Updates on the U.S. Housing Market

For mortgage companies, investors, homeowners and potential home buyers, the ongoing issues in the housing market is of great importance as it impacts the decisions made to pursue home ownership, invest in properties, refinance or seek assistance with mortgage payments and even gauge what types of lending solutions can be offered to help in the recovery process.

Signs of Hope

Recent news and economic statistics suggest signs of recovery mixed with ongoing challenges. For example, a recent Reuters article, entitled, “Signs of Recovery Grow in U.S. Housing Market,” the following main points were found:

·         Permits for homebuilding neared a 3.5 -year high in February, suggesting a budding recovery in the housing market was still on track even though groundbreaking activity on home construction has slipped. 

·         Sales of new homes in February fell from January but jumped more than 11 percent compared with the same month last year.

·         Prices have risen. The median new home price jumped 8.3 percent to an eight-month high of $233,700, which is compared with February 2011 when prices rose just 6.2 percent.

·         Realtors have noticed higher traffic volume and are moving more houses off the market than a few years ago, illustrating more positive news.

·         Builder confidence has risen steadily in recent months with more permits being pulled for near-term and long-term construction projects.

Another article noted the mix in positive and negative results that seem to define a market in transition, stating, “Home resales fell in February, but prices rose from a year earlier. Housing starts slipped, while permits for home building approached a 3-1/2 year high in February.”

Ongoing Challenges

Challenges remain as the same article notes:

·         There is a glut of unsold properties many of which are short sales and foreclosures.

·         Banks are still restricting financing options with tight lending activity still the norm.

·         The results are not consistent throughout the United States with spotty recovery in some markets and ongoing foreclosures and housing problems in other areas. For example, it was reported that new home sales surged in the Northeast and West but slumped in the South and Midwest.

Thoughts on the Future

Other sources like a recent Bank of American Merrill Lynch report concluded that a real recovery is not really set to occur until 2014. However, there are many tactics now being enacted to bring the recovery closer, including HARP 2.0 to help homeowners in New Mexico and other states as well as ongoing foreclosure prevention efforts to bring down inventory and help increase home values once again.

We, at Indigo Mortgage, are determined to do our share in bringing the recovery sooner than later with our participation in HARP 2.0 as well as our overall operating philosophy guided by the Christian faith that ensures that everything we do is with integrity so that home buyers, home owners, and investors alike all receive the mortgage solution that is right for their needs so that they maintain their home, commercial property, or church. This helps boost the local economy and bring about the recovery and renewed confidence that our country needs and deserves

Posted by Indigo Mortgage at 11:33 AM No comments:

Church Foreclosures: A Nationwide Epidemic

When it comes to the foreclosure crisis, it has been more than just homeowners that have been adversely impacted. For church foreclosures, the numbers are staggering. Since 2010, there have been over 270 churches who have defaulted. And, in 2011, we have seen banks sell over 138 churches to satisfy their debt.

Across the United States, there has been a surge in church foreclosures as lenders move in and seize church property. Since the 2008 financial meltdown, lenders have increasingly turned their backs on religious organizations and become unwilling to work with churches to satisfy their liens. According to records kept by CoStar, before the financial crisis of 2008, religious institutions had a default rate of 24 churches in 2008 and even less in the preceding decade. These numbers show that every single segment of our society is reeling from the repressions of the housing market crash.   

No One is Safe

The numbers do not lie, and every religious institution across the board has been hit with the backlash of the financial crisis of 2008. Small to medium congregations have seen the brunt of the storm, but larger congregations are not immune. Oftentimes, struggling churches will have to make the difficult decision to be bought by other churches. In addition, no state is safe from the crisis. Large states like Florida and California have seen record numbers of their churches face foreclosure and be auctioned off.

The Rules of the Game

Churches are not like single-family home loans. The rules and guidelines governing them are unique. Typically, a church receives a commercial loan with a maturity date of five to ten years. In addition, if this is a new construction loan, the upfront building cost is floated and then locked in once construction has completed.

But, what happened with church loans is the same as single-family properties. The values were based on pre-meltdown prices and once prices dropped, churches found themselves unable to secure new or restructured loans. Plus, many congregation members lost their jobs and their financial ability to tithe, which put additional strain of church coffers.

We Are Here to Help

Indigo Mortgage was built on the bedrock of Christian principles and stands ready to assist churches and other religious organizations with all of their building loan needs. We have recently partnered with a firm headquartered in Florida that specializes in church building loans. Our rates and terms are competitive, and we can finance renovations, new buildings, and expansions.  

Our company’s motto is: “Because nobody cares more about your mortgage loan.” And, that is especially true of the faith we have in our values-based operating principles that guide our decisions and actions to help provide the appropriate loan solution for each of our customers.

Please call one of our loan specialists at 505.836.5700 to discuss your church’s unique financial situation and discover the many ways we can help.

Posted by Indigo Mortgage at 9:57 AM No comments:

Building a Stronger Portfolio: How to Finance an Investment Property

With interest rates at historical lows and housing prices favorable in the New Mexico market, many people are considering adding to their portfolio and purchasing an investment property. This can be a smart financial move for many people. The value they save in low interest rates can offset the cost of an investment property and prove to be a prudent investment.

New Mexico consumers can expect to receive a through review before securing an investment property loan. Prepare yourself before you meet with a loan officer and come prepared to offer the required documents and monies to secure your loan. The days of easy credit have passed. However, that is not to say that you cannot obtain a loan. You can, you just have to be prepared.

Ready, Set, Go!  

The key to obtaining financing depends on knowing what an underwriter is looking for and how you can present your documents and financial history in a good light. At your first meeting with the loan officer, be prepared with the following paperwork:

·         Assemble your paperwork and documentation. Bring copies of two month’s worth of bank statements, retirement, and investment accounts. Be sure to include all pages of your statements. Have the last two months of pay stubs for each applicant and bring the last two years worth of tax returns. If you are self-employed, bring your business tax returns, including profit and loss statements. Each applicant needs their driver’s licenses, social security cards, and if applicable, bankruptcy discharge papers, divorce and child support documentation. 

·         Know your credit score. Lenders today demand good credit, especially if it is for a property in addition to your primary residence. Investigate your credit score with the leading credit reporters to see where you stand. If your credit is sagging there are strategies you can employ to increase your numbers. Be sure to pay on-time and avoid small dings to your credit which can add up to serious damage.

·         Secure a loan. Each lender has different criteria in terms of financing options. For a second home investment, some lenders require down payments for as little as 5%. The same is true for non-owner rental properties. A typical financing option would be a 20% down payment and financing of 80%. This would hold with showing up to 10 rental properties on your credit report. Of course, the larger your down payment, the better your rate and ability to finance an investment property would be. Lenders today scrutinize and pore over your financial records and investment history to ensure you are a good candidate for a loan. In many cases, cash is king with investment properties so be prepared to potentially put a sizable amount down on an investment property as well as bring documentation that proves the value or the ability to rent the property and achieve a positive cash flow.

Finding the Right Investment Property Loan  

When you are ready to move forward and secure an investment property loan in New Mexico or the surrounding states, call Indigo Mortgage at 505.836.5700 and schedule an appointment with one of our loan specialists. We will work with you to determine the best investment loan for your particular situation.  No one cares more about your loan than we do, and we want to prove that to you!

Posted by Indigo Mortgage at 9:37 AM 1 comment:

Is the HARP 2.0 Program Right For You? Weighing Your Best Options

When traditional routes of refinancing have proven problematic and you are searching for a way to secure a refinance loan in New Mexico, look to the Home Affordable Refinance Program (HARP), Version 2.0 for answers.

The HARP loan is designed for consumers to secure stable and affordable refinance loans when traditional modes of refinancing are unobtainable, especially when New Mexico home values are often well below that of the mortgage held by many homeowners. This is a way to provide some relief and keep New Mexico homeowners and those around the country in their homes.

Do You Qualify For a HARP Loan?

The government has set strict guidelines to qualify for a HARP loan. You must meet all of the following criteria to qualify:

·         Your current home loan must be owned by Freddie Mac or Fannie Mae;

·         Your present home loan cannot have been refinanced previously under the HARP refinance program. There is an exception to this rule. For homeowners with a Fannie Mae loan who refinanced under HARP from March 2009 through May 2009 are eligible for a new HARP;

·         You must have a loan-to-value ratio of greater than 80% to qualify;

·         Your current home loan must be current and your past 12 months of payment history must be in good standing; and

·          Your current loan must have been sold to Freddie Mac or Freddie Mac on or before May 31, 2009 to qualify for a new loan.

These guidelines are for reference only and a qualified loan specialist can assist you in determining eligibility.

The Process  

Like a traditional loan, a HARP loan requires a loan application and through underwriting process to ensure eligibility. You can check your home’s eligibility for a HARP loan on the Fannie Mae or Freddie Mac websites. Simply enter your personal information and address to determine if Freddie Mac or Fannie Mae owns your loan. If your loan is owned by either lender, you will meet this eligibility requirement.

You should check for eligibility even if your loan is with Wells Fargo, Chase, or Bank of America. Oftentimes, these banks will simply be servicing the loans and collecting payments and they do not actually own the loans they service.

The Rates and Features of the HARP Loan 

Homeowners using the HARP loan program will enjoy the same rates as traditional buyers. This is one of the keys to the HARP refinance program. Also, borrowers need to be aware that HARP is not designed to assist you in stopping or delaying a foreclosure. The program is strictly designed to allow homeowners to refinance their mortgages at today’s interest rates.

There is no restriction on your loan-to-value (LTV) ratio under HARP. Homeowners who are severely underwater can refinance under this program as long as they have a fixed rate 30-year mortgage. For borrowers with an adjustable rate mortgage, there is a cap at 105% of the loan-to-value ratio.  

Our Team is Ready to Help You with Your Home Loan Needs

The new HARP 2.0 program rolls out March 17^th! When you find yourself in need of a loan, turn to the professionals at Indigo Mortgage. Our knowledgeable loan specialists are well-versed with HARP 2.0 rules and eligibility requirements.

Let us assist you in refinancing your current home loan because no one cares more about your loan that we do. Give us a call at 505.836.5700 to schedule an appointment with one of highly-skilled loan professionals.

Posted by Indigo Mortgage at 1:26 PM No comments: