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        <title>Denver Real Estate Blog</title>
        <link>http://www.denversrealestate.com/blog/tags/financing/</link>
        <description>Denver real estate topics including local metro Denver community news and events.</description>
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            <guid>http://www.denversrealestate.com/blog/what-is-private-mortgage-insurance.html</guid>
            <link>http://www.denversrealestate.com/blog/what-is-private-mortgage-insurance.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>What Is Private Mortgage Insurance?</title>
            <description> <![CDATA[ 
Private Mortgage Insurance provides important protection for mortgage lenders by guaranteeing them against the losses that may occur if the borrower is unable to repay their debt. There are also benefits for the borrowers themselves since they will be able to buy a home with a smaller deposit. 

Private Mortgage Insurance has had some bad press, but since 1998 when the Homeowners Protection Act came into effect, many of these problems have been solved. One reason why Private Mortgage Insurance was causing trouble before 1998 was that homeowners were not being kept informed about the payments they were making. Private Mortgage Insurance payments were being taken alongside the mortgage repayments as a hidden cost that was not being properly explained to the borrower. Many people did not realize that they had this insurance or what it meant for them. 

Today, however, lenders must inform their borrowers that they have Private Mortgage Insurance. They must also explain what this means and how it can be cancelled. Borrowers may cancel their Private Mortgage Insurance once they have built up equity of 20 percent in their property. Policies that have been taken out after the 29th of July 1999 are automatically cancelled when the borrower has 22 percent equity. If the policy is not cancelled in time, the lender will have to return any extra payments to the borrower. 

Private Mortgage Insurance is not the same as mortgage life insurance. The life insurance will ensure that part or all of the mortgage is paid if the borrower dies, ensuring that their property will be inherited by their dependents. Private Mortgage Insurance protects against default by the borrower. This is why it can be cancelled once a certain amount of equity has been built up. After repaying so much of their debt, the borrower is less likely to default on their mortgage. 

Since the lender is protected against default, they will be willing to accept a smaller deposit from borrowers who have Private Mortgage Insurance. Without it, a deposit will normally be approximately 20 percent of the property value, but with Private Mortgage Insurance, deposits of as little as 5 percent may be accepted by the lender. 

It is the lender who chooses the Private Mortgage Insurance provider. There are only eight insurers in the United States who can provide this type of insurance. The buyer will have to accept the rates of the provider chosen by their lender, and they will not be given a copy of the Private Mortgage Insurance policy. 

The process of canceling Private Mortgage Insurance will vary between lenders and policy providers. Borrowers who want to cancel this insurance will need to contact their lender to find out how it should be done. Generally, there will be certain requirements for cancellation, such as having made insurance payments for a specified minimum period, having an outstanding balance that is less than 75 to 80 percent of the current property value and having a good repayment history. Structural improvements or changes in the real estate market that have altered the value of the property should be taken into account when determining its current value. 

Borrowers who qualify for cancellation of their Private Mortgage Insurance will usually need to contact their lender in writing, providing their name, loan number, social security number, phone number and the address of the mortgaged property as well as a statement of their wish to cancel the Private Mortgage Insurance. A written cancellation request will usually be necessary, but the lender can be contacted by phone to find out how to cancel the Private Mortgage Insurance policy. The lender may require additional information or an appraisal of the property before they will agree to the cancellation.
 ]]> </description>
            <pubDate>Sat, 02 Oct 2010 07:57:43 -0600</pubDate>
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            <guid>http://www.denversrealestate.com/blog/zero-down-financing-programs-for-denver-co-home-buyers.html</guid>
            <link>http://www.denversrealestate.com/blog/zero-down-financing-programs-for-denver-co-home-buyers.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>Zero Down Financing Programs for metro Denver CO Home Buyers</title>
            <description> <![CDATA[ 
Too many times metro Denver CO first time home buyers struggle in order to meet down payment requirements which are becoming more and more outrageous in todays mortgage environment. Because of this I am going to take a moment and let you know that we have a Denver CO First Time Home Buyer mortgage program.

Some of the highlights include:&nbsp;


Zero Down  No Down Payment

Zero Closing Costs  No Closing Costs

100% Financing Available

No Fees to Apply

Quick Processing  Understand Your Options Fast&nbsp;


This program like all mortgage programs does have some requirements. There is a two year waiting period after bankruptcy and three years after foreclosure. The relaxed credit score requirement means that lower credit scores are allowed than conventional programs. Blemished credit histories are ok, though there should be no late payments over the previous 12 months.

This is not a city sponsored grant program so there are no income restrictions or age restrictions though the home buyer must plan to occupy the property after purchase. All types of homes qualify including condominiums, townhomes, new construction, pre-existing homes and single or multi-unit homes.

Those interested in taking advantage do need to qualify and must meet certain criteria. To find out more and move forward onto the path of home ownership.

Contact Bruce Swedal

303-437-8611

Or via the contact form located here
 ]]> </description>
            <pubDate>Sun, 05 Sep 2010 07:36:39 -0600</pubDate>
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            <guid>http://www.denversrealestate.com/blog/fha-implements-new-rules-to-help-foreclosures-sell-faster.html</guid>
            <link>http://www.denversrealestate.com/blog/fha-implements-new-rules-to-help-foreclosures-sell-faster.html</link>
            <author>bruce@bruceswedal.com (Bruce Swedal)</author>
            <title>FHA implements new rules to help foreclosures sell faster</title>
            <description> <![CDATA[ 
FHA has made recent changes to their rules to help stabilize the home values and improve community distress in places where foreclosure activity is high.&nbsp; A temporary change of policy has been announced which will allow increased and quicker access to FHA mortgage insurance when purchasing some foreclosed properties. 

Through this announcement and the $2 billion stabilization grants announced for non-profit developers and local communities announced to stem the negative effects of abandoned and vacant homes in some communities, the current administration has shown a commitment to addressing these issues.

These changes further open up the credit market to potential home buyers who often run into roadblocks obtaining conventional financing, most home buyers in todays tightened market place frequently find FHA is their only financing option.

In the past FHA has prohibited using FHA mortgages to purchase homes owned by sellers for less than 90 days which kept buyers away from recently foreclosed homes.&nbsp; This waiver will temporarily allow buyers access to a broader range of foreclosure properties while still maintaining stringent control to prevent any predatory practices.

Less time is required today to purchase, restore and sell foreclosure properties to homeowners looking to move in.&nbsp; It typically takes much less than 90 days and home buyers using FHA financing found themselves excluded from trying to purchase these restored homes.&nbsp; Sellers were often unwilling to accept contract offers from buyers using FHA financing because they would incur additional holding costs while waiting for the 90 days to pass.

This temporary change will assist in stabilizing the real estate market and revive communities by allowing buyers to purchase bank owned properties, HUD properties and properties being resold utilizing FHA financing without a 90 day waiting period.&nbsp; This will result in quicker sales, more price stability and less neighborhood vacancies.

With the restrictions lifting home buyers will have more opportunities to buy affordable housing which they were previously unavailable giving buyers more opportunities in the market.

The one year waiver takes effect February 1, 2010 and is designed with protections in place against predatory lending.&nbsp; In that transactions must meet the following general guidelines.


Transactions must be at arms-length.&nbsp; This means the parties to the transaction cannot share an identity of interest.

Additional lender conditions will apply if the sales price of the property exceeds a 20% increase of the acquisition cost.

The waiver does not apply to Home Equity Conversion Mortgage.


HUD provides the specific text for the temporary policy on its website.
 ]]> </description>
            <pubDate>Tue, 19 Jan 2010 11:19:19 -0700</pubDate>
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