The 5 Ugly Lies of a Reverse Mortgage Rated: PG-62

As with many financial products, reverse mortgage loans can be complicated and there may be a number of misconceptions about how the product works. Do you know the myths vs. the realities?

Ugly Lie # 1

The Lender Owns the Home

Truth: You will retain the title and ownership during the life of the loan, and you can sell your home at any time. The loan will not become due as long as you continue to meet loan obligations such as living in the home, maintaining the home according to the Federal Housing Administration requirements, and paying property taxes and homeowners insurance.

Ugly Lie #2

The Home Must Be Free And Clear of Any Existing Mortgages

Truth: Actually, many borrowers use the reverse mortgage loan to pay off an existing mortgage and eliminate monthly mortgage payments.

Ugly Lie #3

Once Loan Proceeds Are Received, You Pay Taxes On Them

Truth: Reverse mortgage loan proceeds are tax-free as it is not considered income. However, it is recommended that you consult your financial adviser and appropriate government agencies for any effect on taxes or government benefits.

Ugly Lie #4

The Borrower is Restricted On How To Use the Loan Proceeds

Truth: The cash proceeds from the reverse mortgage loan can be used for any reason. Many borrowers use it to supplement their retirement income, delay receiving social security benefits, pay off debt, pay for medical expenses, remodel their home, or help their adult children. You have worked hard for this asset and prudence along with budgeting should be the proper approach to enjoying proceeds received from your reverse mortgage.

Ugly Lie #5

Only Poor People Need A Reverse Mortgage

Truth: The perception of the reverse mortgage as an assist for the “poor” borrower is changing -many affluent senior borrowers with multi-million dollar homes and healthy retirement assets are using reverse mortgage loans as part of their financial and estate planing, and are working closely in conjunction with financial professionals and estate attorneys to enhance the overall quality and enjoyment of life.

To speak to a Financial Advisor that I personally trust, contact him here:

Jake Greenberg ♦ jake.greenberg@lpl.com ♦ 714-597-6510

Financial Advisors Network, Inc.

http://www.financialadvisorsnetwork.net

For more information regarding reverse mortgages, visit us at http://www.acchomeloan.com, or contact me at jeremiah@acchomeloan.com or call  me directly at 949-330-7058

Make it a great day! 🙂

Jeremiah Berry

jeremiah@acchomeloan.com

949-330-7058

Don’t Be Surprised!

I haven’t recently counted how many documents have to be completed, reviewed, and signed to complete a home loan, but it has to be approaching 100+.  When you consider how many fields of data this encompasses it is probably approaching 300+.  Anytime that much information is being gathered, analyzed, and triple-checked for accuracy, there are bound to be some challenges.  Here are some of the top things for borrowers to be aware of so that there are no surprises… Read More

For more information, please visit http://www.acchomeloan.com or contact me at jeremiah@acchomeloan.com – 949-330-7058

Have a blessed day,

Jeremiah Berry

VA loans: Behind the Scenes

The official VA Home Loan was originally known in 1944 as the Servicemen’s Readjustment Act or (the GI Bill of Rights). This GI Bill became law by way of President Franklin D. Roosevelt signing it. The law provided United States veterans to purchase a federally insured or guaranteed home with no down payment. This zero down feature was designed to provide home ownership assistance for the millions of veterans and their families. It allowed the dream of home ownership to became a reality for veterans. This one act of signing the GI Bill contributed more than any other military program in history to the welfare of United States veterans and their families, thus allowing the nation’s economy to grow.

The VA home loan has been extremely popular and advantageous to the more than 29 million veterans and service personnel eligible for VA financing. The VA loan has eligibility requirements, which are defined as US veterans who have served on active duty and have an honorable discharge after serving a minimum of 90 days of wartime or a minimum of 181 continuous days during peacetime. The Department of Veterans Affairs has a two-year requirement if the US veteran enlisted and began service after September 7, 1980 or was an officer and began service after October 16, 1981. The requirements are different for National guards and reservists where there is a six-year requirement with certain criteria. In addition, there are specific rules concerning the eligibility of surviving spouses of veterans.

The Department of Veterans Affairs will guarantee a maximum amount of 25 percent of a VA home loan up to $104,250, which puts a limitation on the maximum loan amount to $729,750. The rule allows the Veteran to borrow the appraised value of the property (reasonable value accessed by the VA appraiser) or the purchase price, whichever is less, plus the VA funding fee of 2.0% of the loan amount (2.75% for reservists). All veterans must qualify financially and have good credit as defined by the VA, as they are not automatically eligible for the program.

Veterans Affairs (VA) guaranteed home loans are made by numerous private lenders, such as credit unions, savings & loans, banks or mortgage companies to eligible US veterans for the purchase of a single family (1-4 unit) home. The veteran must use the property for his or her own personal occupancy. The VA home loan guaranty means the lender is protected against loss if you or a later owner fails to repay the loan. The money charged for the funding fee allows the VA to guaranty and protect the lender from the first 25 percent of the value of the home. This guaranty allows you to obtain favorable financing terms.

Thank you to all of those who serve us!

Jeremiah Berry

American Capital Home Loans

949-330-7058

jeremiah@acchomeloan.com

“Here’s Gold”, “Thanks, but I don’t want it”

How many of you would take the gold that someone offered you and bury it under your house and never touch it? Sounds ridiculous, right?

Unfortunately, the more veterans I talk to, the more I realize that a lot of them have never used their VA loan benefits!

In the OC, you can get a VA loan on a Single Family Residence up to $675K! No down payment!

There are usually a couple of different people out there when it comes to VA loans. There are those who have used their VA loan benefits and those who haven’t.

If you are in the first category, you understand the benefits to you as a veteran compared to the rest of us civilians. You get a better deal for sure.

One of the huge benefits of being a veteran is being able to qualify for a loan with $0 down! With benefits like that, you would think that everyone would use their VA loan benefits, however there are still some out there who haven’t. If you haven’t yet, then now is the perfect time to take advantage of them. With rates and house prices being so low, you can get set up in a loan with little hassle.

If you know someone who is military, please forward this to them too, so that they can get started on setting up their future as well.

Why wouldn’t you want to find out what you could do. Give me a call at 949-330-7058 or email me at jeremiah@acchomeloan.com to find out what we could do for you or what amount we could prequalify you for.

Thank you for your service and allow me to serve you.

Jeremiah Berry

American Capital Home Loans

Why so tough?!

 

Some people are waiting to see how things pan out with our country before they refinance, because of the possibility of things getting better. Big gamble? Possibly.

Check out this video

Congress is getting ready to pass a bill to make FHA standards tougher, as well as institute legislation for removing LOs that have early FHA defaults.

Best Regards,

Jeremiah Berry

http://www.acchomeloan.com

jeremiah@acchomeloan.com

949-330-7058

Superman & a Fist Full O’ Cash!

What does that title have to do with lending or homeownership? The point is, security can save you some money! Want to save money on Homeowner’s Insurance? This article shows you how, by adding some security. Enjoy! 🙂

With the cost of homeowners’ insurance policies rising each year, everyone who owns a home welcomes anything they can do to mitigate this cost. One of the easiest ways to lower your monthly insurance bill is to install a home security system. Most insurance companies will give you an automatic discount if you add such a system. These discounts are often substantial, up to 15 to 20 percent. But why is adding a security system beneficial to the insurance companies…and to you? Below are just a few ways:

1. Alarm systems as a deterrent. Just having an alarm system sign in your front yard or an alarm company decal in the corner of your window is often enough to make a burglar pass by your house in favor of the house down the block.

2. Direct connection to law enforcement. Most alarm systems are tied directly to the local police station. If your alarm is triggered and the alarm company is not able to reach you via telephone, then a cruiser is dispatched to your home. This way your house is monitored even when you’re at work or on vacation.

3. Fire monitoring. Another benefit of a home house security system is fire monitoring. This means that the system is connected to your home’s smoke detectors and the fire department is alerted and dispatched in the event of an alarm (when they cannot reach you or you tell them there is an emergency.) This instant response can save thousands of dollars in fire damage and even save your house entirely.

Read More

“Never a loan”

What is the loan process like and how can I make it as quick and painless as possible?

I get asked this question so many times throughout the day and I think Brett highlights some good points to make the transition as smooth and painless as possible. Enjoy the clip!

http://bit.ly/NZEAjA

Can Eggs Make You Stronger???

I am an avid lover of eggs and when I came across this article, it gave me that much more reason to go out, buy a few chickens and eat more eggs! Enjoy!

I’m nearly 4 weeks into my eggsperiment. As promised, I’ve consumed three eggs every day without fail. The process has led to many expected changes to my life. While I had hoped to eat my eggs at the same time each day, the timing of my consumption has been anything but predictable.  My preference is to enjoy eggs for my first meal, but sometimes my schedule doesn’t agree, which means I down my daily quota in the late afternoon or for dinner. (Note: Eggs for dinner might be one of the most underrated late-night meals: Quick, cheap, easy to make, and surprisingly filling.)

Other aspects have been somewhat surprising. Despite some concerns, I haven’t had any…err…ummm…”digestion” issues. (Much to the relief of my wife) But the best thing has been my recent surge in the gym.

I’ve been much stronger in my training since I began the eggsperiment. Keep in mind any assumption is just a correlation, so please don’t jump to any unnecessary conclusions. However, it’s been interesting to note the recent improvements. And remember, I haven’t changed anything else in my diet. My macronutrients (proteins, carbs, fats, and overall calorie intake) have remained consistent, and I’m still pushing along with the same training plan. And yet, each lifting session is better than the last. To be completely honest, I expected a drop in my training: I’ve been sleeping less (March is a busy month) and sitting more during the day. (did I mention March is a busy month?)

The reason for my performance boost? I honesty have no clue. But if I had to hypothesize how eggs could be playing a role, this is how they might help:

We all know that eggs include protein, but the yolk contains a nice dose of leucine–the muscle building, recovery boosting branched chain amino acid. In fact, a study published in Nutrition Today found that eating eggs is correlated with increases in strength while on a weight training program. While my protein levels have remained consistent, maybe a little extra leucine has done my body good.

Read more: http://www.livestrong.com/blog/can-eggs-make-you-stronger#ixzz24xpkhWxO

Get a huge tax break next year!

Buy a home! Seriously!

I found this article online and I think it highlights some things to consider regarding taxes when thinking about buying your home this year. Enjoy!

Buying your first home is a huge step. When you leave the world of renting behind, you begin building equity in real estate. And Uncle Sam is standing by to help ease the pain of high mortgage payments.

The deductions available to you as a homeowner will likely reduce your tax bill substantially. And, if you have been claiming the standard deduction up until now, the extra write-offs from owning a home almost certainly will make you an itemizer. Suddenly, the state taxes you pay and your charitable gifts will earn tax-saving deductions, too.
Mortgage interest. For most people, the biggest tax break from owning a home comes from deducting mortgage interest. You can deduct interest on up to $1 million of debt used to acquire your home. Your lender will send you Form 1098 in January listing the mortgage interest you paid during the previous year. That is the amount you deduct on Schedule A. Be sure the 1098 includes any interest you paid from the date you closed on the home to the end of that month. This amount is listed on your settlement sheet for the home purchase. You can deduct it even if the lender does not include it on the Form 1098. If you are in the 25% tax bracket, deducting the interest basically means Uncle Sam is paying 25% of it for you. A $1,000 deduction will reduce your tax bill by $250.

Points. When you buy a house, you usually have to pay “points” to the lender to get your mortgage. This charge is usually a percentage of the loan amount. If the loan is secured by your home and the number of points you pay is typical for your area, the points are deductible as interest if you paid enough cash at closing — via your down payment, for example — to cover the points. For example, if you paid two points on a $300,000 mortgage — $6,000 — you can deduct the points as long as you put at least $6,000 into the deal. And, believe it or not, you get to deduct the points even if you persuaded the seller to pay them for you as part of the deal. The deductible amount should be shown on your 1098 form. (A different rule applies if you pay points to refinance a mortgage. In that case, the expense must be gradually written off over the life of the new loan – 1/30th a year on a 30-year loan, for example. And it’s up to you to remember to take the deduction each year. The lender will not remind you.) Real-estate taxes. You can deduct the local property taxes you pay each year, too. The amount may be shown on a form you receive from your lender, if you pay your taxes through an escrow account. If you pay them directly to the municipality, though, check your records or your checkbook registry.

Read more: http://www.kiplinger.com/features/archives/2007/01/firsthome.html#ixzz24rX5j6bk

Purchase a Foreclosed Home? But what if it’s in bad condition?

Looking to Purchase a Foreclosed Home? Here is an option

FHA Streamlined 203K Rehabilitation Loan Program

Perfect for purchasing foreclosures!

Streamline 203K loan allows for a wide variety of home improvements to be performed on a home. The program is primarily intended for simple repairs, light remodeling, and upgrades (including money saving energy efficient upgrades), not for major remodeling projects.

Get up to $35,000 out to put towards the following:

•Repair, replace, and upgrade roofs, gutters and downspouts
•HVAC systems (heating, vacuum, and AC)
•Plumbing and electrical systems
•Flooring, exterior decks, patios, and porches
•Minor remodeling that does not involve structural repairs
•Interior and exterior painting
•Weatherization, including doors, windows, insulation, stripping, etc
•Appliance purchase & installation (ie kitchen appliances)
•Energy efficient upgrades
•Lead-based paint removal & stabilization
•Exterior wall re-siding and more!

If you’re looking to purchase or refinance your home, e-mail me at jeremiah@acchomeloan.com or call at 949-330-7058 and we will give you some options, even though you may think you have none. Never hurts to ask! 🙂