The basic requirements of a FHA streamline refinance are:
The mortgage to be refinanced must already be FHA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
Lenders may offer streamline refinances in several ways. Some lenders offer “no cost” refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.
Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal.
Contact your lender to get started.

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There are several ways to do this. You can purchase a credit report from one of the three national credit reporting agencies: Equifax, Experian and TransUnion. They also offer extra services for a price, where you can get regular reports on your credit.

Better yet, you may be entitled to a free credit report every twelve months from each of these three agencies. To request your credit reports, visit http://www.annualcreditreport.com/. At this site, you can learn how to get your free credit reports. You might also want to visit the Federal Trade Commission’s web site for consumers at www.ftc.gov/bcp/consumer.shtm for information about free credit reports and for some good advice about your credit.

You may also contact an FHA approved Home loan lender Such as Home America Mortgage to receive a credit report and qualify for your new home purchase. The loan officer can review your credit report, qualify you for your new home purchase in minutes.

Get your credit report today!

Credit problems? An experienced loan officer has been trained to improve credit and may make suggestions to improve your ratings. They will work to hard to qualify you for a home loan that meets your needs.

The basic requirements of a FHA streamline refinance are:
The mortgage to be refinanced must already be FHA insured.
The mortgage to be refinanced should be current (not delinquent).
The refinance is to result in a lowering of the borrower’s monthly principal and interest payments.
No cash may be taken out on mortgages refinanced using the streamline refinance process.
Lenders may offer streamline refinances in several ways. Some lenders offer “no cost” refinances (actually, no out-of-pocket expenses to the borrower) by charging a higher rate of interest on the new loan than if the borrower financed or paid the closing costs in cash. From this premium, the lender pays any closing costs that are incurred on the transaction.
Lenders may offer streamline refinances and include the closing costs into the new mortgage amount. This can only be done if there is sufficient equity in the property, as determined by an appraisal. Streamline refinances can also be done without appraisals, but the new loan amount cannot exceed the original loan amount. Investment properties (properties in which the borrower does not reside in as his or her principal residence) may only be refinanced without an appraisal.
Contact your lender to get started.

Free on-line Quote!

Adjustable Rate Mortgage: A loan that adjusts on a regular schedule based on a national economic index and the lender’s margin. Also called “variable rate mortgage.”

Amortization: The process of paying off a loan with regular payments over a fixed time period.

Amortization Schedule: A timetable/ schedule for payments of the mortgage term showing the amount of each payment that is applied to interest, and principle.

Application Fee: A one-time fee charged by a lender for processing a borrower’s application for a mortgage loan. The application fee may cover the administrative cost to extend the loan.

Appraisal: A professional opinion of the market value of a property. Most lenders will use an appraisal to determine the home’s value which may affect the loan to value for refinances. An appraisal will also be completed to determine whether a purchase price is supported by the market value.

Appreciation: An increase in the value of a house due to change in market conditions, home improvement or other factors.

Assessed value: The taxable value placed on a home by a public tax assessor. The assessed value is determined yearly for the purpose of determining property taxes.

Asset: Anything an individual owns that has commercial or exchange value. Home loans may require a reserve called liquid assets such as: Checking, Savings, 401K, retirement accounts, IRA, investments, etc… An asset has a convertible to cash value.

Assumable Mortgage: A loan that can be taken over, or assumed, by a buyer when the home is sold. A potential applicant may ask the current lender whether the loan may be assumed.

Automated underwriting: A computer-based method enables mortgage lenders to process loan applications more quickly. Lenders will use several factors to determine the willingness to repay using credit scores, and other loan application data to make a recommendation on whether or not to extend a mortgage loan. Many factors will determine an approval such as income, credit, property to loan value, liquid assets, payment history, work history.

B

Balloon Payment Mortgage: A loan with fixed monthly payments based on a 30-year schedule of payments, but the entire balance of the loan comes due at the end of a set period, usually five, seven or ten years. This is an alternative to an ARM loan. These loans generally have a lower than par rate. This option is for people who are going to sell, pay off or refinance before the balloon is due.

Bank: A depository institution chartered under federal and state regulations that offers services such as checking accounts, savings accounts, consumer loans, safe-deposit boxes, investment services and automatic payment of bills.

Bankruptcy: A legal proceeding declaring that an individual is unable to pay debts, which may release the person from repaying debts owned. Chapter 7 clears all debts, and a chapter 13 is a repayment plan of selected debts.

Borrower: The person who obtains a mortgage loan. The borrower is generally referred to as the “mortgagor” on mortgage paperwork.

Budget: A financial plan for spending and saving money. A budget is also referred to a “spending plan.”

Building Permit: A written permit that must be purchased from the local government by anyone doing new construction, remodeling or rehabilitation work on a property. Every major remodeling project should take a building permit in order to record the improvements. This may increase the accuracy of an appraisal’s market analysis.

Buy-Downs: Points a borrower pays a lender in advance to obtain a lower interest rate. One point is equal to 1% of the loan amount.

Buyer’s Agent: A real estate professional that enters into a contract of agency relationship with a buyer, and typically gets paid by splitting the sales commission with the selling, or listing agent. A buyer’s agent may work towards their client’s interest. Review your Realtor’s agreement to clarify your real estate agent’s interests.

C

Cap: The maximum amount an interest rate can increase or decrease in a designated period of time (interest rate cap) or over the life of the loan (lifetime cap) on an adjustable rate loan.

Capacity: An applicant’s ability to earn enough income to make the new mortgage loan payments and still pay all other living expenses. Capacity is one of the “4 Cs of credit.”

Capital: The funds that potential homeowners have available for the upfront costs of homeownership, such as the down payment, taxes, insurance, and closing costs. Capital is one of the “4Cs of credit.”

Cash-Out Refinance: When an owner refinances a loan and takes equity out as cash. Most cash out loans are used for debt consolidation to lower overall monthly expenses.

Cash Reserves: Assets required for many lenders’ loan programs, borrowers have sufficient cash remaining after closing to make several mortgage payments. Many programs require 2-3 or more months in reserves to pay the principle, interest, taxes, insurance, and all monthly obligations.

Chapter 7 Bankruptcy: A form of bankruptcy that involves total liquidation of assets. May be referred to as “straight bankruptcy.”

Chapter 13 Bankruptcy: A form of bankruptcy that involves a wage earner repayment plan.

Charge Off: An accounting term to indicate that the creditor does not expect to collect the balance owed on an account. However, most creditors will continue to pursue collection of the debt. The creditors will sell these accounts to other collection companies which may validate the debt as new. Many borrowers may settle these debts to the collection company in full or may negotiate a lower percentage to settle the debt.

Chattel: A loan secured against personal property, which is common in the financing of manufactured homes.

Clear Title: A title that is free of liens and legal questions on the ownership of the property.

Closing: The final steps in the transfer of property ownership, which usually occurs at a formal meeting between the buyer, seller, settlement agent, and possibly real estate agents, where the buyer signs the mortgage and mortgage note, the seller receives payment for the property, the buyer and/or seller pay closing costs, and the title is transferred from the seller to the buyer. Also called “settlement.”

Collateral: Expenses accepted as security for a loan, or one of the “four Cs of credit” that measures the value and condition of the house to make sure it is worth at least as much as is being borrowed.

Collection Amount: A delinquent account that has been transferred from a routine debt to a collection department of the creditor’s firm or to a professional debt collection firm.

Commission: The fee a real estate agent is paid for helping to sell a house that is usually based on the purchase price of the home.

Commitment Letter: A formal offer by a lender stating the terms under which it agrees to loan money to a homebuyer. This is different than a prequalification letter. The borrower has sent in financial, credit, or additional documents that have been reviewed and approved by the lender.

Community Reinvestment Act (CRA): A federal law that encourages lenders to meet the credit needs of their local communities.

Comparative Market Analysis (CMA): A written analysis of comparable houses currently being offered for sale and comparable houses sold in the past six months. These reviews are based on similar factors such as, square footage, similar sales within 1-3 miles of subject property, year built, and current market conditions. This is not a replacement for an independent appraisal.

Condominium: A home that is attached to other homes and shares common areas that everyone in the building or development owns together and maintains through a homeowner’s association fee.

Consolidation Loan: A loan used that combines payments of separate bills into one loan payment.

Contingency: A condition put in an offer to buy a home.

Contract for Deed: A type of seller financing where the buyer makes the down payment and installment payments to the seller, but there is no transfer of title for the borrower to own the house until the loan is fully pad or the property is refinanced.

Contractor: An individual who is hired to build or rehabilitate a property.

Conventional Mortgage: A loan made by for-profit lenders and not insured by the federal government.

Cooperative: A type of group ownership where all members own the property’s living units and common areas by owning shares in the property.

Co-signer: A person who agrees to share credit responsibilities and repays the debt if the borrower defaults.

Counteroffer: A response from the seller changing some of the terms of an original offer.

Covenant: A specific agreement or regulation, which is legally enforceable and is transferred with the deed to the new owner, governing the use of a property. May be referred to as the “covenants, conditions and restrictions (CC & R), deed restrictions or restrictive covenants.”

Credit: The granting of money in exchange for a promise of future repayment, or one of the “four Cs of credit” that measures an applicant’s likeliness to repay a home loan based on how previous debts have been handled.

Credit Counseling: Advice given by professional counselors to inform people about how to use credit responsibly and how to get out of serious debt. Many credit counselors may be non-profit or for profit. Please refer to a local listing to determine which is right for you.

Creditor: Any person or business to whom the consumer owes money and who has the right to undertake legal action to attain money owed. Not all creditors report to local reporting authorities.

Credit Report: A “snap shot” in time or record that measures how a consumer has paid credit in the past. It maybe used as a guide to determine a potential homebuyer’s creditworthiness. Lenders may use a tri-merge credit report which includes the three largest credit reporting agencies.

Credit Reporting Agency: A company which gathers, files and sells information to creditors and others with a legitimate business purpose. Also referred to a “credit bureau.” Many lenders use the three major credit reporting agencies.

Credit Score: A numerical value based on the analysis of a credit report that is used by creditors to predict how likely an individual is to repay a new loan.

Credit Union: A financial institution that is a cooperative and offers savings and checking accounts and other financial services for its members.

D

Debt: Money owed. Also called “liability.”

Debt Management Plan: A bill payment plan for a borrower in a credit emergency that is agreed to by the borrower and creditors. This plan may substantially affect credit ratings from the credit bureaus.

Debt-to-Income Ratio: The maximum percentage of a borrower’s gross monthly income that can be spent on the house payment and all other creditor debts. May be referred to as a “back-end ratio.”

Deductible: The amount of cash payment required by an insurance policy that is made by the homeowner to cover a portion of a damage or loss. Typically a higher deductible may lower the cost of the policy. Also called “out of pocket expenses.”

Deed-In-Lieu: An agreement where a delinquent borrower gives the lender the deed and keys and moves out of the property in exchange for forgiveness of the loan.

Deed of Trust: An alternative to a mortgage in some states, whereby a third party holds the deed of the property as security until the buyer repays the loan. Also called “trust deed.”

Default: Failure to meet financial obligations, which may result in the lender foreclosing on the loan.

Depreciation: A decrease in the value or property due to changes in market conditions, wear and tear on the property, or other factors.

Disclosures: Federal or state requirements to provide information about a property for sale, especially as it represents actual or potential defects or problems. Used in loan application process to inform borrowers of all terms and conditions related to obtaining a mortgage.

Document Recording: The process of recording certain documents and making them part of the public record that follows closing.

Down Payment: The amount of cash a borrower pays toward purchasing a home.

Dual Agent: A real estate professional who represents both the buyer and the seller in a single home purchase transaction.

Due-on-Sale Clause: A provision in a mortgage allowing the lender to demand repayment in full if the borrower sells the property securing the mortgage.

Duplex: A house divided into two living units.

E

Earnest Money: Funds that may be included with an offer to purchase to show good faith in following through with the transaction.

Easement: A right of way giving people other than the owner’s access to or over a property.

Encroachment: A building, driveway, fence or other structure that extends over the legal property line or beyond the buildable space of the lot.

Equal Credit Opportunity Act (ECOA): A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, national origin, age, sex, marital status or receipt of income from public assistance programs.

Equity: Ownership interest in an asset after liabilities are deducted, or the part of the house the borrower owns. This may increase or reduce based on market conditions of the property.

Equity Loan: A loan based on the borrower’s equity in the home. This loan may be either an adjustable rate revolving equity line. Which payments are determined on the outstanding balance. This may also be a 2nd mortgage that is fixed term and repayment schedule.

Escrow: The time period between when the purchase contract is signed and the loan closing.

Escrow Account: A special account set up by the lender to collect and hold monthly payment toward annual property taxes and homeowner’s insurance. Also called an “impound account.”

F

Fair Credit Reporting Act (FCRA): A federal law that enables consumers to learn what information credit reporting agencies has on file about them and to dispute inaccurate date in the file.

Fair Debt Collection Practices Act: A federal law that protects consumers from abuse or threats from collection agencies trying to get overdue payments.

Fair Housing Act: A federal law that prohibits discrimination in housing and real estate transactions.

Fair Market Value: The price a willing buyer will pay and a willing seller will accept for real property.

FHA Loan: A type of mortgage that is insured by the Federal Housing Administration, a department of the federal government.

Finance Charges: The total dollar amount charged to use credit, which includes interest and other costs.

Fist Mortgage: A home loan that has top priority over the claims of subsequent lenders for the same property in the event of default of the loan.

Fixed Expense: An expense that does not change from period to period, such as loan payments.

Fixed-Rate Mortgage: A loan where the interest rate remains the same over the life of the loan.

Flood Insurance: A policy required by a lender if a buyer’s house is located in a flood zone.

Forbearance: The legal process used to force the payment of debt secured by collateral whereby the property is sold to satisfy the debt.

For-Sale-By-Owner (FSBO): A home that is offered for sale without the use of a real estate agent.

Fourplex: A house divided into four living units. May be referred to as multi-family residence or apartment dwelling.

G

Gift Letter: A document that is required by a lender if a borrower receives a down payment from any individual as a gift.

Good Faith Estimate: A document that discloses anticipated settlement costs.

Graduated Payment Mortgage: A loan that starts out with lowers monthly payments, and then over a period of years, the payments go up slowly and then stay fixed for the rest of the loan.

Gross Income: Money earned before taxes are withdrawn. Net income is after taxes and deductions are subtracted.

H

Hazard Insurance: Insurance policy designed to protect the homeowner against physical damage to a property from fire, wind, vandalism and other hazards. Generally doesn’t cover flood. Most flood policies are separate from the hazard policy.

Home Equity Line of Credit: A type of home equity loan that allows the homeowner to access the loan money with checks or a credit card as needed. Equity lines are generally revolving for several years then have a repayment period.

Home Equity Loan: A loan based on the difference of the amount of equity paid on a home and the home’s current market value.

Home Improvement: Changes to a house that increases its value, such as modernizing a kitchen or adding a second bathroom to a three-bedroom home.

Homeowner’s Association: A group of homeowners within a defined community, neighborhood or complex who make decisions, pay to maintain and repair land and common areas and/or enforce community rules and covenants.

Homeowner’s Insurance: An insurance policy that combines liability coverage and hazard insurance. Home owner’s coverage is generally required by lenders while financing is on the property. Flood insurance is generally a separate policy to be paid if you are in a flood zone.

Home Warranty: A guarantee for certain features of a new home, such as the materials, workmanship and/or its main components.

Home Warranty Policy: An optional policy that protects a homeowner against the cost of high repair bills for one year if the heating, plumbing, air conditioning or appliance break down.

Housing Inspection: A professional opinion of the structural soundness of a property. May be performed by a licensed inspector and may cover several topics such as, electrical, structural, physical defects in the subject property.

Housing Ratio: The maximum percentage of a borrower’s gross monthly income that can be used to make the monthly mortgage payments. Also called “front-end ratio.”

HUD-1 Settlement Statement: A final statement listing all of the costs of the sale of a property and who pays for them.

I

Index: A published market index rate tied to an economic indicator that is used to calculate the interest rate of an adjustable rate mortgage at origination and at each adjustment period.

Individual Development Account: A type of matched savings account, offered in some communities, for people whose income is below a certain level.

Installment Loan: A credit account in which the amount of the payment and the number of payments are fixed.

Interest: The cost of borrowing money.

Interest Factor: The cost for borrowing $1,000 of a mortgage loan based on interest rate and term.

Interest Rate: The percentage of a loan amount charged for a loan.

Interest Rate Lock-In: A written guarantee that a buyer will receive a specified interest rate from a lender, provided that the loan closes within a set period of time.

J

Joint Tenancy: A form of ownership, where two or more people have an equal and undivided interest in the property.

Judgment: The official court decision of an action or suit that may be listed on a credit report as a public record.

K

L

Land Lease: When a person owns a house and rents the land beneath it.

Lease-Purchase Mortgage: A type of financing option that allows a potential homebuyer to lease a home with an option to buy, where each month’s rent payments include an extra amount that is deposited into a savings account to accumulate money for down payment and closing costs.

Lender: The entity or person who offers the mortgage loan. Also called a “mortgagee.”

Liability Protection: Insurance that covers people (other than the insured) and their personal property in cases of injury or damage while on the homeowner’s property.

Lien: A legal hold or claim of one person on the property of another as security for a debt or charge that may be listed on a credit report as a public record.

Listing Agent: A real estate professional that has a contract with the seller of a house to advertise the property for sale and represent the seller when offers are made. Also called “selling agent.”

Loan Term: The amount of time a borrower has to pay off a loan.

Loan-to-Value Ratio (LTV): The ratio of the loan balance to the appraised value of the house.

M

Manufactured Home: A home built entirely in a factory under
A federal building code administered by the Department of Housing and Urban Development that went into effect June 15, 1976. Also called “mobile home.”

Margin: The set percentage the lender adds to the index rate to determine the interest rate of an adjustable rate mortgage.

Mobile Home: A factory-built home built prior to June15, 1976.

Modular Home: Factory-built housing with onsite assembly and some onsite construction that is built to meet state and local codes and does not have a chassis.

Mortgage: A security agreement between the lender and the buyer in which the property is collateral for the loan. The mortgage gives the lender the right to collect payment on a loan and to foreclose if the loan obligations are not met.

Mortgage Bank: A type of financial institution that offers only mortgage financing.

Mortgage Broker: A company or individual that matched borrowers with lenders for a fee.

Mortgage Insurance (MI): A policy required by the lender if a borrower puts less than 20% cash down when buying a home with a conventional loan to protect the lender from collateral risk in case of default. Also called “private mortgage insurance (PMI).”

Mortgage Life Insurance: An optional form of life insurance that pays off a mortgage if the borrower dies.

Mortgage Note: A legal document obligating a borrower to repay a loan at a state interest rate during a specified period that is secured by a mortgage and recorded in the public records along with the deed.

Mortgage Payment: The total monthly loan payment known as principle, interest, taxes and insurance (PITI).

Multiple Listing Services (MLS): A service within a given community or area that allows real estate professionals to submit listings and agree to attempt to sell all properties in the service.

N

Negative Amortization: Payment terms under which the borrower’s monthly payments do not cover the interest due, and the loan balance subsequently increases. Loan programs that are offered under several names such as “Pay Option Arm,” “pick a payment”, “pick a pay”, “minimum payment option”, “deferred interest payment”.

Nontraditional Credit History: A record of credit performance shown with receipts and check stubs from payments to landlords, utility companies, child-care providers and other applicants who do not have a credit history from loans and other forms of credit.

O

Origination Fee: A fee that is charged by some lenders for submitting, processing and evaluating a proposed mortgage loan.

P

Partial Claim: When the mortgage insurance company lends delinquent borrower money to bring a loan current by making a second mortgage on the property.

Payment Plan: An agreement with a lender in which a borrower promises to make up any missed payments by sending one full payment and one partial payment each month until delinquent mortgage payments are caught up.

Planned Unit Development (PUD): A type of property that is part of a subdivision and has common areas that are shared with all residents and maintained through a homeowner’s association fee. Usually, the owner owns the home and the land on which it stands.

Point: A fee that is one percent of the loan amount.

Preapproval: A guarantee that a lender will loan a potential buyer a fixed amount as long as s/he buys a home within a certain time frame and the house appraises for the amount of money for which s/he qualifies.

Predatory Lending: A type of lending that falls between appropriate risk-based pricing and blatant fraud and combines certain products, terms, prices and practices.

Pre-Foreclosure Sale: When the lender agrees to allow a delinquent borrower to sell the house to avoid foreclosure.

Prepayment: Paying more each month than the amount of the mortgage loan payment to pay the loan off sooner and save money on interest charges.

Prepayment Penalty: Paying more each month than the amount of the mortgage loan payment to pay the loan off sooner and save money on interest charges. Many lenders will offer a lower rate in exchange for paying payments through a specific term but not exceeding a predetermined amount. Some prepayment penalty terms last 12-60 months based on lender’s terms.

Prequalification: The process used by lenders to calculate a potential buyer’s mortgage affordability, usually based on unverified information.

Prime Lending: Lending to borrowers with highly rated credit histories. Prime loans are often called “A” credits.

Principle: The outstanding balance of a loan, not including interest and other charges.

Promissory Note: A document in which the borrower promises to repay a loan. Also called “note.”

Property Tax: A tax charged by the local government and used to fund a variety of municipal services such as schools, police or street maintenance.

Proration: Certain items that are continuing expenses such as property taxes and homeowners association dues that must be distributed between the buyers and the sellers at the close of escrow.

Public Record: Information obtained by a credit reporting agency from court records, such as liens, bankruptcy filing and judgments.

Purchase and Sale Agreements: A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.

Purchase Offer: A purchase proposal to the seller of a house, telling the amount a certain buyer would pay for the house and other conditions that would have to be met before the proposed house sale.

Q

Quitclaim Deed: A deed that operates to release any interest in a property that a person may have.

R

Real Estate Broker: A real estate agent that is authorized to open and run his or her own agency.

Real Estate Settlement Procedures Act (RESPA): A lending regulation that establishes laws and procedures for closing mortgage loans. RESPA prohibits cost increasing practices, such as kickbacks and referral fees and requires advance disclosure of settlement costs.

Realtor®: A real estate agent or agency that belongs to the local or state board of Realtors® and has an affiliation with the National Association of Realtors®.

Redlining: An illegal practice of discrimination against a particular ethnic group by mortgage lenders who decide that certain areas of a community are too high risk and refuse to lend to buyers who want to purchase property in those areas, regardless of their qualifications or creditworthiness.

Refinancing: The process of paying off one loan with the proceeds from a new loan secured by the same property.

Remodeling: To rebuild and improve a house, often changing the house’s layout or adding rooms.

Replacement Coverage: An optional insurance feature available on both a house and its contents that pays to restore to its original condition if it is damaged or replace contents if they are lost.

Repossession: Property, such as a car that is taken back by the creditor when the borrower does not make payments due on the property.

Reverse Mortgage: A special type of home loan that lets an elderly homeowner convert the equity in the home into cash.

Revolving Account: A credit agreement that allows a borrower to pay all or part of the outstanding balance on a loan or credit card. As credit is paid off, it becomes available again to use for another purchase or cash advance.

S

Secondary Market: Investors who purchase residential mortgages originated by primary lenders, which in turn provide lenders with money for future lending.

Second Mortgage: A home loan that has rights subordinate to the rights of the first mortgage.

Servicing: The collection of payments and management of operational procedures related to a mortgage.

Settlement Statement: A document required by the Real Estate Settlement Procedures Act that is an itemized statement of services and charges relating to the closing or settlement of the property transfer. Also called “HUD-1 Settlement Statement” or “Uniform Settlement Statement.”

Single-Family Home: A type of property, usually detached, where one family owns the home and the land on which it stands.

Sole and Separate: A form of ownership where one individual owns the property.

Specifications: A detailed description of the size, shape, materials and other details of a building or remodeling project.

Subprime Lending: A type of lending that relies on risk-based pricing to serve borrowers who cannot obtain credit in the prime market, where higher degrees of risk for borrowers carry higher costs for loans. Subprime loans are often called “A- through D” credits.

Survey: A professional measurement of a property and the land around it.

T

Tenancy in Common: A form of ownership where two or more people own a property and can have different shares of ownership.

Title: A legal document establishing the right of ownership in a property.

Title Insurance: Insurance to protect the lender (lender’s policy) or the buyer (owner’s policy) against loss arising from disputes over ownership of a property.

Triplex: A house that has three living units.

Truth-In-Lending Act (TILA): A federal law that requires creditors to give complete and accurate information about the cost of credit to consumers and the terms of repayment.

Truth-In-Lending Statement: A document that discloses the terms and cost of a mortgage loan, including APR. Generally referred to as the “TIL.”

U

Underwriting: The process of analyzing a borrower’s finances in order to approve or deny a loan.

V

VA Loan: A loan that is guaranteed by the Veterans Administration, a department of the federal government.

Variable Expense: An expense that changes from period to period, such as utilities, food, clothing and entertainment.

Verification: The process of making sure that all of the borrower’s loan application information is accurate.

W

Walk-Through: A final inspection of the property by the buyer to determine that the property is as described in the purchase agreement, which is usually conducted right before closing.

Workout Agreement: The negotiated agreement that is made with the lender or servicer to address a debt by the homeowner in order to avoid foreclosure.

X

Y

Z

Zoning: A county or city law stating the types of use to which properties can be put in specific areas.

On-line- You may pull your credit reports on-line. You may obtain one free copy of all three credit reports on-line per year. There are also a host of sites that offer pay services to obtain, monitor, and perform on-line disputes. Some of the websites even offer fraud insurance protection in case of identity theft. I will list a company where you may obtain these services.

You will be asked to create a password for the site similar to e-mail and it will send you through each of the three credit bureaus. This is considered a promotional pull and doesn’t affect your scores. Keep in mind that the site will “offer” additional services for a fee or subscription. I recommend many of these services which may allow you to monitor your three bureaus daily. Many of the subscription services may allow you to have unlimited disputes on-line and streamline the credit dispute process for a fee. These companies allow you to have access to your reports.

Sites such as My Fico have free information on how credit scores are calculated, and offer great information that can be E-mailed to anyone wanting quick information on credit reports. They also offer pay services to obtain reports, monitor your scores, and ID theft protection. This is a great way to review your credit reports and approximate scores. However a lender will have to complete a tri-merge of all three reports for a loan application.

I do not believe in paying a “credit repair company” to “fix your credit”. There is no magic fix to a better credit report and scores. Please do not get scammed into paying a company hundreds and sometimes thousands of dollars for what you can do in 1/2 hour of your time.

You may print them out an have on-line access to them for 30 days. Generally after 30 days will be outdated and may remain viewable in the system without re-pulling a new report. Keep in mind that reports change daily including your credit scores. Make sure to print them out and review them for accuracy and highlight each of the items you wish to dispute. Keep in mind that the on-line dispute is limited to a few trade lines unless you opt for the additional services. You also may mail in a letter with the supporting documentation for numerous account disputes. The on-line dispute takes about 30 days and could take as long as 60 days to reflect the changes in your reports and scores. The bureaus will mail you an update of their findings.

Disputes included; removing incorrect items, correcting account balances or Paid status, or items that do not belong to you.

Dealing with collection companies-
Make sure to only dispute accounts that you know are incorrect to improve your scores. Otherwise you will re-report the derogatory item and change the reporting date which may negatively affect your scores.

Call any creditors directly to settle any outstanding accounts. I will cover how to negotiate collections in another post. Ask for a settlement letter that the company and you have agreed upon.

Very Important: Do not give the creditor your banking information and do not pay over the phone until you receive the settlement letter in writing VIA mail or fax stating the terms, and date of final payment to satisfy the debt completely. Then remit payment with a written letter stating that you want a written confirmation that the debt has been settled completely in full. This is the letter you will send into the credit bureaus. Keep in mind that these collections company’s buy your debt for $.01-$.99 on the dollar. Collection company’s will tell you what ever you want to hear to get your money. They will do whatever it takes to get your money. Do not send them a dime unless you get it in writing. If a customer service rep doesn’t help you. Call back and ask for a manager. Don’t take no for an answer. Remember get it in writing.
Collections companies can be; Third party companies, Law firms, Original creditors collection departments.

US Mail-
Include your information in your letter. Mail copies to all three Credit bureaus (Equifax, Experian, Trans-union) have to verify that you are you. The mailing addresses for dispute are located in your printed reports. So included the following information in your letter:

Date
Your Name
Your Address
Your City, State, Zip Code
Complaint DepartmentName
CompanyAddressCity, State, Zip Code

Dear Sir or Madam:I am writing to dispute the following information in my file. The items I dispute also are encircled on the attached copy of the report I received.
This item (identify item(s) disputed by name of source, such as creditors or tax court, and identify type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe what is inaccurate or incomplete and why). I am requesting that the item be deleted (or request another specific change) to correct the information.
Enclosed are copies of (use this sentence if applicable and describe any enclosed documentation, such as payment records, court documents) supporting my position. Please investigate this (these) matter(s) and (delete or correct) the disputed item(s) as soon as possible.
Sincerely,Your name

Enclosures: (List what you are enclosing)

Enclose copies of settlement letters and any other supporting documentation that will help your case. The credit bureaus can only correct or remove items with supporting documentation and will verify their validity in order to make the changes. This is why the dispute process takes 30-60 days. The creditors have 30 days to prove it or remove it. Keep accurate records of phone calls, letters, etc…

Rapid re-score-
Lenders may offer a pay service that allows “you” the borrower to fast track a re-score when you are in the process of a loan application. This could be crucial when it comes to a home loan and could make or break your approval. However the lender cannot guarantee that the disputed item will result in a better score or better approval. The lenders do not have control over the third parties or credit reporting bureaus. I definitely recommend asking for this service if there are enough derogatories that are affecting your new loan approval. Clearing the derogatories then moving forward will pay huge dividends over the life of your loan. This service could save you thousands.

Obtain your report on-line for a free home loan review now!

Higher scores may be the difference of obtaining a lower rate, reduce costs, documentation type, or a better program on all types of loans. You would submit the satisfaction letters to the lender and they will send in the information with the required fee in order to fast track a re-score. many lender have this service but do not publicize it. Lenders generally don’t want to become credit repair agencies and do not want to push a service they are not making money on since the fees are paid to the bureaus, or credit reporting companies. This re-score fee is generally paid by the borrower.

Merge reports-
Lenders may also have a quick additional report added to major bureau’s credit reports called a merge. This is when a third party will call to verify items such as; mortgage payment histories, collection account balance and status, and incorrect items. These are used strictly to underwrite the loan and do affect your actual credit report or credit scores. These reports are generally paid by the lender or may be a small fee to the borrower.

Please call Brian for details on credit reports, and credit bureau disputes. I have personally helped hundreds of people dispute incorrect information. Disputing information inaccuracies may increase borrowers credit scores and clean up their credit histories. If your collections are too large to pay them on your own. You may want to consider a refinance to pay off creditors, and collections. Then dispute them properly through the three credit bureaus in order to update the paid status, or remove them which may increase your credit scores.

Complete the on-line home loan analysis application. There is no obligation, and I will call you by phone, and E-mail you to discuss your financial & credit goals. We can review your credit report together and find ways to improve your situation.

Complete my Free on-line application for analysis!
Brian M. Schoedel
Home America Mortgage
239.298.1335

The following is a general list of exemptions available in Florida. Each taxpayer wishing to apply for an exemption should contact the county property appraisers office.

When to File-
Generally, initial application for property tax exemption must be made between January 1 and March 1 of the year for which the exemption is sought. Initial application should be made in person at the property appraiser’s office.

$25,000 Homestead Exemption-
Every person who has legal or equitable title to real property in the State of Florida and who resides on the property on January 1 and in good faith makes it his or her permanent home is eligible for a homestead exemption. If title is held by the husband alone, a wife may file for him, with his consent, and vice-versa. If property is held by the entireties, one spouse may file as agent for the other.

If filing for the first time, be prepared to answer these questions:

In whose name or names was the title to the dwelling recorded as of January 1?
What is the street address of the property?
How long have you been a legal resident of the State of Florida? (A Declaration of Domicile or Voter’s Registration will be proof of date before January 1.)
Do you have a Florida license plate on your car and a Florida driver’s license?
Were you living in the dwelling on January 1?

$500 Widow’s and Widower’s Exemption-
Any widow or widower who is a bona fide Florida resident may claim this exemption. On remarriage, the widow or widower is ineligible for the exemption. A person who is divorced before the spouse’s death is not considered a widow or widower.
$500 Disability Exemption-
A Florida resident who is totally and permanently disabled may qualify for this exemption.
$5,000 Disability Exemption for Ex-service member-
An ex-service member disabled at least 10% in war or by service-connected misfortune may be entitled to a $5000 exemption on any property owned by the ex-service member.
$500 Exemption for Blind Persons-
A Florida resident who is blind may qualify for this exemption. If claiming exemption based on blindness, the applicant must have a certificate of blindness issued by the Division of Blind Services of the Department of Education, the Federal Social Security Administration, or the Veteran’s Administration.
Service Connected Total and Permanent Disability Exemption-
An honorably discharged veteran with service-connected total and permanent disability may qualify for total exemption of homesteaded real estate used and owned as a homestead, less any portion used for commercial purposes. An existing exemption can be transferred to a new qualifying residence.Application must be made on the new residence and all other criteria met for the continued homestead exemption.
Under certain circumstances the benefit of this exemption can carry over to the surviving spouse.

If filing for the first time, bring proof of your service connected disability: such as, a letter from the United States Veterans’ Administration.
Exemption for Totally and Permanently Disabled Persons-
1.Real estate used and owned as a homestead by a quadriplegic, less any portion used for commercial purposes, is exempt from taxation.
2.Real estate used and owned as a homestead, less any portion used for commercial purposes, by a paraplegic, hemiplegic, or other totally and permanently disabled person, who must use a wheelchair for mobility or who is legally blind, is exempt from taxation.
A person seeking exemption under number 2 above must meet gross income limitations. Gross income includes veterans’ and social security benefits. The gross income of all persons residing in the homestead for the prior year cannot exceed $14,500. However, beginning January 1, 1991, the $14,500 limitation will be adjusted annually. The adjustment will be based on the percentage change in the average cost-of-living index of the immediate year compared with the prior year.
If filing for the first time, a certificate of total and permanent disability from two licensed doctors of this state or from the. For the legally blind, one of the two certificates may be from a licensed optometrist of this state.

Additional homestead exemption for persons 65 and older-
In accordance with s. 6(f), Art. VII of the State Constitution, the board of county commissioners of any county or the governing authority of any municipality may adopt an ordinance to allow an additional homestead exemption of up to $50,000 for any person who has the legal or equitable title to real estate and maintains thereon the permanent residence of the owner, who has attained age 65, and whose household income does not exceed $20,000.
Beginning January 1, 2001, the $20,000 income limitation shall be adjusted annually, on January 1, by the percentage change in the average cost-of-living index in the period January 1 through December 31 of the immediate prior year compared with the same period for the year prior to that. The index is the average of the monthly consumer-price-index figures for the stated 12-month period, relative to the United States as a whole, issued by the United States Department of Labor.Counties and municipalities offering the additional homestead exemption for persons 65 and older
Homestead Property Tax Discount For Veterans Age 65 and Older With a Combat Related Disability
This amendment provides a property tax discount on homestead property owned by eligible veterans. To be eligible, a veteran must have an honorable discharge from military service, be at least 65 years old, be partially disabled with a permanent service connected disability all or a portion of which must be combat-related, and must have been a Florida resident at the time of entering military service.
Homestead Tax Deferral-
A person who is entitled to claim homestead tax exemption may elect to defer payment of part of the combined total taxes. The combined total includes ad valorem taxes and any non- ad valorem assessments that would be covered by a tax certificate sold by the tax collector. An annual application for tax deferral should be filed with the county tax collector on or before January 31, following the year in which the taxes and non-ad valorem assessments are assessed. Approval of an application for tax deferral will defer the portion of property tax that exceeds 5 percent of the applicant’s household income for the prior year. If household income for the prior year is less than $10,000, all ad valorem taxes plus non-ad valorem assessments will be deferred.
A permanent resident of Florida 65 years old or older may defer that portion of the tax that exceeds 3 percent of the applicant’s household income for the previous year. If any applicant’s household income for the prior calendar year is less than $10,000, or is less than the amount of the household income designated for the additional homestead exemption pursuant to s. 196.075, and the applicant is 65 years of age or older, approval of the application shall defer the ad valorem taxes plus non-ad valorem assessments in their entirety.
For additional information as to the number of years, total amounts that may be deferred, and interest on deferred taxes, contact the local tax collector.
Installment Payment of Property Taxes-
Taxpayers who want to prepay property taxes on the installment plan should file an application with the tax collector by May 1 of the year in which the taxes are assessed. After submission of an initial application, a taxpayer is not required to submit annual applications as long as he continues to elect to prepay taxes by installments. For additional information as to discounts and payment dates, contact the local county tax collector. Effective January 1, 1993, county tax collectors may accept an installment payment of property tax on the next business day following the due date, if the last day for payment falls on a Saturday, Sunday, or holiday.
Personal Property
For purposes of property taxation, personal property is divided into these categories:
Tangible Personal Property - All goods, chattels, and other articles of value capable of manual possession whose chief value is intrinsic to the article itself. “Inventory” and “Household Goods” are expressly excluded from this definition.
Household Goods - Apparel, furniture, appliances, and other items usually found in the home and used for the comfort of the owner and family. Household goods are exempt from property taxation.
Inventory - Items of inventory are exempt from property taxation. Inventory generally means goods, wares, and merchandise held by a business for sale.
Some items of personal property are not taxable, for example, licensed motor vehicles, boats, airplanes, trailers, trailer coaches, and certain mobile homes as defined by law.
Taxable items are assessed at just value based on an annual return that must be filed by April 1 with the county property appraiser. The year of purchase, original cost, and the taxpayer’s estimate of just value is required on the return. The property appraiser has the duty to discover omissions and to place value upon personal property.
The amount of tax due is calculated by multiplying the value of the property by the tax rate set by the taxing authorities. The tax bill is mailed to the taxpayer, usually by November 1.
The payment must be made to the tax collector by April 1 of the following year. There are specific discounts allowed for early payment and penalties for delinquency, failure to file, and for unlisted property.
For more information about property taxes, contact your county property appraiser or tax collector or visit the link in Florida property appraiser post.

This plugoo buddy widget allows you to add an instant messenger to your website allowing a visitor to communicate directly to you while on-line. Instant messaging isn’t new but this plugoo widget’s features are new. It allows a casual web surfer/ potential client that visits your site talk with you directly. My plugoo is located on the down the left side of my site:

http://www.briansellsmortgages.com/

That’s something a regular instant messenger couldn’t do. This opens communication between strangers and cold open dialog to make a new contact or client. I was thought it could prove to be very useful for my mortgage clients that may have a question, want to know how to apply for a mortgage, etc…

However there is one catch. I have noticed that you have to physically login to your e-mail in order for my plugoo buddy to show that you are on and active “green”. I generally use my outlook and do not physically login. However, I am sure they will fix that soon too. So far I am learning of such great tools to help me build my site and a new way to generate some contacts from my site and generate business.

Brian M. Schoedel
briansellsmortgages@gmail.com
Loan Officer (see website for approved states)
Free home loan analysis Apply on-line!
Call me directly 239.298.1335