PrimeBenefit is Dedicated to Unions

The PrimeBenefit team of PrimeLending is committed to helping union members save money every time they buy or sell a home, refinance their current home, and more.  We have partnered up with www.Unions.org to offer special pricing that is exclusive to union members.  First let me tell you a little about us and how the program works.

Headquartered in Dallas, Texas, PrimeLending is a leading residential mortgage lender that provides homebuyers mortgages without obstacles. Established in 1986 by Chief Executive Officer Roseanna McGill, PrimeLending has grown from a staff of 20 individuals producing $80 Million in annual closed loan volume to a family of over 1,500 members producing in excess of $2.45 Billion annually.

In addition to the corporate office located in North Dallas, PrimeLending has expanded to over 150 branches across the United States including Arizona, California, Colorado, Connecticut, Florida, Georgia, Kentucky, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Tennessee, Texas, and Washington and is licensed to originate and close loans in 49 states.

The goal at PrimeLending is to provide unsurpassed quality service and support throughout the entire mortgage process for every client and referral source. This proactive sales and operational philosophy simplifies and accelerates the loan process at all levels. The company’s knowledgeable mortgage professionals are dedicated to making every customer’s home loan experience a positive and successful one.

PrimeLending decided they could take it one step further and develop a complete PrimeBenefit program which would help union member save money throughout the entire buying process of a home.  This is why the PrimeBenefit program is so powerful.

I would like you to first watch the following 30 second commercial and then I will go through the savings in detail. Commercial The PrimeBenefit Program is broken down into 5 parts:

1)      Real Estate Rebate – Every time you buy or sell a home your will receive a 20% rebate check from your Realtor commissions for using one of our network realtors.  You don’t have to worry.  We only use the best and have to be proven producer and they work for large companies like Caldwell Banker and Chapman Richards for example.

2)      Lender Discounts – Just for participating in the PrimeBenefit program you get 20% off of all lender fees.  In addition to that you will receive an extra .25% off your origination fee.  PrimeLending as we have already covered is one of the nation’s leading lenders and when it come to rate and price we will make sure you get the best rate and program for your needs.  Every loan is a little different as everyone’s situation is a little different, but know this; we are not just here to earn you business today but to be your lending partner for life.

3)      Insurance Discounts – The next discounts you receive are through Liberty Mutual on your homeowners and auto insurance.  For first time home buyers, homeowners insurance is a new thing so we will make sure that you have this option for getting a good deal on insurance.

4)      Moving Discounts – We have partnered up with different moving services such as Van Lines and SAMS to offer you discount on moving when it comes time to move into your new home.

5)      Home Warranty – Finally we have partners with one of the leading home warty company companies to offer you a great price on a home warranty that will cover more for less.  This company will cover item most item that other warranties exclude like roof leaks, washers and dryers, and more.

As you can see this is a pretty inclusive package.  As a union member there is no reason you should not take advantage of it.  I know you have wondered; how much does this cost?  The answer to your question is NOTHING.  That’s right it’s free.  It’s our way of saying thanks for all the work you do for us.  To register for the program click here.  Make sure to email me if you have any questions or call (877)835-5588.

Sam Ashton

PrimeBenefit Specialist

(877)835-5588

sashton@primelending.com

In mid-May 2009, the U.S. Department of Housing and Urban Development (HUD) launched a program that would allow federally approved lenders to offer bridge loans to cover closing costs for borrowers who take the 2009 First-Time Homebuyer Tax Credit and who use financing backed by the Federal Housing Administration (FHA). These loans allow buyers who are eligible for the credit to apply those funds towards their downpayments and closing costs, using the credit as collateral. Once buyers receive the credit after filing their 2009 tax returns, the money will then be used to repay the bridge loan.

Due to considerable challenges in making these loans widely available, few lenders are currently offering these bridge loans. However, there are still many other funding sources to explore, including:

1.State Housing Finance Agencies
2.Local Governments and Nonprofit Agencies
State Housing Finance Agencies

Determining whether your state has a program

As of mid-2009, more than a dozen state housing finance agencies (HFAs) were offering bridge loans to prospective buyers, and many more were planning to do so. Currently, the following states have programs in place: Colorado, Delaware, Idaho, Illinois, Kentucky, Missouri, Nebraska, New Jersey, New Mexico, Ohio, Pennsylvania, Tennessee, Texas, and Virginia.

To determine whether or not your state has begun offering these loans, you can:

•• Find your state’s HFA phone number on the National Council of State Housing Agencies’ (NCSHA) member list.
•• Consult the NCSHA’s list of HFA’s offering bridge loans.
If your state offers these loans, information should be available on the state’s HFA web site, which should be listed on one of the pages above.

Things you should expect from a state HFA advance loan

Although state HFA bridge loans differ from state to state, here are some typical characteristics

•• Buyers will need to make a minimum down payment from their own funds—probably approximately $1,000.
•• A local lender approved by the HFA will need to originate the loan, since HFAs themselves do not originate loans.
•• Buyers will use HFA-backed financing for their mortgages.

Other things to note about HFA bridge loans

•• Some are interest-free, others are not. So be sure to check with your lender.
•• HFAs have limited funds to devote to these bridge loans, so they are often made on a first-come, first-served basis.
Applying for an HFA loan

Since this financing often includes a below-market interest rate, it requires borrowers to meet eligibility criteria—often these include being a first-time buyer, and meeting income requirements. For the bridge loans, there’s a good chance the criteria will be similar to what’s required for the tax credit.

Local Government/Non-Profit Associations

If your state HFA does not offer loans, the staff may be able to direct you to local nonprofit organizations that do have programs—if any exist.

Another good place to start a search is NeighborWorks, a national nonprofit which maintains a list of more than 200 local affiliates that provide housing assistance. Each affiliates’ loan program will be different, so buyers should be sure that the organization offers bridge loans repayable with the tax credit, and that they understand the underwriting standards and loan terms.

FHA-Approved Lenders

If you are unable to identify other sources of funding, you may be able to obtain loans from FHA-approved lenders. Although as of mid-2009 many lenders had not yet begun offering these loans, it is possible that more will launch bridge loan programs before the credit expires.

Unlike loans from state and local agencies or nonprofits, the bridge loans provided by private, for-profit FHA-approved lenders must be structured in the form of a personal loan or line of credit. These loans are collateralized by the tax credit and cannot be structured as a second mortgage.

Also, although FHA allows you to use the bridge loan to cover closing costs or to buy down your interest rates, you can put it towards the down payment only after you’ve covered the 3.5 percent minimum that is required on any FHA loan. Therefore buyers will need to contribute the 3.5 percent minimum down payment themselves or find another funding source to cover it. However, buyers should be aware that seller-funded down-payment programs are not permitted to be used.

HUD provides complete details in Mortgagee Letter on “Using First-Time Homebuyer Tax Credits”. However, since individual FHA-approved lenders will be making the loan, actual loan terms will vary. At a minimum, though, the bridge loan must meet certain restrictions, which are intended to eliminate fraud or ensure that borrowers do not get in over their heads. Restrictions include:

a. Loans can not result in cash back to the borrower

b. The amount can’t exceed the amount required for the down payment, closing costs, and prepaid expenses

c. Monthly repayments must be included within the qualifying ratios and, when combined with the first mortgage, cannot exceed the borrower’s reasonable ability to pay.

d. Payments must be deferred for at least 36 months to not be included in the qualifying ratios.

e. There can be no balloon payment required before ten years.

-Information provided by: The National Association of Realtors

To Search for Homes, Visit my Website at: www.TheFastestGrowingCityinTexas.com

Roland Smith, 41, pleaded guilty before U.S. District Chief Judge Garrett E. Brown, Jr., to one-count Information that charges him with bankruptcy fraud. 

According to Ralph J. Marra, acting United States Attorney for the District of New Jersey, on Oct. 31, 2003, Smith obtained a $137,750 mortgage loan using a false name and social security number. Smith admitted that on the loan application for the Jersey City property, he indicated that his name was “Ronald Smith.”

Later on Smith defaulted on the mortgage payments and foreclosure proceedings commenced by the mortgage lender. Smith filed a bankruptcy petition under the false name and social security number in an attempt to reorganize and discharge the fraudulently-obtained debt. 

Judge Brown continued the defendant’s release on a $150,000 bond pending sentencing, which is scheduled for Dec 7, 2009

_________________

Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Audits, Demand Letters, and Rapid Reports™ – Get The Facts on Your Loan and Protect Your Rights!

Refinancing; Rate and Term verses Cash-Out, what is the difference?
By Dave Muti

This seemingly minor detail will have a major affect on your interest rate and/or eligibility of your loan. Chapter 10 of my book discusses why people that have the same type of mortgage (i.e. a 30-Year Fixed) may have different interest rates. I go on to detail that it might be due to credit scores, loan-to-value, documentation type, conforming verses Jumbo and/or primary verses investment property etceteras. While all those do in fact affect the rate another factor that many people are running into today is whether it is a Rate and Term Refinance or Cash-Out Refinance?

A Rate and Term Refinance (R&T) is one where the borrower wants to either lower their interest rate and payment or change the term of their mortgage. Namely go from an ARM to a Fixed, Fixed to an ARM, Interest Only to Amortized, 30-Year to 15-Year or a combination. These types of refinances account for the majority of the loans we see today. Typically R&T refinances involve only one mortgage that gets paid off at the closing. While you are not permitted to consolidate other debts into this loan you are permitted to include the closing costs so you do not have to bring any money to the closing.

A Cash-Out Refinance (CO) does not always mean getting cash to use however you like. The most common CO refinances combine two or more loans into one new mortgage, consolidate credit cards or other debts and/or pull equity out of the property. In essence, if your new mortgage is more than the current balance of your existing mortgage, with some exceptions, it will be considered CO. If this is the type of refinance you are considering you should expect to pay at least one quarter percentage point higher up to a couple of points higher depending upon your credit score, amount of cash out and the overall loan to value. In addition, some lenders limit how much cash out you are getting.

One exception to the preceding point is that if you have two mortgages on your property that were obtained “as part of the purchase transition”. Although you have two mortgages the industry treats them as one since you obtained them to purchase your property. Under this scenario this will be classified as a Rate and Term Refinance.

If you have any questions feel free to drop me an Email and I will be happy to see if I can help. About the Author: Dave Muti, JD, RMA is the author of “Mortgages: What You Need to Know” Pocket Guide Press 2008 and a Senior Mortgage Planner located in Parsippany, New Jersey.

For additional mortgage advice and answers to many mortgage questions please visit my site: www.mortgageswhatyouneedtoknow.com