Can Atlanta Homeowners Benefit from an FHA Streamline Refinance?

Mortgage rates sit at historic lows, but Atlanta homeowners with FHA loans sit on the sidelines. They think they can’t refinance because they are underwater.

Homeowners in Atlanta with FHA loans CAN refinance. FHA Streamline Refinance loans do not require an appraisal. No appraisal means no equity is needed.

You don’t have to sit with your rate above 6%, you have options Atlanta. If your loan is FHA then you have a streamline refinance option. If you have a Fannie Mae loan you have HARP 2.0. If you have a USDA loan then the USDA also has a Streamline Refinance. VA borrowers have the IRRRL.

Nearly all of the 300,000 underwater Atlanta homeowners have a refinance option. No equity needed, just be current on your mortgage, have a credit score above 620 and an open mind.

Underwater Atlanta homeowners HAVE refinance options!

Still, there are many homeowners who are paying more than they need to each month for their mortgage, who could benefit by refinancing at today’s low Atlanta mortgage rates. So what’s stopping them?

For some, it’s simply that the refinance process seems daunting. They worry it will cost a lot out of pocket, and take an inordinate amount of time and effort to get from application to closing.

This does not have to be the case, particularly for those with an existing FHA loan, due to the FHA Streamline Refinance option.

What is an FHA Streamline Refinance?

This specialty FHA loan allows homeowners to refinance an existing FHA mortgage into a new loan through a simplified process with less paperwork, and lower costs when compared to a traditional refinance.

Unlike most home loan programs there is no appraisal requirement. The original purchase price is used as the property value rather than current market value determined by an updated appraisal.

In addition, there is no minimum equity requirement, income requirement, or credit score requirement. It is important to understand that these are the guidelines set by the FHA, and each mortgage lender may have additional requirements as it is the lender who ultimately provides the financing.

Still, because FHA loans are backed by the Federal Housing Administration, and protected against losses from default or foreclosure, lenders are typically able to provide borrowers with better terms than they could were they bearing the full risk of making the loan.

Who Qualifies for an Atlanta FHA Streamline Refinance?

As with any mortgage program certain criteria must be met in order to qualify. In an FHA streamline some of these criteria include:

Existing FHA loan must have been taken out at least 6 months earlier.

Borrower(s) must be current on the existing mortgage, with no late payment in the previous 12 months.

Cannot include cash-out. Not even for renovations that improve the homes value. You might want to explore a 203K Loan if that is your goal.

There must be a benefit to the borrower(s) such as a lower monthly payment or moving from an adjustable rate mortgage to a fixed rate loan which eliminates the risk of future rate increases.

APPLY for a FHA Streamline Refinance

To learn more or to start the application process for an Atlanta FHA streamline refi simply click on the link above. One of our specialists will contact you within 24 hours to discuss eligibility, rates and the process.

Atlanta, GA (Jan. 2012) – Atlanta has been hit hard by the housing market collapse. Outside of Florida, our market has taken the biggest hit in the southeast. Nashville has shown declines, Birmingham has their issues, but Atlanta has seen 30% decreases in home value since the peak. Check out the map, see for yourself…

What Now for Underwater Atlanta Homeowners?

There you have it, 30% drop in value. Some Atlanta neighborhoods have been hit harder than others. I live Intown Atlanta, I bought in 2006 and I am personally underwater. I understand.

So, I am in the mortgage business and my house is underwater. You’d presume that I have researched all the options, you’d be right.

Luckily, I have an ARM, the adjustable mortgage just reset to 3.125% so my payment just dropped. It’ll stay there as long as European an American economics look grim. In other words, it stay low for a couple more years.

Some people are more risk adverse then me, they went with a fixed rate. I understand that position. For those that purchased in 2005 and 2006 (like I did) with interest rates in the high 5% to 6% range never had the opportunity to refinance.Decliningvalues and tightening underwriting guidelines meant that the stars never aligned.

Fellow Atlanta homeowners, you just got thrown a lifeline. Enter the new and improved Home Affordable Refinance Program, aka HARP 2.0. Upside down? Underwater?

DOES NOT MATTER, NO EQUITY OT LOAN TO VALUE RESTRICTIONS WITH HARP 2.0

So, how do you qualify?

HARP, sometimes referred to as DU REFI+ or the Obama Refi plan, has some basic eligibility guidelines that potential refinance homeowners must meet

In order to be eligible for theHARPrefinance program :

1. Your loan must be backed by Fannie Mae or Freddie Mac.
2. Your current mortgage must have a securitization date prior to June 1, 2009
3. You have to be current on your mortgage.
4. You have to be located in Georgia, Florida, Tennessee, South Carolina or Alabama (to work with me, if you live elsewhere we can refer you to a HARP expert in your state)

If you currently have an FHA, VA, USDA or Jumbo loan you will not beeligible to participate in the HARP 2.0 refinance program. You may have other refinance options, but HARP is not one of them.

Not Sure if Your Eligible? Want to Know Other Options? Click!

Atlanta homeowners can also save with a FHA Streamline Refinance or VA IRRL if they have agovernmentloan. Some homeowners have no options, they have to stick with it or explore a short sale. We know the best short sale agents in Atlanta if that direction makes sense.

Are There Really No Loan-to Value Restrictions?

Yes, there are really no loan to value (LTV) restrictions! Even if you areridiculously underwater, so long as you meet theHARP | DU Refi Pluseligibility requirements outlined above you should be eligible to participate.

Even if you are currently at 200+% LTV you can still benefit fromObamas Home Affordable Refinance Program.Ready to see if you meet HARP Guidelines? Stop waiting, click below for aHARP 2.0consultation and we will let you know your refinance options.

Get aHARP Rate QuoteNow!

We also serve ALL points in-between. If youre upside-down or underwater and need help then have you covered.HARP, DU Refi Plus, HAMP, HAFAor even aShort Saleif need be. You have options other than foreclosure, you owe it to yourself to explore those options.

Get a Home Affordable Program Quote

If your looking to lower your mortgage payment you need to look at everything. Refinance options, interest rates, the assessed value of your property and your homeowners insurance costs.

One of the biggest surprises to me is the loyalty to a insurance provider. My mother is like that. She somehow thinks that the fact that she has been with a company for 20 years matters. Guess what, it doesn’t. In fact it is a license to charge you more if anything. You shop for mortgage rate, you haggle over home price, why would you do the same for you homeowner’s insurance and the assessed value of your property?

HARP 2.0 Plan Set to Help Underwater Homeowners in Georgia

If you are a current homeowner with a FHA, VA, or USDA loan then you can stop reading. HARP 2.0 applies only to conventional, Fannie Mae and Freddie Mac financing. If you have a Conventional loan then read on and find out your options!

We still may be able to help with a FHA Streamline Refinance, a VA IRRL or a Short Sale depending on your situation.

Revamped a few weeks ago, President’s Obama’s Home Affordable Refinance Program (HARP) is expected to help thousands of current homeowners across Georgia and throughout Metro Atlanta take advantage of today’s low mortgage rates despite their equity position.

The original HARP refinance, launched in early 2009, was semi-successful, but had numerous limitations that prevent borrowers from using the program. The NEW Home Affordable Refinance Program opens the doors to a LOT of new borrowers.

With a projected 300,000 homeowners in Metro Atlanta upside-down the news that HARP 2.0 would be lifting some of the loan to value and pricing restrictions has a lot of Georgia home-owners excited about the money saving opportunities.

The goal behind the Obama refinance program is clear, allow Georgia homeowners to reduce their monthly mortgage rate. These savings will then be, hopefully, plowed back into the local economy which will add jobs and make a dent in the 10%+ Metro Atlanta unemployment rate.

What Georgia Home-Owners Can Participate in HARP 2.0?

The HARP Loan Program was created for current home-owners who are responsibly paying their mortgage on-time despite the fact they are underwater or upside down. Georgia, Florida, Alabama, Tennessee or South Carolina the HARP experts at HARP-REFI.net have the advice and expertise you need.

What Other HARP 2.0 Guidelines Do I Need to Know?

• Mortgage Payment History – You must have been ON-TIME with your mortgage payments for the prior 6 months and have had no more than one 30 day late in the past 12 months.
• Minimum Credit Score – Most lenders will require a 620 middle credit score to participate
• Mortgages with Lender Paid MI – Mortgages that have Lender Paid Mortgage Insurance (LPMI) are ineligible

How Will HARP 2.0 Help Our Foreclosure Crisis?

Compared to all of the government refinance programs, HARP 2.0 has the potential to work the best at stopping the massive title wave of foreclosures and short sales that are flooding the (city) and (state) real estate markets.

There are many benefits to refinancing and lowering your mortgage payment by hundreds of dollars rather than going into foreclosure, short sale or turning in your keys to the bank.

Maybe you like your school zone, you have family in the area, or the house in in the perfection location. Maybe you just hate to move, I certainly do!

Expect HARP 2.0 Demand to Be STRONG

With the details of the program slowly rolling out and lenders still interpreting and revising guidelines, it will likely be MARCH 2012 before HARP 2.0 refinance applications will be accepted.

Savvy homeowners are not waiting for the official roll-out to get a jump on the savings though. So, how can you get a headstart?

If you are underwater on your mortgage, regardless of whether or not you think you qualify for any of the available options, give us a ring to schedule a strategy session as soon as possible so that we can sit down with you and really explore the best decision that meets your needs.

Want to know more? Simple, click below and book a free, no obligation consultation. One of our experts will get back to you immediately with your options!

The U.S. Congress on Thursday approved a bill to raise the maximum size of mortgages the Federal Housing Administration can insure and sent it to President Barack Obama to sign into law.

The measure would push the so-called FHA conforming loan limit in the highest-priced real estate markets back up to $729,750 through 2013, from $625,500, a sign of lawmaker concern over the still-depressed state of the housing sector.

The limits, which vary from market to market, were temporarily raised for FHA and Fannie Mae and Freddie Mac during the financial crisis when banks became reluctant to lend. They automatically dropped back on October 1.

Metro Atlanta Loan Limits for 2012

In Metro Atlanta loan limits will go back to $346,250 from the current level of $320,250.

For Atlanta home-buyers looking to purchase, refinance or purchase and renovate via FHA 203K loans now have a little more room to work with.

In neighborhoods like Brookhaven, Kirkwood, Grant Park, Buckhead, Morningside, Virginia Highlands and Alpharetta the increase is especially helpful.

Home-owners looking to take advantage of today’s low interest rates with a refinance will also benefit.

Politicians haven’t made many smart moves with housing market legislation, but restoring the loan limits is definitely a positive move.

The housing industry and consumer advocates mounted an intense lobbying effort to convince officials the time was not yet ripe to reduce government support.

Some conservative groups fought raising the loan limits, with the influential Club for Growth warning that the government was distorting the market and impeding a recovery.

FHA, which traditionally has supported low-to-moderate income households, said on Tuesday that its capital reserves had dwindled over the past year. But it rebutted the contention of some analysts that it will likely need to turn to the U.S. Treasury for a bailout.

FHA recently increased mortgage insurance requirements, they will be fine. Hope that the folks in Washington DC don’t allow them to use this as an excuse for further increases.

Looking for a FHA loan? Look right, complete the form and we’ll get back to you with your options QUICK.

Home Affordable Foreclosure Alternatives (HAFA) is a new federal program that makes it easier to process a short sale for homeowners unable to keep their homes. With a traditional short sale, properties take a long time to sell and close, making you wait for your results. The availability of the new HAFA program means easier sales and faster closings. HAFA simplifies and streamlines the process for doing a short sale or deed-in-lieu by providing a standard process flow, minimum performance timeframes and standard lender forms and documentation.

• No More DEBT to Income Restrictions
• No More Restrictions on Vacant Property
• No More 90 Day Waits for the Bank to Answer
• 3000 Dollars Relocation Assistance
• Potentially NO IRS 1099

Want to know more?

404-551-3845

Jonathan Blackwell

Atlanta 203K Bathroom

House hunting in Atlanta? I’ll bet you are looking for a fantastic deal. Why wouldn’t you, they are everywhere. You probably think you’ll find one with a bathroom like this right? No? Good, that means you have realistic expectations.

Savvy home buyers understand you don’t walk into a perfectly renovated home and get a fantastic deal. The smart Atlanta home buyer understands you should focus your search on potential and you should understand loan products that allow you to unleash it. Why pay an investor 20%+ in profit to renovate a home for you when you can do it yourself with your own finishes and your own design?

FHA 203K & Fannie Mae HomeStyle loans allow creative Atlanta home buyers to unleash the potential of a fixer-upper that needs a helping hand.

If you want to use this market to your advantage then you need to learn how FHA 203K and HomeStyle Renovation loans are helping Atlanta home buyers create instant equity while designing the home of their dreams.

Preparation & Research

Renovating a home is not a one man job, you need to build a TEAM. How do you build a winning team? Unless you have lots of cash you’ll need to start with financing. Financing green renovation projects requires special loan products, like FHA 203K and Fannie Mae Homestyle used in conjunction with an Energy Efficient Mortgages (EEM). Not all lenders offer these products and even fewer have the skill, expertise and connections to pull it off. When it comes to choosing a lender you need to do your research. There are questions that you need to ask and that they need to be able to answer without pause. If they can’t answer them you need to keep looking. It doesn’t matter how great your Realtor, Architect, or Contractor are if you can’t get the financing to complete your project. Your lender is your quarterback, you need a Payton Manning not a Rex Grossman.

Once you feel secure that your renovation loan officer has the knowledge, the experience and the platform to get your loan done you need to start gathering the rest of your team. If you are purchasing then your next addition is your Realtor. Successful lenders know successful Realtors so you can always start you search there. If you’re in North Atlanta, Buckhead or Brookehaven than your first call should be to the Peters Team at Keller Williams. I work with a lot of Realtors, the epitomize expertise and professionalism. However, sometimes your renovation lender may be in a different location (knowledge, expertise and skill trump locality with specialized financing) then you are and may not be able to connect you. In this case you’ll need to do your own research. Social media, blogs, word of mouth and referrals are the best way to go. There’s also ServiceMagic.com and AngiesList.com if you still need help. If your green renovation is a refinance then obviously the a Realtor is not always needed. However, in a refinance situation a Realtor is great source of information on after repair value which can play a key part in determining whether or not your green renovation is viable from a financing standpoint.

Selecting a General Contractor

Some of you are probably asking “don’t I need an Architect first”? The answer is yes and no. Quality General Contractors either have an Architect on staff available at a reduced costs if you use their services OR know plenty of good Architects to refer. In my opinion, it is best to speak with a general contractor first to get an idea of who they know as well as get a ballpark number for the renovations to make sure they fit in your budget. A Contractor won’t be able to give you an exact quote on a green renovation that involves a square footage addition without architectural drawings, but they can give a ballpark number to provide to your lender to ensure you don’t have loan qualification / appraised value issues. Be aware that the lender is also going to vet your contractor. On the larger renovations we will check licensing and insurance, but we may also pull credit to ensure your GC has the credit and cash flow to complete a job like this.

Choosing an Architect

As I said before, really good contractors have really good connections with really good Architects. However, don’t blindly accept a General Contractor recommendation. Make sure your choice for ANY green renovation is LEED certified. Check their work, visit past projects and contact previous customers to ensure you make the right choice. You’ll be spending a lot of time and money with them, choose wisely. I know a couple of excellent Atlanta Architects

Choosing the right team along with planning and preparation will not only save time, money and effort it will minimize your risk that things could go poorly. The preparation stage is the most important stage in the green renovation process. Now that you have a winning team assembled let’s talk about the renovation process itself.

Where to start, what materials to use, how to get the most out of materials you already have and how to make your home as energy efficient as possible are all coming in part 2 of this series! Don’t want to miss it? Make sure you go to Facebook.com/FHA203K and LIKE our page. We’ll keep you up to date on ALL things renovation and make sure you don’t miss the next part of our green renovation series! You can also follow @JKBlackwell on Twitter to get the latest.

FHA 203K at Work

Home Improvement Loans

With the our housing stock aging, new construction inventories dwindling and the suburban flight back to urban America the need for renovation and home improvement loans has increased dramatically in recent years. When most think of home improvement financing the first thought that pops up is your good old Home Equity Line of Credit (HELOC). In the past that may have been the best direction to go and for a very select few it is still the best way to go. However, this mortgage market is different than the past. With home values plummeting, equity disappearing and guidelines ever in flux new home improvement financing options have taken center stage. Whether it be purchase and renovate or refinance and renovate this new crop of home improvement loan players have shown they are better suited and more flexible then your traditional 2nd loan and HELOC financing options. SO, who are the new players and how do they work?

FHA 203K

While 203K financing has been around for years, the loan was hardly ever utilized until put back into play by declining values, beat up foreclosure stock and tightening credit guidelines. The 203K Loan is the Tom Brady of home improvement financing, a bona fide superstar. Flexible credit qualification, low down payments on purchases, minimal equity needed on refinance and after repair valuation on all 203K loans make this the most useful home improvement loan on the market.

Home Equity Loan

If 203K loans are the Tom Brady of home improvement financing HELOC’S are the John Kitna. Passable, serviceable veterans of the home improvement loan industry suitable for limited use in certain situations. First of all, unlike 203K & Homestyle renovation products, Home Equity Loans use the current value of your property without consideration how much value your home improvements will add. This, along with lower allowable loan to values, typically means far fewer dollars to tap into for your renovation. Finally, the credit qualification guidelines for HELOC’s are much stricter than that of FHA. When you combine as-is valuation and tough credit qualification you get fewer qualified customers and a loan product that isn’t always suited for this mortgage market

Fannie Mae Homestyle

If the 203K is the Tom Brady and HELOC’s are the Jon Kitna, then the Homestyle is Matt Ryan. A relative newcomer to the home improvement scene, but full of potential none-the-less. The Homestyle is the conventional sister to the 203K. More flexible, but harder to credit qualify this loan fills some large gaps left by FHA renovation financing. Unlike FHA loans, theHomestyle works for 2nd homes and investment properties. It also works for unfinished builder foreclosures which is huge if you’d like to get a great deal on a new construction home. An added bonus is that you can have more than one Homestyle loan, FHA typically only allows you to have one loan at any given time.

Cash-out Refinance

For years cash-out refinances were THE way to tap into your homes equity for improvements. However, much like  HELOC’s they are based on the current value of your house and not the after repair value like 203K & Homestyle renovation loans. This means less room to renovate and with declining home values, fewer qualified customers.

In closing, for you lucky folks that still have significant equity in your home you may be able to complete you home improvements by tapping into your equity via a Home Equity Line of Credit or a cash-out refinance. For the vast majority of folks across this great land who simply don’t have enough equity you’ll need to explore renovation products like the FHA 203K and Fannie Mae Homestyle renovation loans that are based on after repair value. For those of you that are looking to purchase a fixer upper those two renovation products are likely your ONLY option to find home improvement loan financing

Looking for a Home Improvement Loan? Want to renovate? Go HERE and, take 30 seconds to complete the form and whatever you do please CLICK the LIKE Button below to help spread the word!