Utah Real Estate Survival Guide

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Archive for the category “Refinance”

KeyBank’s Key Community Mortgage

Update on KeyBank’s 100% Financing Program:

In my last post about this topic, I referred to this as a “new” program. After meeting with Kristin Shields and Will Mullin, KeyBank Mortgage Advisor and Relationship Manager respectively, I know now that Key has had this program in place for +/- four years.

Disclaimer: The information that I am sharing here is NOT to promote KeyBank. As a professional REALTOR®, representing both buyers and sellers, it is my responsiblity to have a broad knowledge of available financing to achieve my client’s home ownership (or home sale) goals. Lender guidelines vary, the most significant of which is FICO score minimums. I have experienced some lender FICO requirements as high as 720. KeyBank’s 620 benchmark is extremely borrower friendly.

The 100% program is actually called the “Key Community Mortgage“. I entered the meeting a skeptic. I left a believer. And I can’t wait to share this incredible financing opportunity with my clients. No other lender that I am aware of is offering a truly obtainable community mortgage such as this. I was even able to get a glowing recommendation about the program from a title officer who I know and trust, who has successfully closed a Key Community Mortgage.

Meeting Summary

Question: Why is KeyBank offering this program? It seems too good to be true, or too good to last.
Answer: This is Key’s way of meeting federal requirements for community investment.

Question: What does this mean, realistically, in terms of purchase price and interest rate, for the borrower?
Answer: A $500 minimum investment, approximately .25% add on to the interest rate (example: yesterday’s rate was 5.25% = .25% over yesterday’s VA rate), and, based on income guidelines, works ideally on a purchase price up to $180,000.

Question: Are the funds available for this program limited, capped or budgeted?
Answer: NO

Cool Program Details

  • Minimum FICO score is 620. This is also true for their FHA and VA loans.
  • Income limits are based on Borrower’s Income only, not Household Income, which is problematic sometimes with Utah Housing Loans (another 100% option)
  • Income limits do not apply in Target Areas (refer to the program guide, pages 6-9, to determine tract income level of subject property and financing guidelines)
  • No First Time Homebuyer Requirement
  • No Mortgage Insurance, so the .25% rate add is a non-issue
  • Can be used to refinance at 90% CLTV
  • And, the coolest of the cool, is that each Key Community Mortgage is manually underwritten. Aha! A lender that realizes that a person, and their life, cannot simply be reduced to a three digit number and an underwriter guideline.
  • For More Information Contact:
    Kristin Shields, Mortgage Advisor
    Phone: 801-792-2625
    Fax: 216-370-9481
    Email: Kristin_Shields@KeyBank.com

    Tell Her You Read About the Program Here!

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    Refi and Rent Out to Buy New? What Not to Do …

    Buying a new home and renting out the old one Realty Q&A – MarketWatch. Written By: Lew Sichelman. The author and nationally syndicated columnist is also a contributor to RealtyTimes® and HouseLogic … the latter being a subsidiary of the National Association of Realtors®.

    Did Mr Sichelman really write and recommend the following strategy?

    “… But the only way you can pull $50,000 out of your present abode is to refinance. And to do that, you’ll have to certify that you will occupy the place. So don’t let anyone in on your plan, especially your loan officer. And don’t buy your next house until the you have the money from the refi in hand.”

    Yes, this is loan fraud. Excerpt from HUD’s website page “Don’t be a victim of loan fraud”: Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.

    wow

    Thanks for reading – hope you’ll share.

    Your Realtor®,
    Kim Novak, RE/MAX Masters
    kimnovak@remax.net
    (801) 726-1443

    Get a Realtor “Free Market Valuation” Before Investing $450 in a Refinance Appraisal

    I am in the process of refinancing my personal home, so, being the consummate Realtor® that I am, I prudently prepared a market valuation for myself. I have to admit, I was scared. Yes, very scared. Intuitively I knew what the value should be (since I help my clients buy and sell homes in the same area every day), but I bought in May 2007, at the peak of the peak. I also knew that my neighborhood had suffered a recessionary decline in home values, along with everyone else.

    So, you can imagine the weight that was lifted when my CMA (comparative market analysis) produced the results shown in the graph below. The appraisal came in at exactly the same value as my market valuation. And I’m able to proceed with my refinance.

    If you’re considering refinancing, contact your Realtor® and ask him/her to prepare a “CMA” for you. It’s what we do, for free, for our past – present – future clients. And if you don’t have a Realtor® you rely on for Utah real estate market information, I’d be honored to help you. Click Here for your free market valuation.

    Thanks for reading – hope you’ll share

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