Zero Down Loans Still Available In Oregon? You Betcha!

Are you looking to purchase a home in a rural community, but wondering where to begin looking for help with a home mortgage? Good news! The U.S. Dept. of Agriculture (USDA) has developed a home loan guaranty program that can help you find a lender and obtain a home loan mortgage. The USDA HUD Rural program offers loans with little or no money down!

A USDA Rural Development home loan may offer qualified borrowers a chance to obtain a home loan with easier qualifications and financing options than other conventional loans. Keep in mind that the USDA Rural Development does not fund the mortgage loans. Rather, the program has partnered with selected lenders and Mortgage Bankers, such as my company Guild Mortgage, who will loan the money with a repayment guaranty from the USDA, if ever the loan should default. This offers lenders confidence in providing loans to qualified candidates who meet the USDA Rural Development underwriting guidelines.

USDA loan benefits

ZERO Down Payment Required. Borrowers who qualify for a USDA HUD Rural home loan have the flexibility to pay nothing out of pocket for a down payment. That means a borrower can finance up to 100% of the appraised home value. Or, a borrower can have a gift or grant go toward a down payment with no money out of pocket.

Competitive 30 year fixed interest rates. We can offer you the lowest interest rates to qualified individuals and families.

Flexible credit guidelines. Borrowers must still provide a credit history report. But the flexible guidelines allow potential homeowners with spotty or challenged credit to still qualify for a home loan.

No maximum purchase limit. The USDA Rural Development program has no maximum purchase price limit. However, a lender will still determine the maximum amount of loan each applicant is eligible for based on ability to repay.

Home repairs can be included in loan. Looking to purchase a “handyman special” home? Homes that need refurbishing or rehabilitation may qualify for extra funds to be included in the home loan mortgage to go toward repair costs.

Who is eligible?

Any individual or family who plans to occupy a home located in an eligible rural area as their primary residence may qualify for a USDA Rural Development home loan. An applicant for the USDA mortgage guaranty loan must provide sufficient income verification and a credit history that indicates an ability and willingness to meet repayment obligations. An individual or family must show proper legal capacity to own property in the U.S.A., own no home or dwelling currently, and have insufficient resources to qualify for a conventional home mortgage.

How to get started

Interested future homeowners should contact Travis Newton, Oregon USDA Expert at 503.931.4490. and/or tnewton@guildmortgage.net

 

For more information you can also check out this recent article on Oregonlive! 

Looking to get PRE APPROVED? Go HERE

Your Loan, On Time, Every Time!

Travis Newton

503.931.4490

Sales Manager

OR MLO 269195

#3274

 

 

Stop Paying Your Landlords Mortgage!

It’s staggering when you think about the cost of living, especially if you’re a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard-earned cash! You’re paying their mortgage when you could be building equity in your own property.

What if I don’t have the money to buy a home right now?

There are loan programs available that offer low and no down payment options. USDA, VA offer NO DOWN PAYMENT options.  Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase in the form of seller paid closing costs if they want to sell the home quickly.

There are many benefits of home ownership to consider, most of all, tax deductions. Let’s take a look at how advantageous this can be as a homeowner:

How much is tax deductible?

Tax deductions vary, but the IRS has laid out solid rules. They also have several tax publications full of helpful information worth taking the time to read. Publication 530, Tax Information for First-Time Homeowners, is very thorough, as is Publication 936, Home Mortgage Interest Deduction. For quick reference, you can refer to Tax Topics 505, Interest Expense, and 504, Home Mortgage Points.

These publications often refer to local and state guidelines, so you may want to consult a CPA to answer all the questions that arise from reading these materials. Here are a few tips you should know up front:

Real Estate taxes are deductible on a primary residence. Real Estate taxes are paid at settlement or closing, or through an escrow account.

Mortgage interest is deductible on a loan to purchase, build or improve your home. Your lender will provide you with a Mortgage Interest Statement (Form 1098) to list the total interest paid during the year. This should include any deductible points paid for that year.

Pre-paid interest is deductible in the year it is paid. At the close of a real estate transaction, borrowers usually pay for the interest on their loan that falls between the closing period and the first of the next month. Mortgage payments are made “in arrears” so when a loan is closed mid-month, there is interest due to the new lender which must be paid in advance.

If you are building a home, the interest on the construction loan is deductible. The construction period cannot exceed 24 months prior to the date that you move in if you claim this as your primary residence.

Call me to discuss your specific needs and we’ll find the program that’s right for you.
We have a variety of low down payment and no down payment programs available. Want to own a home? We can help! 503.931.4490.

By the way, If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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 Travis Newton, the Homes for Heroes Mortgage Lender Affiliate in Salem Oregon directly at 503.931.4490

Your Loan, On Time, Every Time!

Travis Newton

503.931.4490

Sales Manager

OR MLO 269195

#3274

 

15 or 30 Year Fixed?

1. Can you afford to pay off the mortgage in 15 years?

Although a 15-year mortgage offers a lower rate relative to a 30-year mortgage, thereby allowing borrowers to pay interest for only half as long, a 15-year mortgage comes with a higher total monthly payment. This is because the principal must be paid off faster, making each principal payment larger.

Because borrowers pay down the principal balance faster, in the longer run they save on interest payments. Inside Mortgage Finance publisher Guy Cecala noted, “if you can afford the higher payments associated with the shorter-term 15-year mortgage, there is no reason not to take one.”

However, because the monthly payments are higher, it can strain borrowers’ ability to set aside money for retirement or their kids’ college tuition. These borrowers may be better-off with a 30-year mortgage. Similarly, if the higher payments of a 15-year mortgage mean borrowers have less money to invest elsewhere and diversify their portfolios, they may be better off with a 30-year mortgage.

2. Are you buying your first home?

First-time home buyers often benefit from selecting a 30-year mortgage because the monthly payments are lower. A longer-term mortgage can make a more expensive home more affordable for a new buyer. According to Cecala, most first-time home buyers “are trying to get in as much house as they can.”

Of course, 15-year and 30-year mortgages are not the only options available to consumers. Borrowers can take an adjustable-rate mortgage, which offers a low initial rate that stays unchanged for some period, such as five years. When the period expires, borrowers could pay more if interest rates rise. But for buyers who are not looking to own their home for too long and who are confident that they will be able to resell the home, an adjustable rate mortgage may be a sensible option.

3. Are you looking to refinance?

If you already have a mortgage and would like to refinance, now may be a good time. Cecala noted that if your current payments on a 30-year mortgage are high enough, you might be able to refinance into a 15-year mortgage and make similar monthly payments while shortening your mortgage term.

An additional factor that may make refinancing more attractive is the current difference, or spread, between interest rates on 15-year and 30-year mortgages. According to Cecala, “historically, the difference between the 30-year fixed rate and the 15-year fixed rate has been about 25 basis points,” or about 0.25%. Currently, the spread between the two rates is especially large, at close to 1% in some cases.

Are you planning on retiring soon?

How close a borrower is to retiring plays a major role in whether to take out a 15-year mortgage. Typically, borrowers who take 15-year mortgages are at least 40 years old, according to Cecala. These borrowers are often willing to pay off the balance on their mortgages faster in order to retire with little or no outstanding debt on their homes. However, many older homeowners also must weigh prepayment — making early payments on their mortgage — against the need to save for retirement. According to the CFPB, 30% of homeowners aged 70 and older have outstanding mortgages.

5. Do you have a strict savings plan?

Choosing a 15-year mortgage over a 30-year mortgage also may be a worthwhile choice if you are not a disciplined saver. But many people may lack the discipline needed to save long-term, Cecala noted, especially in amounts that would offset what they would save by switching to a 15-year mortgage. He also added that “a lot of times people need that extra money for something else,” and so they choose to keep their money in a 30-year mortgage with lower individual monthly payments.

Some truly disciplined savers may actually benefit from carrying their mortgages into retirement. According to a May story published by Time magazine: “if you expect to earn more after tax on your investments than you pay after tax on your mortgage, keep the mortgage.” What you want to avoid in retirement, however, is a situation where you are juggling a mortgage on top of your basic costs of living, taxes and health care payments.

Are you looking to buy or refinance your home? Please contact us to see how we can assist you!

By the way, If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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 Travis Newton, the Homes for Heroes Mortgage Lender Affiliate in Salem Oregon directly at 503.931.4490

Your Loan, On Time, Every Time!

Travis Newton

503.931.4490

Sales Manager

OR MLO 269195

#3274

 

Raise Your Credit Score – And Quickly

If you are looking to improve your credit score quickly, now is the time to get started. Give us a call. We’ll review your credit and find out exactly where you stand and where you need to get to. In the meantime, here are some great strategies you can utilize right away to give your score a little boost.

Create Some Balance: While paying down installment debt (car, school, mortgage, etc.), on time, and as agreed, shows responsibility and will definitely boost your credit score, paying down or paying off revolving debt, such as credit cards, can cause a quick and significant jump in your credit score. The trick is to get and keep your balances below 30% of your credit limit on each card on your monthly statements. For faster results, attack those cards with balances closer to their respective credit limits first, as opposed to those cards with simply the highest debt. Remember, if you pay off any credit cards completely, do not close your accounts without discussing it with your mortgage professional first. Cancelling those cards may inadvertently undo all of your hard work.

Know Your Limits: Make sure that your credit card issuers are reporting the correct limits on your accounts to the three major credit bureaus. Without an available limit, your account will appear to be maxed out at its highest reported balance each month. This could cost you up to 80 points in certain instances. Some creditors, such as American Express® and certain cards issued by Capital One®, actually have a policy of not reporting available credit. However, most companies will report your credit limits if you ask them in writing.

Take Some Credit: If you have a credit card account in very good standing, make sure that all three credit bureaus know about it. Just like your credit limits, some creditors don’t report your information to all three credit companies – this is why credit scores often vary between bureaus. If this is the case, give them a call to find out why. Correcting this oversight could provide a significant boost to your score. Also, if you’re in very good standing, ask your creditor for a lower rate or higher credit limit. This will increase the gap in the debt you owe versus the credit you have available. Sometimes hinting about closing an account can suddenly bring out the generous spirit of certain card issuers. Give it a try. The worst they can say is no.

Protect Your Interests: Your credit score is calculated based solely on the information available to the credit bureaus. If you have a HELOC, make sure it’s listed as a mortgage or an installment account on your credit reports and not a revolving debt. If you had a bankruptcy, be sure that all items associated with the bankruptcy are being reported as included in the bankruptcy with a zero balance. This action could increase your score by 50-100 points. Because simple mistakes like these can wreak havoc on your credit score, it’s important to monitor your credit every four to six months.

Even the Score: If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute it free of charge. For the fastest results, visit the appropriate credit bureau’s website and file a dispute online. If supporting documents are necessary, you have to file your dispute by mail.

If you’d like more information or a copy of our Sample Dispute Letter, give us a call right away. We’ll be glad to help you in any way we can or, if it becomes necessary, refer you to credit professionals you can trust.

If you or anyone you know has any questions about credit scores or what can be done to repair them, please don’t hesitate to call.

By the way, If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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 Travis Newton, the Homes for Heroes Mortgage Lender Affiliate in Salem Oregon directly at 503.931.4490

Your Loan, On Time, Every Time!

Travis Newton

503.931.4490

Sales Manager

OR MLO 269195

#3274

 

5 Reasons to Buy A Home Now Instead of Spring

I love reading the KCM Blog.They always have wonderful info on the Real Estate and Mortgage Market.

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying:

Supply Is Shrinking

With inventory declining in many regions, finding a home of your dreams may become more difficult going forward. There are buyers in more and more markets surprised that there is no longer a large assortment of houses to choose from. The best homes in the best locations sell first. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy.

Price Increases Are on the Horizon

Prices are projected to appreciate by over 25% from now to 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

Owning a Home Helps Create Family Wealth

Whether you are rent or you own the home you are leaving in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Fed, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

Interest Rates Are Projected to Rise

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the end of 2014. That is an increase of almost one full point over current rates.

Buy Low, Sell High

We would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

You can view more great articles from the KCM blog here: http://www.keepingcurrentmatters.com/

By the way, If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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

 

The Cost of Waiting To Buy Could Cost You $18,000 Over a 10 Year Period!

I get this question a lot: “Should I buy now, or wait to see what home prices and rates do? My answer is always the same; we can’t predict the future, if you find a home  you love and rate you’re comfortable with….then make an offer and lock in that rate! 

KCM Blog just posted a great info chart that easily explains the “cost of waiting”. In this scenario, you may be paying $18,000 more over the next 10 years if you wait just a year to buy. 

Is now the time to buy? Well, with interest rates still very low, and home pricing trending upwards, now IS the time to at least look into your options. Feel free to contact us with any questions you may have, we’re here to help!

By the way, If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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

 

 

When is the Best Time to Lock Your Mortgage?

Interest Rates When is the Best Time to Lock?
When it comes to mortgage loans and interest rates, it’s never a good idea to gamble. That’s why I typically advise my clients to lock in an interest rate at the earliest opportunity. This is just one step of the standardized system we have put in place to ensure the best possible loan experience for each borrower that we work with. While you can float until just before closing, it’s usually not a good strategy due to these fluctuating factors: Interest Rate Points or fees Length of the lock Locking in a rate does not obligate the borrower to commit to the loan until the loan is actually closed. The lock is merely a security measure designed to eliminate the risk of market volatility throughout the duration of the purchase or refinance transaction. As long as the loan is approved and funded before the end of the lock period, the borrower will receive the interest rate quoted.

When a lender permits an extended lock-in period, the borrower will likely face a higher interest rate or additional fees that could be quoted as points. In other words, the borrower pays for the lender to take on the extended risk of being exposed to potential changes in the market. For example, let’s say a 30-day rate lock commitment costs the borrower one-half point, while a 60-day rate lock commitment costs one full point. If the borrower in this scenario needed the extended lock period, but did not want to pay points, then an alternative would be to accept a slightly higher interest rate. In this case, a 60-day lock would typically have a higher interest rate than a 30-day lock.

If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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 Travis Newton, the 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 Celebrating 12th Anniversary

 
Salem, Oregon – Homes for Heroes is celebrating its 12^th year of bringing savings to our nation’s heroes. The program was created to honor those that serve our communities every day and ensure a legacy of remembrance for those that lost their lives that tragic day in September of 2001.
 
Ruth Johnson, President and CEO of Homes for Heroes, is one of the five founding members who started Homes for Heroes, Inc. in 2002.“We all remember where we were. We all recall how we felt. WE decided to do something about it!  We created a forever remembrance, a never ending thank you, to all the Heroes that day. We all share admiration for the people who serve our community, often selflessly and wanted to recognize and show our appreciation in a meaningful way, “said Johnson.
 
The Homes for Heroes program has grown to become the nation’s largest hero savings program with over 1,000 affiliates in 47 states. It is comprised of realtors, lenders, and other real estate-related providers who are willing to offer substantial savings and discounts to when buying, selling or even refinancing their home. Nationally, the program has given back well over $3 million to heroes all over the country, a total that continues to grow on a daily basis.
 
Homes for Heroes has served thousands of heroes across the country including Minneapolis Police Sergeant, Tim Hatchner who says, “This is not a gimmick. There is no extra paper work or special guidelines or income limits. Homes for Heroes is comprised of full service real estate, mortgage and title company professionals, who have long established reputations in the Twin Cities. Both the sale and the purchase of my home went off without a hitch. Homes for Heroes saved us nearly $5000.00 at closing. When raising a young family, every penny counts! I would definitely recommend this program to my fellow officers.”
 
If you would like more information about Homes for Heroes program please contact Travis Newton at 503.931.4490.

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

 

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. 

 

Is Now The Time To Buy Your New Home? Yes!

What a change a 12 months can make. Bidding wars are springing up across Oregon and the Western states, as home buyers compete with investors and hedge funds for properties. Homeowners are watching their home values soar, and millions have returned to positive equity.

 It’s a great time for home sellers. But what about home buyers? With mortgage interest rates passing 4 percent for a 30-year fixed-rate loan, is now really the right time to buy? Yes! Rates are expected to increase as we approach the end of 2013 and with home prices steadily rising, now is the time. Buying a home now at 2006 prices is a fantastic bargain!

So, how can we help you get into that new home? We have many loan programs available for all credit types.

• USDA: Zero Down Payment loan
• FHA: 3.5% Down Payment
• VA: For Veterans. Zero Down Payment
• Conventional: As little as 5% Down Payment
• Jumbo: for those loans over $417,000
• Homes for Heroes Program: For all Peace Officers, Medical Field, Education, Military and anyone who serves their community.  
• **Note** in Oregon, our Heroes are assisted in the form of reduced closing costs and fantastic service!

Give us a call, we’d love to help! Pre-approval is quick and easy! 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.