No matter where you live in Maryland, chances are that you have been wondering what you can do to save on your monthly mortgage payment. Saving on your monthly payment can be done by refinancing your house – pretty much everyone knows that much.

But what many people don’t know is that they can also save money each month by making sure that they have the lowest possible cost for homeowners insurance and that they aren’t paying too much in property taxes.

If you think you are paying too much in property taxes, then it is time for you to go to your county assessors office and find out how to dispute your assessed value of your home. It is usually relatively easy to do and will help you sleep well knowing that you are paying the right amount of taxes.

Once you are sure about your taxes, then it is time to get multiple homeowners insurance quotes and do all that you can to save money on homeowners insurance. Ask for discounts, make sure that your cars are insured with the same company, work with a Maryland home alarm company to install a home alarm and work with your agent to make sure that you are not paying too much for home insurance.

By making sure that you aren’t paying too much for taxes or homeowners insurance, you can be sure that you are doing everything you can to keep your monthly mortgage payment down and in today’s economy… every little bit helps.

There has been quite a bit of confusion lately as to whether or not the VA streamline refinance program requires a minimum credit score.

For years – and even today – the VA does not require that  a Veteran has a minimum credit score, but something in the last year has changed — some lenders are starting to require a minimum credit score.

And as you know, VA doesn’t actually lend you the money to buy a home, they only insure the loan. So if the actual lender that is lending you the money starts to have a minimum credit score requirement, then effectively what it does is put a minimum credit score requirement in place.

However, remember that each lender is different. If one particular lender requires a minimum credit score on a VA streamline refinance, it doesn’t mean that all lenders are, so be sure to shop around. If your loan officer tells you that he can’t help you with a VA streamline because your credit score doesn’t meet his minimum requirements, be sure to ask him if he knows of any other loan officers or lenders who can help you even if he can’t.

And because not all lenders are requiring a minimum credit score on a VA streamline refinance, you might be pleasantly surprised when he knows of a lender who can help you!

Mortgage Fraud: Not Worth It

Lately, it seems that there has been more than just a few headlines in the news regarding mortgage fraud – both right here in Maryland as well as in the national news. Because of the current housing crisis that the country is in, many people point to “mortgage fraud” as being one of the primary causes that caused the country to have the housing crisis. And although it may seem a little late, the regulatory bodies that regulate the mortgage markets have now started to crack down on mortgage fraud – and they are just now picking up steam.

From The FBI Website:

Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both. It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution.

Some of the applicable Federal criminal statutes which may be charged in connection with Mortgage Fraud include:

• 18 U.S.C. § 1001 – Statements or entries generally
• 18 U.S.C. § 1010 – HUD and Federal Housing Administration Transactions
• 18 U.S.C. § 1014 – Loan and credit applications generally
• 18 U.S.C. § 1028 – Fraud and related activity in connection with identification documents
• 18 U.S.C. § 1341 – Frauds and swindles by Mail
• 18 U.S.C. § 1342 – Fictitious name or address
• 18 U.S.C. § 1343 – Fraud by wire
• 18 U.S.C. § 1344 – Bank Fraud
• 42 U.S.C. § 408(a) – False Social Security Number

Mortgage Fraud in Maryland: It Still Happens

Some people think that mortgage fraud doesn’t really happen anymore, but it is alive and well. Chances are that some type of mortgage fraud is happening right here in Maryland, right now. If you or someone you know has witnessed any type of mortgage fraud, be sure to contact the FBI.

620 Credit Score Now Required By Virtually All Lenders

Yesterday, an announcement was made by the last lender (that we know of at least) in the US who used to not require a minimum credit score on FHA loans that a minimum 620 credit score is now required on all Maryland FHA streamline refinance loans. The major announcement came from Taylor Bean & Whittaker that they were moving their minimum credit score requirement to 620 for all Maryland FHA streamline mortgage refinances.

Details Of The Announcement of New Credit Score Requirements For FHA Streamline Refinance Loans

FHA Streamlines (credit and non-credit qualifying) and VA IRRRL’s with Credit Scores below 620 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 620.

Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. Any Conventional, FHA (including Streamline Refinance), or VA (including IRRRL) loan that exceeds $417,000 with a Credit Scores below 660 must be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered to TBW within 10 days after closing Loans in this category locked on and after July 13, 2009 will require a minimum FICO of 660.

Clients will be required to obtain a 3 Repository credit report and utilize the standard method of determining qualifying FICO. In addition, any previously announced minimum Credit Score requirements that TB&W has put into place, that did not have a specified Closing date, will be required to be LOCKED prior to July 13, 2009 AND must CLOSE (Note Date) no later than September 15, 2009, and must be delivered within 10 days after closing. Therefore, any loan, regardless of whether it may be locked, registered or approved, that has a qualifying credit score below 620 (with the exception of those loans that have specified higher FICO requirements) must CLOSE (Note Date) no later than September 15, 2009.

TB&W will continue to allow non-traditional credit for those borrowers with no useable credit for the loan programs that allow the use of such credit in accordance with published guidelines. TB&W is fully aware that these limitations may result in the inability for a particular loan to meet these specified deadlines. TB&W will work as diligently as possible to accommodate all loans in the pipeline. We will be unable to grant any extensions or exceptions to these requirements.

Maryland FHA Streamline Refinance: What This Means

Although FHA guidelines don’t require a minimum credit score, pretty much all lenders now require that you have at least a 620 score for the Maryland FHA streamline refinance loan program. TB&W was the last major US lender who was not requiring that you had at least a 620 minimum credit score in order to participate in the Maryland FHA streamline refinance program. It is possible that there are still smaller lenders who can offer the Maryland FHA refinance streamline loan with no minimum credit score requirement, but don’t expect it to be easy to find them.

Freddie Mac: Loan Modification Information Video

Freddie Mac has produced a brief video titled “Stop Foreclosure: Documents Your Lender Needs To Help You” via YouTube. Many people right here in Maryland are searching for more information about loan modifications and this video is helpful to learn what is needed. Almost all lenders are extremely busy with loan modification requests and this video is just one more resource to try to help people be prepared.

Documents Your Lender Will Need

• A copy of your most recent paystubs that show your net take home pay
• For any other debt such as credit cards, car loans, etc. – have account balances and minimum payment amounts
• Your most recent mortgage statement
• A copy of your most recent tax return
• If you have a second mortgage or HELOC, a copy of that statement

Maryland Loan Modification: Don’t Forget The Hardship Letter

Some people discount the value of a hardship letter — don’t. It is a very important step in the loan modification process. A well written hardship letter that describes the “human story” can often be the key that makes the difference between your loan modification getting approved or denied – so don’t neglect it!

Maryland Obama Refinance To 125% Announced

Today, it was announced by HUD Secretary Shaun Donovan that people who owed more than 105% of what their home was worth could now refinance up to 125% of the home’s value. This is great news for people all over Maryland who may have been told they couldn’t refinance prior to today because the previous limit was 105%. Right here in Maryland, this change to the Making Home Affordable plan will help prevent foreclosures – just one more thing that the current Obama administration is doing to help.

Here in Maryland, and in many other parts of the country – there are many people who currently owe more than 105% on their home and prior to today, they are unable to refinance. Now with the expanded Obama 125% refinance, as long as they don’t owe more than 125% of what their home is now worth, they can take advantage of lower rates.

According to CNN reporters:

“The president’s Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today’s announcement we will extend its reach still further,” said Donovan.

What The Announcement Means For People In Maryland

Although it is somewhat unclear exactly how many people in Maryland will benefit from this change, there are surely many people right here in Maryland who will now be able to refinance as well as many people in other hard-hit states. The best way to find out if you qualify under the new Obama refinance rules is to contact your local loan officer in Maryland and ask them – or contact us for more information.