Home Mortgage Programs For Existing Homeowners And First Time Home Buyers
There are green mortgages available but so far they aren't widely known. FHA offers a wrinkle to its 203(b) and 203(k) loan guidelines that permits recognition of the cost savings of green improvements. The Energy Efficient Mortgage (EEM) program allows the borrower to incorporate the cost of some green improvements on the top of the approved mortgage without qualifying for the higher loan amount or basing the down payment on it. Freddie Mac, Fannie Mae and VA mortgages offer similar concessions and Energy Star, a joint effort of the EPA and Department of Energy, has a pilot program underway which, in addition to the features of the FHA program, encourages lenders to offer preferential rates, reduced fees, or lower closing costs to borrowers. There are caps on most of these EEM programs but they are still useful, especially where customers are pushing the limits of their ratios.
Look at forbearance from the investors point of view, the investor makes less money for a number of years. The investment is not being paid back but he is getting some money. After the reduction period the investment continues at the original terms he purchased. Much better than losing his investment and the original investment stays intact. For the investor this is the best of the mortgage programs.
The Department of Housing and Urban Development (HUD) can be a huge help for you because they have different mortgage programs for the eligible citizens of US. One of these loan programs is for those interested home buyers planning to get a fixer-upper property. This loan is referred to as HUD's 203k loan. It lets you buy a home that is currently not in a good condition and included in the loan money you are getting is the budget you will need for the renovation and improvement you want to make to the house. The 203k loan will be insured by the Federal Housing Authority and it is given through all the eligible mortgage lenders around the country. You only have to prepare 3.5 percent of the value of the house plus the expenses for the down payment. If you are interested in applying for a 203k loan, here are the things to do:
Qualify for existing mortgage programs such as those offered by FHA or the pilot Energy Star program. If you are in a position to do so, develop programs of your own. Talk with your investors about this potentially explosive market and how you might capitalize on it. If you can develop a conduit for financing some of the more extreme building techniques, you will be a market maker. Techniques such as straw bale building have a long history, are structurally valid, and are growing in popularity, but can be mortgage orphans.
Most lenders do not offer an actual biweekly payment program and rely on 3rd party processors primarily because they do not accept partial payments from the consumer. Although there are some fees involved, the biweekly mortgage programs available for enrollment online can save the consumer on a mortgage and reduce the length of time required to pay back the loan. Some biweekly payment processors do not charge up-front fees and instead deduct a fee from the savings accrued by following the biweekly pattern.
The government creates mortgage programs to assist homeowners who meet certain requirements. Usually an organization or department of the government offers these programs, such as the Federal Housing Administration (FHA) and Veteran Affairs (VA). Recently 2 new government mortgage programs were created to assist Americans affected by the recent economic crisis and real estate crash.
If you do not qualify for either of these mortgage programs you may also want to seek the advice of a mortgage banker if you have not already. Mortgage bankers are direct lenders with the most up to date information about requirements and upcoming changes to requirements. They can also help you with what you need to work on in order to become qualified for a mortgage refinance.