Naples Mortgage / Poor credit program

Core Mortgage Financial poor credit mortgage program requires a middle credit score of 580.We do have lender restrictions to allowable negative credit history and unacceptable negative credit history. My lender understands that sometimes unwarranted or unknown derogatory trade lines can appear on applicants credit reports without their knowledge. Naples mortgage lender portfolio is solely designed for poor credit borrowers.

Below are the items that are Allowable Naples mortgage negative history:
1. Medical collections ( small dollar amounts owed)
2. Late payments past six months
3. Mortgage late within the past twelve months
4. BK or foreclosure discharged more than three years old
5. Short sale if the lender agreed to show the debt as paid in full

Naples Mortgage poor credit applicants need establish positive credit history on other existing accounts. This program is designed for borrowers that have been late a few times but overall have showed ability repay debts/liabilities.

The Naples mortgage lender also has guidelines that will cause a denial of the mortgage application.
1. Any type of Tax lien. ( IRS. State, county etc) need to be paid prior to closing
2. Large dollar amount collections over $1,000.
3. Recent collections or negative trade line within six months
4. Not having at least two open positive accounts for a twelve month history
5. NO payment history or reestablished credit history since the delinquency.

In order to obtain financing you will have to prove income and assets. The debt to income ratios are higher than traditional loans to due the lenders risk. Naples mortgage poor credit lender also requires three months of payments in the bank after down payment and closing costs. The lender wants to ensure you are not "stretched to thin" after closing. Reserves after closing demonstrates the ability to  make three mortgage payments after closing.

We can provide all types of loan programs for Naples mortgage poor credit clients. Government and Conventional financing is offered. Give Core Mortgage Financial a call today to discuss your current situation.

Core Mortgage Financial
239-514-2673
www.coremortgagefinancial.com

Helpful Terms Defined:

Mortgage:
Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.

Note:
The evidence of indebtedness for a mortgage loan. A note is the instrument evidencing the indebtedness secured by a security instrument that sets forth the amount the owner owes the lender and the manner in which the debt is to be satisfied. The note establishes the payment terms, conditions under which prepayments may be made, and the lenders rights in the event of default. A written agreement between the mortgagor and the mortgagee specifying the amount and terms of repayment for a loan.

Disclaimer:
NMLS #849597 NMLS #344608. All rates, programs, guidelines are subject to change without notice. Please call your mortgage advisor a personalized quote.

Naples Refinance HARP 2.0

Home Affordable Refinance Program will undergo some major changes this year. Late last year the administration announced changes that take effect in March 2012. Naples Refinance clients will be able to refinance their Naples home without any equity. Naples Refinance borrower that are currently"underwater" on their mortgages can refinance. The current program only allows 125% loan to value caps on existing mortgages. The original mortgage needs to be prior 5/31/2009 and currently owned by Fannie Mae or Freddie Mac.  An example of 125% loan to value (LTV) would be as follows: You currently owe $125,000 and your home appraises at $100,000.

You can check to see if your mortgage is owned by Fannie Mae or Freddie Mac by clicking on the highlighted portion of the text.

 Being able to refinance your Naples mortgage will have a drastic impact on keeping your home while reducing your monthly payment.  This will reduce foreclosures and defaults for homeowners.

The GSE ( Government Sponsored Entities) also known as Fannie Mae and Freddie Mac believe this program will cut down on delinquency rates. This program will let Naples refinance homeowners lower their monthly payments considerably while impacting our economy in a positive way.

Home Affordable Refinance Program ( HARP) is currently available for borrowers with restrictions. The limitations are so great that many cannot refinance their Naples homes due to not being qualified. Below are the major changes that will effect Naples Refinance market:

1. The ability be re-subordinate a current second mortgage or home equity line of credit.
2. Removal of the 125% cap making a refinance available for anyone that is "underwater" on their current mortgage.
3. Elimination of higher adjustments to the rate for higher loan to value ratios.

These new rules will make it possible to complete a successful Naples Refinance.

Naples HARP 2.0 has been extended until the end of 2013. The SWFLA market home equity was hit considerably over the past six years. HARP 2.0 should have an impact on certain borrowers.
Core Mortgage Financial has Naples Refinance HARP 2.0 loan originators that can assist you in determining if you qualify for this new product. The entire program will be rolled out in March 2012. We plan on releasing another informational blog on Naples Refinance HARP 2.0 next month. Please don't hesitate to contact us at 239-514-2673 with any questions!

Core Mortgage Financial
239-514-2673 office

Below are some helpful terms defined:

Loan to Value Ratio (LTV)

The relationship, expressed as a percentage, between the amount of the proposed loan and a property's appraised value. For example, a $75,000 loan on a property appraised at $100,000 is a 75% loan-to-value.

Mortgage:
Collectively, the security instrument, the note, the title evidence, and all other documents and papers that evidence the debt. A Mortgage is a loan secured by a lien on real estate held in fee simple or on an acceptable leasehold estate. A loan made for the purpose of purchasing, building or rehabilitating real property, and secured by that property. A pledge of real property as collateral for payment of debt. The term is also used to describe both the mortgage (security instrument) and the promissory note evidencing the debt, which includes the terms of the debt’s repayment.

Note:
The evidence of indebtedness for a mortgage loan. A note is the instrument evidencing the indebtedness secured by a security instrument that sets forth the amount the owner owes the lender and the manner in which the debt is to be satisfied. The note establishes the payment terms, conditions under which prepayments may be made, and the lenders rights in the event of default. A written agreement between the mortgagor and the mortgagee specifying the amount and terms of repayment for a loan.

NMLS #849597
NMLS #344608
Rates, Programs, Guidelines are subject to change without notice. This blog is for informational purposes only. Please contact your mortgage advisor for further details.

Picking between a 30 year fixed vs 15 year fixed

Recently a lot of borrowers have been asking my opinion on which product to select between Naples loan products 30 year fixed versus 15 year fixed.

A majority of home buyers select a 30 Year Mortgage payment without considering the 15 year option.
The first question I ask a client is what is your long term goal with the property?

With the 15 year option, you will receive a lower interest rate compared to the 30 year fixed. The 15 year option is becoming increasingly more popular now than recent years according to clients I speak with on a daily basis.
With the 15 year option, you will pay less in interest over the life of the loan and will build equity much faster. You will build equity but your payment is also considerably higher. The 30 year option the payment is much lower; in turn you pay more interest throughout the life of the loan. Let me give you an example: If you close on a $200,000 at 5%, you will pay around $175,000 in interest over the life of the loan compared to $75,000 in interest on a 15 year fixed at 4.5%. Picking between and 15 and 30 year fixed can be a difficult decision.

I always ask borrowers to consider if their cash reserves are sufficient to carry the loan if employment becomes an issue. You can always select the 30 year option and make additional payment towards the balance reduction. This protects you with a low payment but if times are good financially, you can always apply towards principal reduction.

It is impertive to weigh all the options and make a sound decision based upon your short, near and long term goals. Naples loan products can  be a very tough decision.

Take your time and evaluate what is BEST for your current financial situation. Please do not hesitate to contact us , I will guide you through the process.

www.coremortgagefinancial.com