Bad Credit? Orlando Credit Repair made accessible…

As an Orlando mortgage broker that has weathered the storm of the mortgage meltdown, I have unique insight on the need for bad credit repair in today’s “New World” of Orlando real estate financing. As the mortgage ‘box’ has gotten smaller and smaller, something simply needs to be done to keep people in a position where they can get into homes.

Lenders have increased score requirements [at least for the time being], so how do these masses of people qualify for homes in the short term?

The answer, ethical Credit Repair! As a licensed mortgage broker, I had always distanced myself from credit repair because I felt that it was

• A rip-off and a waste [or even worse, illegal]

• Going to cost the consumer $3000!

Neither of these options were acceptable to me. The rip-off was out for obvious reasons, and the cost of $3000 wouldn’t work because in most cases, if they had $3000… they wouldn’t be in the scenario they were in! Hello…

That is where FLCreditFix.com came in. After doing some digging around, I found a place that is quite reasonable in their service offering and I have seen some pretty spectacular credit repair results.

Now, no one can guarantee that any one item will be taken off your credit report… but Florida Credit Fix, through their affiliation with Fix Credit Biz, does guarantee their service so if you do not see a significant improvement in your credit… you get your money back. 100% Refund if your Bad Credit isn’t improved upon.

As a Mortgage professional, it became somewhat of a no-brainer in order to be able to help people get back into the mix and get decent terms on a mortgage again.

When you couple Credit Repair with Orlando FHA Loans, people are simply able to get back into the housing market and buy a beautiful home again.

Chris

Orlando Mortgages | Orlando FHA Loans

Orlando Real Estate | Florida Reverse Mortgages

Florida Short Refinance | Mortgage Chili Blog

Written by Chris Brown, an Orlando Loan Officer. For more information about purchase loans or refinances on primary residences or investment properties, please contact me directly @ 407-377-0500 x 210.

Wake up Orlando Real Estate: Fannie Mae cuts Mortgage Loan Fees

Okay, FHA Loans are only 90% of today’s market… conventional loans DO still exist.
In an effort to provide “the most market support possible”, one of our beloved GSEs, Fannie Mae, is slicing one of its standard loan fees by 0.25%.

Fannie Mae introduced their, [Good Lord, who thinks up these names…] Adverse Market Delivery Charge in December 2007 to help in offsetting the foreclosure losses. The initial fee was a quarter-percent of the amount borrowed.

As things got worse, Fannie Mae said, ‘you know what, let’s double it!’ and they changed that fee to 0.5% percent in August.

Now, we are back where we started the fee is back to its starting point. The good news here is, if you are debating an Orlando refinance, now maybe a good time to make the move. It is true that the credit guidelines are a bit more strict, so more of you may be in need of Orlando credit repair. If that is the case, let me know. Bad credit can be addressed if you have a large enough reason.

Since the beginning of this year, Fannie Mae has made 21 separate changes to its mortgage guidelines. I gotta use toes to count that high…uh oh… I am out… good, 21… they are all there. Anywayyyy, most of these not been beneficial to borrowers. They increase the difficulty, or the cost, of qualifying for a conforming home loan for most folks.

Friday’s change is among the very few that are “good news” For Orlando home buyers.

Friday, mortgage pricing edged higher because of the – at the time – looming Congressional vote and Wall Street’s reaction to the weak jobs report.

The good news is that price changes could have been worse. In this case, the flip-flop helped the cosumer. Fannie Mae’s Adverse Market Delivery Charge change is keeping rates from rising as high as they might have otherwise risen.

Should you get an Orlando Refinance? Should you tap your assets?

The sure thing that uncertainty seems to bring with it…  more uncertainty.  With uncertainty, comes inaction.  This is good and this is bad.  I guess the proper [in]action is whatever you must do to keep your powder dry. For some people that may mean… do nothing.  For many more, it may mean getting things in order.  For some people, an Orlando refinance is the right move… others may need an Orlando FHA Short Refinance… others might need to consider making “hardship withdrawals” from their 401(k) plans.  Whatever option you choose… get professional advice.  Times of turmoil are times to tighten the belt, but not when it comes to best advice as to how to keep your powder dry. [Heck maybe that should have been the title of this mortgage blog.] LOL

Once FHA Short refinances are a bit more widely accepted among the major mortgage holders it may be a better choice for some, but right now it seems people are turning to their 401(k)s.  In fact, a major fund group cites a 15% up-tick in activity in ‘hardship cases’ from people needing access to some of their 401k funds in order to, among other things, stave off late mortgage payments, bad credit, foreclosure, short sales and medical emergency.

However, 401(k) loans should only be made with careful consideration.  If you need financial advice, I know several top-tier LOCAL Orlando financial advisers that I can introduce you to in order to field questions… simple  or complex.  People like  Jim Hasley, Dan Smith and John Ledford, among others, have all proven their value in such a tumultuous time for those that have come to rely on them.  Bravo, I say!   [Or is it ‘Woo hoo’, that I say?]

On the positive side, 401(k) loans don’t require a credit check like an Orlando cash-out refinance would. This is a helpful little nuance for people deep in debt, and who may have been late on a payment or two to their creditors. With no credit score requirement, a poor payment history won’t disqualify a plan participant.  Would credit repair and a refinance be a better option?  Possibly… but get that advice from the financial planner or the person that you lean on now for financial advice.  I don’t want the fact that I do Orlando Mortgages to be perceived as bias on my advice.  Those that know me, know it would not, but this blog has gained amazing amounts of traffic, so most of you don’t know me yet. =0)  Anyway, back to the 401(k) stuff…

In addition, most 401(k) loans can be arranged with just a phone call and a small stack of paperwork. There’s no “qualification process” like applying for a credit card or jumping into the mortgage qualification process. Money can be available, therefore, in as little as a day.

But there are negatives to 401(k) loans and the biggest one relates to taxation.  Financial planners, like Jim, Dan and John can help with this, or local CPAs like Craig Zokvic or Bob Biferie can be good resources as well.

If you take a 401(k) loan and can’t repay according to its terms, the IRS taxes the loan as ordinary income [oops] and slaps on a 10 percent penalty if you’re under 59 1/2. That can be very costly for a lot of people.

But, even if you do repay the loan on time, it’s still gets expensive. This is because 401(k) loan repayments are subject to double-taxation. [Don’t ask… call a tax professional! LOL]  Well… here is a snap shot of what happens… but still… I am not a tax adviser so check-out what I am saying here:

The first taxation occurs when the loan is repaid because the payback is made with post-tax paycheck dollars. A person in the 25% tax bracket, for example, would need a $1,333 paycheck to repay a $1,000 loan — the missing $333 goes to taxes.

And the second taxation occurs at retirement when the funds are finally withdrawn. The IRS taxes that money as ordinary income. [Jerks!] <——– Okay, when I say that it sounds funny… when you read it, your can’t hear the humor!

Now, this isn’t to say that taking a loan against your 401(k) is bad, it just may not be the best possible route for a person in trouble. Especially because of the costs. If you’re planning to withdraw from your 401(k) for hardship, be sure to talk with one of the qualified financial professionals above first.

If you’d like a referral to a trusted professional, call or email me anytime.

Chris

Tags: keepyou powder dry, orlando refinance, orlando fha short refinance, jim hasley, dan smith, john ledford, craig zokvic, bob biferie, 401k loans, orlando cash out refinance, orlando credit repair, financial hardship, orlando mortgages

Woo hoo!

Well, here it is. 

….

….The first step. 

………………

………………Helloooo?

………………………….

…………………………. [I think I hear crickets]

 I guess the first step is a lonely one.

Chris the Implementer

Orlando Mortgages | Orlando Credit Repair