Kentucky Mortgage Usda Loan Zero Down Home Loans Still Exist

Kentucky Mortgage USDA Loan Requirements

What are the Kentucky USDA Mortgage Loan Requirements?

To decide if you qualify for an USDA Mortgage Loan, we will look at:

“Your income and your monthly expenses. Standard debt-to-income ratios are 29/41 for USDA Loans. These ratios may be exceeded with compensation factors.

“Your credit history (this is important, but USDA”s credit standards are flexible). A FICO score of 620 or above is required for all loans

“Your overall pattern rather than to individual problems you may have had.

To be eligible for an USDA mortgage, your monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. At least a 620 FICO credit score is required to obtain an USDA approval through Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These percentages may be exceeded with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

Can I get an USDA Mortgage Loan after bankruptcy?

Criteria for USDA loan approvals state that if you have been discharged from a Chapter 7 bankruptcy for three years or more, you are eligible to apply for an USDA mortgage. If you are in a Chapter 13 bankruptcy and have made all court approved payments on time and as agreed for at least one year, you are also eligible to make an Kentucky USDA loan application.

What are the USDA Down Payment Requirements?

USDA Mortgages have no down payment requirement. Other loan programs don”t allow this.

What types of property are eligible?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

What is the maximum amount that I can borrow?

The maximum amount for an Kentucky USDA Mortgage Loans are determined by:

Maximum loan amount: The is no set maximum loan amount allowed for an USDA Mortgage. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Mortgage amount will be 100% of the appraised value of the home.

What kinds of loans does USDA offer?

Fixed rate loans – All USDA loans are fixed-rate mortgages. In a fixed rate mortgage, your interest rate stays the same during the whole loan period, normally 30 years. The advantage of a fixed-rate mortgage is that you always know exactly how much your monthly payment will be, and you can plan for it.

What is Considered a Rural Area by the USDA?

Rural areas include open country and places with population of 10,000 or less and””under certain conditions””towns and cities. There is an automated rural area eligibility calculator at:http://eligibility.sc.egov.usda.gov.

Kentucky USDA Loans

What are USDA Home Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you”re unsure about your credit rating, or have concerns about a down payment when you”re doing a home loan comparison, ENG Lending”s USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and no monthly mortgage insurance.

What Types of Loans does USDA offer in Kentucky?

Currently, there are two kinds of USDA Home Loans available in Kentucky for single family households:

USDA Guaranteed Rural Housing Loans

USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loanin Kentucky and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

USDA Direct Rural Housing Loans

USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Kentucky?

To be eligible for A USDA Rural Loan in Kentucky, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through ENG Lending. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

Additional offers from other lenders.

Kentucky USDA Loan Adjusted Maximum Income Limits by County

verything You Need To Know About USDA-Rural Home Loans

I have put together valuable information and tools to help you gather all of the information that you need to make the most informed decision when shopping for a mortgage. Sometimes the USDA Home Loan Program is not the best option for a Zero Down Purchase. .

Sometimes good credit and a down payment are not enough to qualify for a home loan at a commercial lending institution, such as a bank, savings and loan or with a mortgage broker. That is why the U.S. Department of Housing and Urban Development has provided a loan program that allows more rural families and individuals to be eligible to become homeowners with the help of a USDA guaranteed home loan. The USDA loan program allows:

– 620 min credit score

– Up to 6% seller contributions

– No PMI (private mortgage insurance)

– Zero Down

However, the USDA-RD loan program DOES have 2 main qualifying features:

(1) Eligibility is region or location specific CLICK HERE http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&[email protected] to check if an address is USDA Eligible.

(2) Eligibility is income specific. Qualifying income is based on household members and a max income cap. CLICK HERE http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state&[email protected] to see if you qualify under the max income cap.

Avail Milwaukee Mortgage Loan At Good Rates

Apply for the Milwaukee mortgage loan and avail the various benefits offered by it.

When you are planning to buy a home then there are a lot of procedures involved in it and also the availability of finance is a very essential part when you are planning to buy a home. The problem of finance can be solved with the Milwaukee mortgage loan provider you just need to visit the website and you will be able to avail the best loans and deals which will help you to buy your dream house. All your requirements will be fulfilled with these loan providers.

There are many types of Milwaukee mortgage loan available in the market but it is up to you to choose the one which suits your requirements and also who gives you the best facility. The different types of mortgage loan which are available includes the low down payment loans, fixed rate mortgage, adjustable rate mortgage, interest only purchase loan programs etc. if you don’t have knowledge regarding the mortgage loans and its rates it would be better that you hire a expert or a broker who will assist you to in finding the best rates and mortgage loan according to your requirements. There are many financial institutions that will provide you with the mortgage loans. The rates of interest that are provided by the different financial institutions are different from the other.

They aim at providing exceptional customer service and first priorities are their clients. Their aim is to assist their clients through the whole process of loan providing; this makes their clients feel that they are in safe hands. We have years of experience in the filed of providing mortgage loan to the clients. The Milwaukee mortgage loan is the licensed originators and their staff people are qualified and they suit their designations as per their qualifications and also fulfill the Housing and Economic Recovery Act of 2008 and Federal SAFE ACT requirements.

The other loan programs that the Milwaukee mortgage loan offers you are the VA Loans,

Reverse Mortgage loans, FHA loans etc. They also provide the additional tools which are also known as the calculators they include the mortgage payment calculator (PITI), mortgage payment amortization, rent vs. buy calculator etc. You just have to visit the site and you will be able to avail the loans which you are looking at.

If you have any doubts or queries regarding the loans or regarding the rate of interests then you can email them. You can also visit their site for more details and information.

When Should You Refinance A Mortgage

Do you want to refinance a mortgage? How do you decide when to refinance? Needless to say, there has been a lot of debate on it for several years. Sometimes, refinancing a mortgage at lower interest rate is not always the right decision. Doing multiple times refinancing a mortgage can minimize your overall financial benefit and eat up savings. So, it is good to put some thoughts behind the timing of the decision you take.

Goal behind Refinancing
Have you ever thought of your goal behind refinance a mortgage? If not, then lets us tell you. Generally, it has two main goals, first reducing the interest expense and second is debt consolidation. You must think what you want to accomplish, and remember one thing is that refinancing a mortgage doesnt pay off the debt.

When to Refinance
After expounding your reasons for refinancing a mortgage, you will need to consider whether the circumstances and timing create the right time to avail a new loan. Normally, you have to plan to be the home for a while for refinancing to make sense. Look at the savings relative to costs, and then consider- how long you are going to be in your property? If you are unable to take right decision, you can consult mortgage brokers who are well experienced in this area. In case of willing to know further details, mortgage marketing guru at MortgageMarketingCoach can assist you.

Refinancing Tips
Before giving you refinancing tips, you need to know who mortgage brokers are. Mortgage Brokers or mortgage broker marketing Experts are who serve as middleman between homebuyers and lenders.

Tip 1
Refinance once on your current mortgage. While no other can tell you with certainly where interest rates are going, our loan officer marketing secrets will teach you the fastest way to achieve your goals. It will also tell you how to invest your time for maximum profit.

Tip 2
Know where you stand with your current mortgage before you refinance including terms and interest rates as well as relevant factors such as whether or not the loan has a prepayment penalty. Savings always come from a lower interest expense, not lower monthly mortgage payments.

Tip 3
Consider a mortgage broker is a prudent decision. Sometimes, in order to get approved for the loan, you have to sell your story to the lender.

Tip 4
Getting the credit score in the best possible shape can help you get a better mortgage rate. You must review your credit reports, and keep copies of credit scores.

While a refinance will assist you harvest more money, it is vital to look at out for prices that eat into those savings. First, acknowledge that there is no such issue as a free lunch, and there is no such issue as a “no closing cost” mortgage. The originating lender can get paid for its efforts; it’s simply a matter of how they get paid. Closing prices may be paid in origination points, a better interest rate or a better loan amount.

Keep in mind that avoiding junk fees will keep down your closing costs and improve the return when refinancing a mortgage.

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Good Mortgage For Brilliant Shoppers

I am sure that there would be more complext deals that one could come across. You are in the market for procuring a house. There will be a lender. You will return that money over a period of time along with some reward, called interest, for loaning you that money.

If it were indeed so, I would not join the ranks of authors who write about this topic. Real estate financing options are getting quite complicated. Naturally, you are likely to avail of only one or two or few, so the complexity should not cause you anxiety. If I were in your shoes, the only thing I would be worried about would be ignorance of better opportunities.

So, let us divide our approach into three parts.

First: Do you know what it is that you want? Are you a new buyer, home-upgrader, home improvement customer, or some other Is it that your existing home is in impending danger of being snatched away because of a loan that you defaulted on? Or are you happy with where you reside, but you are trying to get a loan to improve your loan.

Certainly we can be in one of many camps. In fact, here is one that you may not have thought of: Is your objective to make your old age peaceful by borrowing money that does not have to be returned in your lifetime?

Second: Evaluate All Alternatives Compare! Compare! Compare! The other way of looking at alternatives is by seeking specific proposals from different lenders. In other words you could say that I am recommending that you consider your options and then get lenders into a little bit of a competition to get your valuable business.

Third: The God Is In The Details If things go fine and dandy, cool. But what if they do not? There are sites that will present you will calculators and online forms that can help you with these. But details also include stuff like: Do you want a fixed rate mortgage? Or would you like the rate of interested to float? How would you decide on something like this?

I hope that a beginner’s article of the type that you are reading is not causing you stress. But, I have also come across people who have gone through the process only once and are now walking encyclopedias on this entire industry. Sure we live in a world where programming the video recorder is supposed to be a challenge. But I am still sure that you can easily master this game of real estate credit.

Think of it this way. If you blindly chose the first option that came your way, it is extremely unlikely that you will ever get a good deal. And there are loan providers who would line up to get your business. And if the concept of “lines” is abhorable, you can always go ahead and get the details online.

Online providers want your business as bad as that big bank downtown. There is no difference for all practical purposes. All in all, remember that an informed and empowered customer is a smart customer.

If I have managed to stir up your interest in home related financing, you should consider reading some of my favorites resources for Mortgage Companies, Home Mortgage Refinancing, and Adjustable Rate Mortgage.

The Difficulty Of Taking Out A Second Home Mortgage

Good news: the current scenario for second home mortgages is now more relaxed than the previous years. The boom in real estate has made the bank rush on the second home market once again. Thus competition for this area is heightened, which gives the buyers more chances to take on a second home mortgage. Lenders would want to explore the second home market since most people who want to buy one are more affluent and has more capacity to pay.

Here are easier ways to get second home mortgages:

HOME EQUITY LOAN

You could turn your home equity into cash and allow you to finance your second home mortgage. The two types of home equity liability are home equity lines of credit and home equity loans. Both are also called as second mortgages because your first property is given as collateral.

DOCUMENTATION

Like purchasing your first home, you must be able to prove that you have the financial capability to buy a second home to may it easier for you to get a second home mortgage. Basically you need to prove that you can afford to pay two mortgage payments.

Example, instead of taking on a 15-year term on your first mortgage, you can refinance it to a 30 year term to lower the monthly amortizations and have excess funds to cover the second home mortgage payment.

CREDIT HISTORY

A credit score of 700 or higher is a good number for you to increase your chances of getting a second home mortgage without a hitch. A credit score lower than 700 may enable you to take on a second home loan but at the risk of higher interest.

SECOND HOME ON A LEASE

If you rent out your second home, you have to prove to the prospective lender that it will give you ample cash flow, especially if you want to highlight that other source of income in your second home mortgage application.

But many lenders are wary in giving you a second home mortgage if you’re going to lease out your property. They have encountered difficulty disposing of mortgaged properties on lease. You can get a second appraisal for this but this will be costly on your part since you have to show the prevailing occupancy rates. And even though you can prove rental income on lease property as other source of income, your lender might not still take that into consideration.

Taking the above things into consideration, the bottom line is, getting a second home is easy as long as you can pass the 3 C’s of credit:

Character- if you are trustworthy of being given a second home mortgage

Capacity – if you have enough funds to pay an additional loan

Capital – if you have other assets than can be used by lender as payment for your loan in case of payment defaults.

All in all, if you are reasonably credit-worthy, getting a second home mortgage shouldn’t be terribly difficult. Do your homework and due-diligence, mind your credit history and information, and shop around for competitive mortgage lenders and banks.

Madison Mortgage Company Helps You Buy Your Dream Home

There are a few facts that you need to know about Madison Mortgage Company and mortgage loan.

It is very important for you to have funds available at the time you are planning to purchase a new home. In case finance is not available to you then it becomes extremely difficult to purchase the house. What you can do is apply for the mortgage loan at the Madison mortgage company. For a common man it is not possible to pay the entire purchase price in just a go. At the time of financial crises these mortgage loans will be very helpful to you. When you are in need of such mortgage loan, you will have to go through the complicated and tedious procedure. But the help you get through this process is very useful.

At the time you are applying for the mortgage loan at Madison Mortgage Company you will have to sign an agreement. This process is very common between the lender and the borrower. With the mortgage loan that they provide you with you can purchase your dream home. You might be thinking that you can take the loan of how much ever amount you want. But this is not the truth; you will be provided a loan amount that you are capable of paying back. The mortgage companies will find out all your financial details and provide you with a loan accordingly. You might not get the loan for the amount you want but you will be given the mortgage loan for the amount you deserve. The amount of the loan is provided to you according will be against the property.

The Madison mortgage company will provide you with a time frame. This means that in how much time you need to pay back the money. This will depend on the amount of installment that you will be paying monthly. They make certain that the clients get the best deal possible at the lowest interest rates possible.

While applying for the mortgage loan you will have to go through a number of documentations as well as formalities. Make certain that you gain the best possible information in relation to the mortgage and also know in detail about the terms and conditions. This will prove to be very helpful at the time you go to get the mortgage loan.

The company will also help you by providing you with the services of mortgage advisor to help you gain knowledge about rates and types of loans provided to you by the Madison mortgage company.

Toronto Mortgage Broker Joe Walsh

For locating and securing a mortgage product in Toronto for a residential or commercial property, the best approach for getting a mortgage most suited to your needs is to work with a Toronto mortgage broker.

A licensed mortgage broker working in the Toronto area will have a much better idea of the local market and where the best value for your dollar is going to be found, especially if you need to acquire private mortgage financing or a commercial mortgage loan for a residential property.

Trying to find and understand all the available options on your own is not only time consuming but can also be difficult to accomplish as many mortgage lenders these days do not work directly with the public and choose to work through mortgage broker networks to provide the retail arm of their business.

So when you’re looking on your own you automatically do not have the same access to the market as when you are working with a mortgage broker. And in the case of most residential mortgage financing, the cost of the mortgage broker is being paid by the mortgage lender, so the services and benefits you receive come at no cost.

Aside from finding suitable mortgage programs, a mortgage broker can also be invaluable in putting together a proper application package and leveraging their lender contacts to get a mortgage approved and funded. Botn the approval and funding processes can be more complex than you think and if there are any problems that come up you want an advocate on your side working to quickly resolve the issue.

When you go to select a Toronto mortgage broker, make sure they are experienced in the type of mortgage financing you’re after and that they’re someone you’re comfortable working with as you’re going to have to be working closing with them for a period of time.

Texas Mortgage Loans How to Shop for a Mortgage Online

As with regular mortgages, the loan is provided based on the property equity of the homeowner. However, in this case, even with the equity secured the homeowner can still enjoy the benefits of staying in the mortgaged home while paying the EMI to the mortgage lender. A Reverse Mortgage is a very good option for retired individuals over 62 years of age who would hate to move from home while the same is being mortgaged. Also they need not change their lifestyle, as the Reverse Mortgage amount would provide sufficient funds to maintain the existing one.

Loans may be obtained from banks, insurance companies, and mortgage bankers. Before getting a mortgage, it is advisable to maintain one’s finances well. In order to pay back a mortgage, one needs to save money in the long term. Mortgage companies check their customers’ financial background carefully before granting a mortgage. Therefore to obtain a mortgage, one’s credit situation should be sound.nd.

Next, the money that you will receive from a Reverse Mortgage MUST go towards paying off your mortgage. Any money that is left over will be available to you with no restrictions, but only after your current mortgage is paid off in full. This should be a goal for Reverse Mortgage applicants who have a large first mortgage or home-equity loan. An obvious benefit of using the Reverse Mortgage to remove the current mortgage is the added income you will receive from removing your monthly mortgage payments. Reverse Mortgages never require you to make a monthly payment for the rest of your life, while you are a resident of the home.

As you can see there is more to deliberate regarding IOM’s as the inconsistent factors can be much greater than with Repayment Mortgages, when we get down to the bottom line, the choice comes down to if you would rather be more prudent with a Repayment Mortgage, or be ready to speculate and go for the Interest Only Mortgage. You would not be fixed into the mortgage deal as it is when you sign up; both are accommodating in their own ways, the IOM just has added stretch. If you are put off by the risk of an IOM, it is possible to switch over to a Repayment Mortgage after a certain period of time. IOM’s are more appealing as they are of more of help getting first time buyers onto the property ladder, if this is your objective, then it is seriously worth considering, if it’s a long term consideration, then make sure you have an investment plan in place to pay the capital or it could be a expensive mistake to regret.

The main difference between a mortgage agent and a mortgage broker is that to be a mortgage broker requires at least two years of working experience. The mortgage broker must pass an approved mortgage course. Mortgage agents must be supervised by a mortgage broker. Brokers work for a mortgage brokerage or on their own and bring together prospective borrowers and lenders. They do not administer the mortgage. After the client fills an application using the information contained therein, the brokerage scouts the market for the best mortgage. The mortgage request of the client is tendered through an electronic system to lenders.

You will have a set amount of time to pay those taxes or else your will start to incur penalties for your taxes being past due. If you continue to keep your property taxes past due, then your local taxing authorities can begin the process of selling a tax lien certificate that was placed on your property to try to recover the delinquent taxes that you owe. The tax sale is usually publicized for potential bidders to get information on the tax sale. All counties across the country hold usually conduct property tax sale, normally monthly on a set day. For example, the 1St Tuesday of each month at the local court house or downtown. They will bid on the tax amount owed, lets say a homeowner has $500 in past due taxes. They will start the bidding at a set price, usually the price of the taxes owed, and hopefully they will sell the tax lien certificate to the highest bidder.

Lenders do not always catch properties that have delinquent taxes and so the property can end up a local tax sale. Mortgage companies loose properties from time to time due to the taxes liens going to sale, and the homeowner are not able to pay off those taxes in time to recover the property from a tax sale bidder that has a tax certificate on their property. This risk of loosing a property to a tax lien is built into each mortgage contracts.

I got to the seminar and after about three minutes I knew this guy was not messing around. You could tell immediately he was a seasoned student of marketing and had been working with the best people in the business. For a marketing geek like me, I appreciated the seminar in the same way a sports fan appreciates a good game. It was everything a seminar should be; part rock concert, part sales event, part educational junket, and it had all the motivational components a good seminar should have. He had folks like Chris Gardner, Tony Robbins, and Todd Duncan as speakers. All amazing people that you should hear speak if you have the chance.

What troubled me a bit was this: the topics he wanted me to discuss with my borrowers fell right into the backyards of licensed realtors, Certified Financial Planners, Series 7 licensed stock brokers, Certified Public Accounts, and tax attorneys who had passed a Bar (BAR) exam. And I’m not any of those things. I have an MBA from a top business school, and I thought I had a strong grasp of his concepts. But ultimately I felt I was unqualified to do mortgage planning. So this is the first question we should think about, “what is the true role of the mortgage professional?” We can all debate that. And based on everything I have said thus far about Mr. Marshall, I have no problem with what he is doing. Let me tell you where I take issue with him, and where you should to. And most importantly, why his Mortgage Planners should take issue with him. Big time.

Mr. Marshall is attempting to completely redefine what mortgage professionals do for a living. And I admire him for that bold idea. I admire all people with bold ideas. But the potential impacts to borrowers are extraordinary, both positive and negative. He’s invested enormous amounts of time and energy to market his ideas to mortgage professionals: as quickly, strongly, and suavely as any mortgage marketer I have seen. And he’s profited from it big time. At the same time, he has done little to control the flow of his ideas or regulate those that have received his ideas. I think that’s reckless, and yes, possibly dangerous. To all of us.

Choosing a Mortgage Broker Based Solely On Rate The interest rate obtained on a mortgage is one of the most important factors of a loan, but it is not everything. There can be over 30 separate closing fees that can factor into the total cost of obtaining a mortgage loan.

Mortgage Refinancing With a Broker Costly Mistakes to Avoid When Refinancing With a Mortgage Broker. Visit divorce attorneys tampa. Find Hidden Divorce Money From Your Tax Return. Visit divorce tampa florida.

On The New Mortgage Law Of Turkey

Since the new Turkish mortgage law passed on March 2007, the mortgage and real estate markets have continued their growing trends that are mainly driven by lower interest rates; however, this growth is probably just the tip of the iceberg.

The Turkish mortgage law that passed on March 2007 has two important properties that are expected to boom the mortgage and real estate markets in Turkey:

1) New mortgage products :
With the inclusion of the adjustable rate mortgage products, banks are able to transfer some of the economy related risks in their balance sheets to borrowers. In adjustable rate mortgage products, the interest rate is a sum of a fixed margin that is determined by the lender and a benchmark index that is set by Central Bank of Turkey. In May 2007, central bank decided that Consumer Price Index should be the benchmark index for the variable interest rate calculation. In summer of 2007, some banks started to offer various adjustable rate mortgages and these loans, as expected have lower APRs. However, as Central bank’s current records show there is almost no interest in these variable interest loans right now. This lack of interest is probably due to several factors such as: i) the lack of trust in Turkish economy and the fear of a substantial increase in the interest rates even though the economy has been performing fine in the last 5 years without any major crisis; ii) the recent mortgage crisis in the USA, and particularly, the rise in mortgage default rates in the USA and the fact that most of the increases in the defaults were in the sub prime market and adjustable rate mortgages; and, iii) the lack of understanding of the benefits and risks of these new products. We believe that these three reasons are temporary and in the near future, as people are educated about the risks and benefits of these new products and mortgage brokers fill the necessary knowledge gap, the interest in the products will increase.

2) Securitization of Loans :
About six months after the new mortgage law passed, Capital Markets Board of Turkey completed secondary legislations on mortgage covered bonds and mortgage backed securities. With this addition to the law, banks are now able to bundle the loans into securities and take them off their balance sheets. Covered mortgage bonds and mortgage backed securities are debt instruments secured by a covered pool of mortgage loans (or public-sector debt) to which investors have a preferential claim in case of default. These instruments are among the most liquid fixed income securities after the government bonds in Europe. While it is not expected to see the first securitization until early 2008, reduced risk for the banks will cause a significant and sustainable growth in the mortgage market in the coming years.

Expectations for the future

a)The secondary mortgage market will probably trigger a decrease in the interest rates as banks will be able to transfer their risks off their balance sheets and the ratings of the deals in the secondary mortgage market could be higher than Turkey’s sub-investment grade sovereign rating (this has been the case in similar cases).

b)With the secondary mortgage market’s effects, the banks’ competition growth will fuel an already booming housing market. Especially, when the monthly interest rates get closer to 1 percent per month, the volumes will be substantial, as they were earlier. Expected growth in the mortgage market is expected to mimic those in Spain and South Korea as these countries have followed similar paths as Turkey. Sizes of the mortgage market in Spain and South Korea GDP are 50 and 25 percent of the GDP respectively. So it is not inconceivable to expect that Turkey’s mortgage market may grow up to 30% to %40 percent of the GDP from its current share of less than 10%. Note that since Turkey has a very strong ownership culture, the ratio can be even higher.

c)Turkey’s new long term mortgage laws will increase the investment in Turkey. The new instruments that will be introduced with the securitized mortgages will increase the stability and depth of the financial system probably creating a natural cushion for any unexpected events and decreasing the volatility and avoiding the episodes of financial crises that were observed in 2001 and 1994.

d) Enhanced foreign investment in the property market will cause a boom in the property market. Also in addition to real estate market, as mortgages will need associated insurance, it is expected that insurance sector will be a big beneficiary of the new mortgage law.

e) The central bank will have more dominant place in the economy similar to the developed countries.

f)New law will help strengthen Turkey’s EU bid. The Turkish mortgage law will bring Turkey into line with the standards and practices expected from worldwide property purchasers and investors.

In addition to the tangible effects listed above, we expect that there will be very important intangible effects too. For example, in a country like Turkey where ‘future planning’ is measured with months (mostly because of the economic, financial and political crises), just the fact that people are now able to get a loan up to 30 years is an encouraging incident that will probably change the way people plan, invest, spend and save in the future. Since being able to plan for the future is one of the most important requirements of economic development, the additional foresight produced by the new mortgage law may be one of the biggest impacts of the new mortgage law in the long run.

Can You Get More Than One Modification On A Mortgage Loan

A loan modification is nothing more than an agreement between two parties to modify the terms of an original contract. In the case of a mortgage loan modification, the contract in question is a mortgage contract. Since the agreement is between two private entities, the borrower and the lender, the terms of the contract may be modified as many times as both parties are willing to agree to.

Since the answer to the question can you get more than one modification on a mortgage loan is yes, many borrowers have some hope if they are trying to save their home from foreclosure a second or third time.

A persons chance of being approved for a second or third loan modification increases as the time between modifications increases. This means that a person will have a better chance of being approved for another loan modification after a decade from their first loan modification than after a year. This does not mean that a person wont be awarded a second or third loan modification shortly after their original modification, it only means that the borrower will have to have one good reason and one good lawyer to get the modification approved.

One way to avoid the hassle of asking for another modification is not to agree to a first loan modification that doesnt do anything to fix ones problems. For example, if the borrower requests a loan modification and their lender makes an offer to modify certain terms of the original contract, but those terms do not make payments as low as the borrower needs them to be, then the borrower should refuse to accept the terms and should attempt to negotiate via a trained foreclosure attorney. If the borrower accepts bad modification terms, only to turn around and ask for another modification shortly after their first one goes into effect, the lender could use the fact that the loan modification terms have already been agreed to as a reason to deny further requests to modify.

Borrowers who were approved for their first or second loan modification several years ago will have a much easier time being approved for an additional loan modification since there is no guarantee that a person will not fall back into financial trouble once they climb out of it. It is reasonable to believe that a person could lose their job more than once or be affected by an injury more than once.

If a borrower wants to avoid having to go through the loan modification experience more than once over the life of their loan, they are urged to secure the services of a foreclosure attorney who can fight for the best terms possible for the borrower the first time around. If the terms of the borrowers first loan modification make monthly loan payments low enough, the borrower will have to worry less about getting another loan modification in the future if more payment trouble arises. If the lender has already made an offer to modify certain terms, the borrower should have that offer reviewed by an attorney to ensure that the offer serves the best interests of the borrower.