News Wire: Changes to State Down Payment Assistance Programs

I'll make this short...

Last Friday the state's homeownership department (CalHFA) announced some significant changes to some of their down payment assistance programs. Here are the changes and what they mean:

• The maximum loan amount for CHAP has been decreased from three percent (3%) to two percent (2%) of the lesser of the sales price or appraised value.

• CHAP now can only be used in CHAP designated areas

• CHAP cannot be combined with a HiCAP second loan

• CHAP can be used with CalHFA conventional loans; including, interest only, 30-year fixed and 40-year fixed)

• CLTV cannot exceed 102% for CHAP and CHDAP

• Maximum HiCAP loan amount has been changed from $7,500 to four percent (4%) of the lesser of the sales price or appraised value

• HiCAP cannot be combined with CHAP

• HiCAP cannot be used in conjuction with an FHA-insured first mortgage loan

Source

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What You Need to Know About Credit

Why is Good Credit Important?

The difference between a 700 FICO score and 698 is one-half percentage point. Meaning, on a $165,000 30-year fixed rate mortgage, that half point could cost you more than $19,000 in interest charges, assuming 6 percent is the lowest rate available.

Having good credit and strong FICO score makes all the difference between getting a good deal or bad one - or even none at all. Here are some facts that you should be aware of:

• A typical credit card purchase ends up costing 112 percent more than if cash were used.


• Your debt payments are reported to creditors once a month. While you might be able to get away with being 30 days late with some lenders, all lenders will turn their heads if you're 60 or more days late.


• Lenders typically don't want to see no more than 3 - 4 open credit cards. If you must, then close the most recent card(s) first. But always pay off your outstanding debt before closing.


• Before you apply for a mortgage be sure you're not spending over 30% of the maximum balance on your credit card(s). To figure this out, simply multiply your maximum limit by 0.3. That will be the number you shouldn't go over. Example: Discovery card has a maximum limit of $3,000. You have a current balance of $1,500. You should not spend over $900 (3,000 x 0.3).


• It is possible to improve your credit score by 20 points in 60 days.


• Any time you apply for a mortgage or car loan a tri-merged credit report is pulled. This has a negative impact on your FICO score, which is why you should keep your loan shopping condensed to five days if you know you will be applying more than once, rather then spread throughout the month. This way you will only get "hit" once, instead of for each time you your credit was pulled.

• Just because negative information no longer shows up on your credit report after 7 - 10 years, that doesn't mean it isn't affecting your score. Don't try to "wait out" your debt.

• To be eligible for government-backed subsidy programs (downpayment assistance), you must have a FICO score of at least 620.
  
  

Finalmente Justo

Una Organización Comunitaria responde a Prestamistas Predatorios

October, 2007

Considerando la reciente onda de juicios hipotecarios que le han hecho perder tanta gente su casa a lo largo de California y la nación entera, no es una sopresa que muchas compradores de casa potenciales han echado un paso para atrás.

Y el hecho de que mayormente latinos y afroamericanos engrosan la lista de víctimas afectadas por hipotecas de alto riesgo solamente fortalece aquel temor. Vea en las noticias y le saldrán tantas historias de familias, recien dueños de su propia casa, perdiendo su hogar, su inversión, y su sueño de regalar una casa a sus niños. Es bastante para desalentar a compradores potenciales y los que ya tengan hipotecas infavorables.

El problema reside en la realidad que no hay protección para las personas, de mal crédito y poco ahorros y aún más poco opciones, a quien se tentan con una tasa baja a aceptar préstamos hipotecarios de alto riesgo. Los prestamistas predatorios lo saben y por eso se aprovechan de ésa vulnerabilidad que tienen muchos con esperanzas de tener una casa. Luego compradores de casa se encuentran en situaciones dificiles una vez la hipoteca riga una tasa más alta, entonces se hacen inmanejables los pagamientos de préstamo. Toma en cuenta que los prestamistas se muestran una vez más y más renuentes a ortorgar hipotecas y comprenderá las dificultades que se enfrenta.

Ahi entra el Centro Comunitario para Recursos Financieros (CFRC en siglas ingles) una organización sin fines de lucro que provee seguras alternativas para financiar casas. Con sede en el centro de Los Angeles, CFRC haya sido un centro de recursos financieros para muchas familias y negocios de comunidades descuidadas los angelenas. Nota que los precios para prestamos están en alza aunque hay una sobreoferta de viviendas – otra amenanza a compradores prospectivos.

"la educación es clave"

A lo largo de la nación organizaciones como CFRC han empezado a responder; ofreciendo soluciones convenientes a personas con opciones escasas. Bajo su Programa para Nuevas Compradores de Casa CFRC ofrece dos nuevos productos hipotecarios que se esperan ser el primer fase bajo el programa. Los préstamos son únicos porque están específicamente dirigidos para personas con crédito dañado y pocos fondos. Después del cierre del préstamo el comprador tiene que pasar por educación con un consejero financiero sobre las condiciones del préstamo. La organización espera atraer familias y individuos con tasas fijas competitivas de interés también la seguridad de una organización que está en el negocio de cuidar a los comunidades descuidadas. CFRC quiere que nadie se quede en cero porque encuanto a los prestamistas predatorios la educación es clave.

Por Hassan Nicholás