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Feburary 14, 2010

John Walsh, President of Total Mortgage, Quoted on New Haven Register

203(k) Mortgage Loan

Cara Baruzzi, New Haven Register's Business Editor, recently quoted John Walsh, President of Total Mortgage on her article titled "Building a Future: 203(k) loan lets home buyers borrow for renovations".

Total Mortgage Services President John Walsh spoke with the New Haven Register about the increased demand for 203(k) loans "A lot of these home that are foreclosed, they are distressed to some level. It has to be fixed in order to get a loan. Banks just aren't giving construction loans; this is really the only option for people who want to buy a home that is distressed".

Walsh went on to comment that 203(k) mortgages can be more complicated than standard mortgages, and that it is important to seek out advice from a mortgage experts that have experience with 203(k) loans.

While credit standards have tightened on almost all loans in light of the economic downturn, credit qualifications through the FHA are more lenient than traditional lenders. Additionally, the FHA generally only requires a 3.5% down payment for the home.


Total Mortgage services is a Full-Eagle, FHA approved lender. To explore your options under the 203(k) program, please call one of our mortgage experts at 877-868-2503.

Visit New Haven Register to read the full article.


January 14, 2010

Total Mortgage Services Receives Full-Eagle Approval For FHA Mortgages

Under goes thorough approval process by HUD to convert to a non-supervised lender

MILFORD, CONNECTICUT - (January 14, 2010), Total Mortgage Services, LLC, a leading mortgage lender and broker, announced today it has received approval from the U.S Department of Housing and Urban Development (HUD) to convert to a Full-Eagle, or non-supervised lender. The Company may now originate, fund, hold, purchase and sell Federal Housing Authority (FHA) backed mortgage loans.

"This Full-Eagle approval is another proof point of Total Mortgage Services' operational integrity and financial strength," commented John Walsh, President of Total Mortgage Services. "Being a non-supervised lender will help further streamline our process for FHA loans, which will allow us to pass the cost and time savings on to high-quality borrowers in the form of lower FHA mortgage rates and better service.

"Our Full-Eagle designation will also help us significantly increase our FHA mortgage volume, which was only 5% of our total production in 2009, to 20-25% of production in 2010," continued Mr. Walsh. In addition, when we combine this approval with the upcoming launch of our new Wholesale Division, TMS Funding, which will also provide very attractive mortgage rates to our broker base, we are even better positioned to continue to grow our origination volume in 2010 to over $1 billion, despite a U.S. mortgage market that is expected to decline year-over-year."

Total Mortgage Services Business Overview

Total Mortgage Services was founded in May of 1997 with a customer centric focus and a mission of responsible lending. Today, the Company offers a range of mortgage solutions to high-quality borrowers, from FHA mortgages to jumbo loans, with some of the lowest current mortgage rates in the industry. Through a centralized business model, Total Mortgage is able to create significant efficiencies in both its origination and operational infrastructure, and pass the cost and time savings on to borrowers working with Total Mortgage in the form of lower mortgage interest rates and better service.

The Company's production is driven by a centralized retail lending platform, which has over 25 very experienced and advice driven loan officers. The Company will be launching TMS Funding, its wholesale lending platform in January 2010, to offer mortgage brokers and borrowers better service, choice, knowledge and efficiency in the mortgage lending process. The wholesale platform will also operate through a centralized model in order to improve the consistency and quality of the broker experience and reduce the wholesale platform's risk profile.

Currently licensed in 19 states, Total Mortgage currently has an application pending with the Commonwealth of Pennsylvania and intends to be licensed in five to ten additional states in 2010. The Company is projecting 2010 closed loan production to increase to $1 billion.

About Total Mortgage Services, LLC

Total Mortgage Services, LLC, a provider of some of the lowest current mortgage rates, is an industry-leading direct mortgage lender and mortgage broker that has funded over $4 billion in mortgage loans since 1997. Licensed in 19 states, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable rate mortgage loans (ARMs), jumbo loans, FHA mortgages and more. Visit TotalMortgage.com for current mortgage rates, FHA mortgage rates, jumbo mortgage rates, ARM rates as well as other mortgage rates. For more information on Total Mortgage, please visit www.TotalMortgage.com.

 

January 7, 2010

John Walsh, President of Total Mortgage Quoted Extensively on New York Times

Mortgage industry thought leader, John Walsh, President of Total Mortgage Services, was quoted on New York Times by Bob Tedeschi in an article titled "Rethinking Vacation Homes".

NY Times Logo

Rethinking Vacation Homes By Bob Tedeschi - Courtesy of New York Times

Fewer people had the opportunity to buy one last year, what with the mortgage crisis. Lenders now appear more willing to finance second homes, but borrowers must be patient, eminently qualified and strategic about their housing choices.

“People are beginning to see some opportunities, but they have to be strong borrowers,” said John Walsh, the president of Total Mortgage Services in Milford, Conn.

The improving conditions for borrowers, Mr. Walsh said, come mainly from the drop in vacation home prices, not any relaxation in lending standards. The lower prices, and lower loan amounts, make it easier for people to afford a second mortgage payment.

Fannie Mae and Freddie Mac, the government-owned companies that essentially dictate the lending standards for mortgages, have actually tightened requirements on second homes. Borrowers must now have credit scores of at least 660 and down payments of 20 percent to qualify; a year ago, the industry standard was a 620 or better credit score and at least 10 percent down.

While all borrowers have faced more scrutiny, lenders consider loans on second homes riskier than those on primary homes.

Because loan requirements were in such flux last year, many lenders opted not to take a chance on second-home mortgages, fearful of being forced by Fannie and Freddie to buy back the loans if the mortgages were not underwritten precisely according to specifications, said Ellen Bitton, the chief executive of Park Avenue Mortgage in Manhattan.

“It is better today,” Ms. Bitton said, “because at least there’s movement on deals.” Lenders have been more willing to process loans on vacation homes since October, she added.

But pitfalls remain. Mr. Walsh says that borrowers seeking condominiums face longer odds of success. If the share of renters in a condominium complex is more than 30 percent, for instance, lenders will not offer a mortgage. “Condos are a big red flag in general,” he said. “And if it’s a second home, it’s even worse.”

Also, Mr. Walsh said, while Fannie and Freddie may sometimes allow lenders to offer smaller mortgages on vacation homes to those with down payments under 20 percent, those borrowers typically must have private mortgage insurance.

He said he knew of only one company that would insure such loans, but declined to identify it for competitive reasons. In any case, he said, the company will not insure vacation homes in Arizona, California, Michigan or Nevada, because they all have high levels of home foreclosures.

Bigger loans, too, may be more difficult to secure. Take, for instance, Fannie Mae or Freddie Mac mortgages of $417,000 to $729,750. These loans are usually offered only in areas that have higher-than-average home prices, like New York City.

Borrowers who seek bigger loans for vacation homes must have down payments of at least 35 percent, Ms. Bitton said, contrasting that with 25 percent a year ago.

Jumbo loans — or loans above $729,750 in high-cost areas and above $417,000 elsewhere — are already in short supply for primary residences. For vacation properties, such mortgages are even more difficult to secure, according to the National Association of Realtors in Washington.

Jumbo loans in resort areas have been a particular problem. In a news release last November, the Realtor group said that sales on higher-priced vacation properties had been hurt by lenders seeking large down payments and “over documentation” for even well-qualified borrowers seeking jumbo loans.

The group does not release its annual report on home sales until March, but at the end of 2008, the vacation-home market was already down from its peak, in 2005. That year, 40 percent of all sales were second homes. In 2008 the figure was 30 percent.

Click to read the full article from New York Times.

 

December 16, 2009

Total Mortgage Services Provides Performance Update On Record 2009

2009 production volume expected to increase 67% to over $750 million in closed loans

Success driven by offering some of the lowest mortgage rates and working with high quality borrowers

Key initiatives planned to continue positive momentum in 2010

MILFORD, CONNECTICUT - (December 16, 2009), Total Mortgage Services, LLC (Total Mortgage), a leading mortgage lender and broker, today provided an update on its record breaking 2009 performance, as production volume is expected to set a record by surpassing the $750 million milestone, and the company's outlook and initiatives for 2010.

"2009 has been a very rewarding year for both Total Mortgage Services and our customers. Not only will we generate record origination volume and enhance our retail lending and operational infrastructure, we also delivered exceptional service and value to our customers who were able to take advantage of some of the lowest current mortgage rates in the industry offered by our company," commented John Walsh, President of Total Mortgage Services. "A key factor in our success has been our centralized model, which drives profitable growth and mitigates risk in the lending process. This model enables us to have one of the most efficient end-to-end lending operations that creates significant cost savings that we are able to pass on to borrowers working with TMS in the form of low current mortgage rates and faster turn times."

2009 Performance Overview

Total Mortgage's loan production is expected to increase by approximately 67% to a record of over $750 million in closed loans by the end of 2009, compared to $450 million in closed loans in 2008. The significant increase in production was driven by the historically low interest rate environment for both purchase and refinancing activity and the mortgage originator's customer centric focus by its experienced team of over 25 retail lending professionals.

During 2009, the company continued to execute on its mission of responsible lending. For loans originated by Total Mortgage in 2009 the average FICO score was 763, average loan to value was 66% and the average loan amount was approximately $309,000. The lender continues to see demand in the marketplace for quality originations.

In 2009, Total Mortgage closed mostly agency-eligible mortgages, while jumbo loans made up approximately 15% of production and FHA volume was only 5% of overall production. The company believes there is a significant opportunity to increase its FHA production by offering high quality borrowers lower FHA mortgage rates. However, Total Mortgage will not lower its underwriting standards for FHA loans while assisting borrowers to find the right mortgage loan.

Currently licensed in over 20 states, the originator has increased its professional staff to approximately 70 mortgage professionals in Milford, Connecticut. Many of these professionals have been with Total Mortgage for over eight years and have worked together through numerous mortgage lending cycles helping borrowers close on the right mortgage.

"Our goal is to expand on a strategic and selective basis into attractive markets throughout the country," added Mr. Walsh. "We believe by expanding our geographic footprint, entering the wholesale channel and receiving approval for a Full-Eagle, which will allow us to significantly increase our FHA origination volume, we will be well positioned for continued growth in 2010. Therefore, despite the projected decline in originations in the overall U.S. marketplace, we are projecting our 2010 production volume to increase to over $1 billion."

2010 Initiatives

  • Fully implement new Loan Origination System and new accounting software.
  • Launch Wholesale Division in January 2010.
  • Finalize approval from the U.S Department of Housing and Urban Development to convert to a Full-Eagle, or non supervised lender.
  • Expand geographic footprint by securing licenses in an additional 5 to 10 states with high potential for quality business. Application pending with the state of Pennsylvania.
  • Hire additional high quality and experienced mortgage professionals to production and operational/compliance teams.
  • Expand Realtor Partner Program after assessing recently completed pilot launch in Connecticut.
  • Launch new and improved Company website in January 2010.

About Total Mortgage Services, LLC

Total Mortgage Services, LLC, is a provider of some of the lowest current mortgage rates, is an industry leading direct mortgage lender and mortgage broker and has funded over $4 billion in mortgage loans since 1997. Licensed in 20 states, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable rate mortgage loans (ARMs), jumbo loans, FHA mortgages and more. Visit TotalMortgage.com for current mortgage rates, FHA mortgage rates, jumbo mortgage rates, ARM rates as well as other mortgage rates.



October 26, 2009

Loan Modification Program from Total Mortgage

Total Mortgage now has a new program on mortgage: Home Loan Modification which will help home-owners to avoid foreclosures. For details and to see if you qualify, learn more at Loan Modification.

 

September 22, 2009

A recent press release about Total Mortgage's new wholesale lending division was featured by major news sources.

Total Mortgage was highlighted in National Publications such as Connecticut Post, Washington Times, San Francisco Chronicle, BNET Money Watch, Chicago Daily Herald and more.

Partial List of Media Giants carrying the Total Mortgage News:

Don't miss out on lowest mortgage rates

Summary of the news coverage is presented below:

National Mortgage Lender Launches Wholesale Lending Division

While many mortgage companies are contracting or shutting down amidst the economic downturn, Total Mortgage is expanding its loan origination platform to include a wholesale lending division.

MILFORD, Conn.-Total Mortgage Services, a leading mortgage lender and broker, announced today that it is adding wholesale loan origination to its arsenal of services. Now the company will be able to offer even more reasonable current mortgage rates, reinforcing one of its strongest selling points.

"We are committed to providing customers with exceptional service and the lowest rates," said Total Mortgage President John Walsh. "As a wholesale lender, we will drive down costs considerably, and pass the savings onto our customers."

Considering that the financial services industry continues to battle through its worst crisis in 75 years, expansion may seem like a bold stroke. However, it makes excellent sense for Total Mortgage, which is thriving despite serious problems faced by other companies in the industry. The mortgage lender is excelling thanks to its decision not to participate in subprime and other high-risk loans, as well as its historical focus on low mortgage rates and customer service. Today, the company is leveraging its position of strength, as increasing numbers of mortgage brokerages fail to renew their licenses.

Total Mortgage has hired Jim Lynch of Milford to lead its wholesale lending division. With nearly 20 years of wholesale lending experience under his belt, Jim has recently overseen wholesale lending channels on the East Coast for American Mortgage Network (AmNet), Wachovia, and SCME Mortgage Bankers. Earlier, Lynch was a high-performing account executive at Chase for nearly a decade.

"Jim is an excellent leader who knows the mortgage industry inside and out. He has demonstrated time and time again that he knows how to establish a powerful wholesale lending engine from scratch," Walsh said. "We are very pleased to add his valuable expertise, and to have his teams create even more deep and lasting partnerships with our customers. We also look forward to having him lead this new and critical service offering, which creates even greater value for potential and existing homeowners."

"While many are shying away from wholesale business, at Total Mortgage, we see it as a unique opportunity to fill a void created by the banking crisis," Lynch said. "Thanks to our strengths, we are not only surviving in this difficult market, we are thriving. In addition to the establishment of a wholesale lending channel, our success has enabled us to invest in a broad range of robust technologies. These investments have enabled the company to streamline operations dramatically. For example, our new loan origination software has superior fraud detection tools which will help prevent problem loans from clogging up our pipeline and tying up our resources. This enables us to originate loans with greater efficiency, and ultimately creates more savings opportunities for our customers.

Lynch said Total Mortgage will take its first-brokered, or third-party origination loan by Dec. 1. From that point, he plans a steady and methodical expansion of the organization's wholesale channel.

"We will focus on what has always made Total Mortgage successful: quality, execution, and service to our investors and our broker base," he said.

Lynch has set ambitious goals for the roll-out of the company's wholesale channel capabilities. At first, he will target the Northeast, but he plans to cover the entire East Coast by 2011. In year three, the team will do business in all 50 states and have direct seller relationships with Fannie Mae, Freddie Mac and possibly Ginnie Mae.

"By year five, we plan to be among the nation's top 10 wholesale originators, with $4 to $5 billion in annual loan sales."

About Total Mortgage Services, LLC

Total Mortgage Services LLC, provider of some of the lowest current mortgage rates, is an industry leading direct mortgage lender and mortgage broker and has funded over $4 billion in mortgage loans since 1997. Licensed in over twenty states, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable rate mortgage loans (ARMs), jumbo loans, FHA mortgages and more. Visit TotalMortgage.com for current FHA mortgage rates, jumbo mortgage rates, ARM rates as well as other mortgage rates.

 

Total Mortgage Press Release: August 8, 2009

Fast-Growing Mortgage Lender Thrives Amid Crisis

While many mortgage companies around the country are struggling to survive, Total Mortgage Services, LLC has managed to flourish despite the economic downturn.

"We avoided the risky lending practices that many of our competitors engaged in," says John Walsh, Total Mortgage's founder and president. "Although we were tempted to change course a few times, we stayed true to our approach, and we avoided the backlash that devastated so many companies in our industry."

The Total Mortgage approach is straightforward: To provide mortgages that best fit clients' needs, deliver outstanding service and offer the best possible current mortgage rates. By adhering to this mission, rather than increasing risk to chase profits, the company has thrived. And, as competitors fall by the wayside, it becomes stronger still.

"The key to our success is pretty simple," Walsh explains. "We offer conforming fixed-rate mortgage, jumbo mortgage, FHA mortgage, and adjustable rate mortgage loans at unbeatable rates. At the end of the day, what the borrower wants is a transparent mortgage lender that can offer realistic mortgage rates without a host of hidden fees. We consistently meet these expectations while maintaining a high level of customer service. This is why much of the business we do is referral-based."

Since the company's inception in 1997, Total Mortgage has generated over $4 billion worth of mortgage loans, expanded into 21 states, and has more than 25,000 satisfied customers. Its strong alliances and partnerships extend throughout the country. The company has even managed to triple its number of employees since January, a remarkable feat considering many mortgage companies around the country are either downsizing or folding altogether.

"We have very sharp people, professionals who understand complex financial instruments better than anyone," Walsh says. "We often say that the loan option best suited for one family may be very different from one that's right for their next-door neighbor, their in-laws or best friends," Walsh said. "This is where our professionals' expertise comes into play. They know all about mortgage industry policies and regulations, as well as opportunities that arise due to changes in legislation, such as DU Refi Plus, HARP loans, the stimulus package, etc. They use this deep understanding to help partners tailor the best possible loans. The results, including substantial expansion in the middle of a recession, speak for themselves."

About Total Mortgage Services, LLC

Total Mortgage Services, LLC (http://www.TotalMortgage.com) is an industry leading direct mortgage lender and mortgage broker, having funded over $4 billion in mortgage loans since 1997. Licensed in over twenty states, Total Mortgage offers a variety of products and programs including fixed-rate loans, adjustable-rate loans (ARMs), jumbo loans, FHA mortgages and more. Visit TotalMortgage.com for today's current mortgage rates.

Total Mortgage Press Release was highlighted in Google News, Yahoo News, Bing News as well as other news sources.

 

February 25, 2009

Total Mortgage Blog Launched

Total Mortgage Blog is now available at http://www.totalmortgage.com/blog/.

The blog categorizes recent mortgage news, updates, and articles from expert writers. You can follow the RSS feed on this blog as well.

* If you would like to see any particular topic covered by our mortgage loan expert bloggers, please email us at email us with your suggestions.

 

February 18, 2009

Foreclosure Fix(ed)

While symbolically visiting the Phoenix, AZ area today, President Obama unveiled his foreclosure fix to the nation. Why is this area so symbolic for Obama to make this announcement? For much of the past two decades, the Phoenix metropolitan area was a boomtown, with its population growing by more than 50%. Since the housing crisis began in 2007, this boom has turned to bust as home prices have fallen by more than 40%. The spike in foreclosures is not solely due to the subprime mortgage crisis, but rather victims of the recession as millions of Americans have lost there jobs, and continue to do so.

Assisting homeowners in danger of defaulting

Obama's $75 billion plan is essentially geared towards helping up to 9 million homeowners stay in their homes by stemming foreclosures by offering lower mortgage rates. Until now, most efforts within the housing industry have centered on delinquencies. The president's plan is to assist those homeowners who are not only in danger of defaulting on their mortgages, but those that are already behind, as well. Many experts believe that a solution to the housing crisis is paramount to saving the economy as a whole. The plan would give servicers $1,000 for each mortgage modification they do, in addition to another $1,000 a year for three years if the borrower stays current with their mortgage payments. Furthermore, it will give $500 to servicers and $1,500 to mortgage holders if they amend vulnerable loans before a borrower falls behind.

American Recovery and Reinvestment Act

The signing of the $787 billion American Recovery and Reinvestment Act on Tuesday also increased the conforming loan limits to those in effect last year, which went to as much as $729,500, up from $625,500. The intent of the higher conforming loan limits is to spur homeowners with jumbo mortgages to refinance into lower, conforming interest rates, as well as encourage potential buyers to purchase homes in designated high-cost areas.

In addition, this new stimulus package offers first-time homebuyers a tax credit up to $8,000 on their 2008 or 2009 income tax returns. The tax credit is very similar to an interest-free loan because it must be repaid in equal installments over a 15-year period, beginning the second year after the credit is claimed. According to the IRS web site, the tax credit:

  • Applies to home purchases between April 9, 2008 and June 30, 2009
  • Reduces a tax bill or increases a refund
  • Is fully refundable, which means the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax that they owe.

Goal of tax credits

The essential idea behind this tax credit is to build upon the tax credit enacted last year under the Bush Administration. It is intended to help sell homes that are on the market and not otherwise selling. These homes that are not selling are depressing the values of other homes across the country. The tax credit is reduced or eliminated altogether for high-income taxpayers. For single first-time homebuyers who earn more than $75,000, the credit is phased out. The same concept applies to couples who earn an adjusted gross income of more than $150,000.

Prior to the creation of this law, some estimates expected more than 2 million homes to be foreclosed, with as many as 9 million being foreclosed on by the end of 2012. The bottom line: the entire economy needs to start moving again so the delinquent homeowners can find jobs.

As far as creating new jobs, Obama's vision is to spur energy savings while creating green jobs. Of the $787 billion, there is $20 billion in tax incentives for facilities to make components that will enhance renewable energy production, advanced battery technology and next-generation green technologies. It is estimated that the energy funding alone would create nearly 500,000 jobs in the United States. In the end, the package appears to be win-win.

* If you would like to speak to a loan officer on how this bill will impact you, please call today 877-868-2305 to speak with one of our mortgage experts. You can also email us with your question on the stimulus bill so that we can get back to you with your mortgage inquiry.
 
If you are qualifying first time home buyer, opportunites can be enormous due to tax credits.

 

 

February 17, 2009

President Obama Signs Stimulus Package Into Law

Now that the $787 billion American Recovery and Reinvestment Act has been signed into law by President Obama, Americans can finally start optimistically looking for economic growth within the housing market. Obama proclaimed, "Today does not mark the end of our economic troubles … But it does mark the beginning of the end - the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; to provide relief for families worried they won't be able to pay next month's bills; and to set our economy on a firmer foundation."

According to Mark Zandi, chief economist at Moody's Economy.com, "Stimulus by itself will not work well. A financial stability plan and a foreclosure mitigation plan must also be implemented." The anticipation for Obama's program for curtailing foreclosures will end tomorrow as the details are laid out. The president is expected to outline a $50 billion to $100 billion plan to help homeowners stem foreclosures.

The hope is that the federal government will assist homeowners reduce their monthly payments by modifying the parameters of their current mortgage loans. Jared Bernstein, Vice President Joe Biden's economic advisor didn't comment on specifics, but he did go as far as saying it will be a "very aggressive plan to help responsible homeowners stay in their homes." By making home ownership more affordable, the federal government should be applauded for their intervention.

Others view the stimulus package as a drop in the bucket. Anthony Sanders, a professor of finance and real estate at Arizona State University went as far as saying, "Fifty billion is a good place to start, but I'm just saying right now it's not enough." Sanders' interpretation may be correct in it's simplest understanding, however, the biggest marker of stimulus success will be an improvement on the job front.

If Americans are working, then their earning the money needed to make purchases and make investments in the housing market. The White House is estimating that approximately 3.5 million jobs will either be created or saved over the next two years. Time will certainly tell.

* If you would like to speak to a loan officer on how this bill will impact you, please call today 877-868-2305 to speak with one of our mortgage experts. You can also email us with your question on the stimulus bill so that we can get back to you with your mortgage inquiry.
 
If you are qualifying first time home buyer, opportunites can be enormous due to tax credits.

 

 

January 21, 2009

Lowest Mortgage Rates in History

Total Mortgage has been serving the United States as a trusted financial partner for more than a decade and we have never seen a lowest mortgage rates in our history. It is not just us. Since 1971, the 30 year mortgage rate benchmark which is tracked by Freddie Mac, has fallen below 5%.

In our opinion, this is a great time to buy a a new home or refinance your existing high interest mortgage loans. Here are few things to keep in mind:

If you are purchasing a new house:

If you are refinancing an existing home loan:

  • Check Jumbo Mortgage Rates
  • Calculate your breakeven - You may need to talk to Loan specialist to figure out how many years you need to live in your home to breakeven to cover the closing costs of new financing.
  • Then apply for refinance loan and lock it at the point of your desire.

If you've a jumbo loan mortgage: (more than $417,000)


*If you would like to speak to a licensed loan officer today, call 877-868-2305 to speak with one of our mortgage experts!

 

 

January 08, 2009

FHA Loans Becoming More and More Popular

With the collapse of the subprime mortgage market, Federal Housing Administration (FHA) loans have emerged as the most viable mortgage option for prospective borrowers with imperfect credit.FHA loans have become attractive to homeowners because of the low down payment requirement (only 3.5 percent of the home's assessed value). Lenders are equally drawn to these loans because the FHA will pay a claim to the lender should the homeowner default on his or her loan. The National Association of Realtors (NAR) has predicted that FHA loans will increase from 4 percent of all mortgages signed between 2003 and 2006 to as many as 25 percent of mortgages signed in 2009.

While FHA loans were created during the Great Depression primarily to help people with low income borrow money to purchase a home, recent changes in FHA loan guidelines have enabled middle and upper income borrowers to qualify as well. In an effort to promote growth in the housing market, the government has increased the FHA loan limit that the FHA will insure from $271,050 in low-cost areas to a maximum of $625,500 in high-cost areas. The 2008 Economic Stimulus Bill signed by President Bush had increased the maximum limit for high-cost areas to $729,750 but this expired at the end of the year. However, the new maximum limit of $625,500 still represents a 72 percent increase from the previous maximum limit of $362,790 established before the Stimulus Bill was passed

Check Loan Limits: FHA loan Limits | Conforming Loan Limits

Highlights of rules of the FHA loan program:

  • FHA loans can only be obtained through an FHA-approved lender. If a lender doesn't prominently display the fact that they are FHA-approved, call the state banking department to inquire about the lender's status.
  • The down payment requirement is only 3.5 percent of the house's assessed value.
  • The homeowner has the option of deferring the down payment to a family member, employer, local charity, or local government program in the form of a gift payment.
  • Although there is no minimum credit score requirement mandated by the FHA, some lenders opt to impose a minimum credit score prior to loan approval. Make sure you ask lenders about their FHA credit score policies, if any.
  • Bankruptcy/Foreclosure: You can obtain an FHA loan two to three years from the date of your bankruptcy discharge or foreclosure, as long as you've maintained good credit since your debts were discharged.
  • You must show verification of at least two years of employment. Your mortgage payment must be less than 31 percent of your income, and your total debt (mortgage, car loans, etc.) must be less than 43 percent of your income.
  • Due to the lower down payment relative to conforming loans that traditionally require a 20 percent down payment, FHA loan borrowers pay a higher mortgage insurance premium. The FHA will not help you make your mortgage payments but you can speak to a FHA loan advisor to craft an alternate payment plan if you are in dire economic straits

*If you would like to speak to a FHA-approved lender today, call 877-868-2503 to speak with one of our mortgage experts!

 

 

December 28, 2008

New website on FHA Loan Limit Launched

Total Mortgage Services is excited to announce the launch of this new website that is aimed to educate our borrowers about the requirements and limits for conforming loans or jumbo loans and FHA loans.

Tools at the user's disposal include: listing of current mortgage rates, mortgage calculator, FHA loan limit finder, Jumbo loan limit finder, and a live chat feature with mortgage loan experts.

The live chat feature will enable the user to address his or her questions and concerns to a mortgage loan expert who will deliver a rapid, customized response. Total Mortgage's loan experts understand the need to provide assistance with a personalized touch given that no loan situation is the same across different borrowers.

If you wish to speak to an expert, you can call 800-224-0834 to lock in today's low rates or apply now by clicking here.

 

 

December 09, 2008

New Mortgage Calculators Launched

On our website, we've added two new tools on our "Rates" section. In addition to the mortgage calculators, which allow our users to assess the effects of different variables when buying a home, we now offer specific information on current conforming loan limits and FHA loan limits.

Current Conforming loan limits

A conforming loan is a mortgage loan that is below the guideline limits set by the U.S. government. If the loan meets the government's requirements, Fannie Mae and Freddie Mac will then have the ability to buy the loan. This limit in the amount a person can borrow will vary depending on geographical location and personal circumstance. As a general rule of thumb, any loan that exceeds the conforming loan limit in a given area is known as a non-conforming or jumbo loan. To learn more about eligibility requirements or other matters pertaining to a conforming loan, call 1-877-868-2503 and speak to a mortgage professional now!

To view conforming loan limits in your area, simply enter your county, state, and property type (e.g. Single Family Home, Two Family Home, Three Family Home, etc.) on our "Conforming loan limits" page.

Current FHA loan limits

What is a FHA loan? A FHA mortgage loan is a mortgage loan that is insured by the Federal Housing Administration. These loans are issued by federally qualified, private lenders.

FHA's mortgage insurance programs help lower income families become homeowners by lowering some of the costs of their mortgage loans. Advantages of an FHA loan include a lower down payment and monthly payment than conventional loans. People who don't have perfect credit or have faced bankruptcy or foreclosure in the past can also qualify. There are still eligibility requirements that must be met depending on the type of the property and whether or not it is a primary residence. To learn more about eligibility requirements or other matters pertaining to a FHA loan, call 1-877-868-2503 and speak to a mortgage professional now!

Note: On March 6, 2008, President Bush unveiled the "FHA Forward" program which is designed raise the loan limits for FHA loans.

To view FHA loan limits in your area, simply enter your county, state, and property type (e.g. Single Family Home, Two Family Home, Three Family Home, etc.) on our "FHA loan limits" page.
Similarly, current conforming loan limits are searchable at "Conforming Loan Limits" page.

Call a Total Mortgage expert now at 877-868-2503 to find out how we can customize a mortgage loan with some of the lowest current mortgage rates for you.

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