The financing package, Welcome Home Heroes, through the Illinois Housing Development Authority provides qualified veterans or active reservists a $10,000 forgivable loan over two years for down payment and closing cost assistance, 30-year fixed rate mortgage that has an affordable interest rate and an optional mortgage credit certificate to reduce federal income tax liability.

“This is a great program that all service personnel should take advantage of,” said Jane Schneider, President of 1862 Mortgage, an IHDA approved lender offering the package. “Time is of the essence, as only $10 Million total is available.”

The Welcome Home Heroes financing package is designed to assist qualified Illinois veterans, who do not need to be first time homebuyers, and active military personnel, reservists and Illinois National Guard members, who must be first time homebuyers.  All buyers must qualify based on income and purchase price limits, and the home must be purchased as their primary residence within the state of Illinois.

 Interested buyers please contact 1862 Mortgage loan officer, McKenzie Mathews, for additional information at 309.743.8060 or McKenzie.Mathews@1862Mortgage.com.

 1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency.  For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.

•  They stand ready to screen all potential buyers. Today’s lending landscape is a rapidly changing environment. Programs and requirements are changing regularly. A good loan officer should have a reputation for being on top of current guidelines and finding the best solutions for prospective clients. You need to know that when you accept an offer, the buyer can actually close.
•  Financing is an important component to getting a home sold. Whether it’s marketing flyers, carrying costs, unique mortgage strategies (such as buy-downs and Sales Concessions) or even loan programs to differentiate your home (ex. loans that can incorporate monies for the purchase and renovation of a home), the best loan officers take pride in their ability to help increase the number of people for whom your home could be a fit. More prospects equals higher sales prices.
•  In so far as a professional loan officer is seen as an educator, they would want to offer you the chance to tune into some of their online seminars (called webinars) and videos. As an example, some lenders have webinars with topics ranging from “How Lenders Look At A Mortgage Application” to “Renovation Lending” to “Getting Your Optimal Credit Score”, as well as videos that can fully explain your Good Faith Estimate. They are constantly striving to be a resource for everyone they come in contact with.
•  Lastly, your loan officer knows that most home sellers become home buyers. Not only will they run your credit and analyze your income and assets, but they will also pre-approve you for your next mortgage, typically free of charge.

Did you know that Ruhl&Ruhl is partnered with 1862 Mortgage to make the buying and selling process of your home as seemless as possible.  There are many other advantages of choosing  a Ruhl&Ruhl agent.   Check them out on RuhlHomes.com.

Provided by: KCM Blog

Let’s start from the beginning,  say you have begun your home search and you meet with a Lender.   That Lender will review your credit along with income and assets to determine if you qualify for a new loan.  What happens when you find out you do not qualify?

First, find out what steps you will need to take to get qualified. These may vary and include a credit improvement plan,  a savings plan to accumulate your down payment and closing costs and/or a plan for how long you must be on your job or earning variable income.

These are steps that you can work on to become a preferred buyer.   They may take a few months or a few years, if you have had a more serious credit event such as a recent foreclosure or bankruptcy. However isn’t it important to get and work on a plan if you truly want to purchase a home?

An important thing to keep in mind is that you will want to find and work with a lender that has the time to assist you in making these steps a reality. You do need to know there is no “Magic Bullet” and that it will take work and discipline on your part.

Mortgage qualification guidelines are still constantly changing and in most cases tightening.  It may not get easier for anyone to qualify for a mortgage loan in the short term.    We at Ruhl&Ruhl Realtors partnered with 1862 Mortgage will always be here to help you achieve that next step.  The pre-approval process is completely free.  Our 1862 Mortgage Loan Officers are trained to help you improve and plan so you can work towards the goal of homeownership.

Please call 563-441-1776 or visit RuhlHomes.com/Mortgages to get pre-approved or to speak with a loan officer today.

some infomration provided from Allen Tate Blog.

There is a popular saying that exists and while the latter half of the saying varies depending on time, date and season, it always begins with “It’s hard to imagine …”

For instance, you could be driving along, staring at the snow-covered landscape and someone will chirp up and say, “It’s hard to imagine that in six months time these trees will be covered in leaves.” Being inspired by a client tutorial many first time home buyers will say “It’s hard to imagine that just a little over a month ago I was starting the process of buying my first home”.

Ruhl&Ruhl has taken the topic of buying a home for the first time and broken it down into top 10 tips that we think will be the most beneficial for all who take on this adventure.

1.  Talk with a Realtor®. They know the ins and outs of real estate and can give you all of the facts to help make the best decision for yourself.
2. Keep an open mind. As a first-time homebuyer, it’s important to understand that you won’t be living in the same home forever.  It’s your first home so you will have to compromise.
3. Check your credit score. Imagine navigating a new area without a map. Well, that would be like searching for homes without knowing what home you can afford. Your credit score gives you an indication of your price point so be sure to get this in order before you start.
4. Do the white glove test. Buying a home is one of the biggest purchase decisions you will ever make so inspect the property thoroughly, white gloves and all.
5. Location affects price. The closer you get to a popular area, the more you’ll spend. In a less trendy location, you’ll find a larger house for the same money. This falls under compromising.
6. Check out the area. You should visit the area at several times during the day: in the morning afternoon and evening. This may help you determine what the area is like as far as traffic during the work commute and for safety at night.
7. Get pre-qualified. This way, going into the home search process you will be prepared for exactly what you can afford.
8. Better safe than sorry. If you aren’t the Bob Vila type, look into getting a home warranty. A home warranty can help cover major repairs like a leaky roof, a heating or air conditioning system, appliance breakdowns and electrical problems, just to name a few.  As a new homeowner, you don’t need surprise expenses.
9. Insurance isn’t one-size-fits-all. If you want coverage that is personalized to suit your needs and budget, go with an independent insurance agent, who works with many carriers and can offer more options.
10. Offer is more than price. An offer is much more than a price you put forth to a seller. It involves warranties and fees and due diligence and everything in between.

When the adventure is done and you are finally settled into your new home, something that you purchased and worked so hard to achieve, Ruhl&Ruhl hopes that for every client they sit back and think, “It’s hard to imagine not being a homeowner”.

For all real estate, mortgage or insurance needs please visit RuhlHomes.com.

Jane Schneider, President of 1862 Mortgage, said rates have slipped again presenting a great opportunity for buyers, as well as those ready to refinance. The average 30-year fixed-rate mortgage, with no points, fell to 4.5%, while the 15-year fixed rate mortgage, with no points, fell to 3.875%. A 5/1 Portfolio ARM (adjustable rate mortgage) fell to 3.625%.

“Whether you are interested in buying a new home, investing in real estate or refinancing your current home, now is the time,” Schneider said. “Borrowers would be wise to lock in rates, as things can change quickly and rates have been very unpredictable in this market.”

National analysts say the drop and the lack of ability of borrowers to qualify and take advantage of these rates due to new regulations, could severely limit who qualifies for a loan, further impacting the housing market. Locally, though, these low rates should only positively influence our markets, said Caroline Ruhl, President of Ruhl&Ruhl REALTORS.

“Our markets have been sheltered from the major ups and downs and the number of foreclosures has remained low compared to the rest of the country,” Ruhl said. “These historically low rates just improve our markets and show consumers that now, more than ever, is a great time to purchase a home.”

Consumers should also understand the importance of loan pre-approval with new government standards, Schneider added. In light of the radically different requirements for getting a loan now, compared to several years ago, Ruhl also advises all sellers to get preapproved for a loan before putting their property on the market.

“We’ve had many deals fall apart after receiving accepted offers because the sellers discovered they could no longer qualify for a loan to purchase a new home,” Ruhl said. “Many sellers who qualified under the old lending requirements when they purchased their home no longer qualify under the new lending requirements.”

1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. Guaranty Bank is a federally chartered bank that was founded in 1923 and has over 170 branch locations nationwide. For more information on 1862 Mortgage or to get pre-approved, visit their website at www.1862Mortgage.com.  

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 284 sales associates and 50 employees based in sales offices located in Bellevue, Bettendorf, Cedar Rapids, Clinton, Coralville, Davenport, DeWitt, Dubuque, Maquoketa, and Muscatine, in Iowa, and in Moline, Illinois.  In addition to residential sales, Ruhl&Ruhl offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Ruhl Agency.  For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

If you are intersted in getting a free pre-approval please call toll free, 866.441.1776 or visit RuhlHomes.com/1862 Mortgage.

The irony is that the majority of buyers don’t harbor those same beliefs or reservations about an FHA insured loan when, in reality, FHA coverage may be less easily cancelled, or take longer to cancel, than MI.

HPA Makes Cancellation Clearer
When it went into effect as a new federal law, the Homeowners Protection Act (HPA) of 1998—which applies to both FHA and MI insured loans—required lenders and servicers to provide disclosures regarding MI for residential loans obtained on or after July 29, 1999. Prior to this, consumers were responsible for requesting MI cancellation if they met two factors: one, their loan balance was paid down to 80 percent of the property; and two, they had a good payment history.

While many lenders obliged consumer requests to drop MI coverage, consumers had sole responsibility for keeping track of their loan balance.

The HPA established three different times when a lender or servicer must notify consumers of their rights.

At loan closing, lenders must disclose:
• The right to request MI cancellation and the date on which the request can be made
• The requirement that MI be automatically terminated and the date on which this will occur
• Any exemptions to the right to cancellation or automatic termination
• A written initial amortization schedule for fixed-rate loans only

Each year, loan servicers must send borrowers a written statement that discloses:
• The right to cancel or terminate MI
• An address and telephone number to contact the loan servicer for determining when MI may be cancelled

When MI coverage is cancelled or terminated, lenders must send a notification to borrowers stating:
• MI has been terminated, and the borrower no longer has MI coverage
• No further MI premiums are due

Termination of Coverage
Under the terms of the HPA, mortgage lenders or servicers must automatically cancel borrower-paid MI coverage when the mortgage has amortized to 78 percent of the original property value, with all unearned premiums returned to the borrower within 45 days of the cancellation or termination date. This provision also requires that the borrower be current on mortgage payments required by the terms of the loan, and if the loan is delinquent on the date of automatic termination, a lender must terminate the coverage as soon as the loan becomes current.

Cancellation of Coverage
Also under the HPA, a homeowner has the right to request MI cancellation when the mortgage balance reaches 80 percent of the original property value. All payments must be current, meaning a homeowner must not be 30 days late on a mortgage payment within one year of their request, or 60 days late within two years.

However, a borrower can only initiate a cancellation request for FHA based on their prepayment of the loan, and even then, it can only be requested beginning five years after the loan origination date.

With MI, homeowners can request cancellation based on prepayment of the loan, as well as an appraisal. Despite falling property values, it’s possible for homeowners to gain enough equity in their home to request cancellation in less than five years based on a home appraisal.

Keep checking RuhlHomes.com for more information on the housing market.

Provided by: RisMedia

The initial offer must be submitted on or after April 11, 2011, and the sale must close on or before June 30, 2011 to be eligible for the incentive. Fannie Mae said it can give no assurance on the time required to close, but initial offers submitted after May 15, 2011 are particularly questionable for closing by the incentive deadline of June 30.

To qualify, buyers must reside in the home as their primary residence; sales to investors are excluded.

“Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover,” said Terry Edwards, EVP of credit portfolio management at Fannie Mae.

“Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home so this is a great time for Fannie Mae to offer some assistance,” Edwards added.

In Arizona and Texas, there will be a $500 bonus available for selling agents whose buyers purchase and close on a HomePath property by June 30, 2011, and meet the terms and conditions of the closing cost incentive.

Retail and public entities are also eligible for the special buyer-assistance offer; however pool and auction sales are not eligible.

The D.C.-based government-backed mortgage firm rolled out a 3.5 percent subsidy for REO buyers in January of last year. Fannie Mae says it has seen considerable success with the program and as a result, has extended or restarted the temporary buyer assistance incentive several times – a strategy aimed at helping the GSE unload a bloated supply of repossessed homes.

The company acquired 262,078 single-family REO properties through foreclosure in 2010, compared with 145,617 in 2009. As of December 31, 2010, the company’s inventory of single-family REO properties was 162,489. Fannie says the carrying value of the company’s single-family REO was $15 billion as of the end of last year.

All Fannie Mae-owned REOs are listed on HomePath.com and most listings include detailed property descriptions, photographs, and community and school information.

Many Fannie Mae-owned properties are also eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers homebuyers an opportunity to purchase with as little as 3 percent down.

Keep checking RuhlHomes.com for the most up to date information on the housing market.

Information provided by: Fannie Mae

An opportunity exists today because of recent government involvement; an opportunity that may never again be available in our lifetimes. There has been much discussion about what role the federal government should have in supporting homeownership. We will leave our opinions on the debate for another time. However, we want to alert you to two advantages available to a purchaser today that may disappear in the future:

• Historically low interest rates
• The ability to lock in these rates for thirty years

Interest Rates

Because of the financial crisis, the government stepped in and instituted a series of programs which pushed mortgage interest rates to historic lows. If we look at 30 year mortgage interest rates before and after government intervention we see the impact these programs had (see chart below).

According to Freddie Mac, from 2006 to the start of the financial crisis (the fall of 2008), the average rate was 6.29%. Since then, the average rate has been 4.92%.

A purchaser can still get a 30 year-fixed-rate-mortgage at approximately 5%. However, interest rates this low may soon disappear. The government has questioned its role in supporting homeownership. In the administration’s REFORMING AMERICA’S HOUSING FINANCE MARKET: A REPORT TO CONGRESS, they are very strong in voicing their thoughts on this issue:

…our plan also dramatically transforms the role of government in the housing market. In the past, the government’s financial and tax policies encouraged housing purchases and real estate investment over other sectors of our economy, and ultimately left taxpayers responsible for much of the risk incurred by a poorly supervised housing finance market.

Going forward, the government’s primary role should be limited to robust oversight and consumer protection, targeted assistance for low- and moderate-income homeowners and renters, and carefully designed support for market stability and crisis response…

Under our plan, private markets … will be the primary source of mortgage credit and bear the burden for losses.

What are the probable results of this decision?

The Royal Bank of Scotland:

“The (government) currently provides 95% of housing finance in the U.S.; any reductions of their involvement in supporting mortgages mean interest rates will have to go up to induce private lending.”

AnnaMaria Andriotis, writer for SmartMoney:

“In the proposals were changes that will mean more expensive mortgages, with higher fees and, probably, higher interest rates, larger down payments and, in the near term, fewer lenders to choose from.”

The day of a 5% rate seem to be coming to an end.

Locking in a rate for thirty years

We must also realize that having the ability to lock-in a rate for 30 years may soon be a thing of the past.

There are a growing number of people who think that our mortgage industry should imitate those of other industrial countries around the world. If we do start limiting government support for the mortgage process, the 30-year-fixed-rate mortgage may disappear. Other countries, like Canada, only allow a purchaser to lock in a rate for a five year term. After that, the borrower must renegotiate a new mortgage at current rates. Could that happen here?

Mark Zandi, Chief Economist of Moody’s Economics.com addressing the administration’s recent report:

“A private system would likely mean the end of the 30-year fixed-rate mortgage as a mainstay of U.S. housing finance. A privatized U.S. market would come to resemble overseas markets, primarily offering adjustable-rate mortgages. Based on the experience overseas, the fixed-rate share in the U.S. would decline to an average of between 10% and 20% of the mortgage market compared with a historical average of closer to 75%.”

Bottom Line

The COST of a home is dramatically impacted by the mortgage component. Today, we can get a 5% mortgage and lock it in at 5% for the next thirty years!! Both of these opportunities may disappear in the future. You should take this into consideration if you’re looking to purchase a home.

Keep checking RuhlHomes.com for up to date information on the real estate market.

Some information and statistics provided by: KCM Blog

There are three questions you should ask before purchasing in today’s market:

1. Why should I buy if house prices are still depreciating?

We believe that in most parts of the country prices will in fact soften in 2011. Price is the major concern for anyone selling a home. When you are buying, COST should be your primary concern however. Your monthly payment (cost) is definitely impacted by the price of the home you purchase. The other major component is the interest rate. Waiting for prices to bottom out while rates are increasing can wind up costing you more over the life of the mortgage.

Over the last seven weeks, rates have increased over 1/2 a point going from 4.17 to 4.86. Waiting for prices to bottom out seems to make perfect sense. Yet, at a time when rates are increasing, it might NOT make sense. Make sure to have a mortgage professional help you with the math before making a decision, 1862 mortgage is here to help! Contact 1862 Mortgage with all your mortgage or financial needs.

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010.  They ask 100+ housing industry experts to project housing prices through 2015. The most current survey shows that the experts are predicting prices to soften until 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2015.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: You want to buy low and sell high. We may be at the low point regarding the COST of a home. But, this decision should not only be a financial one.

That leads me to my third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

• A good place to raise children and for them to get a good education
• A place where you and your family feel safe
• More space for you and your family
• Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason whether you decide to purchase or not.

Bottom Line

The COST of a home will probably remain relatively unchanged even if prices continue to depreciate. Don’t allow money to get in the way of you making the right decision for you and your family. In the long run, the finances will work in your favor anyway.

Keep checking RuhlHomes.com for the most up to date information on the real estate market!

Some information and statistics provided by: KCM Blog

A 5-year ARM is a loan with a fixed rate for the first five years that has a rate that changes once each year for the remaining life of the loan.  Because the interest rate can change after the first five years, the monthly payment may also change.

A 5/1 ARM combines the best features of adjustable and fixed rate products. It delivers a very low interest rate and therefore, a lower monthly payment typical of ARMs. But the five-year rate lock gives homeowners the stability and predictability of fixed payments that will not increase in the near future.

For the right borrower, a 5/1 ARM can be an excellent choice. If you are a client either:

Planning to move in the next 5 years – the rate will never adjust if they sell the home in that time period, or anticipate a salary increase– an ARM may allow you to enjoy lower monthly payments or a larger home while your pay is ramping up.

Choosing a 5/1 ARM could save you money on your monthly mortgage payment.  For example, let’s say you are purchasing a $200,000 house and putting down 20%.  After borrowing $160,000 at a 7% interest rate, your monthly payment on a 30-year fixed rate mortgage is $1,064.48 each month.  A 5/1 ARM can get you into the same house but with lower initial monthly payments.  With a 5-year ARM you may be able to start out with a 6.25% interest rate, therefore making your monthly payments only $985.15 for the first 5 years of the loan.  However, after the 5-year fixed period, the interest rate can change based on the index.  Because of this, it is essential that you be sure you can still afford the monthly payments if interest rates go up.  Most 5/1 ARM’s will have a lifetime payment cap that limits how much the interest rate on your loan can rise.

Weigh your options carefully when deciding on the mortgage product that is best for you.  If you want to take advantages of the lower initial interest rates associated with an ARM, but want to have some of the security of a fixed-rate loan, a 5/1 ARM may be the option for you.

If you have any questions about the 5/1 ARM or any other mortgage products please contact 1862 Mortgage.  We have a full staff of loan officers in all of our Ruhl&Ruhl offices that would be happy to help you make the best decision.

And as always keep checking RuhlHomes.com for the most up to date information on the housing market.

 Some information and statistics provided by: The Mortgage Fortune