Government financing for Seattle home real estate purchases will allow gift funds from a relative.  Yes the gift funds can be applied directly for the down payment of a home purchase.  Gift funds are truly a 100% gift; they will not be repaid to the donor.  Accepting the gift funds does require a detailed processed but very simple to follow.  Here are the simple step by step directions to follow to simplify the financial structure of your home purchase.

The underwriter is going to require paper trail from your relative’s bank account to show the funds are currently seasoned (available) to depositing into your personal savings/checking account.

Exact documentation Requirements

Requirements from the Donor:

*Complete Gift Letter – lender will provide (Gift Amount, Donor’s Relationship, Signature, Address, Contact Number, Borrower (s) Signature(s), and Property Address)

*Donor is required to provide a copy of the bank statement for the account the funds are gifted from.

*Provide a copy of the check or money order from the Donor to match the amount with the gift letter.

Requirements for the borrower:

*Deposit the gift check into your savings/checking account

*Once deposited, provide copies of your bank statement and check or money order to show proof the funds are available in your bank account.  **TIP:  Deposit the gift funds separately to easily show proof on the bank statement.

If you are interested in purchasing a new home please or have questions please contact us!  We also have an online application here.

Thanks for your continued support!

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle Home Real Estate Buying – FHA, VA Gift Funds Requirements

Seattle / Bellevue Home Owner Education 101 – Fannie Mae & Freddie Mac Changes: Buyers, Sellers, Investors and Refinancing all affected by the newest changes just rolled out by Fannie Mae & Freddie Mac. How does this affect you? Can this really cost thousands? How much more will it cost me? Are there other options? All great questions that we address in this segment.

Leave comments below that other current and future home owners will gain from. Please share this with you networks by clicking below. Find us on Facebook and “LIKE” us when you visit.

More to come from the Mortgage Reel and Home Owner Education 101

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle / Bellevue Home Owner Education 101 – Fannie Mae & Freddie Mac Changes

Diana Olick, Home Realty Check on CNBC, travels to Seattle to do a live report on what unique opportunities we have to offer.
“Seattle DOES NOT Rank in the top 100 cities for foreclosure” The current Median Home Price has declined from $365,000 to $285,000
$285,000 $365,000 Median Home Price, Unemployment at 8.8% under the National Average with a Median income of $81,700.

Local builders in Seattle find it more and more difficult to secure financing to build new homes. But some like Shea Homes is seeking private equity to build out new home construction geared towards the “thriving active adult demand”.

What are your thought about new construction? Are you more interested in purchasing a new home or a resale? We see clients who are on both sides of the fence. Let us know your thoughts below.

Segment 1

Segment 2

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle Real Estate Market gets national air-time by Diana Olick, CNBC Special

To follow the established rules for the required reserve requirement of the Mutual Insurance Fund, FHA will increase the annual mortgage insurance premium (MIP).

The increase of .25% (25bp) was announced.  To avoid this increase you must have your case number assigned on or before April 14, 2011.

FHA recently increased the annual MIP to .85% – .90% but reduced the upfront mortgage insurance to 1%.  On April 18^th the new annual MIP structure will be as follows:

30 Year

• 5% down or more will increase from 85bp to 110bp
• Less than 5% down will increase from 90bp to 115bp

15 Year

• 10% down or more will increase from 0 to 25bp
• Less than 10% down will increase from 25bp to 50bp

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

FHA Increases the Annual MIP on April 18, 2011

Comparing news across the nation doesn’t help when you live in the Seattle, Washington.  Seattle real estate shows current housing inventory year over year has remained fairly close.  Seattle has not had a huge fluctuation or change as other metropolitan cities have.  During the tax credit boom, inventory dropped but has slowly increased back to the same level.

Reviewing local metro numbers, the percent of Seattle real estate for sale has dropped from the previous month by -1.2%.  Working with relocation clients, I do admit I see more and more out of state license plates in the Seattle area.

Seattle can be an exception with a stabilized housing market because of local powerhouse companies such as Boeing, Microsoft, Swedish, and Starbucks.  What do you see, real estate buyers slowing down with children returning to school?  Interest rates are at a historic low but that’s not enough savings to buy now?  Or Seattle home values will continue to slide more?

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle Real Estate Housing Inventory

Compare Our Mortgage Rates vs. Big Banks – Follow the daily news update, for current rate trends!  The recent drop in mortgage rates has sparked refinance interest. Do you know what SAVING options you have? Do you need to secure your rate and are unsure what to do? Ask NOW!

Continue to follow the mortgage rate watch and “LIKE” us on the Facebook fan page!!

If you are looking to secure a mortgage rate, we have the option to secure your rate now and offer a rate float down if mortgage rates drop.  Contact us for more details!  Fannie Mae, Freddie Mac options are available on investment homes too.

Conventional Home Loan Scenarios:  30 Year Fixed

<p>

Jumbo Home Loan Scenarios:

<p>

We offer:   GUARANTEED CLOSING COSTS & NO APPLICATION FEE & MOST IMPORTANTLY, CLOSE ON TIME!!

Retail banks are currently quoting 60-90 days to close a refinance or purchase transaction.  You do not need to wait that long to start saving money today!

Any further questions please contact us!

*Conventional scenario is based on purchase price of $400,000 with 20% down (lender credit maybe an option based on scenario)

**Further conventional qualifying details click here.

Timing is everything just as location of the home is critical. Timing in securing an interest rate, BEST rate, is working with a mortgage professional who has their pulse on the market and when best to advise and educate their clients when timing is right. Along with this key knowledge is to be on top of all of the lending and underwriting changes which seem to almost happen daily. We at the Mortgage Reel are Licensed Washington Loan Originators, serving clients with transparency, knowledge and most importantly keeping your goals in mind. How can we assist you today?

Join the Conversation on Facebook, just click on the banner on the homepage and it will take you to our Facebook page, “How to Beat the Banks on your Home Loan” Like us when you visit and post any comments or suggestions.  We want your feedback.

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

We Beat the Banks! Dare to Compare Mortgage Rates for 2/10/2012

Below is a summary list of questions we have received regarding loan applications taken here at the Mortgage Reel.

1.  Is there an upfront cost for a Pre-Approval or Good Faith Estimate? Many retail banks are taking loan application deposits to lock you in as a client which prevents you to shop for the best rates possible.  We do NOT charge or require an upfront deposit or application fee.  With a complete application we will provide a pre-approval letter if you are purchasing a new home or provide a Good Faith Estimate if you are refinancing a home.

2.  What documentation is required for a complete loan package? The easiest method is to gather the documents listed below in one folder.  Most recent 30 day cycle of Pay Stubs, 2 months of bank statements (all pages), W2 or 1099, Tax Return (all pages), 401k, stock, bond, investment account statement (all pages).  If you have other sources of income please provide a 2 year history with all documents.

3.  Am I required to pay any fees upfront? The first fee involved is for the appraisal which is ordered through an Appraisal Management Company (AMC).  You will pay the AMC directly with your credit card to cover the cost of the appraisal which ranges from $400 or higher depending on your home.

4.  How do I secure an interest rate? We do NOT charge a fee to secure an interest rate.  At the time of securing a rate, we would actively move forward with your complete loan package submission to meet rate lock deadlines and order your appraisal.

5.  How long can I secure an interest rate for? Standard interest rate lock for a refinance or purchase transaction is 30 days. We are confident 30 days will allow enough time to close a purchase or refinance. Depending on your loan scenario, the process can take longer then 30 days.  Available options to secure an interest rate for 15, 30, 45, 60 day periods.

6.  I secured a rate for 30 days but I need 32 days? You have the option for extending your rate lock.  Depending on the situation, if it is an error on us, we will cover the cost of the extension.  If the extension is caused by you, the extension fee expense will be paid by you.  Strategically planning from start to finish should allow a rate lock extension to be prevented in all situations.

7.  Next Step?  Purchasing – You can shop confidently with your pre-approval letter.  Your Real Estate Professional will be able to provide listings that meet your real estate and financial goals.  Communication is very important during this time.  All updates will be provided with a simple phone call or email.

8.  Next Step?  Refinancing – With the complete loan package submission, we will work confidently to close your transaction on time.  Communication is very important during this time.  All updates will be provided with a simple phone call or email.

For specific questions, please contact us.

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle Home Loan Application Questions

By Corbett B. Daly

June 29 (Reuters) – The U.S. House of Representatives on Tuesday approved giving extra time to thousands of homebuyers trying to get a popular federal tax credit by the end of the month.

The House backed by a vote of 409-5 a measure to extend the closing deadline to Sept. 30 for buyers who already met the April 30 deadline to have a signed contract. The current deadline requires those buyers to close the transaction by June 30 to receive the $8,000 tax credit for first-time homebuyers.

The Senate must still approve the measure before President Barack Obama can sign it into law.  As of today July 1, 2010 Congress has sent President Obama a plan to extend the home buyer tax credit until September 30, 2010.

Senate Majority Leader Harry Reid sought earlier this month to attach a companion proposal to a separate effort to extend insurance benefits to unemployed workers but the overall measure was rejected by the Senate.

Reid is expected to find another way for the Senate to consider the popular measure, though it remains unclear precisely how he would do that.

Reid, a Democrat, faces a tough re-election fight in Nevada, where the U.S. foreclosure crisis is most pronounced.

Real estate agents say thousands of settlements may not be completed by Wednesday because settlement offices are slammed with buyers trying to close on transactions by the end of this month in order to receive the funds.

“Up to 180,000 homebuyers will now receive the tax credit they deserve, and our housing market will be strengthened as a result,” House Speaker Nancy Pelosi said in a prepared statement after the lower chamber approved the measure.

Critics say the three-month extension is an invitation for fraud, providing prospective home buyers time to back date contracts to a date before April 30 and subsequently closing on those contracts by the new September 30 deadline.

Congress extended the $8,000 tax credit for first time homebuyers last fall and added a $6,500 tax credit for all buyers who were purchasing a primary residence.

(Reporting by Corbett B. Daly, Editing by Diane Craft)

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

U.S. House Backs Homebuyer Tax Credit Extension

Putting instant value into an $8,000 tax credit

By Kenneth R. Harney

Syndicated Columnist

WASHINGTON – For the housing market, it’s the equivalent of financial alchemy, and it’s hot: Turning the $8,000 federal home-purchase tax credit, which normally isn’t spendable until after you’ve gotten your refund, into immediate, hard cash today, available for your down payment and closing costs.

Congress’ stimulus-bill tax credit for 2009 is generating efforts nationwide, including in Washington state, to find ways to “monetize” it – providing money upfront to buyers who need dollars for down payments right now, not next year after they file their federal returns and get refunds.

The credit is only available to qualified taxpayers who have not owned a house during the previous three years, and who close by Nov. 30, among other requirements. Buyers can amend their 2008 returns to claim the credit or claim it on returns for 2009.

In recent weeks, at least 10 states, including Washington, say they’ve come up with ways to work this monetary magic. They have created innovative bridge-loan programs that advance credit-eligible purchasers the cash they need for their closings.

Generally the advances take the form of second mortgages – with or without interest charges – that become due and payable whenever purchasers receive their credits in the form of refunds from the IRS.

In Missouri, which was the first state to create such a program, buyers can get a no-cost “tax-credit advance” of up to 6 percent of the home price. The advance is actually an interest-free second lien that is repayable no later than June 2010, once the buyers have received their $8,000 tax credit.

If buyers can’t meet that repayment deadline, the advance morphs into a traditional second mortgage with a 10-year payback term and a fixed interest rate one-half a percentage point higher than their first mortgage rate.

The underlying first loans are all fixed-rate 30-year mortgages issued by private lenders participating with the tax-exempt bond programs of the Missouri Housing Development Commission.

Colorado kicked off a similar program, known as “JumpStart,” April 14. The other states – Washington, Delaware, New Jersey, Tennessee, Idaho, Ohio, Pennsylvania and New Mexico – have come out with their own versions, some with modest interest charges on the second mortgage from the beginning.

In Washington, where the state Housing Finance Commission already runs a tax credit bridge-loan program for buyers using its mortgages, state Treasurer James McIntire wants to make it much bigger.

He has been pushing for creation of a “public-private” down-payment program that could reach far larger numbers of consumers than is possible under the housing commission’s current funding constraints.

McIntire has proposed depositing $25 million of state funds into interest-earning accounts at an FDIC-insured bank. The bank would then provide revolving lines of credit to the state housing commission to greatly expand its down payment bridge-loan efforts.

In a novel arrangement, the Washington Association of Realtors has pledged $400,000 as a backstop for McIntire’s plan to cover any unexpected losses on the credit monetization transactions. The Legislature has authorized the program in its new budget.

Bill Riley, the incoming president of the association, says research by his group has shown that fully half of all would-be first-time buyers in the state “cannot save enough money for the down payment and closing costs” – effectively locking them out of both the $8,000 credit and current low mortgage rates and house prices even when their monthly incomes qualify them to purchase a home.

McIntire is also trying to convince the Obama administration to allow the state to tap into bridge-loan-assisted homebuyers’ amended 2008 tax returns and be directly assigned all or a portion of the tax credit refunds.

Under current IRS rules, according to McIntire, tax-refund checks are sent only to the taxpayer’s address.

To ensure prompt repayment of bridge loans, the state would like to have refunds mailed to the housing finance commission in cases where repayment of a bridge loan is due.

In letters to Treasury Secretary Timothy Geithner and IRS Commissioner Douglas Shulman, McIntire argued that credit-monetization programs run by states are crucial to the success of the federal effort to stimulate first-time home purchases in 2009.

But the states need quick, direct access to federal tax-credit dollars to pay back down payment bridge loans, thereby allowing them to loan out more money before the Nov. 30 expiration of the federal credit.

Charles McMillan, president of the National Association of Realtors, sent a similar request to Shulman. An IRS spokesman said officials “are reviewing” the issue.

Bottom line: Keep your eye on what’s happening in your area. A no-cost advance tied to the $8,000 credit just might get you the down payment and closing cash you need.

Kenneth R. Harney: kenharney@earthlink.net

Copyright © 2009 The Seattle Times Company

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

Seattle 1st Time Home Buyers Given $8,000 For A Down Payment?

FIRST-TIME HOMEBUYER TAX CREDIT ?

?

As Modified in the American Recovery and Reinvestment Act

Major Modifications Shaded

February 2009

?

If you have any questions about the first time home buying process please do not hesitate to contact us or add your comments and feedback below.

Post from: The Mortgage Reel - Seattle Real Estate Preferred Correspondent Lender

What First Time Buyers need to know about the American Recovery and Reinvestment Act