On this podcast we are talking with Richard Scarbrough buyer and broker with First National Realty and Kevin Perk of Kevron Properties and blogger on smarterlandlording.com. Jo Garner, Mortgage Officer with Evolve Bank & Trust discusses financing strategies for buying investment real estate.
What can we talk about in the home financing news today? Well, there’s plenty!
For those of you who have been patiently waiting for the HARP 2B program to roll out so you can refinance to a lower rate with no regard for the appraisal value–well, so far the automated underwriting systems for that program are supposed to be rolled out March 17th. To get your loan in early so you can be ahead of the herd, call me on my business line right now at (901) 482 0354 . Susan Belew and I will be glad to crunch through the numbers for you to see how much you can save by refinancing on this program or others.
The President talked about an even newer refinancing program -not the HARP program that would not require an appraisal at all and would remove some other barriers as well . Don’t hold your breath waiting on the newest one because, for now, there are just too many barriers to cross. We are still slated to roll full steam ahead on the HARP 2 program but not the one the President talked about during his State of the Union Address.
Keep listening to our show and we will keep you updated on any new developments. You can also hear our past shows on my blog www.mortgageloansblog.com
How about that news item on NPR earlier this week declaring that Freddie Mac had discouraged homeowners from refinancing because Freddie wanted to hang on the interest income from those higher interest rate loans? It also quotes critics who charge that the Home Affordable Refinance Program (HARP) could be reaching “millions more people if Fannie (Mae) and Freddie implemented the program more effectively.” (Instead of leaving more stringent regulations in place)
Remember that Fannie and Freddie, after a federal take-over , were placed into conservatorship by the US Treasury in 2008. Now the Federal Housing Finance Agency is overseeing these two agencies.
One the one hand Freddie Mac and Fannie Mae (who back the majority of the mortgage loans in this nation) have been charged to help make it easier for home buyers to purchase homes and for homeowners to obtain financing.
On the other hand the other mission statement by the regulators, orders these two mortgage giants -to make money and limit taxpayer losses. Since the higher interest rate mortgages on the books are making money and keeping the two mortgage giants more solvent–the logic is to try to keep the higher interest rate loans on the books and discourage refinancing. .
Here’s some good news for our military personnel arriving back home. HOPE NOW, a national mortgage relief program, are focused on assistance to military homeowners and foreclosure mediation. If you know a veteran that needs help, they can call (888) 995-HOPE.
Did you see what happened with the job numbers yesterday? (If you are listening to us via blog podcast-our show is live Feb 4th 2012.) The monthly Employment Situation Report was released with much better-than-expected results. Stocks rallied sharply and most every interest rate in fixed-income markets moved higher. Mortgage rates inched up a little but not NEAR as much as expected. Wait until the treasury auctions next week–that may make a bigger impact on the mortgage rates.
Rates are being quoted from 3.75% to 4.25% on 30 yr mortgages depending on how many points you want to pay. The 15 yr is still in the low 3’s to 3.75%. Rates are based on the loan amount, loan type, loan-to-value and your credit score. My very capable assistant Susan Belew and I would like to do a personal analysis on your financing to see how much money we can save you per month or by shortening your loan term.
Susan and I are focusing this next week on people who think banks aren’t lending right now. WE ARE LENDING MONEY. If you have heard a friend say they can’t buy a house because they don’t have enough money to put down or they can’t refinance because the value on their house has dropped, please give me chance to talk with them. Susan and I are trained on credit simulator programs, we stay up-to-date on new programs geared to help creditworthy borrowers who don’t snugly “in a box.” Call us directly at (901) 482 0354.
In our studio today we have Richard Scarbrough, buyer and broker with First National Realty and Kevin Perk of Kevron Properties and blogger on smarterlandlording.com Our topic today? “Choosing Your Real Estate Investment Strategy.”
Richard and Kevin, What are some strategies our listeners could choose to start building a real estate portfolio?
Here are some questions that Richard and Kevin answered on the radio show. Check them out by listening to the podcast.
Real Estate Tip of the Week: (Richard and Kevin )
1. What are some strategies real estate investors can choose to start investing and building wealth?
2. What are some pros and cons for buying and selling to wholesalers?
3. What are some pros and cons for buying and selling to retail buyers?
4. What are the pros and cons for buying, holding and being a landlord?
Answers to the following questions covered by Jo Garner in the podcast
1. what kind of tips do you give investors who come
2. to you for a loan?
A. If you are just getting started, remember your terms for investment property are much less restrictive if you own less than 4 financed properties. If the property is in good enough shape when you purchase it, use traditional conventional financing on the first four properties you plan to hold. The rates are much lower and the down payment less on conventional financing . That is the kind of financing I handle at Evolve Bank.
Note: (You get the best terms on traditional financing with much less restrictions if you own less than 4 FINANCED properties. But I can still help you with traditional financing even up to 10 financed properties. ) if possible, these are the properties you want to hold and keep for wealth building.)
3. Where can real estate investors find money to use to acquire properties?
A. Of course the best financing available for real estate investors is through Fannie Mae and Freddie Mac–these are the loan I do especially for the properties in good shape that you want to buy and hold.
B. Many times we arrange with our bank to lend investors an equity line of credit on their home to free up funds to use to get into investment property
C. Another source we can use at our bank is margin loans on stocks and bonds and other types of assets as long as it is not a qualified retirement fund.
4. What is available for financing for fixer-upper houses?
A 203K for owner occupants. Or a home equity line of credit on a different property that gives the investor funds to buy and fix up a new purchase.
Listen to the podcast if you want to know more about mortgages, real estate financing options and real estate strategies?