The Charleston, South Carolina area is a great place to live or have a vacation home. The weather is great, the beaches are fantastic, golf courses are abundant, there are many historical sites, the architecture is unbelievable, the dining is unbeatable, and the people are the friendliest in the country. It is because of these reasons that I believe Charleston SC Real Estate is truly unique. I look forward to helping you with any of your real estate needs in Charleston, Berkeley, or Dorchester counties. Today’s article is titled:
Foreclosures Fall in Most of Top Metro Areas
Foreclosure activity fell in 14 of the top 20 U.S. metropolitan areas in the first quarter compared with a year earlier, even though total U.S. foreclosures rose, RealtyTrac said on Thursday.
The declines in some big metro areas, however, reflected government efforts to stem foreclosures and did not indicate that the tide of foreclosures has turned, RealtyTrac said.
The Sun Belt continued to lead in foreclosures, with four Sun Belt states accounting for all of the 20 metropolitan areas with the highest rates in the first quarter, the real estate data company said.
But the majority of those top metro areas, with populations over 200,000, reported decreasing foreclosure activity compared with the first quarter of 2009, RealtyTrac, based in Irvine, California, said.
California accounted for 10 out of the top 20 metro foreclosure rates, followed by Florida with seven, Nevada with two, and Arizona with one, RealtyTrac said in a quarterly report.
Foreclosure activity declined on a year-over-year basis in eight of 10 biggest metro areas.
"The decreasing foreclosure activity in some of the nation's top foreclosure hot spots in the first quarter is largely the result of government intervention and other non-market influences, and not a sure signal that those areas are out of the woods yet when it comes to foreclosures," James J. Saccacio, chief executive of RealtyTrac, said in a statement.
He said a federal government program designed to encourage short sales, which was launched April 5, may have caused delays in the initiation of some foreclosures. In a short sale, a lender agrees to accept a sales price that is less than the amount owed on a mortgage.
RealtyTrac said 77 percent of large U.S. metropolitan areas posted year-over-year increases in foreclosure activity. Foreclosure activity nationwide increased 16 percent from the first quarter of 2009.
Las Vegas continued to post the highest foreclosure rate in the first quarter, with one in 28 housing units receiving a foreclosure filing, or 3.51 percent, 4.9 times the national average.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for Charleston SC Real Estate homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours of Charleston SC Real Estate homes at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Copyright 2010 Reuters
The Charleston, South Carolina area is a great place to live or have a vacation home. The weather is great, the beaches are fantastic, golf courses are abundant, there are many historical sites, the architecture is unbelievable, the dining is unbeatable, and the people are the friendliest in the country. It is because of these reasons that I believe Charleston SC Real Estate is truly unique. I look forward to helping you with any of your real estate needs in Charleston, Berkeley, or Dorchester counties. Today’s article is titled:
Foreclosure Prevention Has Aided 116,000
The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says.
About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners--12 percent--had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures.
Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met.
For those who qualify, the Home Affordable Modification Program brings monthly loan payments down to 31 percent of home owners' pre-tax income.
Nearly 60,500 people have been denied permanent modifications.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for Charleston SC Real Estate homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours of Charleston SC Real Estate homes at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Source: CNNMoney, Tami Luhby (02/17/2010) and USA TODAY, Stephanie Armour (02/17/2010)
The Charleston, South Carolina area is a great place to live or have a vacation home. The weather is great, the beaches are fantastic, golf courses are abundant, there are many historical sites, the architecture is unbelievable, the dining is unbeatable, and the people are the friendliest in the country. It is because of these reasons that I believe Charleston SC Real Estate is truly unique. I look forward to helping you with any of your real estate needs in Charleston, Berkeley, or Dorchester counties. Today’s article is titled:
Will Rewarding Borrowers Prevent Defaults?
Will paying underwater borrowers to keep meeting their mortgage obligations prevent them from walking away?
Loan Value Group LLC says it is working with a major mortgage lender to test this theory.
Here’s the plan: The mortgage investor offers a cash reward to borrowers to keep paying. The amount varies by borrower based on income, negative equity, geography, and other risk factors. The more likely a borrower will default, the bigger the carrot.
The borrower can’t collect the payment until the mortgage is paid, although the rewards can be used to help pay off the mortgage if the property is sold.
The plan keeps lenders from having to mark properties to market and take big losses. Frank Pallotta, a founder of Loan Value Group and former executive at Morgan Stanley and Credit Suisse, says the program will pay for itself if only a few borrowers stay put and keep paying.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Source: The Wall Street Journal, Nick Timiaros (02/08/2010)
The Charleston, South Carolina area is a great place to live or have a vacation home. The weather is great, the beaches are fantastic, golf courses are abundant, there are many historical sites, the architecture is unbelievable, the dining is unbeatable, and the people are the friendliest in the country. It is because of these reasons that I believe Charleston SC Real Estate is truly unique. I look forward to helping you with any of your real estate needs in Charleston, Berkeley, or Dorchester counties. Today’s article is titled:
Lifeline Needed for Underwater Home Owners
An estimated 4.5 million home owners owe 75 percent more than their homes are worth. That number is likely to peak at 5.1 million in June, affecting 10 percent of home owners and making them increasingly likely to just walk away.
''We're now at the point of maximum vulnerability,'' says Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. ''People's emotional attachment to their property is melting into the air.''
Consultants at Oliver Wyman calculated that 17 percent of owners defaulting in 2008 –about 588,000– chose to default even though they could pay.
First American estimates that it would cost about $745 billion – about the same as the original 2008 bank bailout – to restore all underwater borrowers to the break-even point.
Doing so would be seen as highly unfair by many taxpayers, says Michael S. Barr, assistant Treasury secretary for financial institutions, but doing nothing would be another blow to a fragile economy.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Source: The New York Times, David Streitfeld (02/022010)
I posted a blog a few days ago addressing FHA lending changes. Here is some additional information.
FHA just announced that there will likely be some changes to their requirements for insuring loans effective April 5, 2010. The main ones include an increase in the upfront mortgage insurance premium (UFMIP) and a decrease in seller concessions from 6% to 3%.
For those who don’t know what UFMIP is, it is the “down payment” that a buyer makes on the mortgage insurance when they use an FHA insured loan. This payment, which can be financed, helps keep down the monthly cost of mortgage insurance.
For reference, conventional loans have mortgage insurance (MI) for any loan that is greater than 80% of the value of the property being used as collateral. The MI had become somewhat expensive for borrowers with sub-700 credit scores, causing some borrowers to take out 80-20 loans in the past to avoid it. Because of the losses to lenders over the past couple years, there are very few new loans written like this.
FHA charges a premium up front of 1.75% of the loan amount which can be financed into the loan itself and then a monthly charge of 0.55% each month for 5 years or until the loan-to-value automatically reaches 78%, whichever comes last. This premium is set to increase to 2.25%. On a $150,000 loan, the amount borrowed will increase by approximately $750.
As far as seller concessions, a decrease in the amount allowed could have an impact on the amount of cash required to be brought to closing by the borrower. For example, a Realtor may have submitted a purchase offer on a home for X amount and asked for the seller to pay for “closing costs, prepaid items and upfront mortgage insurance premium”.
In the past on larger loan amounts, 3% would often cover these costs, and the borrower would only need to have the required minimum 3.5% down payment. Now, with the increased UFMIP, 3% will not cover the costs. Since it can be financed into the loan, this is generally not a deal breaker.
This becomes more of an issue on lower cost homes because the insurance, the title company fees, lender fees, processing fees, appraisal fees, etc., are for the most part fairly fixed and do not vary much on the price of the home. In other words, the fees to close a $300,000 home may only be a few hundred dollars more than the fees to close a $60,000 home. Being that 3% of those numbers is $9,000 and $1,800 respectively, someone buying a lower priced home (who may be doing it due to financial constraints), may be required to bring cash to the closing, in addition to the down payment, to make up for the shortfall.
There are a couple other proposed changes such as a required 10% down payment for borrowers with credit scores below 580, but this is currently a moot point, as I know of no lenders who will make an FHA loan on a score under 620.
You can read the Wall Street Journal’s take on this here or see the HUD press release here for some of the other pending changes. For those who don’t know what UFMIP is, it is the “down payment” that a buyer makes on the mortgage insurance when they use an FHA insured loan. This payment, which can be financed, helps keep down the monthly cost of mortgage insurance.
For reference, conventional loans have mortgage insurance (MI) for any loan that is greater than 80% of the value of the property being used as collateral. The MI had become somewhat expensive for borrowers with sub-700 credit scores, causing some borrowers to take out 80-20 loans in the past to avoid it. Because of the losses to lenders over the past couple years, there are very few new loans written like this.
FHA charges a premium up front of 1.75% of the loan amount which can be financed into the loan itself and then a monthly charge of 0.55% each month for 5 years or until the loan-to-value automatically reaches 78%, whichever comes last. This premium is set to increase to 2.25%. On a $150,000 loan, the amount borrowed will increase by approximately $750.
As far as seller concessions, a decrease in the amount allowed could have an impact on the amount of cash required to be brought to closing by the borrower. For example, a Realtor may have submitted a purchase offer on a home for X amount and asked for the seller to pay for “closing costs, prepaid items and upfront mortgage insurance premium”.
In the past on larger loan amounts, 3% would often cover these costs, and the borrower would only need to have the required minimum 3.5% down payment. Now, with the increased UFMIP, 3% will not cover the costs. Since it can be financed into the loan, this is generally not a deal breaker.
This becomes more of an issue on lower cost homes because the insurance, the title company fees, lender fees, processing fees, appraisal fees, etc., are for the most part fairly fixed and do not vary much on the price of the home. In other words, the fees to close a $300,000 home may only be a few hundred dollars more than the fees to close a $60,000 home. Being that 3% of those numbers is $9,000 and $1,800 respectively, someone buying a lower priced home (who may be doing it due to financial constraints), may be required to bring cash to the closing, in addition to the down payment, to make up for the shortfall.
There are a couple other proposed changes such as a required 10% down payment for borrowers with credit scores below 580, but this is currently a moot point, as I know of no lenders who will make an FHA loan on a score under 620.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, the agency announced Tuesday.
The change is among a number of major changes the FHA is making to ensure its long-term financial soundness.
Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency's finances.
The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet to be announced.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Plenty of home buyers have found themselves at the closing table, ready to sign the myriad documents that will officially make them new homeowners--only to get nasty sticker shock. What was originally supposed to cost them, say, $2,500 in closing costs, has turned into $3,000.
The Good Faith Estimate (GFE), a tally of the fees associated with a mortgage loan due at closing, is exactly that – an estimate. Often these costs, which are provided by mortgage brokers and lenders to borrowers within three days of getting a loan application, escalate by closing time.
But on Jan. 1, new federal rules adopted by the Department of Housing and Urban Development took effect, mandating the use of a redesigned, simplified Good Faith Estimate form. The idea behind the revision: to avoid those closing-table surprises.
The main change is how lenders communicate fee information to borrowers. Under the old system, there was no standardized format. "Fees were communicated in multiple ways, which adds to the confusion when comparing costs," says Keith Gumbinger, a vice president at HSH Associates, which tracks the mortgage market. Under the new rules, lenders will all be required to use the same form for their Good Faith Estimates – a three-page document issued by HUD.
More on the Good Faith Estimate
There are also new rules capping increases in costs that are disclosed on the Good Faith Estimate and guidelines so that fees listed on the initial GFE reflect the actual cost at settlement. "Those fees on the GFE at the beginning of the process will be the same on HUD-1 form [final settlement statement] at the end of the process," says Mr. Gumbinger.
The new GFE guidelines are certainly better than the old ones and will reduce closing?costs modestly – but there are still some kinks in the process, namely opportunistic pricing, says Jack Guttentag, professor of finance emeritus at the Wharton School who also operates a web site that offers free mortgage information.
That means that two different borrowers can go to the same lender but get two different estimates. The lender can size up the first one as a sophisticate, the other as a dupe, and charge the latter more than the former – just because he thinks he can get away with it. "There's no ready way a disclosure statement can prevent that," Mr. Guttentag says.
Prospective buyers should also be aware that while overall costs associated with closing on a home may come down as a result of the new GFE, they might have to pay up down the line in other ways. It will cost lenders to comply with the new regulations: they have to buy new software, print new documents, train loan originators to fill out the new forms properly. "They will be built into fees, so eventually consumers will pay" for these overhead costs, says Mr. Gumbinger.
So will the new good faith estimate make borrowers savvier about shopping around for a loan? Some are doubtful. "The forms are still pretty complicated," says Richard Vetstein, a real?estate attorney with Vetstein Law Group in Framingham, Mass. "Even for me – a real estate attorney – it took several hours to go through the forms and all the changes, and figure out what's going on."
Here, a summary of the types of charges you can expect to see on your Good Faith Estimate:
1. Fees that cannot change from the original GFE to final settlement. These include the lender's origination and underwriting charges, and the credit or "points" based on the specific interest rate chosen.
2. Fees that can increase up to 10% at settlement. These include services required and recommended by the lender. If the borrower selects a third-party provider (for title services, title?insurance and recording charges) from the lender's approved list, the fees cannot increase by more than 10% from the upfront estimate to the final.
3. Fees that can change without limit. These include charges from service providers (for title insurance) chosen by the borrower, but not recommended by the lender. This category also includes things like daily interest charges, homeowner's insurance, as well as flood and pest insurance, if necessary. It encourages borrowers to do their own shopping. "It prevents the worst abuses of price escalation on third-party charges for service providers selected by the lender," says Mr. Guttentag.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
The Wall Street Journal
By Lisa Scherzer
The Homeownership Resource Center
A division of Family Services, Inc.
FREE FIRST TIME HOMEBUYER WORKSHOP
$3,500 TO Qualified Recipents!
When: January 16th
Time: 9:00 AM – 4:30 PM
Location: Trident One Stop
1930 Hanahn Road
North Charleston
Want to own your own home? Let us show you how! Don’t miss you opportunity to take advantage of the $8,000 fedral tax credit. Workshop topics include qualifying for the tax credit, buying HUD properties and foreclosures, budgeting, credit scores, fees, current market conditions, and much more! Participants may also be eligible for other downpayment and/or closing cost assistance grants or loans.
REGISTRATION IS REQUIRED
To register visit www.fsic.org, or call 843-732-7682
TERMS, CONDITIONS, AND TIME RESTRICTIONS APPLY
I thought this workshop might benefit someone and thought I’d pass the information on.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Making Home Affordable, the federal program aimed at aiding struggling homeowners, offers two options: refinancing and loan modification. A homeowner who is behind on mortgage payments and at risk of foreclosure could benefit from the modification option, which pays lenders to re-work loan terms and lower monthly payments.
Don't expect to breeze through the Making Home Affordable qualifying process. You'll need a lot of documentation and patience. With so many homeowners looking for help, lenders are scrambling to keep up with demand. To speed up the loan process, have your paperwork in order before applying for a loan modification.
Qualifying for a loan modification
Making Home Affordable modification option
(http://www.makinghomeaffordable.gov/modification_eligibility.html) is known as the Home Affordable Modification Program, or HAMP. It's designed for homeowners who are likely to lose their homes because they can't keep up with mortgage payments. Even if you aren't behind on payments yet, you can qualify for help if you can demonstrate that you will fall behind soon.
To qualify for HAMP, the home must be your primary residence and you must owe $729,750 or less on a first mortgage that was originated on or before Jan. 1, 2009. Your monthly payment on your first mortgage must be greater than 31% of your monthly gross income. Second mortgages and home equity lines of credit don't count. You must also demonstrate financial hardship such as a jump in mortgage payments or a drop in income.
A loan modification makes sense if you can't afford your current mortgage payment but could manage to stay current if that monthly payment is lowered. Second homes, which include vacation homes and rentals, don't qualify for the program. Homes of up to four units are eligible, with higher loan limits, as long as you occupy one of the units. HAMP is scheduled to expire at the end of 2012.
How to get started
HAMP begins with a trial phase. Contact your lender to initiate the process, or call 1-888-995-HOPE to get free assistance from a housing counsellor approved by the U.S. Department of Housing and Urban Development. The lender will calculate a lower monthly payment, which you must make on time for at least three months. After successfully completing the trial phase, your lender should make the loan modification permanent.
While lenders may accept some undocumented information up front to begin the process, eventually you'll need to file detailed paperwork to earn a permanent modification. It's better to get your documentation in order in advance. HAMP administrators say the leading reason trial modifications fail to be made permanent is missing paperwork.
First gather information on your income (pay stubs), expenses (mortgage statements, tax and insurance bills, debt balances), and assets (bank and non-retirement savings statements). You'll need that information to fill out the Request for Modification and Affidavit (http://makinghomeaffordable.gov/docs/RMA%20Interactive%20-%20Updated%2011.10.09.pdf). Also complete IRS form 4506T-EZ (http://www.irs.ustreas.gov/pub/irs-pdf/f4506tez.pdf), which allows your lender to review your income tax returns. File a Hardship Affidavit (http://www.makinghomeaffordable.gov/docs/hamphardshipaffidavit.pdf) as well. If possible, send all of the documents at once by certified mail to your lender to lessen the likelihood of lost paperwork and delays, says Nicole Hall, editor of LendingTree.com.
Lowering your monthly payments
A lender can modify a mortgage in several ways: lower your interest rate, reduce your principal, or extend the term of the loan. The basic goal is to use one or more of these approaches to get your monthly mortgage payment, including real estate taxes and homeowners insurance premiums, down to a more affordable 31% or less of gross (pre-tax) income. Lenders are allowed to cut your interest rate to as low as 2%, if necessary. The average HAMP modification has reduced monthly payments by $640.
To get a ballpark figure of how much a modification might lower you monthly payment, run the numbers (http://www.makinghomeaffordable.gov/payment_reduction_estimator.html) for yourself. If, for example, your current mortgage payment is $2,000 and your monthly gross income is $4,000, then you're paying 50% of your pre-tax income toward the home loan. A typical modification to bring that figure down to 31% would reduce the payment to $1,240, a savings of $760 a month.
Alternatives to foreclosure
Even if you're facing foreclosure, HAMP is worth a shot. The foreclosure process is suspended while you're in the trial phase of the modification. Foreclosure can be avoided altogether if you can demonstrate the ability to keep up with the new, lower payment and graduate to a permanent modification. Keep in mind that the foreclosure process can resume if you miss payments during the trial phase or fail to get approved for a permanent modification.
Some owners won't be able to stay in their homes, even with a mortgage modification. To avoid foreclosure, look into the federal Home Affordable Foreclosure Alternatives (https://www.hmpadmin.com/portal/docs/news/hampupdate113009.pdf) program. HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. Although the program doesn't officially go into effect until April 5, 2010, some lenders may initiate it early.
In a short sale, a borrower sells a home for less than the outstanding mortgage, and the lender takes the proceeds and considers the debt paid off. In a deed-in-lieu, the homeowner turns over the home to the lender, and the mortgage is closed. Although neither option is ideal, either can make sense if a loan modification isn't attainable or sufficient.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
View my entire inventory of VisualTours at http://www.visualtour.com/inventory.asp?U=182210
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Article from HouseLogic.com
APR is an acronym for Annual Percentage Rate. It's a government-mandated calculation meant to simplify the comparison of mortgage options. A loan's APR can always be found in the top-left corner of the Federal Truth-In-Lending Disclosure. Because APR is expressed as a percentage, many people confuse it for the loan's interest rate. It's not. APR represents the total cost of borrowing over the life of a loan. "Interest rate" is the basis for monthly mortgage repayments. The main advantage of APR is that it allows an "apples-to-apples" comparison between loan products. As an example, a 5.000 percent mortgage with origination points and fees will almost certainly have a higher APR than a 5.500 percent mortgage with zero fees. In this sense, APR can help a borrower determine which loan is least costly long-term.
However, APR is not without its shortcomings. First, different banks include different fees into their APR calculations. By definition, this spoils APR as choose-between-lenders, apples-to-apples comparison method. Second, when calculating APR, "life of the loan" is assumed to be full-term. When a 30-year mortgage pays off in 7 years or fewer -- as most of them do -- APR comparisons are rendered moot.
In other words, APR is just one metric to compare mortgages -- it's not the only metric. The best way to compare your mortgage options is to review all the loan terms together and determine which is most suitable.
If you have any questions about APR contact please contact Renee Hodges, or Zack Larichiuta at 843-763-1180. On weekends contact Renee at 843-270-6256. You can email Renee at renee.hodges@gbmail.com or go to www.charlestonlending.com
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
When: Saturday, Oct. 24th
Where: North Charleston Convention Center
Contact: 843-735-7865
A FREE foreclosure prevention event, "Hope for Homes" consists of workshops and one-on-one sessions with HUD approved counselors to help homeowners who are currently in foreclosure or who have faced a financial hardship that may eventually lead them to foreclosure.
For complete information, instructions and registration call 843-735-7862. Registration is requested but not required. There are multiple sessions offered and participation is totally confidential.
Please make this opportunity known to anyone that might benefit from this free assistance.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
The South Carolina State Housing Finance and Development Authority has various loan programs that may help you buy a home. Interest rates are competitive and depending on your income, there is down payment/closing cost assistance available to assist you in purchasing a home with little or no out of pocket funds. The major benefits to home buyers are lower interest rates and reduced mortgage insurance rates that allow you to have a more affordable monthly payment and save thousands of dollars over the life of a mortgage. First-Time Home Buyer Mortgage Loan Program assists low-to-moderate income S.C. families and individuals by offering a competitive market fixed interest rate mortgage loan. The Authority also offers $3000 down payment assistance based on availability, which may be used toward down payment and closing costs.
All Authority Loan Programs are based on a fixed interest rate loan with a maximum loan-to-value (LTV) of 97% (for conventional or rural housing) or 96.5% (for FHA). Therefore, if you buy a home for $100,000, the minimum down payment that would be required is $3,000 (for conventional or rural housing) or $3,500 (for FHA). Depending on your income, the Authority may have down payment assistance funds available to pay all or part of the required down payment.
For additional information go the SC State Housing finance and Development Authority website http://www.schousing.com/
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions. To look for homes in anywhere in the tri-county area go to my website at http://www.carolinajoe.com/mls/
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
1. Mortgage terms. Mortgages are generally available at 15-, 20-, or 30-year terms. Typically the longer the term, the lower the monthly payment. However, you pay more interest overall if you borrow for a longer term.
2. Fixed rates. A fixed rate allows you to lock in a low rate as long as you hold the mortgage and, in general, is usually a good choice if interest rates are low.
3. Adjustable interest. Adjustable-rate mortgage is designed so that your loan’s interest rate will rise as market interest rates increase. ARMs usually offer a lower rate in the first years of the mortgage. ARMs also usually a limit as to how much the interest rate can be increased and how frequently they can be raised. These types of mortgages are a good choice when fixed interest rates are high or when you expect your income to grow significantly in the coming years.
4. Balloon mortgages. These mortgages offer very low interest rates for a short period of time — often three to seven years. Payments usually cover only the interest so the principal owed is not reduced. However, this type of loan may be a good choice if you think you will sell your home in a few years.
5. Government-backed loans. These loans are sponsored by agencies such as the Federal Housing Administration, see their website www.fha.gov, or the Department of Veterans Affairs, see their website www.va.gov. These programs offer special terms, including lower down payments or reduced interest rates to qualified buyers.
For specific questions please feel free to contact Renee Hodges or Zack Larichiuta at 843-763-1180. On weekends contact Renee at 843-270-6256. You can email Renee at renee.hodges@gbmail.com or go to website www.charlestonlending.com. Tell them “Carolina Joe” said to call.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
1. Develop a household budget. Instead of creating a budget of what you’d like to spend, use receipts to create a budget that reflects your actual spending habits over the last several months. This approach will factor in unexpected expenses, such as car repairs, as well as predictable costs such as rent, utility bills, and groceries.
2. Reduce your debt. Lenders generally look for a total debt load of no more than 36 percent of income. This figure includes your mortgage, which typically ranges between 25 and 28 percent of your net household income. So you need to get monthly payments on the rest of your installment debt — car loans, student loans, and revolving balances on credit cards — down to between 8 and 10 percent of your net monthly income.
3. Look for ways to save. You probably know how much you spend on rent and utilities, but little expenses add up, too. Try writing down everything you spend for one month. You’ll probably spot some great ways to save, whether it’s cutting out that morning trip to Starbucks or eating dinner at home more often.
4. Increase your income. Now’s the time to ask for a raise! If that’s not an option, you may want to consider taking on a second job to get your income at a level high enough to qualify for the home you want.
5. Save for a down payment. Designate a certain amount of money each month to put away in your savings account. Although it’s possible to get a mortgage with only 5 percent down, or even less, you can usually get a better rate if you put down a larger percentage of the total purchase. Aim for a 20 percent down payment.
6. Keep your job. While you don’t need to be in the same job forever to qualify for a home loan, having a job for less than two years may mean you have to pay a higher interest rate.
7. Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills, too. Pay off the entire balance promptly.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect your score:
1. Your payment history. Did you pay your credit card obligations on time? If not, how late were they? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer's oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit — installment loans, credit cards, and a mortgage, for example.
6. New purchases. It is not a good idea to make any large purchases such a furniture, or a car from the time you decide to apply for financing until you have closed on the purchase of your new home.
For specific questions please feel free to contact Renee Hodges or Zack Larichiuta at 843-763-1180. On weekends contact Renee at 843-270-6256. You can email Renee at renee.hodges@gbmail.com or go to website www.charlestonlending.com. Tell them “Carolina Joe” said to call.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
Sincerely,
"Carolina Joe" Idleman
http://www.carolinajoe.com
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