Affordable Housing & Financing
Let’s Work Together
Buying a home is a process, and sometimes a complicated one. At Real Living Good Neighbor Realty, our professionals are trained to unravel that process and we’re dedicated to smoothing out the complications. We have partnered with Prospect Mortgage to insure that we provide our clients with the most affordable loan options that can be tailored to fit each individual's particular situation.
FHA loans are insured, but not funded, by the Federal Housing Authority. Essentially designed for low- and middle-income borrowers and first-time borrowers, FHA loans tend to have more lenient qualifying criteria than conventional loans.
The Veterans Administration insures, but does not fund, loans for those with qualified military service. These loans offer more relaxed qualifying criteria and less stringent down-payment requirements than conventional loans.
HAFA program simplifies and streamlines the use of short or "pre-foreclosure" sale and deed-in-lieu of foreclosure (DIL) options by incorporating the following unique features:
- Complements HAMP by providing alternatives for borrowers who are HAMP eligible (including borrowers facing imminent default);
- Utilizes verified borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis;
- Allows the borrower to receive pre-approved short sale terms prior to the property listing;
- Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement;
- Releases the successful HAFA borrower from future liability for the debt;
- Uses standard processes, documents, and timeframes;
- Provides financial incentives to borrowers, servicers and subordinate lienholders
The Home Affordable Modification Program (HAMP) is a key component of the Obama Administration's Making Home AffordableSM Program announced on March 4, 2009. HAMP creates a defined loan modification process through which borrowers who are in default, at risk of imminent default, or in foreclosure can have their loans modified to a more affordable monthly payment targeted at 31 percent of their monthly gross income.
All servicers must participate in the program, which expires on December 31, 2012, for all eligible Fannie Mae portfolio mortgages and MBS pool mortgages. Servicers may also elect to participate in HAMP for other qualifying mortgage loans that (1) are not subject to Fannie Mae's credit loss guarantee, and (2) are held by servicers in their own portfolios or are serviced by servicers for other portfolio or securitization trusts or investors. In order for a servicer to participate in HAMP with respect to other qualifying mortgages, the servicer must execute a servicer participation agreement and related documents with Fannie Mae as Financial Agent for the United States (as designated by the Treasury). These documents and other information are available at HMPadmin.com, administrative Web site for servicers participating in HAMP.
Fixed Rate Mortgage
A fixed rate mortgage has an interest rate and monthly payments that never change. These mortgages afford borrowers stability because they are unaffected by the ups and downs of fluctuating rates. There is no risk of a sudden rate increase making monthly payments unaffordable. Consequently, many people find that the consistent payment amounts aid them in managing their budgets. This is also a popular and practical option for people planning to stay in their homes for several years because they can end up saving money in the long run.
Fixed rate mortgages can be more difficult to qualify for than other types of loans, however. And if interest rates decrease significantly, refinancing is required to capitalize and obtain lower payments.
Shorter-term fixed rate mortgages offer significant interest savings over longer-term fixed rate mortgages, but have higher monthly payments.
Adjustable Rate Mortgage
Adjustable Rate Mortgages (ARMs) feature an interest rate that adjusts up or down at specified intervals of the mortgage term. The initial interest rates for ARMs are lower than those of fixed rate mortgages. However, after that preliminary low-rate period ends, the rate adjusts periodically – usually upwards. This makes ARMs a viable choice for borrowers who do not plan to stay in their home for an extended period of time. Others choosing an ARM run a risk of suddenly being faced with unaffordable monthly payments.
ARMs are typically easier to qualify for than fixed rate loans because the starting rate and payments are lower.
A wide variety of ARMs are available, offering varying initial fixed rate periods and adjustment terms. ARMs featuring initial fixed rate periods of three, five, and seven years, with rates adjusting annually thereafter, are common. These are generally referred to as 3/1, 5/1, and 7/1.
Loans that are not insured by the federal government and for amounts under limits established by Fannie Mae and Freddie Mac (government-regulated private corporations) are considered conventional loans. Fannie Mae and Freddie Mac administer these loans. Currently, the conventional loan limit for single families is $417,000 in the continental United States.
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We’ll guide you through the transaction from start to finish:
- We’ll talk about why you want to buy a home.
- We’ll discuss affordability and market conditions.
- We’ll talk about lifestyles and neighborhoods.
- We’ll outline ways to view and compare homes.
- We’ll narrow the choices and show you the best options.
- We’ll serve as your trusted advisor to ensure you get the best home, at the best price, in the timeframe that best meets your needs.
At Real Living Good Neighbor Realty, we don’t think buying a home is big and scary. In fact, working together to find your dream home will be fun – let’s work together and get started.
|Real Living Good Neighbor Realty
Altamonte Springs Office: 407-379-BEST (2387)
990 N. SR 434, 1132
Altamonte Springs, FL 32714
Mount Dora Office: 352-729-7325
100 West 5th Ave
Mount Dora, FL 32757
Winter Park Office: 407-379-2378
1977 Dundee Dr
Winter Park, FL 32792