New Risk Retention Rules Could Affect Boca Raton Borrowers

The FDIC, the Federal Reserve and several other federal regulatory agencies have proposed a new credit risk retention rule that would waive the 5% risk retention rule under Section 941 of the Dodd Frank law on qualified mortgages by requiring the borrowers to make a 20% down payment. Under the new rule, when making a non-qualified loan, lenders must retain a 5% ownership when the mortgages are packaged and sold to investors. Banks would have to have more capital for these non-qualified loans which means higher costs passed on to non-qualified loan borrowers. Borrowers who are unable to come up with the 20% down payment may not even qualify for a loan. The National Association of Realtors and

Are you interested in renovating your Home?

Estimating Rehabbing Costs

With so many great foreclosure and short sale opportunities available right now, many investors and buyers are taking advantage of Boca Raton distressed properties that need rehabbing. If you can do the work yourself, you will save a bundle of dollars. Not every foreclosure needs a total extreme makeover because there are some luxury Boca Raton REO’s that just needs cosmetic repairs such as painting, changing flooring and lighting.

The Best Ways to Use Rehab Dollars

Follow the 1:3 rule. For every dollar you spend, you get $3.00 back. Certain repairs will net you a higher rate of return such as rehabbing kitchens and baths. If you cannot do the work yourself, ask your Boca

Before you buy a home in Boca Raton Florida, you should obtain a copy of your credit report and review it for mistakes. Common mistakes occur all the time on credit reports, and they can end up lowering your credit score substantially. Lenders are requiring higher minimum credit scores these days. If you have a score over 700, you will receive the best interest rates. Scores below 500 will not qualify you for home loan or even a car loan. Your creditors report your credit history to the three major credit Bureaus - Experian, Equifax, and TransUnion. You can order a free annual report from all three agencies so you can review it for accuracy and dispute mistakes and errors. Here are some negative items and errors that you should look for so you can dispute