City Funding

***ATTENTION HOMEOWNERS***

The City of Miramar, Pembroke Pines, Plantation, and Cooper City have Funding Available to residence for Home Rehabilitation and Purchase!
Additional assistance in:

- Housing Rehabilitation funds

- SHIP Funding

- Community Development Block Grant (CDBG) funding.

- Down Payment Program to assist in purchasing a new home.

- Minor Home Repairs to keep your home safe to live in. 

For Miramar:

- Minor Home Repair and Purchase Applications will be available for PICK UP or ONLINE beginning Monday, November 13, 2017.

For other cities go to their website: www.crafla.com and choose your city from the main menu on the right hand side.

Don't sleep on this opportunity! Pass this on to someone you know, who lives in one of these great cities. 

Feel free to contact us with any questions!

Mortgages are getting easier to qualify for in 2017

On top of the recent improvement to accuracy that credit reporting agencies are making this year, FANNIE MAE and FREDDIE MAC have increase their back end pre-tax debt ratio from 45% to 50% this month. That means buyers will be able to afford more house and possibly avoid having to go FHA which can save them money.

While FHA is a great option for borrowers with lower credit scores (as low as 520), it comes with some expensive tradeoffs such as an upfront premium that gets added into your loan as well as a monthly insurance premium that cannot be canceled even when your loan goes below 80% of the value of your home!

With conventional loans from FANNIE and FREDDIE, you can still get low down payment options without the upfront fee and the mortgage insurance can be cancelled once you get below 79% LTV.

FHA Loan Advantages

• Low down payment (3.5 percent minimum)
• Can go as low as 520 credit score
• FHA loans are assumable (with qualifying)
• FHA loans are eligible for ”streamline” refinances which require no appraisal or income
• Shorter timeframe following major credit problems (3 years vs. 7 years for foreclosure and 2 years vs. 4 years for bankruptcy)
• FHA loans typically have a lower base interest rate than a comparable conventional loan
• Non-occupant co-borrower (relative) may be used for qualifying by blending ratios

Conventional Loan Advantages

• Low down payment options available as low as 3%
• Mortgage insurance required for loans exceeding 80% loan-to-value but can be removed at 78 percent loan-to-value
• Conventional mortgage insurance is credit sensitive (For FHA, one premium fits all)
• Conventional loans can cover much higher loan amounts (FHA has limits based on county location)
• Even though conventional loans may have higher interest rates, their monthly payments may still be lower
• Over the life of the loan the cost of the mortgage insurance can offset any savings from the slightly lower interest rates of an FHA loan

There are advantages to both loans but it’s important to remember that (especially while rates are still low), conventional will almost always be the better option when it comes to saving you money in the long term. Now if FHA is your only option due to credit or job history issues, then by all means go that route. At the end of the day, it’s still a great option for home ownership and much better than wasting money on rent.

Details like this are why it’s important to work with a Realtor experienced in mortgage finance. Here at the 24hr Team at Coral Shores Realty we make sure our buyer get the financing that is right for them. Feel free to contact us any time.

Apartment rents continue to increase as demand remains strong

Did you know that the average rent for an apartment in Broward and Miami-Dade counties have been rising dramatically in the recent years?

Miami-Dade's average rent of $1,751, was up three percent from a year ago and 9 percent from May 2015.

Broward's average rent was $1,676, which is five percent higher than a year ago and a whopping fourteen percent from 2015!

In general, each year, rent increases at about one-to-three percent; high demand and lack of supply are bending the market in the landlord's favor.

Developers this year are expected to deliver more than 15,000 units, boosting the supply and giving renters some possible relief on costs, according to a report from the RealPage research firm in Richardson Texas.

However, another report shows that South Florida remains one of the worst areas of the country when it comes to building apartments due to local regulations and the lack of available land.

If you are tired of paying rent, recent changes to credit reports as well as loosening guidelines by lender, may make it easier to qualify for a mortgage.

Also, while rates have gone up slightly, they are still at 50 year lows, making it a smart time to buy.

Contact a local Realtor, like myself, to see if home ownership makes sense for you.

Starting now, new rule changes will cause some credit scores to go up!

New criteria will strip a majority of civil debts and tax lien information from credit reports. For those affected, scores could rise by up to 20 points and these changes already took effect July 1 so you may see improvement in as little as 30 days.

The new standards follow a report by the Consumer Financial Protection Bureau that found problems with credit reporting companies and recommended changes to help consumers.

If you’ve had issues with negative public record information, this may be a good time to talk with a mortgage professional and see if they can prequalify you. Take advantage of these low interest rate while they still last!

Four Things You should Know about a Reverse Mortgage

It can be a challenge understanding how a 

reverse mortgage actually works and how selling a home with a reverse mortgage differs from the standard procedure. In actually, it is very similar; the major difference is the way the lender manages the loan amount, if it exceeds the price of the home.

What is a Reverse Mortgage?

A reverse mortgage is a financial agreement in which a homeowner relinquishes equity in their home, in exchange for regular payments. Traditional mortgages decline, as you pay down the loan; a reverse mortgage rise over time, as interest on the loan accrues.

How is a Reverse Mortgage Paid Back?

A traditional mortgage has a set maturity date by which the loan has to be paid back; however, with a reverse mortgage, the standards are set in the loan and may define the due date as:

•        The borrower dies

•        The borrower sells the property

•        The borrower moves out the home

•        The borrower fails to provide the upkeep or pay property taxes

If the buyer sells their home, the lender takes precedence and has the right to recoup any outstanding balance on the reverse mortgage (unless there is a lien on the home for unpaid property taxes).

Are there Limits on Selling a Home With a Reverse Mortgage?

Typically, the maturity date of a reverse mortgage is when the borrower sells their home; thus, the sale of the home is the most common part of the reverse mortgage process.  

With a traditional mortgage, the home value is expected to exceed the remaining balance of the mortgage, at resale.  However, with a reverse mortgage, the borrower is typically being paid in installments, the mortgage principal increases—rather than decreases.  This makes it possible, or likely, that the loan amount could exceed the resale value of the home.

            Note: If you ever decide to get a reverse mortgage, be sure to renovate, when necessary, maintain the keep-up of your property conditions and stay current, with your taxes.

What if the Homes Has Lost Value?

If your property has lost value, you may want to consider a short sale.  Fortunately, reverse mortgages are known as “nonrecourse loans,” which means the lender cannot go after the borrower or your heirs for the difference between the outstanding loan amount and the final sale of the home.

            Note: Short sales require the lender to “buy-in” before you can list your home at a lower value.  The lender may require an appraisal to confirm the value before agreeing to the listing.