3 Great Reasons To Buy A Home Today

The KCM Blog does a wonderful job of putting out wonderful articles on the home buying process. 

Here are three great reasons to consider buying a home today instead of waiting.

1.) Prices Will Continue to Rise

The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic).

The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.

2.) Mortgage Interest Rates Are Increasing

As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows.

The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year.

An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

3.) It’s Time to Move On with Your Life

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait?

Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy.

If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

By the way, be sure to ask about our Homes for Heroes program! If you or anyone you know is a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program! You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page. 

 

Buying a House: Is Now the Time?

I’ve been saying it for the last 3 months, NOW is the time to buy. 

This is a great article by the KCM crew. 

The real estate community is often criticized for always seeming to have a Pollyanna attitude about the housing market. Many believe that the industry’s current call ‘to buy now’ is nothing more than a scare tactic with the sole purpose of creating more commissions for the industry. Let’s take a look at whether or not that advice was good advice over the last year.

The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. According to the most recent Case-Shiller Home Pricing Index, home values have risen over 10% in the last year. If we look at Freddie Mac’sWeekly Primary Mortgage Market Survey®, the 30 year mortgage rate has increased from 3.67% to 3.91% during that same period.

The table below compares the cost of the same exact house over the last twelve months:

We can see that the advice to buy a year ago made complete financial sense.

What About Moving Forward?

Most experts are not only calling for prices to continue to rise but are also upgrading their projections as the housing market is showing strong signs of recovering.

Regarding interest rates, the 30 year mortgage rate has soared by over a half point already this year and many believe that the increases will continue. Even those trying to be the voice of reason on this issue are projecting higher rates. For example, Polyana da Costa, senior mortgage analyst at Bankrate.com said:

“Rates are unlikely to keep going up so quickly and should remain below 5 percent.”

Bottom Line

The next time a real estate professional says that now is the time to buy they may not be giving you a ‘sales pitch’. They may be giving you nothing but excellent advice.

To read full article go here

By the way, be sure to ask about our Homes for Heroes program!

If you or anyone you know is a TEACHER, ALL MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

93% Of Those That Currently Rent Plan To Purchase A Home.

The KCM Blog always has some wonderful info on the Real Estate Market, this is one of my favorite!

If you belong in that 93% now is the time to buy. We are available to help get you on the path to home ownership today! Don’t wait!

There are a ton of wonderful loan programs available to help you into that new home!

• USDA-Zero Down Payment Loan available for smaller communities and Rural homes. Such as Aumsville, Turner, Silverton, Stayton, Jefferson, Woodburn, Wilsonville, Sublimity, Molalla, Junction City, Sisters, Redmond, Madras, Turner, Mt. Angel, Monmouth, Independence, Philomath, Scio, Aurora, and many more!
• FHA– requires 3.5% down payment. The FHA 203K rehab loan is also available in case you find a home in need of repairs.
• VA– Zero Down Payment for Veterans with No Mortgage Insurance.
• Conventional– with as little as 3% down payment and up to a $417,000 Loan Amount

• Jumbo– for those loans over $417,000

As you can see, there are many loan programs available to meet your needs. Give us a call, we are here to help answer any questions or concerns you may have!

By the way, be sure to ask about our Homes for Heroes program!

If you or anyone you know is a TEACHER, ALL MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

Homes For Heroes Honors National Police Officer Week

 

ABOUT NATIONAL POLICE WEEK

The Memorial Service began in 1982 as a gathering in Senate Park of approximately 120 survivors and supporters of law enforcement. Decades later, the event, more commonly known as National Police Week, has grown to a series of events which attracts thousands of survivors and law enforcement officers to our Nation’s Capital each year.In 1962, President John F. Kennedy signed a proclamation which designated May 15th as Peace Officers Memorial Day and the week in which that date falls as Police Week. Currently, tens of thousands of law enforcement officers from around the world converge on Washington, DC to participate in a number of planned events which honor those that have paid the ultimate sacrifice.

The National Peace Officers’ Memorial Service, which is sponsored by the Grand Lodge of the Fraternal Order of Police, is one in a series of events which includes the Candlelight Vigil, which is sponsored by the National Law Enforcement Officers Memorial Fund (NLEOMF) and seminars sponsored by Concerns of Police Survivors (C.O.P.S.)

National Police Week draws in between 25,000 to 40,000 attendees. The attendees come from departments throughout the United States as well as from agencies throughout the world. This provides a unique opportunity to meet others that share a common brotherhood. In that spirit, the Fraternal Order of Police DC Lodge #1 sponsors receptions each afternoon and evening during Police Week. These events are open to all law enforcement personnel and are an experience unlike any other.

Mortgages for Law Enforcement?

Yes, the HOMES FOR HEROES Program is available for all Law Enforcement Personnel, Police Officers, Sheriff Officers, State Troopers, Case workers, Corrections and Parole Offices, District Attorney’s, Child Welfare Workers, and many more.

What is Homes For Heroes?

Our mission is to provide extraordinary service and savings to local heroes who provide extraordinary services to our community every day.

Homes for Heroes® is a company that affiliates with Realtors®, Lenders and other real estate-related service providers who offer amazing service to the Heroes, such as Police Officers who serve our nation and its communities every day. Our Heroes include military personnel, firefighters, law enforcement officers and ALL others who make our communities a better place to live.

This program was created after the tragic events of 9/11 as a “Thank you” to the men and women who have given so much. Heroes across the country register on our website every day looking for the savings. We match them with Homes for Heroes® Affiliates in their local area.

If you are a Police Officer, or know someone who is, we can help!

You can also reach Travis Newton, Lender Affiliate in Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

ZERO Down Home Loans Available In Salem Area

I know, it’s hard to believe that the USDA Rural zero down payment program can be used in the around the Salem Oregon area, but it sure can! It can be used everywhere outside the urban growth boundaries of Salem and Keizer. Small communities such as Stayton, Sublimity, Aumsville, Woodburn, St.Paul, Monmouth, Independence, Turner, Jefferson, Scio, Silverton, Dallas, Molalla, Aurora, Hubbard, Mt. Angel, Amity, Sheridan, Philomath, Dayton, Yamhill, Gervais, and many other towns are eligible for this zero down payment loan.

One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of “no-money-down programs” evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans, and we specialize in it!

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.

There are several benefits of the USDA loan program besides no money down. The program also does not require the large monthly mortgage insurance payment (as FHA does), and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program.
The USDA program is edible in many areas, Rule of thumb is any town with less than 20,000 population, but as you read above, there are some exceptions.  You can always contact us to see if a home you like is eligible.

To find out more about USDA loans, give us a call. We can have an answer as to whether you qualify for this program in just a few minutes. 503.931.4490. I can also be reached via email at tnewton@englending.com

Be sure to ask about our Homes for Heroes program!

If you or anyone you know is a TEACHER, ALL MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST, MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

 

Homes For Heroes Honors Teachers Week

Happy Teachers Week!

National Teachers Week: History

The National Education Association describes National Teacher Day as “a day for honoring teachers and recognizing the lasting contributions they make to our lives”.
The NEA gives a history of National Teacher Day: The origins of Teacher Day are murky. Around 1944 Wisconsin teacher Ryan Krug began corresponding with political and education leaders about the need for a national day to honor teachers. Woodbridge wrote to Eleanor Roosevelt who in 1953 persuaded the 81st Congress to proclaim a National Teacher Day. NEA along with its Kansas and Indiana state affiliates and the Dodge City (Kan. ) local lobbied Congress to create a national day celebrating teachers. Congress declared March 7, 1980, as National Teacher Day for that year only. NEA and its affiliates continued to observe Teacher Day on the first Tuesday in March until 1985, when the National PTA established Teacher Appreciation Week as the first full week of May. The NEA Representative Assembly then voted to make the Tuesday of that week National Teacher Day.

What can Homes for Heroes do for a Teacher?

Contrary to popular belief, mortgage loans for teachers are the same loans available for police officers, firefighters, municipal workers, laborers, office workers and people in any other profession. There is no special mortgage loan designed specifically for teachers. A mortgage loan is used to finance the purchase of a home and has its own terms, conditions, rates and payment schedule. A teacher who applies for a home mortgage loan should be careful not to be lured by a promise for a special “mortgage loan for teachers” when such a loan product does not exist.

With that said, a Teacher, or anyone who works in the education field, may qualify for the HOMES FOR HEROES Program It is truly designed to save money for our Heroes! Yes, if you are a Teacher….you are a HERO! Give us a call at 503.931.4490. We can help!

The Homes For Heroes Program is not a loan, but it can be used in tandem with any loan type you’d like, VA, USDA, Conventional or FHA. For more info, please click HERE.

 

USDA vs. FHA? You Decide Which Is Better

USDA or FHA? Which loan is better? 

Time again and again we always get asked which loan is better? What are the differences between these two programs and which one is best for my situation?

First it’s important to realize that both FHA and USDA are Government Home Loan Programs. This means that the Government insures or guarantees the mortgage.  This is a huge advantage when looking for a home loan. By the government guaranteeing the mortgage this can mean easier qualifications for you, less money out of pocket, and lower interest rates.

Here are the facts:

USDA Loans:

• 100% financing. No down payment
• Lower credit scores accepted
• Can use rental history in lieu of credit
• Income cap per the county
• No purchase price cap
• Small Mortgage insurance monthly payment

FHA Loans:

• Eligible for rural and urban areas
• 3.5% down payment needed
• Lower credit scores accepted
• Can do repairs or Improvements (with 203K loan)
• No income cap
• Loan cap usually around $295,000 (more in some counties)
• Can be used for mobile home, building a home
• Hefty Mortgage insurance payment (over 3 times that of USDA Mortgage Insurance)

In summary, If you are looking for a home outside Salem, Keizer, Portland, Albany and Corvallis, I would opt for the USDA loan. It’s a great loan program for places like, Silverton, Stayton, Dallas, Woodburn, Independence, Monmouth, Aumsville, Jefferson, Sublimity, Turner, Scio, Mt. Angel, Molalla, Aurora, Wilsonville, Sherwood and many other small communities. 

You may also be eligible for additional savings If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for our Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

If you have more questions please contact us at 1 (888) 202 4479

 

Still Searching For A Zero Down Loan?

Great news from USDA and your search for a Zero down loan

On March 26, 2013, “H.R.933 — Consolidated and Further Continuing Appropriations Act, 2013” was signed by the President.

It provides USDA Rural Development funding through September 30, 2013.  This same legislation also preserved the mapped locations of USDA loan eligible rural areas from September 30, 2012 to September 30, 2013 for rural housing programs.

Obviously this is very good news for first time home buyers! The USDA Rural Development “Eligible Location” map is going to stay the same for a while. You already might know that the approved locations for the USDA home loan program were scheduled to be changed this very month, but due to the above legislation, it isn’t going to happen.

USDA regularly reviews locations and makes these alterations based on statistical material from the U.S. Census reports. This year, such normal map changes have been delayed.

So, first time home seekers wanting 100% financing have the opportunity a bit longer to find that perfect home, but now is the time. If you are looking to purchase a home in a more populated area, we advise you to do it soon while the USDA map locations are maintained.

This spring is shaping up to be a great time for house hunting and mortgage seeking. If you have questions either about the above announcement from USDA, HARP, FHA or other mortgage issues, including our very popular Homes for Heroes program, we’d be very happy to chat!

If you are a TEACHER, MILITARY, FIREFIGHTER, POLICE, CORRECTIONS, NURSE, DOCTOR, DENTIST MEDICAL ASSISTANT, CNA, Etc, you may qualify for the Homes for Heroes program!

You can reach me, Travis Newton, Homes for Heroes Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

USDA “Streamline” Refinance in Oregon

USDA “Streamline” Refinance

USDA does allow for the refinance of current USDA Guaranteed or USDA Direct Mortgages.

The USDA Refinance is designed to lower the interest rate on a current USDA mortgage and is only available in a fixed rate. A USDA Refinance Loan can be performed quickly and easily. USDA Refinance Loans require no property inspection.

If you do not currently have a USDA Mortgage on your home, you are not eligible for a USDA Refinance and you may want to consider an FHA Refinance, Conventional Refinance or VA Refinance.

What are the basic requirements for an USDA Refinance?

• The mortgage to be refinanced must already be a USDA Loan (Guaranteed or Direct).
• The mortgage to be refinanced should be current (not delinquent).
• The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
• No cash may be taken out on mortgages refinanced using the USDA loan refinance process.

How much can I refinance?

The maximum amount for a USDA Refinance is determined by:

Maximum Loan Amount

There is no set maximum loan amount allowed for a USDA Loan. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing

Non-streamlined refinance.

The non-streamlined refinance option requires an appraisal. Lenders offering the non-streamlined refinance option may include in the loan the principal and interest of the existing loan, closing costs, lender fees and the guarantee fee of 0.5 percent of the loan amount to the extent sufficient equity in the property exists, as determined by an appraisal. The appraised value may be exceeded only to the amount financing represents the 0.5 percent guarantee fee.

Streamlined refinance.

Lenders may offer a streamlined refinance without obtaining a new appraisal. All other costs, documentation and underwriting requirements remain consistent with a purchase guarantee, unless otherwise noted in this AN. With this option, the lender will refinance the principal balance of the existing Section 502 Guaranteed loan. This option is not available for Section 502 Direct loans. The loan amount cannot exceed the principal amount of the existing loan refinanced plus the one time guarantee fee of 0.5 percent of the loan amount. Accrued interest, closing costs or lender fees cannot be financed with this option.

If you currently have a USDA loan, call us to refinance to a lower rate today!

You can reach Travis Newton, Mortgage Lender Affiliate in Salem Oregon at 503.931.4490 or on the Oregon Homes For Heroes Facebook page.

 

ZERO DOWN Home Loan Tips: Are You Ready To Buy?

For the first time home buyer, the process of finding and buying a home can become overwhelming. With a continually evolving economy, mortgage and interest rates that are in flux, and bankers who have become misers when it comes to approving loan applications, the enormity of the task is comparable to climbing Mount Everest.

But as with any journey, it’s not impossible if you take it one step at a time. And at the ENG Lending we are here to help you as you take your first steps toward realizing the dream of home ownership. Use the list below to determine when you should think about buying a home.

• Take inventory of the homes for sale in your area:  The goal is to set a price range. By looking at the available homes in your area, you’ll know what the average home is going for. Websites like Zillow.com are great tools for this. You can also contact us at 503.931.4490, and we can put you in touch with a wonderful Realtor to help with your home search.

• Check your finances: Once you determine the average prices of homes in your area, it’s time to decide whether or not you can afford one of those homes. At ENG Lending, we offer a Mortgage Payment Calculator, which can be used to determine what your monthly payments will be.
• How’s your credit: While loan options, such as the USDA program, do not require you to have a perfect credit score, your credit does need to be in good standing. And, you’ll need to spend some time making sure that all your payments are up to date.You can contact us for a Free Credit review at 503.931.4490.
• Find the perfect home & Make an offer: Once we know you’re approved, you and your Homes For Heroes Realtor will work together to find that perfect home and price point.

Remember, with options like the USDA Home Loan program (No down payment) available, the dream of home ownership can become a reality for everyone. But you never want to rush into your decision. By taking the time to determine when to buy a home, you are able to ensure that you are making a sound financial choice. As of today, the USDA loan is perfect for small communities such as Aumsville, Turner, Monmouth, Dallas, Philomath, Jefferson, Woodburn, Silverton, Mt Angel, Stayton, Sublimity, Gervais, Brooks, as well as parts of Salem and Keizer.

Looking to get approved? Contact us at 503.931.4490 and/or tnewton@englending.com. Be sure to ask about our Homes for Heroes Program! (click there)