RMCC-Lending

01/26/2021

First Time Home Buyer Grant

A grant of $7,500 fully forgivable in 5 years
Buyer must not have owned a home in the past 3 years (exception would be for single person who owned with a former spouse)
Primary residence only
1 unit properties only
Household income less than 80% of the area median income, adjusted for family size
Funds can be used for down payment and/or closing costs
Counseling done over the phone after buyer receives loan approval
Available in MD, DC and VA
Buyer must contribute $1,000 minimally
Minimum credit score 620 and debt to income 50%

Community Partners Grant

A grant of $10,000 fully forgivable in 5 years
First time or non-first time home buyer employed in one of the following professions: healthcare, law enforcement, education, firefighters, first responders and essential workers as defined by local and state government authorities
Veterans are eligible and do not have to be a first time home buyer
Primary residence only
1 unit properties only
Household income less than 80% of the area median income, adjusted for family size
Funds can be used for down payment and/or closing costs
Counseling done over the phone after buyer receives loan approval
Available in MD, DC and VA
Buyer must contribute $1,000 minimally
Minimum credit score 620 and debt to income 50%

As always, please feel free to contact me with any questions or to prequalify any of your buyers.

09/15/2020

Good news! The Pathway to Purchase program increased the income limits recently so I have outlined them below.

INCOME LIMITS

1 Person Household $70,600

2 Person Household $80,650

3 Person Household $90,750

4 Person Household $100,800

5 Person Household $108,900

6 Person Household $116,950

7 Person Household $125,000

8 Person Household $133,000

Here are the other details of the program which can only be used to help buyers in Prince George's County.

* Forgivable GRANT of $10,000, $1,000 is forgiven every year the buyer stays in the home over the course of 10 years

* Maximum sales price on resale homes is $337,000 and new construction is $399,000

* Buyer must contribute 1.75% towards the down payment based on the purchase price of the home

* Funds can be used for down payment AND closing costs

* Housing Quality Standards (HQS) inspection is required and all repairs must be completed that come up on it

* Program is for first time homebuyers ONLY

* Short sales/bank sales/foreclosures are not optimal for this program

I do love this program but it does have some limitations especially in this market since sellers want contracts that settle very fast. It takes about 60 days to close with this type of grant and the seller also has to be willing to make the repairs that come up on the HQS inspection.

03/30/2020

REVIEW OF LAST WEEK

BEST WEEK SINCE 2008... Last Monday's headline was identical except for "worst" instead of "best" but, hey, the stock market's been volatile. The S&P 500 posted its best weekly gain since 2008, the Dow its best since 1938!

Friday, the President signed an unprecedented $2.2 trillion stimulus package for workers and businesses, small and large, to survive the coronavirus slowdown. This followed Thursday's 3.28 million new unemployment claims.

Mortgage rates stabilized after the Fed announced there would be no limit to its bond buying program to shore up the economy. That includes purchasing mortgage-backed securities, which should keep bond prices up and rates down.

The week ended with the Dow UP 12.8%, to 21,637; the S&P 500 UP 10.3%, to 2,541 and the Nasdaq UP 9.1%, to 7,502.

Bond prices gained, boosted by the Fed's dialed up bond buying. The UMBS 4.0% ended UP 2.45, to $105.84. The national average 30-year fixed mortgage rate dropped for the first time in three weeks in Freddie Mac's Primary Mortgage Market Survey. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.

DID YOU KNOW?... Fed Chair Jerome Powell said that combating the coronavirus is causing a GDP contraction, but it likely would be short and the rebound sharp, because it isn't coming from weakness in the economy or the banking system.

03/27/2020

To clear up the misinformation regarding the “skipping” of your mortgage payment(s):

👏 DO
👏 NOT
👏 SKIP
👏 YOUR
👏 MORTGAGE
👏 PAYMENT!

Be informed! Don't just stop paying. Lenders/servicers are not protected and they will NOT protect you.

🚨All payments are still due April 1st...just like every other month.

🚨Your payment is late after the 15th...just like every other month.

🚨Late fees will add up and it will be reported to the credit bureaus on the 31st day, like usual!

If you don't pay this month, two payments will be due May 1st, and three payments will be due June 1st.

If you don't have one payment now, will you have three in June? Once you are 4 payments behind, they start the foreclosure process.

❌There are no protective measures at this time.❌

Your options:

🔅1. If you have a job and your rate is over 4-5% you could refinance and legally skip a payment. Why not lower your rate, extend your term and lower your payment in the process? Or get some cash out? If you have equity, take advantage of the equity.

🔅2. If you don't have a job and have a genuine need, CALL YOUR LOAN SERVICER AND ASK FOR HELP! They will help where they can but it typically requires the use of a loan modification.

PLEASE! Call your servicer to ASK for relief, the consequences for failing to do may be substantial.

Be informed! Don't just stop paying. Banks aren't protected and they will not protect you. Questions?

03/16/2020

MARKET UPDATE

Yesterday at 5 p.m. ET, the Federal Reserve cut its benchmark Funds Rate to a range of 0%-0.25%, and pledged to buy $700 billion in Treasuries and mortgage bonds, to bolster the economy against a coronavirus slowdown.

This does not immediately cut fixed-rate mortgage rates, as they're keyed to bond prices. But the Fed's bond buying program may increase those prices, which would eventually lower mortgage rates. We'll see.

In last week's National Association of Realtors survey, 87% of respondents saw no change in the number of homes on the market, and 37% felt low mortgage rates excited buyers more than the stock market correction.

03/10/2020

I would like to invite you to attend a down payment🌿🌱 webinar that is being held by Tammi Lewis and Rob Schurr of First Home Mortgage later this month. The webinar is focused on down payment programs and how you can get into a home with little to no money down if you qualify. There are many down payment programs out there right now to help buyers so please join us for a very educational webinar that can help you buy a home this year!

The webinar will be virtual so no need to worry about the weather, driving or even getting out of your PJ's!

Date: Wednesday, March 18th Time: 10:00 AM to 11:00 AM

03/04/2020

Feds cut rates
The truth RE the fed rate cut and its impact on mortgage rates.

The emergency Fed cut today of 50bps reduces short term borrowing costs that banks use. While they have an influence over longer term rates like mortgages, the correlation is not direct. This means that when the Fed cut the rate by 0.50% today, mortgage rates did not fall by 0.500%.

In fact, the mortgage interest rate market had already factored in a Fed cut last week which is why rates fell so sharply in the last few weeks. RATES FALL IN ANTICIPATION OF A FED RATE REDUCTION, NOT IN RESPONSE TO IT.

02/13/2020

What Is It to be Cosigner?

We all want to be supportive of loved ones when they need our help. But if someone asks you to co-sign on a loan or lease for them, don’t take it lightly. When you co-sign, you’re committing to the same thing as the borrower or tenant — a legal obligation to pay that loan, plus any late fees or collection costs.

Why would someone need a co-signer? Lenders base loan approval and rates on many factors, such as credit score and past financial history. If a potential borrower has a low credit score or poor financial history, they may have a hard time being approved for a loan, or be approved for less favorable terms, such as a higher interest rate and fees. This is where a co-signer may come in—a person may be asked to “guarantee” the loan debt for someone else.

How much are you liable for if you co-sign a loan? 100%.

That’s right, you are 100% liable for the loan, including any charges and fees. Plus, if a borrower defaults on a loan or breaks a lease, the lender or landlord may sue you directly for the balance. In fact, the lender could decide to go after you and not the borrower.

The bottom line is, if YOU can’t pay back the loan, it’s probably not a good idea to co-sign for it either. Your credit may suffer, your relationships may suffer, and it could wind up costing you a lot of money in the end.

Only you can make the decision if co-signing a loan for someone else is the right decision. Weigh the risks and benefits before committing yourself. Remember, you are committing yourself to the entire loan —and possibly risking your own credit—when you co-sign.

Feel free to send us a private message with any questions you have about this topic or other consumer-related issues.

01/17/2020

Hogan proposes huge tax cuts for Maryland retirees so they'll stop moving to Florida

Gov. Larry Hogan is sick of people moving to Florida when they retire, so he's proposing a tax cut.

11/22/2019

New Program Available

The Chenoa Program is the end all be all of down payment programs if your buyer does not qualify for a traditional down payment program. This program says YES to help buyers where other down payment programs say no.
Here are the most common situations as to why I would use The Chenoa product over other down payment programs. I always say it is a specialty product because it does carry a higher rate but it gets the job done!

The buyer's credit score is below 640 - Chenoa allows for a 620 credit score as long as the buyer can show a 12 month rental history

The buyer wants to purchase a home beyond the typical 45% debt ratio guideline that most down payment programs adhere to - Chenoa allows up to 50% in most cases and I can push that even higher with good compensating factors

The buyer already owns property - Chenoa allows buyers to own and retain their existing property

The buyer has a co-signor that owns property - Chenoa allows a co-signor to own property whereas other down payment programs do not

The buyer exceeds the household income limits - Chenoa has a product with no household income limits

What does Chenoa actually cover? It covers the ENTIRE 3.50% down payment for the buyer in the form of a loan or forgivable grant if the buyer makes their mortgage payments on time for 36 months. And it is available nationwide so it can be used in DC, MD and VA.
The Chenoa Fund offers three different options as follows:
Rate Advantage - This program offers a lower interest rate compared to the other Chenoa programs. The minimum FICO score is 640 and buyer has to be below 115% of the median income limit. Buyer can own other property but it must be sold prior to taking ownership of the new home. Term for the second mortgage is amortized over 10 years at an 8% interest rate.
DPA Edge - This program is a soft second and functions like a grant. When the buyer makes 36 consecutive on-time payments, the second will be completely forgiven. The minimum FICO score starts at 620 and a buyer can have concurrent home ownership. Median income limits of 115% apply to anyone on the loan.
Repayable Second - This program does not have income limits so everyone can qualify as long as their credit score and debt to income ratio works. Buyers can choose between a second mortgage to cover the entire 3.5% down payment amortized over 10 years, 0% interest or amortized over 30 years, 5% interest.
As always, please feel free to contact me for any questions

First Home Mortgage

cell: 410.725.9451| fax: 443.725.0519

This information is provided for business and professional uses only and is
not to be provided to the consumer or the public. This information is
provided to assist real estate professionals and is not an advertisement to
extend credit as defined by Section 1026.2 of Regulation Z. Programs,
interest rates, terms and fees
First Home Mortgage
900 Bestgate Road
Annapolis, MD 21401