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Financing in Madera : Real Estate Advice

  • All59
  • Local Info13
  • Home Buying18
  • Home Selling0
  • Market Conditions5

Activity 4
Mon Aug 18, 2014
Aram Melikian answered:
Hey Eddie,
Check out the info for the CHDAP down payment assistance program: http://www.calhfa.ca.gov/homebuyer/programs/chdap.htm

Also, if you or a spouse is a Veteran, you can get a VA loan with zero percent down, and even wrap your closing costs into the loan amount and come out of pocket zero. Hope this helps ... more
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Mon Dec 16, 2013
answered:
It's because the home is the collateral for the loan. Banks don't want to lend you $150,000 on collateral that is only worth $120,000. If you default on the loan they will never get their money back by selling the home.

On a mortgage that is upside down, a lender would be very concerned about lending more than the home is worth, especially if they are taking on another banks' problem.

Now, since the government owns Fannie and Freddie, they created the HARP program to help underwater borrowers keep their homes. They allow lenders to refinance loans owned by Fannie Mae or Freddie Mac and the government purchases these loans to shield the lenders from risk.

The downside is that if you have a loan that is not owned by one of these entities then you are not eligible for this program. There has been speculation that the government would expand the HARP refinance program to include other loans, but no movement on this yet and I am very skeptical.

If your loan is FHA, then you might be able to do a streamline refinance program which does not require an appraisal. VA also offers something similar to this called an Interest Rate Reduction Loan (IRRL).

If your loan is none of the above, then your only courses of action are to wait and see if HARP is revised to include your loan OR to approach your current lender directly and request a modification. Please know though that they aren't required to do this, and if you can't demonstrate that you have a hardship in making your current payments that a lender will probably not want to help you out.

After all, the bank's purpose is to make money, not lose it.

Good luck!
... more
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Fri May 2, 2008
Ken Garceau answered:
Make sure the lender representative or broker is local! Meet them at their office or at least find out if they even have an office. Get a "Good Faith Estimate" it is the law. Ask to see your Credit Report. Ask where the underwriting takes place, here or accross the country. Select a REALTOR who has good knowledge about the lending market this person will beable to keep you from any unplesant surprises later on. ... more
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Mon Apr 23, 2007
Porfirio H. Garcia answered:
Any licensed lender is worth interviewing.
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