Envoy’s Jumbo EXPANDED Program

Here is a new program from one of my preferred lenders:

LOOKING FOR A NON-QM JUMBO PRODUCT?

Take a look at Envoy’s Jumbo EXPANDED Program – 24 Months Banks Statement Program

24 Months Bank Statement Program:

  • Self-employed borrowers only
  • All borrowers listed on account must be borrowers on the loan
  • 24 months consecutive bank statements
  • Minimum FICO 700
  • 80% LTV up to $750,000
  • 75% LTV up to $1,000,000
  • DTI up to 50% with compensating factors (ask for details)

Please contact Bobby Lipfird with Envoy Mortgage for more information.  You can email him at blipfird@envoymortgage.com, or call him at 813.732.7755.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

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Is a VA Loan a good option for you?

water ocean boat usa

Photo by Pixabay on Pexels.com

For the vast majority of military borrowers, VA loans represent the most powerful lending program on the market and one of the best benefits provided for their service to our country. These flexible, no-down payment loans have helped more than 20 million service members become homeowners since its inception. The VA loan is a $0 down payment mortgage option available to Veterans, Service Members and select military spouses. VA loans are issued by private lenders and guaranteed by the U.S. Department of Veterans Affairs (VA). They don’t have mortgage insurance. Mortgage insurance is a monthly fee you pay with other programs when you’re not putting at least 20 percent down. The VA’s guaranty eliminates the need for any mortgage insurance or mortgage insurance premium, helping borrowers save even more money each month.

A VA loan offers Veterans benefits that other loan products do not.

  • No down payment is required
  • No private mortgage is required
  • Easier qualifications

Some things that you should know about the limits and exception of the intent of VA loans: 

  • They’re only for certain types of homes. If you’re planning to buy a  fixer-upper, the VA loan may not be for you. It’s mainly designed for properties in “move-in ready” condition, including single-family homes, condos, modular housing, some multi-unit properties and more.
  • They’re for primary residences only. Don’t bother trying to use your VA loan benefits to buy an investment property or a vacation home . VA loans are for primary residences, although you can use this benefit to buy a duplex or another multiunit property, provided you live in one of the units. The VA does offer exceptions, though lenders also have their own standards that might affect occupancy requirements

VA loans allow Veterans to use their benefits to gain the financial stability that home ownership provides. Let’s work together to make more Veterans homeowners.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

 

US Housing Market Predictions for 2019

Interest Rates

According to Freddie Mac, the monthly average commitment rate And points On 30-Year Fixed-Rate Mortgages started January 2018 at 4.03 with 0.5 points.  As of October 2018, the monthly average commitment rate And points On 30-Year Fixed-Rate Mortgages is at 4.83 with 0.5 points.  Thus, the interest rates continue to increase.

Employment

In September, the U.S. economy added 134,000 jobs and the unemployment rate declined to a 49-year low of 3.7 percent. Jobless claims remained at record-level lows. The four-week moving average for continuing jobless claims fell to the lowest point in 45 years during September. Payroll growth was weak in September, increasing just 0.3 percent, which is inconsistent with the current strong labor conditions. I do not see any decellines in these trends with the exception of the mid term election.

New Construction

The US real estate market has witnessed strong demand and short inventory of homes this year, making it a seller’s market. In 2019, experts believe that new housing construction will start to rise.

Millennials

millennials are defined as a person born in the 1980s or 1990s, especially in the U.S.; a member of Generation Y.  Millennials are a big demographic group and as they’re getting older and settling down, they’re getting into their home buying years. There’s a popular myth that millennials are a generation of renters. However, the real estate market trends throughout this year actually show that millennials are interested in homeownership and are buying more homes than you think!

Residential Market Predictions

Given the current (imbalanced) supply and demand situation, it appears that this ongoing trend of rising home prices will continue in most US cities throughout 2019. In a forecast issued in July, Zillow predicted that prices will rise by 6.5% in the upcoming 12 months. According to Zillow, the median home price in the US rose by 8.1% over the past year.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

FHA loans are not just for people with low income

Here is an interesting article written by one of my preferred lenders:

The FHA myth: FHA loans are only for people with low income.

The FHA truth: FHA loans are also for people who don’t want to put down the traditional 20% on a conventional loan.

Low down payments are what normally drive borrowers to a FHA loan.  While FHA loans were originally developed to help borrowers with less than perfect credit history or those with few financing options, they are for any financially qualified borrower. There is no maximum income limit for FHA loans. So, while those with lower incomes may qualify for a FHA loan, those with higher incomes are not turned away due to their income resources.

To find out if your client could qualify for a FHA loan or simply for more information about FHA loans contact me today. I’m always available to help.

Bobby Lipfird
Envoy Mortgage
Loan Originator, NMLS # 386779
C: 813.732.7755
envoymortgage.com
blipfird@envoymortgage.com
10150 Highland Manor Drive, Suite 200
Tampa, FL 33610

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

The bad side of tax cuts will have the Federal Reserve increase interest rates.

Pool and BeachInterest rates are likely to increase following enactment of the recent tax reform bill (Tax Cuts and Jobs Act (TCJA), passed in December 2017,). With too much success, the Federal Reserve will probably increase interest rates for the fear of raising inflation. These pro-growth provisions will likely encourage additional capital investment.  During this period, the higher interest rates will help savers invest in instruments like bonds.  The downside is that higher interest rates results in higher mortgage rates.  Not only are higher interest rates affected by the tax cuts, there are changes to both interest paid and property tax deductions.

deposit-clipart-gold_theme_money_dollars_clip_art_7759 - CopyThe new tax reform bill made several significant changes to the individual income tax. These changes include a nearly doubling the standard deduction, new limitations on itemized deductions, reduced income tax rates, and reforms to several other provisions.

  • The standard deduction amounts will increase to$12,000 for individuals, $18,000 for heads of household, and $24,000 for married couples filing jointly.
  • Under pre-TCJA law, the Child Tax Credit was worth up to $1,000 per qualifying child, was refundable for taxpayers with earned income of at least $3,000, and phased out (decreased) for taxpayers with AGI above $75,000 ($110,000 for joint filers).
  • Beginning in 2018, taxpayers may only deduct interest on $750,000 of qualified residence loans.
  • If the taxpayer used the home equity loan proceeds for personal expenses, such as paying off student loans and credit cards, then the interest on the home equity loan would not be deductible. 
  • If  you pay taxes on your personal property and owned real estate, they may be deducible from your federal income tax bill.
  • Interest paid on a mortgage is tax-deductible if itemized on the tax return.  Taxpayers can deduct the interest paid on first and second mortgages up to $1,000,000 in mortgage debt (the limit is $500,000 if married and filing separately).

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Selling Homes with a Real Estate Agent in Florida

moneyhands_217w_gifMost people selling their home in Florida work with a licensed real estate broker or agent.  A good real estate agent will help you with the following:

  1. pricing your house, based on comparative market analysis (or comps similar to an appraisal), that helps set the current values of similar homes in your area;
  2. market your house to prospective buyers; and
  3. handle other tasks, such as reviewing house purchase documents and negotiating with buyers.

One of the first documents that is signed by the real estate agent is the Listing Agreement, which covers the following items:

  1. The type of listing. Most agents will want an exclusive right to sell listing, which obligates you to pay a commission to the agent regardless of who brings in the buyer.
  2. Duration of listing. In all cases, the listing agreement will cover a set amount of time. (typically at least six months to effectively market the property depending on price i.e. higher priced homes take longer to sell than moderately priced homes)
  3. Listing Price.  In determining a reasonable listing price, a real estate agent look at comparable sales and the length of time on the market to meet the seller’s goals.  For example, a seller might need to sell faster then the comparables and the listing should be priced accordingly.
  4. Items included or not included in the sale. The seller will list what is going to stay or go as part of the listing.  For example, a seller may plan to leave behind a built-in dishwasher (which is therefore part of the property that the agent is contracted to sell), but exclude a refrigerator that the seller plans to move to your new home.
  5. The real estate agent commission that a seller will pay (it should be noted that this is one of the highest cost that the seller will incure). This typically ranges from 5-6% of the house sales price, and is split between your listing agent and the buyer’s agent.

Seller’s Property Disclosure

money-7State law in Florida (Johnson v. Davis, 480 So.2d 625 (Fla. 1985)) requires sellers to disclose any facts or conditions about their property that they know about and have a substantial impact on the value of the property and that others cannot easily observe.  Some of these items can include the following:

  • defects in the electrical and other house systems,
  • conditions such as termites or asbestos, and
  • homeowners’ association fees (typically an addendum to the contract), deed restrictions, and other specified details of the property.

In addition, if your house was built before 1978, you must comply with federal Title X disclosures regarding lead-based paint and hazards, which is typically an addendum to the contract.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link

Interest Rates Are Likely to Continue to Increase

Main EntranceAfter nearly a decade of low-interest rates, the Federal Reserve has started increasing the federal funds rates (the interest rate that it charges banks) and the banks are also raising rates they charge to consumers (the consumer).  While it brings higher costs for borrowers, it going to help savers with higher returns.  Consumer discretionary spending traditionally moves in the same direction with interest rates in the short-term due to more people working and increased incomes which inevitably lead to increased spending.

  • The CPI report indicates that a rate hike is still likely.  New Labor Department data out this past Friday shows that workers’ wages in the U.S. continue to rise.
  • With a low unemployment rate, an inflation rate drifting toward the Federal Reserve’s target, and increased spending, current interest rates don’t adequately match the strength of the economy, which is considered to be very strong.
  • However, consumer spending will continue to increase since most consumers will not see a measurable change in purchasing power.

loan_application_clip_art_24699As of September 13, 2018, the benchmark 30-year fixed mortgage rate jumped seven basis points to 4.78 percent from 4.71 percent last week, according to Bankrate.com’s weekly survey of the nation’s largest mortgage lenders. The average rate for 15-year fixed mortgages also climbed five basis points to 4.21 percent, while the average rate for adjustable-rate mortgages, or ARMs, shot up six basis points to 4.20 percent.

Meanwhile, mortgage demand continues to cool as rates climb. Total mortgage applications dipped 1.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s weekly survey ending Sept. 7.

Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.  Inflation and interest rates are often mentioned in the same breath, and this is because inflation and interest rates are closely related. In the United States, baseline interest rates are set by the central bank, the Federal Reserve Bank also known as the Fed.   Basically, here is how the Fed reacts and controls interest rates:

  • In order to control high inflation, the central bank increases the interest rate.
    When interest rate rises, cost of borrowing rises. This makes borrowing expensive.
    Hence borrowing will decline and as such the money supply (i.e the amount of money in circulation) will fall. A fall in the money supply will lead to people having lesser money to spend on goods and services. Hence, they will buy a lesser amount of goods and services. This, in turn, will lead to a fall in the demand for goods and services.  With the supply remaining constant and the demand for goods and services declining; the price of goods and services will fall.
  • In low inflationary situations; the interest rate is reduced. A fall in interest rates will make borrowing cheaper. Hence, borrowing will increase and the money supply will also increase. With a rise in money supply, people will have more money to spend on goods and services. So; the demand for goods and services will increase and with supply remaining constant this leads to a rise in the price level (i.e inflation).

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link