Archive for the 'Julie’s Mortgage Tips' Category
Louisiana State Bond Money, Bond Program is on the way!
July 3rd, 2008 categories: Julie's Mortgage Tips
Louisiana State Bond Money will be available in July. The State of Louisiana is offering help to people in certain income brackets to assist them in buying a home. Bond gives the borrower 4% of their loan amount towards the closing cost associated with the loan. I will post the rates when the new bond issue is released.
Julie Baudier
Baudier & Grace Mortgage (A Division of Standard Mortgage)
504-583-1793 Cell
This has worked for many of my clients over and over again. You just need to find out about the details as there are income and price limits. It is availaibe in all Parishes and can fit into different types of loans. It is on a first come basis and you must have an accepted contract. Details of the issue are not availiable at this time so stay tuned. The Bond money works for homes and condos.
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Rural Development Loans, Little know but may be a fit for your needs!
June 11th, 2008 categories: Julie's Mortgage Tips
Rural Development is a USDA loan program. This loan is 100% financing (no down-payment is required). It is available for Jefferson Parish which includes Kenner but excludes Metairie and River Ridge. It is available in Slidell and all St. Tammany Parish. There is no monthly Mortgage Insurance Premium with this loan. The rate is a 30 year fixed rate at market interest rates. There is no maximum loan amount. Please feel free to give me a call if you have any questions. Julie Baudier
Its hard to keep up with all the loans and programs. I rely on a professional such as Julie to keep me up with all the niche products that few of us have heard about. However if if fits your needs it can be great. The state bond money ran out today but there is a similar program in Jefferson parish that still has funds left. Julie will keep you updated.
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State Bond Money Update, You can use this for New Orleans Condos!
May 17th, 2008 categories: Julie's Mortgage Tips
State Bond has officially run out of money, but we are putting our clients on the waiting list. Sometimes leftover bond issues are lumped together and are given to the clients that are on the waiting list. Recently I had a client who was number 18 on the waiting list and within 4 days he received confirmation of the bond assistance.
Julie Baudier Baudier & Grace Mortgage 504-583-1793
The bond money has a limit for income and a limit on the price of the sales price. This has helped many of my clients make the move more affordable. The 4% feature has been the favorite. The bond money can be used for closing expenses and the rest can go towards the down payment. On a $200,000 condo this means $8,000 and its at a competitive rates. The rates are set when the bonds are priced so it will not vary as long as the bond issue is available. There is usually a special deal for teachers as well.
There is Louisiana State bond money, and Jefferson Parish Bond money. Once in a while Orleans Parish will have one and none will know about it. This is another reason to start your loan process in advance of looking for that New Orleans Condos. Buying can be stressful enough so get a good lender like Julie and get started. This is well worth checking out. The Bond money and the free tuition for good students at state colleges are two things that many states do not have. It pays to be a good student and have a good credit score.
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“New Conventional Regulations”
May 1st, 2008 categories: Julie's Mortgage Tips
On April 1st guidelines have changed in the way loans are priced for lenders who originate loans under Fannnie Mae and Freddie Mac.
Fannie Mae and Freddie Mac now have delivery fees that they charge to banks and mortgage companies on all conventional loans with credit scores that are below 720 that aren’t putting 30% down.
Fannie Mae and Freddie Mac have taken such a big loss in the last year and they are charging these fee to try and offset the increase cost of doing business.
For buyers whose credit scores are under 720 we are looking for alternative ways to finance their loans.
FHA and VA are an alternative to conventional loans and they do not charge these extra fees.
Bond loans are another alternative. Bond loans charge a small fee of .25% on conventional loans which doesn’t make much difference when you are getting 4% of assistance money.
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Combine FHA & Bond
April 23rd, 2008 categories: Julie's Mortgage Tips
Combine FHA and Bond and get into a home with very little money.
State bond money with 4% grant can be used for your down payment.
Example: Sales Price $200,000
Down Payment $6000
Loan Amt. $194000
MIP $2910
Total Loan Amt. $196910
3% Down Payment $6000
Closing $2800
Insurance & Taxes $5000
Total Cash to Close $13800
Subtract Bond Grant $7876
Seller Contribution $5500
Final Total Cash Needed $424
Pricipal & Interest $1218.81 plus insurance, taxes & PMI
Julie Baudier
Baudier & Grace Mortgage
((504) 583-1793
| Discussion: No Comments »
Louisiana State Bond Money, Your Mid-March Up
March 19th, 2008 categories: Julie's Mortgage Tips
Louisiana State Bond Money has just become available the interest rate is 6.30% with zero points and zero origination fees. State Bond gives you 4% of your loan amount as free assistance towards your closing cost. I would reserve your funds as soon as possible before the funds run out.
Julie Baudier Baudier & Grace Mortage Group 110 Veterans Blvd. Ste. 430 Metairie, LA 70005 (504) 583-1793| Discussion: No Comments »
New Orleans Real Estate Loans, De’ ja’ vu
March 7th, 2008 categories: Julie's Mortgage Tips
A year ago it was “No Borrower left behind” when it came to getting a mortgage. Those times have ended! Mortgage companies and banks are tightening up on their lending policies. Buyers with good credit and good income are even feeling the credit crunch.
These are some of the recent changes to Conventional Financing that conform to Fannie Mae and Freddie Mac Guidelines:
- No more 100% financing.
- No more Stated Income loans.
- Private Mortgage Insurance (PMI) is not available for clients with credit scores below 575.
- Larger down payments on condominiums are required.
- Lenders are taking harder looks at the finanacial stabilty of Condo Associations.
- Loans are almost impossible to get for clients with low credit scores and with out large down payments.
It feels like we are going back in time to the lending practices we had in the 80’s. Isn’t it a coincidence how time repeats itself?
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New Orleans Condos, Using State Bond Money to buy your condo, good deal?
March 5th, 2008 categories: Julie's Mortgage Tips
Like clock work, the state of Louisiana and various Parishes will have Bond Money for people to buy not just homes but condos as well. The State Bond money will be out on a regular basis and have a few new wrinkles and rates on each issue. The last issue was just completed. There has not been any first time home buyer limitations and the income cutoff has been around 62k for a family of two. Jefferson Parish will generally have an issue, Orleans Parish is much more infrequent and no one knows it exists when it does come out. The interest rates are fixed for the duration of that Bond Issue.
The value is in that the Bond Authority gives you a credit for about 4% which can go for closing cost and down-payment. You have to qualify for a regular loan and then fit into the program. The rates are fixed 30 year rates that are very competitive and will not change during that issue. If you buy a condo for 160k then you will get a credit of $6400 to help you with closing. If you do not want the assisted part or the credit you will get a much lower rate. You have to have a real estate contract before signing up for it.
You have to stay tuned as this is a great deal for many people who fall under the income limit. You can use this with a conventional loan or an FHA loan. I had 10-12 clients that were able to take advantage of these issues. Julie Baudier will have all the info as each Bond Issue is announced. Check out my site to look at past Bond Issues. If You are a teacher it could be even better on the interest rate plus the 4% credit. Checking it out ahead of time gives you more options and a change to save money.
| Discussion: 2 Comments »
New Orleans Condos, Ten Years is a long time! Time is on your side?
March 1st, 2008 categories: Condo Knowledge, Julie's Mortgage Tips
Knowing how long you plan to stay in your condo can have a big impact on your monthly note. Ten years is a long time, think about what you were doing ten years ago? The rate for 10 year fixed rate loan can be as much as 3/4 point lower as that of a 30 year fixed rate Loan. Both loans are fixed and are paid off like they are a 30 year term. Loans are figured with a risk factor and a 30 year loan is riskier than that of a 10 year loan.
Many lenders may not mention the variety of loan choices as they would rather lend you many at 6.5% rather than 5.75%. Most people stay in a home for something like 8.5 years as an average. If you look at condo the time is often less due to a number of factors that deals with the lifestyles of the people who buy. People get married, are transferred, are promoted, opt for a home, opt for another condo among a variety of reasons.
What does this mean for you? You can get a loan for 200k for 10 years at 5.75% which costs you $1168 for principal and interest. You can get a 30 year loan at 6.5% for $1266 per month. The difference is $98 per month. If you stay in your condo for five years you save almost $6000 and you could have saved that or invested it. The gap between the loan does change so the gap may be smaller or larger depending upon the interest rate markets. You should always save as time is money.
If you know your time is going to be shorter then this is definitely something to consider. How do you come out ahead? Remember rates have been moving around a lot lately so its always a must to check and ask about the fees. Eric
10/1 ARM
” The interest rate for this loan will stay the same for the first 10 years. The term for this loan is 30 years. At the end of the first 10 years this loan will automatically adjust to an adjustable rate mortgage. Usually the adjustable rate mortgage is a one-year Treasury arm. The interest rate for this loan will adjust once per year. The first adjustment may be larger than the remaining adjustments. You should check to see if this loan has a cap on the maximum it would adjust at the first adjustment. The loan should also have a cap for the maximum percentage that it can adjust each year after the first adjustment. Usually with a treasury arm loan the cap is 2% every year. You also need to check that this loan has a cap on the maximum percentage it can adjust during the term of the entire loan. Be sure to calculate your payment based on the total maximum payment your loan could ever reach. That way you will know if you can make that payment without any financial difficulty.”
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Looking to the Future, Loan from the past?
February 22nd, 2008 categories: Julie's Mortgage Tips
FHA loans will be used more and more in the following months to come. Conventional loans keep tightening their guidelines and are requiring larger down payments.
What is an FHA loan?
FHA stands for Federal Housing Authority. It is a government loan guaranteed 100% against default by the Federal Housing Authority.
What are the advantages of FHA?
- Low down payments
- More liberal on credit problems
- Low fee’s
- No income limits
Sales Price Limits:
- single family $218,500
- double $256,248
- tri-Plex $309,744
- four-Plex $384,936
Congress is presently trying to pass a bill that will raise the sales prices on FHA loan.
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