Understanding VA Loans

Becoming a homeowner is the dream for many of you living in New Mexico and it may even be one of the top priorities for someone returning from overseas as part of the active military. Those in the military or those transitioning back into civilian life can take advantage of lending programs designed for them, also known as VA loans, which help those that often cannot qualify for a conventional loan.

Things to Know about VA Loans

Here are some things you need to know about VA loans before you get started:

·         The Veterans Administration does not actually make loans, but it does guarantee loans made by an approved institutional lender.

·         Only an eligible veteran may obtain a VA loan through a VA-approved lender who can provide them with an application and a loan process that fits their needs.

·         There is no down payment requirement up to a certain loan amount. 

·         There no mortgage insurance premiums required.

·         Assumable loans are available.

Requirements and Qualifications

Here are some things you need to know about qualifying and what the loan requires:

·         A veteran must have a Certificate of Eligibility to apply for a VA loan. The certificate will show the veteran’s entitlement or their right to obtain a VA loan.

·         If a veteran sells their home and the buyer gets a new loan that pays off the VA loan, then the veteran may restore their VA eligibility and apply for another VA loan.

·         There must be a specific VA appraisal called a Certificate of Reasonable Value (CRV).

·         Maximum loan amounts do vary by state and local values.

·         The veteran must live in the home as his or her primary residence.  

·         There are no prepayment penalties on VA loans. 

·         A veteran who may have had a foreclosure could still qualify for a special VA loan program.

What Indigo Offers

Indigo Mortgage offers a wide array of options for New Mexico homebuyers that qualify for VA loans. Here’s what we can do for you:

Purchases

• 100% purchase money (zero money down for the veteran)
• 4% of purchase price to be paid towards veterans closing costs
• No mortgage insurance
• Funding fee waived with 10% or more disability

Refinances

• Up to 90% cash out or 90% refinances
• Can pay off existing mortgage even if not a VA loan
• No mortgage insurance
• Funding fee is waived with 10% or more disability

Streamlines

• No income verification
• Streamlined to a lower rate or a shorter term

• Must be current for last 12 months on mortgage

Get Started Now!

There is no time like the present to see if you qualify for a VA loan while housing prices in New Mexico are low and inventory offers a good selection to help you find and get you into the home of your dreams. Leave your questions here or contact us directly. We would love to help those of you who have served our country well.

Posted by Indigo Mortgage at 2:53 PM No comments:

The Benefits of Reverse Mortgages: An Alternative Way for Albuquerque Homeowners to Tap into Equity

Reverse mortgage products are one way for senior-age homeowners to tap into their home’s equity while, at the same time, enhancing their retirement strategy for a higher level of monthly funds. This blog post will define what it is, the benefits, common requirements, things to consider and how to find a reputable lender.

What is a Reverse Mortgage?

The National Reverse Mortgage Lenders Association defines a reverse mortgage as a loan that allows homeowners over the age of 62 to “convert part of the equity in their home into cash.” The borrower is not required to pay the loan back until the home is either sold or is vacated for some other reason.

Benefits of a Reverse Mortgage

There are a number of advantages to getting a reverse mortgage as a homeowner in Albuquerque:

•  Reverse mortgages help those of retirement age by essentially giving them a credit line to use when they need it. 
•   The programs offer either lump sum payments or monthly income payments, which allow older homeowners to choose a method that fits with their retirement needs.

Common Requirements for Reverse Mortgage Qualification

There are some common requirements found when it comes to reverse mortgage qualification for those in Albuquerque and around the country:

• You must pay off any existing mortgage balance on your house first as well as pay interest on what you borrow, which is all deducted upfront from what you will receive;
•   You still must pay and stay current on taxes and insurance;
• Government  third-party counseling is required by law;
• You must be 62 years or older to qualify; and
• The reverse mortgage can only be done on your primary residence.

Determining if a Reverse Mortgage is for You

There are some things to think about when it comes to a reverse mortgage, according to a recent Fox News article:

• As soon as you die or move or if you are sick or move away from or if you are sick or move away from our home for more than a year, the loan is due.
• This type of situation does not leave money for your heirs in most circumstances.
• The money provided from these mortgages should be carefully managed so that it does not disappear in a year or two.

As such, you need to think why you need the money and if you might be better off with an alternative strategy. This does work as an effective line of credit so you don’t have to cash out stock or a CD and lose money in penalties. It is for those who have cash flow but just might need to top it up to cover other things like long term care insurance, for example.

What to Look for in a Reverse Mortgage Lender

There are a number of things to look for in a reverse mortgage lender. They should offer:

• FGA government-backed programs do not require any payments, credit reports, or income and asset verification;
• A saver program for additional ways to enhance your retirement strategies; and
• A team of experts who can offer a solution that matches your individual needs. 

Contact Indigo

Contact us today to learn more and determine if a reverse mortgage makes sense for your retirement strategy. We want to make sure you have all the information you need to make an informed decision.

Posted by Indigo Mortgage at 9:10 AM No comments:

State of the Local New Mexico Commercial Property Market

When considering it’s the right time to invest in commercial real estate in Albuquerque or anywhere within New Mexico and the surrounding states, it is always wise to do your research and consider what local and national experts are saying about the state of the current market as well as perceptions on the near term.

A November 2011 article by Paul Weideman in the Santa Fe New Mexican, entitled, “Commercial Market: Not All Bad News,” provides some interesting insights into what has been happening in our local Santa Fe, Albuquerque, and New Mexico area in recent months. 

Here are some of the main commercial property market events of the past year:

• Santa Fe commercial real estate has been quiet with just a few major new commercial projects like the Walmart Supercenter and some restaurants. Hotel projects are also in the works.
• Signs point to future major retailers breaking ground in Santa Fe along with transactions that are projected to be over 10,000 square feet and some promising mixed use projects (office and commercial space along with loft properties), offering positive proof that the commercial market might be turning around in New Mexico as well as throughout the U.S.
• Economic hardships have adversely impacted the commercial market. The article cited the demise of Borders Books, which illustrates the impact that these kinds of problems can have in terms of a ripple effect on other industries like commercial real estate.
• Other positive signs are the appearance of many small, independently owned businesses opening up and seeking commercial leases in many of the now vacated commercial properties. Also encouraging are new schools being built in the area, illustrating the growth and expansion in the community that calls for such projects.

Low Interest Rates

To stimulate growth in commercial real estate, interest rates are even lower. As one of the commercial property spokespeople in the article noted, “One thing that’s hugely better than last year is interest rates….If someone told me we’d have 5 or 6 percent interest rates on commercial real estate 20 years ago, I’d have said they were crazy, but that’s what we have.”

Forecasts for 2012 by research firm Avison Young were recently released for the U.S. and Canadian commercial real estate markets. The estimations are that “overall U.S. real estate conditions are expected to mirror 2011 and demonstrate only modest improvement going into the election….Development should remain scarce in most markets and in all property types except apartments. Real estate, however, remains an attractive investment and, after a slow start, the U.S. will experience increased sales volume in 2012.”

For all types of commercial loans as well as for construction loans, Indigo Mortgage can help you by providing expert advice and a large array of lending solutions that fit your financial need. Let’s get started while the market is ripe with opportunity in Albuquerque commercial real estate.

Posted by Indigo Mortgage at 7:05 PM No comments:

First Quarter 2012 Housing Trends Point to Positive Signs and Opportunities to Buy

A recent article by Bankrate.com on Yahoo Finance, entitled “5 Mortgage and Housing Trends in Winter 2012,” noted some signs that new homebuyers and existing homeowners in the Albuquerque, New Mexico area should think about.

The Times are A-Changing’

While it may seem like we’ve been wallowing in a deep recession forever, the timing couldn’t be better and it may actually be fast and fleeting if you don’t act soon. As the article noted, “There is no question this is still a buyers' market, but you'll find with a wave of investors in search of good deals, the bargain homes are selling at a much quicker pace. The low prices and low mortgage rates won't disappear overnight, but they won't last forever.” 

 

That’s why it is important to take note of these five trends currently impacting this first quarter of 2012

 

1.                  Home prices are beginning to stabilize: Experts believe that the prices of homes have reached as low as they are likely to go, so it is expected that, after this first quarter, the only way is up for prices. Already, the fire-sale prices in areas like Las Vegas have started a feeding frenzy where houses are going fast.  The article note that “nationally, the median home price of existing homes was 3.5 percent lower in November 2011 compared to the previous year, according to the National Association of Realtors, or NAR.”

2.                  HARP could lead to a surge in refi activity: With so many homeowners currently owing more on their mortgage than their house is worth, they have been unable to refinance to take advantage of the lower interest rates. However, the latest and greatest version of the Home Affordable Refinance Program will help more homeowners to refinance to that lower rate even if it is more than 125 percent of the value of their homes. Newer updates to the program are expected in February or March, which means that you should be ready to ask about that refinance opportunity soon.

3.                  Mortgage rates are likely to remain low: It is expected that interest rates will stay as low as they have been during this first quarter of 2012. The article noted that “the Mortgage Bankers Association estimates the average 30-year fixed rate will hover around 4.1 percent during the first half of the year, giving buyers and homeowners some extra time to take advantage of the historic rates.” However, as the economy picks up, don’t expect these rates to hang around forever.

4.                  Investors and foreign buyers invade the market: The National Association of Realtors found that an investor accounted for one of every five homes sold in 2011 many of whom were foreigners who were taking advantage of the weak dollar and low prices. Many of these investors (about 30 percent) are coming with cash in-hand and buying up homes in Miami, Las Vegas, and other hard-hit areas.

5.                  Foreclosures and short sales are moving quickly: You may have heard that it can take up to a year to get a short sale approved. Not so much anymore. The process has improved with the average short sale now closing in less than 90 days. This is because banks are more accustomed to the process and they have become more accepting of just getting the deals done. Foreclosures are also moving quickly, especially with so many investors ready to do cash deals. With demand so high for these, the supply is actually shrinking, which will eventually drive up the prices and which takes us back to trend #1 on this list.

What This Means for You

With trends like these, all signs point to a growing economic recovery as well as opportunities that you do not want to miss. Prices are low, rates are low, and the mortgage and refi processes are slowly becoming more accepting. Now is the time to act!

Posted by Indigo Mortgage at 8:49 PM No comments: