Sunday, November 9, 2008
Tuesday, September 2, 2008
Buy a HUD home and your down payment will be $100.00.
With many homes for sale in the Middle Tennessee Area, HUD has developed a program for homes in
A HUD home is residential property acquired by HUD as a result of a foreclosure action on an FHA-insured mortgage. After the foreclosure HUD then becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. HUD homes are typically in good condition and these types of homes can be found through-out the Middle Tennessee area.
Here are a few tips to use when purchasing a HUD home:
1. Be ready to act fast.
HUD homes typically sell within 10 days. When you have identified a home that you like, be prepared to make an offer on the home immediately.
2. Get pre-approved.
HUD requires that all offers are submitted with a pre-approval letter from the lender of your choice before submitting an offer.
3. Have your earnest money ready.
All HUD homes in
4. Never pay for a list of HUD or foreclosed homes.
I have seen television and print advertisements for the sale of lists for these types of homes. No matter how nominal the amount; never purchase a lists for these types of homes. HUD homes are regulated by the federal government and are public record. Contact a Realtor® that can help you locate a free list of these homes.
5. Get a home inspection.
Although HUD provides a property condition report, have a property inspector complete a thorough home inspection.
6. Ask for closing cost assistance.
HUD will typically pay up to 3% of closing cost for HUD homes.
7. Use a HUD certified real estate broker.
Not all real estate brokers have been certified to sell HUD homes. Make sure you use an agent that is familiar with the process. If you think you want to buy a HUD home, you need to contact a real estate sales professional in your area who is authorized to sell HUD homes.
Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle
Friday, August 15, 2008
Home of the Week
August 14-20,2008
This home has it all 3 bedrooms, 3 full baths and custom hardwood floors throughout the ENTIRE home. All appliances will remain with the home.
The Seller will pay the first 6 months of your mortgage and closing cost.
For more information on this home please call Denise J. Beard at 615-373-3456.
There will be an Open House on Sunday, August 24, from 2-4 p.m.
Thursday, July 31, 2008
Home of the Week
July 31-August 6, 2008
This home has it all; 3
Bedrooms, 2 ½ bathrooms,
2800 sq. ft., big open kitchen, 2
story foyer, vaulted ceilings,
tons of windows, wooded lot,
ALL appliances included, a
HUGE Recreational Room.
Won't last long at this price!!!
It’s also zoned for the Cane
Ridge School Cluster. Priced at
$219,500. If you would like to
see more pictures of this home,
please visit
www.denisejbeard.com.
Tennessee Tribune Article
On Saturday, July 26, 2008 the Senate passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.
After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).
The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows for as many as 1 million or 2 million borrowers to participate in the program.
Here's what homeowners need to know.
Who's eligible?
Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.
They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.
Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.
To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.
How can I apply?
Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development.
How does the refinancing process work?
This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.
But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process.
Each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home's current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.
Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value.
If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.
As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.
What does it cost?
There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.
However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.
Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.
Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.
After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.
What will I save?
Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.
In areas that have sustained huge price drops, such as
Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months
Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle
Thursday, July 24, 2008
Tennessee Tribune Article
According to the Greater Nashville Association of Realtors®, in June 2008, there were 24,935 homes for sell that is an increase of 9%, when compared to June 2007. With increased supply and lower demand, anyone who is financially able to purchase a home should take advantage of Nashville’s amazing buyers’ market.
Tougher lending requirements are one of many reasons why Nashville is experiencing a buyers market. Many buyers are taking advantage of FHA loans. A FHA loan is a federal assistant mortgage loan insured by the Federal Housing Administration. This type of loan can be obtained at just about any bank. According to Steve Johnson, Mortgage Loan Officer with Bank of America, “buyers can obtain a 30 year fixed FHA mortgage with at least a 560 credit score and an above average debt to income ratio.”
With loans limits as high as $432,500 in Davidson and surrounding counties , FHA loans can help anyone in just about any price point take advantage of the buyers’ market in Nashville. Buyers should always get pre-approved before looking for homes, this will help you develop your price range and help prevent you from being turned down for a home loan after falling in love with a home.
With interest rates at a historic low and increased inventory of existing, new, and foreclosed homes there are wide arrays of options for those looking to purchase a home in Davidson and surrounding counties. Savvy buyers will make a great investment by purchasing a home during this buyers market.
Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle Tennessee area. She can be reached at 615-373-3456 or at www.denisejbeard.com. If you have a real estate question or a topic that you would liked covered, please e-mail Denise at denise@denisejbeard.com.
Thursday, July 17, 2008
Home of the Week
This home is located off Music Row and within walking distance of The Gulch. This home features: 3 bedrooms, 1 bathroom, 1000 sq. ft. and 4-sides brick. Mature trees shade the quarter acre lot. It won't last long at the price of $214,500. If you would like to view more pictures of this home or for more information, please visit www.denisejbeard.com.
Tennessee Tribune Article
There's a useful mortgage product that is available to many homeowners, over the age of 62, who need to get some cash out of their primary residence to use for investing in other properties or any other financial needs they have. It is called a reverse mortgage.
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.
Here are the most commonly asked questions and answers about reverse mortgages.
When is a reverse mortgage paid?
A reverse mortgage is a loan against your home that you are not required to pay back as long as you live there. The loan is repaid from the borrower's estate or the eventual sale of the home when the last surviving borrower no longer lives in the home. Money can be received in a lump sum, monthly payments, or through a line of credit.
How do you qualify for a reverse mortgage?
You must be 62 years or older to qualify and there are no income or credit requirements for a reverse mortgage. The amount you can borrow in a reverse mortgage is determined by your age, your home's value and interest rates. The older you are, the more you can borrow.
Will I lose my home?
The bank never takes over the deed unless there is a default. Defaults can occur if the taxes and insurance are not paid current or the homeowner doesn't live in the home for a one-year period.
How you can benefit from a reverse mortgage?
Reverse mortgages can be used to eliminate larger payments, free-up cash in order to invest, travel, pay for college educations, and many other expenses.
Can I qualify for a HUD reverse mortgage?
To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are also required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan.
What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved.
Can the lender take my home away if I outlive the loan?
No! You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.
How much money can I get from my home?
The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.
A reverse mortgage may be the answer for you, but first make sure you meet with an expert who handles these types of loans. Be sure that the expert fully understands your specific needs and can identify if this is the best approach for you.
Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle
Monday, July 14, 2008
I can't wait to see this movie
I can't wait for this movie that comes out September 21.
