New Program for Bank Owned Properties: HOMEPATH

Fannie Mae, along with Wells Fargo, has created a new loan program designed to assist in the purchase of Foreclosed Properties, or Bank Owned Properties, or REO's. This program, called HomePath, was developed to simplify and expedite the sale of the mounting inventory of these properties. This program will have special appeal to First Time Homebuyers and Investors, as the following key features apply to HOMPATH eligible properties:
97% Financing for Owner Occupies Single Family Residences
90% Financing for Investment Properties
NO Mortgage Insurance Premium
NO Appraisal Necessary
Until now, REOs have been difficult to finance because of appraisal deficiencies. Although the purchase price may have been a "bargain" price, lenders would not lend on properties needing work. Now, with the NO APPRAISAL feature, a "fixer-upper" can be financed through HomePath. Investors may be interested in this program as 90% financing is available. And NO PMI applies to all HomePath loans.
It is important for buyers to understand that proper caution should be taken in evaluating the value of the property. A property inspection is advised so that the buyer is fully aware of any deficiencies that may have otherwise been noted in an appraisal.
A complete list of HomePath Eligible properties in Greater Boston, Massachusetts, or any selected area is available through Wells Fargo Home Mortgage, or by following the link, www.homepath.com.
Loan approval is subject to Wells Fargo underwriting. Contact me for a complete explanation of rules and guidelines.

You Can Refinance Your Home Even if it Has Declined in Value

One of the first laws enacted by President Obama last year was the Economic Stimulus Package. One provision in the law has helped millions of borrowers refinance to today's historic low rates, even though their property has declined in value. Normally, if a property has less than 20% equity, mortgage insurance, or PMI is required to compensate for elevated risk. In 2009, the Home Affordable Refinance Program (HARP) was enacted which allows homeowners with Fannie Mae or Freddie Mac loans to refinance down to the prevailing low rate, even if their house has lost equity. A loan can be refinanced to today's rate even if the (current) property is as much as 105% of the loan amount.
For Example: Home Purchased for $400,000. 20% down, $320,000 mortgage. Since the original purchase, the property value has declined to a value of $305,000. Under the new law, the homeowner can still qualify to refinance the full $320,000 with NO PMI. Many underwriting guidelines are also relaxed, including debt ratios and appraisal requirements.
This program has saved countless homeowners hundreds of dollars per month and thousands of dollars per year. This program is scheduled to end in June of 2011. If you purchased a home in the past 5 years, you most likely fall into this category and will benefit by requesting a HARP refinance.
Qualifications and guidelines do exist, so call me to see if this program can help you save money.

First BLOG Entry!

Welcome to my Wells Fargo BLOG!

The idea of this blog is to cross business with personal. I want to share my experiences with my business friends and associates. I will periodically add useful and interesting updates. I will also share experiences and lessons learned to all my "followers".

I invite your comments as well!