Gift of Equity

Using a Gift of Equity to buy real estate from a family member is becoming more popular. Most Loan professionals do not know how to do this very complex transaction. We have received numerous questions recently concerning the sale of real estate between family members and whether or not the seller may “gift” equity in the property to the buyer. We have identified the growing trend in the transfer of real estate between family members.

There is a huge interest in the Gift of Equity program from First Time Homebuyers who do not have the required down payment. Both buyers and sellers continue to ask us questions about the program and as we have now completed many of these purchases, we are happy to explain the process to you.

First, is it acceptable to give a “gift of equity” when selling real estate? Yes…when it is to a family member. Let’s first examine the Fannie Mae guidelines associated with a Gift of Equity:

• Both conventional and government underwriting guidelines call for the donor (seller) to be a direct relative of the recipient (buyer). a qualified relative is defined as the borrower’s spouse, child, or other dependent, or by any other individual that is related to the borrower by blood, marriage, adoption, or legal guardianship. Finance or domestic partner is also acceptable.

• Fannie Mae and Freddie Mac both ask for the borrower to contribute 5% of the purchase price from their own funds into the transaction. Beyond the first 5%, the borrower may receive a gift of equity. Some programs designed for first time home buyers may allow a minimum of 3% from the borrower’s own funds. If the gift of equity will contribute more than 20% of the sales price, the borrower does not need to document the use of their own funds.

• FHA  permit 100% of the required down payment (minimum – 3.5%) to be derived from a Gift of Equity.
• Every gift, whether a cash or Gift of Equity, must be supported by an executed gift letter; which outlines the relationship between the borrower and donor with all appropriate contact information as well as documentation for the source of funds being used for the gift.

There may be tax issues with the gift and you should consult your tax professional to get better guidance on this.

What is the Process?

When a Family member wants to buy a property from another relative, it begins with going to a local Escrow company. There the buyer and seller will sign a purchase agreement outlining the selling price and other details. In this agreement, the seller will show a credit of say 20% of the selling price as a Gift to the buyer family member.

The loan professional will give you guidance on exactly what is needed to complete the transaction. The program is usually when a person has seen their kids move on and the house is to large for them. Selling to a family member is a simple solution to help get the person into a property as well as the easiest, lowest cost way for the seller to sell the property.

Mortgage Consumer strives to educate our team of mortgage professionals to remain current on trends that affect the real estate industry and benefit our clients. The Gift of Equity program is but one of the many mortgage solutions we offer prospective buyers.

Valencia Home Loans Lender

Valencia Home Loans. We are the #1 Valencia home loans lender for the 3rd straight year. As a Valencia mortgage bank, we offer experience that will help you and your Valencia Real Estate agent get you into the house of your dreams. If your looking for low mortgage rates Valencia, you have come to the right place. We offer free mortgage advice, free credit report, mortgage tips and low cost mortgage. Our Valencia refinance mortgage offers the best in a Valencia home loan. We also offer home equity line of credit and have a handy Valencia mortgage payment calculator.

Santa Clarita Mortgage Lender 

Are you looking to buy in the area. Santa Clarita homeowners and new home buyers have come to expect nothing but the best in service, Santa Clarita low mortgage rates, and an experienced Santa Clarita mortgage banker that can get you thru the bumps of getting a new Santa Clarita morgage. Being near Soledad Canyon Road, Bouquet Canyon Road, Newhall Ranch Road and McBean Parkway allows us to work quickly to get your home loan completed.

Experienced Local Mortgage Banker

Our 23 years of Santa Clarita mortgage origination makes us one of the most experienced mortgage teams on the west coast. We have helped homeowners get low cost home loans as well and buy Investment properties, get Reverse mortgages and get a Santa Clarita Home Equity loan with Cash Out to pay off other debts or do some Home Improvements. We believe …your loan is the only loan and communicating with you is absolute. We are available to you and your real estate agent 24/7 and welcome your questions. Many of our Borrowers have done several new home purchase loans or refinances with us over the years.

Valencia, Santa Clarita Recommended Real Estate Agents

Based on the experiences of our customers, we are happy to recommend a Santa Clarita real estate agent when we hear good things about them. If you are looking for an experienced Real Estate local agent,We recommend:

No Appraisal Cost- No Points- No Bank Fees

We have some great options when you are looking for a new Valencia home loan or to refinance you Valencia home loan. If you are a Vet, you can get a VA home loan Santa Clarita and if you are a senior, look into a reverse mortgage Santa Clarita.

Maybe your looking for a Valencia cash out mortgage or a low rate Palmdale home loan. With California refinance rates so low , maybe now is the time. Let us give you a mortgage rate quote or use our handy mortgage payment calculator Valencia. If you are a Valencia first time home buyer we are here to get you your loan. We also offer Santa Clarita home loans, Granada Hills home loans & Porter Ranch home loans .

Reverse Mortgages for Seniors

Reverse Mortgages are the best thing to ever be offered to seniors. We speak to many enriching and inspiring seniors daily and continue to be surprised how much confusion and misconceptions there is about FHA Reverse mortgage home loans. But once we start talking further and was able to answer questions and provide the facts, it was exciting to see opinions change and the seniors enthused to learn more.

You may be familiar with Home Equity Conversion Mortgages (HECMs), or reverse mortgages. But recent program developments — as well as the rapidly growing demand — make reverse mortgages worth considering. In fact, not considering a reverse mortgage means you’re missing out on tremendous opportunity.

What’s new with FHA reverse mortages?

All these factors — plus an exciting industry-wide consumer education program that shows reverse mortgages in a new light — mean that reverse mortgages are now better positioned than ever to help you in your senior years.

We believe in the success of all reverse mortgages for seniors by helping consumers learn more about these positive product developments. As one of the nation’s best reverse mortgage lenders, we invite you to discuss your mortgage options. To learn more about your reverse mortgage opportunities call us 877-244-9190.

Burbank Home Loans

As a Burbank Mortgage Lender, we enjoy one of the finest cities in the US. Burbank is located north region of Los Angeles. Burbank Home Loans and Pasadena home loans are sometimes complex and we offer our many years of home loan experience and referrals from our many Burbank homeowners who have had us get them a new home purchase mortgage or a Burbank home loan refinance or a Pasadena home loan.

Rapid growth in Burbank has seen the town grow to be well known and a good area to own real estate. Burbank home values continue to go up and recently we have actually seen a shortage of available Burbank homes for sale. Burbank lies between Pasadena and Glendale in home values.

Before getting a mortgage, study your credit history. Good credit is what can help you get a mortgage. Obtain copies of your credit history and scores from the three major credit-reporting bureaus. Study your reports carefully to ensure that no issues or errors must be resolved before you apply. Many lenders need a minimum score of 650, which complies with Freddie Mac and Fannie Mae’s guidelines. Most lenders want to avoid scores that are lower than 620.

Known as the “Media Capital of the World” and located near Hollywood, many media companies make Burbank their home. These include Warner Bros Entertainment, Walt Disney, NBC and others. Served by the Bob Hope Airport, Burbank is a gem of the San Fernando Valley. The airport is served by Alaska Airlines, American Airlines, Delta Airlines, JetBlue Airways, Southwest Airlines and United Airlines to name a few.

Home Loan Concierge

Regardless of how much of a loan you’re pre-approved for, know how much you can afford to spend on a home. Write out your budget. Include all your known expenses and leave a little extra for unforeseeable expenses that may pop up. Do not buy a more expensive home than you can afford.

Homeowners and ones buying in the area have come accustomed to our Premier Mortgage Service. We come to you with a Senior Mortgage Banker who can discuss home loan options with you and offer years of experience advice. The application is completed on the spot and the required documents to support the file are attained. Written Approval is usually within hours.

When you are buying your first home there is an insurance called Private Mortgage Insurance. This protects the lender in case you don’t make your loan payments. Or maybe an FHA mortgage is the best option for you.If you can, try to have a down payment of more than twenty percent to: avoid looking like a high risk, and having to carry that insurance.

Mortgage Documents You Will Need

Gather your documents before making application for a home loan. Most lenders require the same documents. You should have your last two years of tax returns, W2s and two months of bank statements. You will also need several recent paycheck stubs, a copy of your homeowners insurance and photo ID. If it is a purchase mortgage, get an estimate for the insurance. If you’ve got these documents, you’ll find the process to be much smoother.

We also offer FHA Home Loans, Pasadena home loans, Glendale home loans and La Crescenta home loans. We have an EZ online mortgage application and handy mortgage payment calculator. We offer Burbank mortgage refinancing and cash out home equity home loans at low bank mortgage rates. Many homeowners with Burbank home loans have seen us get their payment reduced considerably with a home loan refinance.

Torrance Home Loans

As a Torrance Mortgage Lender, we enjoy one of the finest cities in the US. Torrance is located in the South Bay region of Los Angeles Torrance Home Loans and Redondo Beach home loans are sometimes complex and we offer our many years of home loan experience and referrals from our many Torrance homeowners who have had us get them a new home purchase mortgage or a Torrance refinance home loan or a Manhattan home loan.

Rapid growth in Torrance has seen the small sleepy beach town grow to be well known and a good area to own real estate. Torrance home values continue to go up and recently we have actually seen a shortage of available Torrance homes for sale. Torrance Beach lies between Redondo Beach and Malaga Cove on the Santa Monica Bay.

The Del Amo Fashion Center is one of five largest malls in the USA with stores like Urban Outfitters, PF Chang’s, Crate & Barrel and a host of fine restaurants. Both American Honda and Exxon Mobil have large operations in the area. There are 5 major High Schools in the Torrance Unified school district including Torrance High School. Private schools include the Bishop Montgomery High School and El Camino Community College.

Home Loan Concierge

Homeowners and ones buying in the area have come accustomed to our Premier Mortgage Service. We come to you with a Senior Mortgage Banker who can discuss home loan options with you and offer years of experience advice. The application is completed on the spot and the required documents to support the file are attained. Written Approval is usually within hours.

When you are buying your first home there is an insurance called Private Mortgage Insurance. This protects the lender in case you don’t make your loan payments. If you can, try to have a down payment of more than twenty percent to: avoid looking like a high risk, and having to carry that insurance.

We also offer Palos Verdes Estates home loans, Redondo Beach home loans and Manhattan Beach home loans. We have an EZ online mortgage application and handy mortgage payment calculator. We offer Torrance mortgage refinancing and cash out home equity home loans at low bank mortgage rates. Many Carson home loans have seen us get their payment reduced considerably with a home loan refinance.

Beverly Hills Home Loans

As a Beverly Hills Mortgage Lender, we enjoy one of the finest cities in the US. Beverly Hills is bordered by Bel-Air and the Santa Monica Mountains on one side and West Hollywood on the other. Beverly Hills Home Loans are sometimes complex and we offer our many years of home loan experience and referrals from our many Beverly Hills homeowners who have had us get them a new home purchase mortgage or a Beverly Hills refinance home loan.

Most businesses in Beverly Hills are located south of Santa Monica Blvd with the exception of the Beverly Hills Hotel & Beverly Hills Hilton Hotel. Other well-known are the Cedars-Sinai Medical Center and the Los Angeles Country Club. The Beverly Wilshire Hotel and Metro-Goldwyn-Mayer are other well-known names from the area.

Home Loan Concierge

When you are buying your first home there is an insurance called Private Mortgage Insurance. This protects the lender in case you don’t make your loan payments. If you can, try to have a down payment of more than twenty percent to: avoid looking like a high risk, and having to carry that insurance.

Homeowners and ones buying in the area have come accustomed to our Premier Mortgage Service. We come to you with a Senior Mortgage Banker who can discuss home loan options with you and offer years of experience advice. The application is completed on the spot and the required documents to support the file are attained. Written Approval is usually within hours.

We also offer Brentwood home loans, Bel-Air home loans and West Hollywood home loans. We have an EZ online mortgage application and handy mortgage payment calculator. We offer Beverly Hills mortgage refinancing and cash out home equity home loans at low bank mortgage rates.

How To Get A California Mortgage!

Many people are interested in getting a California Mortgage but have no clue as to what the requirements are. California Lenders have many different types of criteria that they look for, and it is up to you to understand how to prepare yourself to get accepted for a home mortgage. Read on and learn about what you can do to better your chances to get approved for a home mortgage.

Work with your bank to become pre-approved for a home loan. Pre-approval helps give you an understanding of how much home you can really afford. It’ll keep you from wasting time looking at houses that are simply outside of your range. It’ll also protect you from overspending and putting yourself in a position where foreclosure could be in your future.

Prepare your paperwork before applying for a mortgage. There are many items that a lender will require. These items include the last two or three years worth of tax returns, copies of each of your monthly credit card statements and installment loans. Three months bank statements and two months worth of pay stubs are also needed for approval.

If you have never bought a home before, check into government programs. These government programs often work with individuals with lower credit scores and can often assist in finding low interest mortgages.

Consider a mortgage broker instead of a bank, especially if you have less than perfect credit. Unlike banks, mortgage brokers have a variety of sources in which to get your loan approved. Additionally, many times mortgage brokers can get you a better interest rate than you can receive from a traditional bank.

Get Your Rate Locked Now

Rates are going up as the economy improves. If you are thinking about buying a new home, get going on the home loan approval now. You can usually lock the rate for 30 to 60 days.

Really think about the amount of house that you can really afford. Banks will give you pre-approved home mortgages if you’d like, but there may be other considerations that the bank isn’t thinking of. Do you have future education needs? Are there upcoming travel expenses? Consider these when looking at your total mortgage.

Stay persistent with your home mortgage hunt. Even if you have one lender rejects you, it doesn’t mean they all will. Many tend to follow Freddie Mac and Fannie Mae’s guidelines. They may also have underwriting guidelines. Depending on the lender, these may stricter than others. You can always ask the lender why you were denied. Depending on the reason they give, you can try improving your credit quickly, or you can just go with a different lender.

If you’re denied for a mortgage, never let that deter you from looking to other companies. One lender may deny you, but others may approve. Look into all of your borrowing options. There are several mortgage options available, which include getting a co-signer.

Many people get denied when applying for a home mortgage because they don’t understand what they need to do in order to get approved. If you have been denied in the past or this is your first time applying for a home mortgage, then use the tips here to better prepare yourself for the process. Be smart, read over these tips and you will get approved for a home mortgage.

We offer an EZ Online mortgage application. Our experienced loan professionals will review the information you submit and give you several home loan options. It may be an California FHA home loan or a conventional one. You can use our handy mortgage payment calculator to determine your monthly house payment.

Understanding Your Fannie Mae Mortgage

Do you have a Fannie Mae Mortgage now or are you considering a new mortgage that will be approved using Fannie Mae DU approval system. Most home loans are with Fanniemae but the Borrowers do not understand the role of Fanniemae. Government home loans are explained to help you get a better understanding of them.

First, find out if Fanniemae owns your loan. https://knowyouroptions.com/loanlookup  to see if you have a Fanniemae mortgage. If Fanniemae owns your current mortgage and you got the mortgage before May 31,2009, you might be eligible for the Fanniemae Home Affordable Refinance program or more commonly known as HARP. Many refer to it as the Obama Refinance program also.

Fanniemae California mortgages are very common and many homeowners who are eligible for the HARP program have not yet used it to refinance. We completed a survey of Fanniemae Los Angeles home loans and found out about only 40% of the eligible homeowners have taken advantage of getting a HARP refinance.

DU Approval vs LP Approval

Homebuyers are confused when their loan person tells them they are DU or LP approved. DU is the Fannie mae approval automated system and LP is the Freddie Mac automated approval system. Both have a different set of loan guidelines and one may be a much better choice over the next given your home loan scenario. Freddie seems to offer a bit more to the home buyer who has had change in the last few years. For example, started a new job or graduated from school.

Knowing the differences between Freddie and Fannie are very important and you will want to work with a loan professional who has experience with both. Where one might turn you down, the other will approve your loan.

Fanniemae DU Approval

Fanniemae has a program called Desk Top Underwriter. It is very sophisticated and can analyze a mortgage application and issue approval based on the information entered. The DU will also tell what is needed to complete the new home loan.

If you are purchasing a new home, most likely it will be run thru the DU program to receive approval early on. Then the Loan Officer can work with the Borrower to get the items the DU asked for and once the file is complete, submit it to the Underwriter who manually goes thru it.

We are very experienced with Fanniemae guidelines for mortgages.  If you want pre-approved home loan for a new home all we have to do is take an application and run it in DU to receive initial approval.We found with Oregon home loans, the DU Approval is almost always approved.

 Successfully Sell Real Estate With These Tips

Contrary to popular belief, you do not have to be an expert with a real estate license, in order to Sell Real Estate for top value. In this article, we will cover some of the basic tips you can use to effectively sell your property in a wide variety of market conditions. Find out what the market doesn’t want you to know, in this article.

If you are selling your house, hire a home inspector to do an inspection of the property. A licensed inspector can let you know what changes you can make to make your home more attractive to possible buyers. Sometimes just simple changes like the color of a paint or a change in the landscape can get your house off the market faster.

Before you put your home on the market, you need to make sure it is in the best shape possible. There is no need to do expensive upgrades. Get rid of clutter. This will make the home look larger. Do simple repairs. If you have been ignoring a broken kitchen drawer, then now is the time to fix it. Paint any areas that need it. Mow the yard and plant some flowers. Make the most of what you have to capture and keep a buyer’s interest.

By making kitchen updates that are small, you can really increase the value of your home. Upgrade one of your appliances to create a strong focal point and make the kitchen look newer. Wooden islands and hanging storage are popular choices for kitchen upgrades. Instead of getting new kitchen cabinets, paint the ones you already have.

Mortgage Approval For the Buyer

Helping a buyer with financing will help you make the sale. There are many painless ways a seller can assist someone who may not readily qualify for a mortgage; you might offer a lease-to-own option, pay for points to reduce interest rates or even foot the bill for closing costs. This could really shrink the time your home spends on the market.

When trying to figure out what price to sell your home for, look more at the prices that houses similar to yours sold for rather then houses that are currently on the market. When an appraisal is made for the sale of your home, the mortgage company will only approve a mortgage for the amount of the appraisal, even if both the buyer and seller agreed on a higher amount. Appraisers use previous sales as their guide. By doing this up front, you will keep yourself from having issues during the sale process.

Pre qualify prospective buyers to confirm that they have the ability to pay. Negotiating the terms of selling a house can be long and drawn out. The most frustrating thing is to go through that entire process and find out the buyer cannot obtain his mortgage. Before you spend the time working with someone, take the time to have them pre qualified.

Whether you intend to sell your home or simply refinance it, having its value assessed should be done very early in the process. An Appraiser’s valuation of your home will dictate how it is treated by potential buyers, real estate agents and loan officers. If you make your own guess about the value of your home before a professional appraises it, you are counting your chickens long before they hatch.

From the outside looking in, selling in the real estate market might seem like a difficult thing to do. But after you’ve read this article and put these simple real estate tips to use for you, you will start to understand just how simple it can be to sell your home for a great price on the market.

Most Real Estate Agents Can Sell for a Higher Price

A good real estate agent usually knows the market, knows what has recently sold or what might be coming into the marketplace soon. They can also advise you on recent appraisals in the area to help you know what to expect. Nothing worse than going thru all the effort getting an offer only to have the appraisal not support the selling price. Yes an agent will charge you a commission, but most of the time they are well worth the cost.

If you are going to sell your home by owner, contact us so we can show you how your buyer can get an online mortgage approval quickly. We can offer many options to your buyer such as no down payment mortgage, FHA home loan or fixed rate loans vs adjustable rate loans.

California Homeowners Insurance Tips

California homeowners insurance for new home loans tips. Purchasing The Perfect Policy Has Never Been Easier Than Now With These Home Owner’s Insurance Tips. Have you recently bought a home and purchased home owner’s insurance? Maybe you own a home and you have yet to purchase insurance for it. Either way, it is important that you are well-informed about the ins and outs of home insurance. The following article is going to give you some of that knowledge.

Mortgage Hazard Insurance Requirements

Never just think about purchasing homeowner’s insurance. Shop around, get written quotes then Go out and do it. If any event happens that can damage your home and you don’t have insurance, you will be in trouble. If you took a mortgage, you will more than likely be required to insure your home. The Hazard insurance amount will need to be enough to cover the mortgage you owe.

To save money on your homeowners insurance, you should pay off the mortgage as soon as possible. Most companies will consider you a smaller risk when there is no debt against a property and you will take better care of the property. Look into how much faster you can pay the loan off, by refinancing at 15 years instead of 30.

Get Lower Insurance Cost

When you are dealing with homeowners insurance keep in mind that some insurance companies will actually lower your premium if you get your mortgage paid off. They will think that since you own the home outright you are more likely to take better care and pride in your home.

You can save thousands of dollars and years of payments by making your mortgage payment on a bi-weekly basis, instead of monthly. Ask your mortgage holder about setting you up on this payment program. Since there are 52 weeks in a year, you will end up making an additional couple of payments without breaking the bank or your budget.

With the internet, you can get plenty of insurance cost quotes and then compare not just the cost, but also the features & benefits of each option. So whether you are an insured home owner or if you have yet to get home insurance, it is wise to be well informed on the subject.  Use the information given to you in the above article to make sure you have the best home owner’s insurance possible.