the natural wonders of the Pacific Northwest. Close to the office, yet nestled in the midst of the great outdoors, Freestone Station is the ideal place to call home. Beautiful new construction, The Orcas Two-Story Floorplan features 3,115 Square Feet, with 4 bedrooms, (ability to be modified 4-6), 2.5 Bathrooms, plus a 2 car garage with extra storage area. Generous areas of hardwood flooring are rich and warm. The inviting Kitchen features Granite Slab Countertops with full height backsplash, stainless steel appliance package, Walk In Pantry and Butler's Pantry. The Family Room has ample light with a gas fireplace and built in custom bookshelves. The Orcas Floorplan also includes Formal Dining Room and Living Room. The spacious Master Suite boasts a fireplace and a 5 piece bath with Granite Slab Countertops, as well as a walk in closet. Freestone Station's spacious floorplans and the cost effective building techniques we use provide real value to you. Our great location near the South Sound's metropolitan centers, closet to JBLM (Joint Base Lewis McChord), make the dream of Northwest living a reality within your reach. *Photos are from The Orcas Model Home. Floorplan layout and amenities may vary slightly, depending on building lot characteristics and Freestone Station builder preferences. Pre-Sales are welcome! Depending on stage of home development, you may be able to choose your own color schemes and feature packages. Ask us today how we can customize YOUR new home for YOU! Don't wait. Available new home inventory can go fast. Financing Rates are at all time lows giving buyers more purchasing power. Call us today to discover your options! Features List • Stainless Appl Pkg • Premium Hardwoods • Double Pane Windows • Gas Fireplaces • Custom Mantels • Walk In Pantry • Energy Efficient Pkg • 5 Pc Dlx Master Bath • Granite counter tops • Rounded drywall • Birch Cabintry • 30-year roofing • Recess lighting • Craftsman trim pkg • Loft area • Flatscreen wiring • Central Gas Heat • Quality Plumbing • 50 Gallon H2O tank • Landscaped in front • Fenced backyard

Equal Housing Opportunity.