A HOT Wisconsin Spring – In Real Estate that is!

Posted on May 17, 2012 by Michael Collins | Permalink 1

Spring 2012 is really heating up in the Dane & Rock County Wisconsin real estate markets! You’ve probably heard about it, whether on the news, in the paper, online, or even from a neighbor. Wisconsin home buyers are out in force! The real estate market is starting to feel like 2006-2007 again.

Good homes are being snapped up fast! Home sellers are listing their properties at great prices. Banks are still offering fantastic deals on foreclosure homes and short sales. Best of all, rates are still sub 4%! That’s close to the rate of inflation. People are starting to realize that this is almost like borrowing free money!

At Rock Realty, we currently have 10 fantastic listings from Janesville to Madison and further West in Deerfield and Marshall. Of these ten homes listed, 6 currently have accepted offers!

Have you been considering listing your home now that the market has bottomed? We would be happy to use our extensive online marketing campaign to help sell your home too! Call us at 877-774-7625 or email at info@rockrealtywi.com today.

Are you a home buyer that has been waiting on the fence? Have you heard about Rock Realty’s 1 percent home buyer rebate? We would love to show you any home in Dane or Rock County. Browse through the listings below too!

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Reduced Prices on these Short Sales

Posted on May 10, 2012 by Michael Collins | Permalink 0

We wanted to make everyone aware of recent price reductions on two fantastic short sale homes. One home is a beautifully maintained Deerfield Wisconsin home that has 3 bedrooms and 1 1/2 baths. There is 1560 s/f of living space and it is now priced at an incredible $132,000!

The other short sale home is located in Brooklyn, WI. The property sits on 1/2 acre corner lot and has a very large garage, perfect for a handyman or mechanic! Can you believe the price of $69,600!?

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Understanding the Subtle Differences in Various Mortgage Loans

Posted on May 9, 2012 by Michael Collins | Permalink 1

Understanding the Subtle Differences in Various Mortgage Loans

Getting a mortgage to purchase a home can be a little confusing. There is so much industry lingo that loan officers use like “terms” and “conforming” or “government loan” or “eligibility.” Let’s look at the most common types of loans side-by-side in order to understand each one a little bit better.

	Conventional	USDA	VA	FHA	Reverse
Credit scores	Excellent – Typically scores of 720 or higher	Typically a score of 620 is needed	No certain credit score required; various criteria are reviewed to determine credit worthiness	Usually, credit score of 620 is needed.Slightly lower scores can get approved with significant explanations and documentation	No Credit score requirements
Down Payment	Minimum 5% of the purchase price; can be 10%	No down payment if home appraises for more than sales price.	Not required	3.5% of purchase price; down payment money can come in the form of gift from relative	No down payment needed
Income	Typically high income compared to other loans	Income may not be higher than average for the area	Debt to income ratio may not exceed 41%	House payment cannot be higher than 31% of gross monthly income; all debt, including house payment, cannot be more than 43% of gross monthly income	No income requirement
Eligibility	Most people that meet the above requirements will be eligible.	Home must be in designated rural area	Veterans as well as people currently serving; surviving spouse of a veteran; members of Guard and Reserve	Most people that meet the above requirements will be eligible.	Borrower must own home and be at least 62 years old. Home should be paid off or have very low mortgage balance.
Mortgage Insurance	Required if less than 20% down payment	Required if less than 20% down payment	Not required	Required if less than 20% down payment	Not required since the loan is usually at or below 80% of home’s value

As the chart illustrates, each kind of loan has its advantages. Choosing a loan will depend on your current circumstances. However, there are a few more considerations besides the type of loan. The most important of these considerations are the terms and picking a interest rate that is either fixed or adjustable.

Term

Term simply refers to the length of a mortgage in years. Mortgages range from 5 years to 30 years and move up in increments of 5. Obviously, the shorter length will result in a higher payment but it also means you will pay less interest over the duration of the loan.

ARM

Adjustable Rate Mortgage or ARM refers to a loan that offers an interest rate that can change. Most of the time the interest rate will be set for a pre-determined amount of time such as 1 to 7 years. At the end of the “fixed rate” period the interest rate can adjust. The rate will be based on a particular index and will adjust either once a year or once every 6 months.

All of the loans mentioned in the chart above can be offered with various terms and with either fixed rates or an ARM. Talking to a mortgage lender will provide you with the most current interest rates, available terms and payment options to fit your circumstances.

This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a lender directly to learn more about its mortgage products and your eligibility for such products.

Mortgage Articles

FHA

USDA

No Money Down USDA Mortgage

VA

JUMBO LOANS

Understanding the New Rules for Jumbo Mortgages

WHEDA

Banker - Banks, Financing, Mortgages or Refinance, Wisconsin - Madison, Janesville, Evansville, Beloit Conventional Loans, FHA Mortgages, LOAN PROGRAMS, Reverse Mortgages, USDA Loans, VA Mortgages, Wisconsin mortgage options

WHEDA Fannie Mae Advantage

Posted on May 3, 2012 by Michael Collins | Permalink 1

WHEDA Fannie Mae Advantage

Most homes are expensive. There is just no way to sugarcoat it. Finding affordable transportation and good clothes at a decent price can be a simple task, but finding a LIVABLE home that is also CHEAP can be almost impossible. However, the people of Wisconsin now have an opportunity to buy a home, at an affordable rate, thanks to the Fannie Mae Advantage plan offered through WHEDA.

Basic Requirements

There are multiple lenders throughout the state that can go over your specific details to ensure that you meet the requirements for the Fannie Mae Advantage loan. Basically, the requirements are this:

You must be buying your first home. (if you have owned a home previously, you may qualify if you buy a home within certain designated areas)
You must have a strong credit history.
Your income must be high enough to afford the mortgage as well as your current obligations.
You must intend to live in the home as your main residence
Before receiving the loan you must complete a home buyer course offered through a counselor certified by WHEDA

Features

If you qualify for the loan, and you fall within the income limits as well as the purchase price limits, then the features of the Fannie Mae Advantage loan are outstanding.

Very low down payment – It is possible to buy a home with only a 3% down payment. There are grants and down payment assistance programs available to help with some of the down payment costs.
Great rates – The rates are really low and they are fixed for a full 30 years. This means the principal and interest payment on the loan will never change.
Protection against loss of job – In the tough economy of the past few years, many people are worried that they may not be able to keep their job. Protection is available to help make mortgage payments in the event that you lose your job.
Help with needed repairs – It is even possible to make necessary repairs to the home before purchasing. As much as $10,000 can be added to your mortgage in order to cover necessary items to improve the property’s safety and function.

Income and Purchase Price

There are also guidelines for the borrower’s income as well as the price of the home. A full list of the limits can be found here. There are some important facts to understand. The income limits are based on the number of ADULTS living in the house, whether they are borrowers on the loan or not. The purchase limits are the maximum amount for a loan that will be considered for the Fannie Mae Advantage loan. This means you are welcome to search for a home that is cheaper than the maximum. Furthermore, there are several counties and cities where you do NOT have to be a first time buyer in order to qualify for the Fannie Mae Advantage loan.

If you have a strong credit history and you are wondering when you will be able to afford a home, the time could be perfect for you to use the Fannie Mae Advantage from WHEDA and move into that first home!

This communication is provided to you for informational purposes only and should not be relied upon by you. Rock Realty is not a mortgage lender and so you should contact a WHEDA lender directly to learn more about its mortgage products and your eligibility for such products.

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WHEDA FHA Advantage

Posted on May 2, 2012 by Michael Collins | Permalink 2

WHEDA FHA Advantage

In 1934 the United States congress created FHA (Federal Housing Authority) which originally was designed to insure loans offered to contractors that were building affordable housing. Of course, over time the mission and goals of FHA changed to insure loans offered to people who needed to buy a home. In 1972 Wisconsin organized the Wisconsin Housing Economic Development Authority, also called WHEDA, to help people of low income afford their first home. Now, a new program is aiding even more potential home buyers.

WHEDA FHA Advantage

The FHA Advantage program offered by WHEDA takes all of the benefits of a FHA mortgage and applies it to the select group of people that WHEDA serves. Some of the features of the FHA Advantage are

Borrowers without traditional credit reports can be eligible for the loan
Interest rates are low and fixed for 30 years
The mortgage can be assumed by a qualified borrower in the future
The borrower does not have to meet the 3.5% contribution rule. The seller can receive a gift for the down payment
There is also the possibility of using the WHEDA Easy Close Advantage to help with the down payment

Who is Eligible?

In order to be eligible for the FHA Advantage loan, borrowers must meet a few criteria.

First and foremost, a person must be buying their first home OR buying a home within a target area defined by WHEDA
The buyer must attend a counseling course designed for home buying. If the loan is more than 97% of the home’s purchase price, the counseling must be completed via a WHEDA approved agency.
The borrower must be able to document their work history for the past two years. In addition, their income must be sufficient to meet their current obligations and the home loan
The buyer must intend to live in the home as their primary residence once the loan is completed.

Income Restrictions and Purchase Price Limits

In order to comply with FHA rules, there are income restrictions in two forms for the WHEDA FHA Advantage. First there is the debt to income ratio. The house payment may not exceed 31% of the borrower’s monthly income before taxes are deducted. Furthermore, all debt, including the house payment, may not be more than 43% of the borrower’s monthly income before taxes are deducted. In addition to these limits, there is a maximum amount of income that a person can earn and still be eligible. The total of the gross monthly income for all the adults intending to live in the home may not be higher than the income limits established for the county that the property is located. There is also a purchase price limit determined by the county of the property’s location. To view the various limits you can click here.

With rates at historical lows, and the help of WHEDA, many Wisconsin residents are able to buy their first home and enjoy a new kind of happiness.