Finance & Mortgage News

I want to make sure I give credit where credit is do...  this article was originally written on Zillow.com by Tony Sena.   Some of you are new real estate investors and I thought you might find these tips to be helpful...

Jesse Byrer

Rental properties can be great investments, or security nightmares. Whether you’re a landlord who lives down the street, or an out-of-state (or out-of-country) real estate investor, you have concerns about your vacant property. Read on for five steps that you can take that can help reduce the risk of vandalism, theft, or other crimes to your property.

1. Take down the “For Rent” signs. Think about it: you don’t want to advertise that your place is vacant – or worse, that there are new Maytag appliances sitting inside. There are many other ways you can market your home for rent (ads online are a good start).

2. Keep up the yard. Maintaining your rental property’s yard makes it appear as though a tenant is living there – even when there isn’t. (And not only will weeds, broken sprinklers and over-grown grass make your property look abandoned; they might also keep potential renters away.)

3. Put the lights on a timer. Leaving a porch light on for 24 hours a day is just as noticeable as a property that is completely dark (especially to a criminal). Having the lights go on a regular schedule gives the appearance that someone is home.

4. Use the blinds. There is a debate in the law community over whether it is safer to leave blinds opened or closed for better security; I recommend both. Keep the downstairs blinds closed (so that no one can see in) and leave the upstairs blinds open (so that it appears that someone is home).

5. Screen interested callers. However you advertise your property for rent, you can’t control who contacts you. Use caution when speaking to interested renters: revealing too much detail up front may compromise the security of your rental property. Is a caller really interested in renting your property or is the caller trying to find out where your obviously-vacant property is located? You can never be too sure – which is why it may make sense to hire an experienced property management company to do the tenant screening work for you.

As a rental property owner you want to attract potential renters, not criminals. Posting a real estate ad with the description “move-in-ready, fully-furnished, new appliances” is going to pique people’s interest – but, you just want to be aware of who you attract.

Tony Sena is a native of the Las Vegas Valley and a former police officer for the City of Henderson. He is the broker/owner of Shelter Realty, Inc. in Henderson, Nevada. His company offers residential real estate and property management services for the Las Vegas Valley.

Date:August 29, 2011 Author:Tony Sena

 

Follow me on  @JesseByer                                              for industry news//product updates//regulatory changes

Posted by Jesse Byrer on August 30th, 2011 7:16 AMPost a Comment (0)

WHEN TO REFINANCE YOUR HOUSE IF IT WAS RECENTLY FOR SALE

 

 

When you list your property for sale the ultimate goal is to see that "SOLD SIGN" in the yard. The reality is that it takes much longer to sell your property than in prior years. With interest rates at all time lows, millions of Americans not able to sell their homes are taking their properties off the market and refinancing their mortgages.

The media does an exceptional job of letting you know that the refinance process is not as easy as it once was, and that the process can take months to close instead of a few weeks. There are other reasons why your loan could be delayed, so my goal is to help make you aware of potential issues and steer you in the right direction.

A common issue you should be aware of is that the banks look at properties recently listed for sale differently than properties that have not been. If your house has recently been listed for sale you cannot start the refinance process until you have proof it is no longer for sale. If you want to take cash out of your property you will have to wait even longner.  Your property will have to be off the market for at least 90 days.

So remember... if you want to refinance your property don't start the paperwork if it is under contract or listed for sale!

Posted by Jesse Byrer on November 3rd, 2010 4:24 PMPost a Comment (0)

Things to know when Refinancing an Investment Property


 

LENDERS POINT OF VIEW

The first thing to know is how the lender thinks when it comes to refinancing an investment property. Lenders view investment properties as higher risk in comparison to the property you live in. If you were to fall upon hard times (hello... like most people today) and you only had enough money to pay one mortgage which one would you pay... the one that covers the property you live in or the one your renter lives in?


 

CASH-OUT = RISK

The second thing to understand when thinking about how the lenders view an investment property is when you want to do a cash-out refinance. Per the first scenario this is already a risky loan in their eyes, but now you want to take cash "equity" out of the property... the lender does NOT want to be the last man standing in the game of "musical chairs." So they are going to take a hard look at the appraisal to make sure the value really is what the appraiser says it is, and in today's lending market the max they will let you take out of the property is 75% of the appraised value... even less if you own an multi-unit building.


 

CASH-OUT AFTER REHAB

The third thing that can add risk to the lender is when an investor has owned the property for a short period of time and they want to take cash-out. Especially if there were repairs made to the property and you're looking for a significant increase in value over the price you initially paid.

These loans can be done, in fact we do them all the time, but you need to be aware how the lender's view these types of loans and why they want to know everything about you, your payment history, and all the details about that property. No stone will go unturned.

In the grand scheme of things this is a small price to pay when you realize the amount of profit you can make in a relatively short period of time. This is defenitely a great market to buy properties on the cheap, fix them up, and gain substantial equity positions over a short period of time.

The key is to structure these loans correctly in the beginning to minimize the risk to the lender. To learn how we utilize a rate & term refinances instead of a a cash-out refinances and how that impacts your overall investing strategy give us a call.

If you've owned your investment property for more than 6 months and you want to take cash-out to pay bills, reinvest, or build up your savings give us a call and we'll discuss your options!

Posted by Jesse Byrer on October 15th, 2010 10:53 AMPost a Comment (0)

October 5th, 2010 11:24 AM

Refinancing Underwater Mortgages!

 

The government continues to roll out programs to stimulate the housing market, but most of these programs have only helped a relatively small number of people.  While it seems that there is an ever increasing number of foreclosures...  which is great for investors looking for an alternative to the stock market, it can be very frustrating for the average American trying to refinance their home.  With a struggling economy and an uncertain job market individuals are looking for any way to save money. Taking advantage of these historically low rates is a great way for individuals to increase monthly cash flow.  

The silver lining is that there is a program that can help and that program is the Home Affordable Program also known as Fannie Mae DU Refi Plus. What does this mean? it means...

You CAN REFINANCE even if your mortgage is underwater!! 

The main benefits of the Home Affordable Program are:

 - Refinance up to 125% of your current value

 - 30 year Fixed Loan

 - No Mortgage Insurance (MI) **

 - No appraisal **

 - owner occupied homes, 2nd homes, and investment properties... that's right investment properties!

 

To see if your loan is currently a Fannie Mae Loan click here

 

You DO NOT have to go to your current lender to refinance and most Banks have limited the loan limit to 105% of the current value.  We have the ability to go up to 125%, so if your loan is currently a Fannie Mae Loan let us know and we can help you lower your mortgage payment! 

To get your refinance started click here

** keep in mind banks have overlays to the Fannie Mae guidelines and those overlays can change without notice, loan must currenlty not have MI to waive MI, DU Findings must specify no appraisal required **

Posted by Jesse Byrer on October 5th, 2010 11:24 AMPost a Comment (0)

September 28th, 2010 9:32 AM

Buying a Home after Bankruptcy won't put you in FINANCIAL JAIL!

                       

                     

 

I was recently asked by a past client of mine, "If I've recently had a Bankruptcy how long do I have to wait before I can refinance my home?"

I thought with these tough economic times this might be a fairly common question and there might be more people with the same question...

Obtaining financing in this market climate can be challenging.  If you are looking to get a mortgage backed by Fannie Mae or Freddie Mac (conventional mortgage) you will have to be discharged from that BK for 4-5 years, but FHA only requires that you have 12 months of on time payments when you are in a Chapter 13 (can still be in the BK).  You must be discharge from a Chapter 7 BK for 2 year in order to get an FHA Mortgage.   Now, if you have a mortgage and it was included in the Chapter 7 BK the underwriters will treat that as a Foreclosure and you'll have to wait will be 3 years from discharge date to date of application.

So, there is a waiting period before you can qualify for a new mortgage whether that be for a purchase or a refinance, but you might not have to wait as long as you would initially think.  And with rates and home prices so low you don't want to miss out on a great opportunity!

 

Posted by Jesse Byrer on September 28th, 2010 9:32 AMPost a Comment (0)

** FHA Launches Program to Help Underwater Homeowners **

The U.S. Department of Housing and Urban Development announced the adjustments it's planning to make to its refinance program today. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer to write off at least ten percent of the unpaid principal balance for certain ‘underwater’ non-FHA borrowers.

MORTGAGEE LETTER 2010 -23

 

I have yet to hear the specifics, but one issue that jumps out to me right away is that the current lien hold has to agree to a 10% write down of the mortgage.  Hopefully the government has thought of a way to incentivize these lenders!  I will post more as we get close to September 7th and I've been able to verify some of the details.  For now, it sounds like the government might have actually came up with a program that can help the masses!

Posted by Jesse Byrer on August 7th, 2010 12:11 PMPost a Comment (0)

July 31st, 2010 2:23 PM

CQ POLITICS NEWS
July 30, 2010 – 1:22 p.m.

Increase in FHA Mortgage Insurance Premiums Passes in House

The House passed legislation Friday to give the Federal Housing Administration flexibility to raise mortgage insurance premiums on the loans it guarantees.

Sponsored by House Financial Services Chairman Barney Frank , the bill would give the FHA authority to increase the mortgage insurance premiums it charges, from 0.55 percent to 1.55 percent.

Frank, D-Mass., said the bill is part of a bipartisan effort to “make sure that the FHA is both an effective and efficient means for housing finance.”

Historically, the FHA insured relatively inexpensive mortgages for low-income borrowers. But the FHA’s share of the mortgage market rose significantly during the financial crisis as private lenders fled the housing market and the government stepped in to keep mortgage money flowing, loosening underwriting requirements and increasing the amount of new loans the agency could insure.

That surge in loan volume and defaults have thinned the FHA’s capital reserves, which have now dropped below the 2 percent threshold mandated by Congress. Allowing FHA to increase its premiums would allow the agency to boost its dwindling capital reserves.

In June, the House passed a broader bill that included the provision, but the Senate has not acted on the bill. Frank said he intends to press the Senate to take up the broader bill.

Frank’s bill also would require the assistant secretary of Housing and Urban Development to testify before Congress within 270 days of enactment of the bill to discuss the finances of the Federal Housing Administration. Frank said his panel would hold the hearing in September.

Posted by Jesse Byrer on July 31st, 2010 2:23 PMPost a Comment (0)

With rates dropping to all new lows at the begining of June and the First Time Home Buyer Tax Credit expiring June 30th it's been the perfect storm for lenders.  Turn times have pushed out and thousands are at risk of missing the June 30th deadline! 

So, will congress extend it or not!?!?  There are early conversations that it might be extended till September, but only for those buyers currently in the pipeline.  This would not apply to any new home buyers.  For more detail click on the link below.

Lawmakers consider home tax credit extension

 

Posted by Jesse Byrer on June 11th, 2010 7:08 AMPost a Comment (0)
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