Home Buyer Assistance Program For The Inland Empire
June 14, 2011 by Mark Estermyer · Leave a Comment
RPM Mortgage recently announced the roll out of a program designed to help San Bernardino/Riverside homebuyers achieve home ownership through this down payment assistance program…CHF Platinum Program. This program is designed to assist low to moderate income home buyers with the purchase of a home, by providing closing cost and/or down payment assistance in the form of a grant.
The CHF Platinum Program is for the purchase of an owner occupied property in the state of California. This unique program is not limited to first time home buyers, but is open to all eligible applicants using FHA or VA loan programs (USDA with some lenders).
Just like most down payment assistance programs, there are strings attached to the money coming from NHF (National Homebuyers Fund). Unlike most community grant funds that have no payment schedule and the money is considered a silent second; the grant money from this program is a true gift. The downside to this program is the interest rate may be higher than what I would normally quote on an FHA or VA loan. But if you are having difficulties in saving enough money for the down payment…the CHF Platinum Program may be for you.
Here are just some of the program highlights:
Loan Terms
- The first mortgage loan features a 30 year fixed rate that is fully amortized.
Assistance Grant
- May not exceed 3% of the first mortgage loan amount, including up-front mortgage insurance premium (MIP).
- Proceeds may be used for down payment and/or closing costs.
- There cannot be cash back to the borrower from the Grant Fund proceeds.
Property Eligibility
- Owner occupied primary residence in the state of California.
- Single family residence, 1-Unit.
- FHA/VA approved condos.
- PUDS
Borrower Eligibility
- Be a U.S. citizen, permanent resident alien or qualified alien.
- Occupy the property as their primary residence; non-occupant co-borrowers are not allowed.
- Borrower(s) income cannot exceed CRHMFA’s income limits established for the eligible county in which the borrower(s) is purchasing (120% AMI-area medium income).
- San Bernardino County $84,480
- Riverside County $84,480
- Orange County $101,04
- Los Angeles County $84,480
- San Diego County $89,880
Homebuyer Education
- Not required at this time.
The CHF Platinum Program has many restrictions and guidelines that may prevent you from qualifying for this program. It is always best to consult with a seasoned mortgage professional to help determine your eligibility of this program.
Please contact me anytime if you have any questions about this program or any other home financing options.
How Important Is Accurate Information During An Inland Empire Home Purchase
January 16, 2011 by Mark Estermyer · Leave a Comment
With E-mail, voice-mail, mobile phones, text messaging and so many other avenues an Inland Empire real estate professional has at their finger tips; one would wonder how a near critical error can happen in the eleventh hour of a real estate transaction. When just some basic professional guidelines are followed, this should never happen.
Before even originating a recent loan, I needed to provide a loan comparison between an FHA loan and a Fannie Mae HomePath loan on the purchase of a Fannie Mae REO. We determined the FHA loan would be the best loan option for the buyer.
However, the offer had already been written and an addendum to the contract changing the financing needed to be sent to the listing agent. This never happened and the following events could have been avoided if a simple e-mail with an attached addendum had been sent from the very beginning.
Once the appraisal was completed, there were a few items that needed to be repaired. However, Fannie Mae would not pay for the repairs and it was suggested the seller paid closing costs could be reduced by the amount of the repairs, all parties agreed to this. I was never informed of this change until after loan documents had been delivered to escrow and we were 7 days away from closing.
Because the seller paid closing costs were reduced, the documented funds to close from the buyers were no longer sufficient to cover the costs of buying the house. The only way to cover these additional costs and close on time; the agents needed to contribute part of their commissions to the repair costs.
Even though these costs were less than $1000, this could have been avoided all together with just a little communication from the start. There was plenty of time to make some adjustments to several different aspects of the purchase.
Whether you are a buyer, seller, listing or selling agent or the loan officer; communicate often and clearly with accurate information. This could be the difference in closing on time or losing income due to a simple mistake. If you have any questions about the home loan process, please do not hesitate to contact me at anytime.
Where Does My Earnest Money Go?
March 28, 2010 by Mark Estermyer · Leave a Comment
Hey, I gave my Inland Empire real estate agent a $5000 Earnest Money Deposit check… Where does that money go?
A basic and very obvious question that most First-Time home Buyers ask once their purchase contract gets accepted.
According to Wikipedia:
Earnest Money – an earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.
When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money. The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations.
An Earnest Money Deposit (EMD) is simply held by a third-party escrow company according to the terms of the executed purchase contract.
For example, there may be a contingency period for appraisal, loan approval, property inspection or approval of HOA documents.
In most cases, the Earnest Money held by the escrow company is credited towards the home buyer’s down payment and/or closing costs.
*It’s important to keep in mind that the EMD may actually be cashed at the time escrow is opened, so make sure your funds are from the proper sources.
The Process:
- Earnest Money is submitted to an escrow company with the accepted purchase contract
- At the close of escrow, the EMD is credited towards the down payment and / or closing costs
- If there are no closing costs or down payment, the EMD is refunded back to the buyer
Who Doesn’t Get Your Earnest Money:
- Selling Real Estate Agent – A conflict of interest
- Sellers – Too risky
- Buying Agent – They shouldn’t have your money in their account
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Related Articles – Closing Process / Costs
What Does Title Insurance Protect Me From?
March 28, 2010 by Mark Estermyer · Leave a Comment
By including title insurance when purchasing property in San Bernardino or Riverside counties, your title insurer takes on accountability for legal expenses to defend your property title, should it ever be challenged.
Many different occurrences can come into play to warrant the need for title insurance.
The title company responsible will then take on the legal expenses to defend the property for as long as you are in possession of an interest in the property under the title.
If the defense is not successful, you will be reimbursed for any loss of value of the property.
Common Things Title Insurance Covers:
1. UNDISCLOSED HEIRS, FORGED DEEDS, MORTGAGE, WILLS, RELEASES AND OTHER DOCUMENTS
2. FALSE IMPRISONMENT OF THE TRUE LAND OWNER
3. DEEDS BY MINORS
4. DOCUMENTS EXECUTED BY A REVOKED OR EXPIRED POWER OF ATTORNEY
5. PROBATE MATTERS
6. FRAUD
7. DEEDS AND WILLS BY PERSON OF UNSOUND MIND
8. CONVEYANCES BY UNDISCLOSED DIVORCED SPOUSES
9. RIGHTS OF DIVORCED PARTIES
10. ADVERSE POSSESSION
11. DEFECTIVE ACKNOWLEDGEMENTS DUE TO IMPROPER OR EXPIRED NOTARIZATION
12. FORFEITURES OF REAL PROPERTY DUE TO CRIMINAL ACTS
13. MISTAKES AND OMISSIONS RESULTING IN IMPROPER ABSTRACTING
14. ERRORS IN TAX RECORDS
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