Home Repair/Modification Grants Available for Rural Hoosier Seniors

May 16th, 2012

The senior population in America is growing rapidly. The U.S. Census Bureau projects the number of senior citizens, age 65 and older, will jump from 12.5% in 1990 to 17.7% in 2020. That’s a 41.6% increase. Indiana’s U.S.Department of Agriculture (USDA) Rural Development Office wants to help rural Hoosier seniors stay in their homes, so they can maintain their independence and dignity for as long as possible.

House Modifications With this goal in mind, Indiana’s USDA Rural Development Office has up to $200,000 in grant funds available for Hoosier seniors (age 62 and older) living in rural communities to use on home repairs or home accessibility modifications. Qualified homeowners must apply by June 30, 2012 for these grant funds. Grants of up to $7,500 are available.

The eligibility requirements for grant funds include:

You must be a homeowner aged 62 and older.
The home must be located in a USDA-designated rural area of Indiana.
You must need major home repairs and/or modifications to make the home more accessible. Home repairs and renovations may include: the repair of electrical wiring systems and fire hazards; repair of structural supports and foundations; the repair/replacement of roofing; the repair of deteriorated siding, porches or stoops; the installation or improvement of water and waste-water disposal systems; the installation of energy-efficient insulation, storm windows and/or doors; the repair/replacement of heating and cooling systems; alteration of the home’s interior to provide greater accessibility for handicapped family members; and home additions that alleviate overcrowding or health hazards to family members.
You must have a very low-income (50% of the median household income for the county). The income limit ranges from $18,450 to $25,000 for one person to higher limits for individuals located closer to urban areas. Additionally, family size increases the limits. Also, the USDA Rural Development Office allows some deductions from annual income, which means individuals with incomes slightly higher than the limit may still qualify.

For more information, contact the USDA Rural Development office serving your county:

Crawfordsville Office
2028 Lebanon Road
Crawfordsville, IN 47933-2143
765-362-0405, ext. 112 (Elizabeth), 109 (Heather), or 111 (Phyllis)
Counties Served: Boone, Fountain, Hamilton, Hendricks, Montgomery, Parke, Putnam, Tippecanoe, and Vermillion

Knox Office
1406 South Heaton St.
Knox, IN 46534-2314
574-772-3066, ext. 121 (Patrick) or 122 (Steve)
Counties Served: Benton, Carroll, Cass, Clinton, Elkhart, Fulton, Howard, Jasper, Kosciusko, Lake, LaPorte, Marshall, Miami, Newton, Porter, Pulaski, St. Joseph, Starke, Tipton, Wabash, Warren, and White

Columbia City Office
788 W. Connexion Way, Suite E
Columbia City, IN 46725-0699
260-244-6266, ext. 121 (Liz) or 115 (Julie)
Counties Served: Allen, DeKalb, Huntington, LaGrange, Noble, Steuben, and Whitley

Muncie Office
3641 N Briarwood Lane
Muncie, IN 47304
765-747-5531, ext. 118 (Jayne) or 124 (Lisa)
Counties Served: Adams, Delaware, Blackford, Grant, Henry, Jay, Madison, Randolph, Wayne, and Wells

North Vernon Office
2600 Highway 7 North
North Vernon, IN 47265
812-346-3411, ext. 136 (Sonya) or 136 (Cindy)
Counties Served: Bartholomew, Brown, Clark, Dearborn, Decatur, Fayette, Floyd, Franklin, Hancock, Jackson, Jefferson, Jennings, Johnson, Lawrence, Morgan, Ohio, Ripley, Rush, Scott, Shelby, Switzerland, and Union

Jasper Office
1484 Executive Blvd
Jasper, IN 47546-9300
812-482-1171, ext. 151 (Kim) or 118 (Terri)
Counties Served: Clay, Crawford, Daviess, Dubois, Gibson, Greene, Harrison, Knox, Martin, Monroe, Orange, Owen, Perry, Pike, Posey, Spencer, Sullivan, Vigo, Vanderburgh, Warrick, and Washington

Grandview Lending is dedicated to helping Hoosiers with their mortgage needs. If you are seeking assistance for yourself or a family member, contact us for a pre-consultation.

How to Shop for a Mortgage

May 1st, 2012

apples to oranges Last week we talked about the 4 reasons why you shouldn’t use APR when comparison shopping for a mortgage. So if you can’t APR, then how should you shop for a home loan?

It’s best to compare single variables on the Good Faith Estimates you receive. The Good Faith Estimate is the document you’ll receive from lenders that shows all the charges and fees associated with the mortgage loan.

While it’s easy to become overwhelmed when reviewing Good Faith Estimates, there are actually just two variables you need to consider:

The interest rate you receive from the lender.
The closing costs you’ll be charged by the lender.

On the first page of the Good Faith Estimate, about halfway down the page, you’ll find the “initial interest rate.” The closing costs are identified as “your adjusted origination charges.”

First, determine the type of loan program you want (e.g., 15-year fixed, 30-year fixed or adjustable). Then pick the variable that’s of most importance to you – the interest rate or the closing costs.

Shopping by Interest Rate

Determine the mortgage rate and lock-in period that you want; otherwise you’ll just be comparing apples to oranges. Also, you can’t just pick any rate. It needs to be fair and aligned with current market conditions.

When you talk to lenders, tell them that you’re comparison shopping. State the mortgage rate and lock-in period you want. Then ask them for their fees associated with your specific rate and lock-in period. Then add up ALL of the fees, including points (discount and origination) and other charges (e.g., processing and underwriting fee, mortgage insurance premium, appraisal fee, credit report cost, tax service fee, application fee, etc.). Note: You’ll have to convert points into dollar amounts.

If you want the lowest cost, pick the lender with the lowest fees.

Shopping by Closing Costs

If you want a low-cost loan, determine the maximum amount that you’re willing to pay on closing costs. When you talk to lenders, tell them this number and ask what their interest rate would be. For example, you might tell the lender “you want a zero-cost, 30-year, fixed-rate mortgage” and ask what their interest rate would be. Then pick the lender with the lowest rate. Note: Lenders may quote you an above-market interest rate since they won’t be receiving origination fees.

Whatever you do, pick one variable (interest rate or closing costs) when comparison shopping for a mortgage. Don’t comparison shop using both variables. Otherwise, you may end up overpaying.

By shopping around for your home mortgage, you can save yourself money by getting the best financing deal.

If you’re feeling overwhelmed when shopping for a home loan, or you want to get a Good Faith Estimate, or have questions about what's the best option for you, contact a trusted mortgage broker for assistance.

4 Reasons to Not Use APR When Comparison Shopping

April 25th, 2012

With mortgage rates at all-time lows, are you thinking about refinancing your home?

If so, then it’s important to comparison shop, regardless of whether you’re looking for a conventional loan, FHA loan or some other type of loan. However, if you’re like most homeowners, you may not know how to comparison shop for a loan.

The one thing you definitely don’t want to do is to shop by Annual Percentage Rate or APR. APR is supposed to represent the annual credit cost, plus interest, broker fees, points, origination fee and mortgage insurance premiums owed. While it’s supposed to help you determine the “true cost” of financing a home over a 30-year period, it’s an artificial number calculated by a formula determined by the government. However, the real “true cost” for financing is determined by adding the loan amount, the interest paid over 30 years, and the closing costs.

The 4 reasons why you don’t want to APR as a comparison tool:

APR is based on a 30-year loan divided into equal payments each month. Most people don’t keep a loan for 30 years.
Different lenders use different APR calculations – either adding or subtracting certain figures from the equation. This way a lender can manipulate an APR to look lower.
APR doesn’t take into account all mortgage-related fees, such a title fees, credit report fees, mortgage application fees, late payment charges, title insurance, property appraisals or document preparation.
While APR is useful for fixed-rate mortgages, it doesn’t work for adjustable-rate loans. APR is based on 30 years of equal payments. Adjustable-rate loans can change from year to year, depending upon the market and fluctuations in the economy. Since lenders can’t accurately predict whether the rates will go up or down, they guess. And if the APR is a guess, how can you reliably comparison shop?

Since everyone’s situation is different, comparison shopping by choosing the lowest APR may not provide you with the best loan option. Next week we'll discuss the right way to comparison shop for a mortgage.

If you’re still confused about APR, contact a knowledgeable mortgage broker. We’ll be happy to explain how APR works, as well as take a look at your individual circumstances to help you find the right loan for your needs.

5 Hot Remodeling Trends

April 18th, 2012

Home Remodel With the soft economy, many homeowners are deciding to stay in their homes rather than selling at lower prices. So they’re turning to remodeling instead.

The National Association of Home Builders expects 9% growth in the $280 billion remodeling market this year. Contractors around the country say they’re already hearing from homeowners wanting to remodel. However, rather than large-scale, whole-home remodels, homeowners are opting for smaller projects.

Five of the hottest renovation trends include:

Extended family suites. Now that baby boomers are growing older, more and more families are deciding to live together these days as a lower-cost option rather than assisted-living care. Therefore, contractors are seeing more demand for in-law suites or apartments built as either a new addition alongside the main home with a connecting door; or as a basement renovation. On the opposite end of spectrum, the soft job market has resulted in more grown children (and their families) moving back in with their parents, which also calls for creative remodeling solutions.
Customized kitchens. Families nowadays want kitchens with larger pantries or utility rooms, open shelving, and/or island units for more storage, plus larger eating and family areas for additional space for family dinners and other get-togethers. Other features offer convenience and/or energy savings, such as induction and gas stovetops, French door refrigerators, European spray pullout faucets and deep single bowl sinks.
Backyard getaways. With the price of gas and less overall spending money, families are traveling less and electing to “vacation” at home. So outdoor living spaces are still a popular home improvement. Frequent upgrades to outdoor entertaining areas include pools with rock and waterfall features; pool houses with restrooms and shower facilities for guests; extra storage areas for pool supplies and other outdoor equipment; outdoor kitchen areas; and multi-leveled decks. Sun room additions are also a popular indoor/outdoor living feature.
Spa bathrooms. Homeowners want to create a relaxing, mini-spa like environment in their homes. Renovations include dual rain shower heads, deep Jacuzzi soaking tubs, quartz and granite countertops, and soft, multi-colored mood LED lighting.
Pocket offices. Since most people today use laptops and other mobile electronic devices, they don’t need a formal home office or den. So, more homeowners want small home management areas, known as “pocket offices.” These small offices are often located near the kitchen or family room and feature a built-in work surface and storage area with a pocket door for easy access. They make perfect areas for paying bills, managing the family calendar or downloading recipes.

If you’re thinking of renovating your home to incorporate some of these newest trends or just want to update the overall look of your home, talk to one of the loan specialists at Grandview Lending. We’ll listen to what you want to do and help you find a remodeling loan that’s right for your plans.

Building a Good Relationship with Your Realtor

April 11th, 2012

Home Owners Are you on the market for a new home? If so, you’ll probably work with a realtor during the home-buying process.

According to the National Association of Realtors, 79% of homebuyers use a real estate agent when buying a home. And there are good reasons why a high percentage of people use a realtor. A knowledgeable real estate agent can save you time since he/she has access to more resources than you do in finding available properties that meet your specific criteria. Plus, an experienced realtor can help you negotiate various factors during the buying and mortgage process.

But you need to start the relationship with the right mindset. Because if you don’t treat your realtor with respect and professionalism, you run the risk of:

Delaying the buying process.
Losing out on buying the right home at a great price.
Having your agent drop you as a client.

Here are some tips to consider when building a relationship with your realtor:

Commit to working with one agent. A real estate agent devotes a considerable amount of time and money working to find your dream home – searching listings, scheduling home viewings, and taking you to see homes. The last thing an agent wants is for you to be working with other realtors. Show your agent some common courtesy and loyalty by working exclusively with him/her.
Get preapproved for a mortgage first. It can be a huge waste of everyone’s time (you, your agent, the selling agent and the home seller) to look at homes out of your price range. Therefore, show your realtor some respect by finding out what you can afford before you start your search.
Keep the lines of communication open by being honest with your agent. Don’t lie to him/her about your finances, your credit score, or if the home will be a vacation or rental property. Your agent wants to work with you and can help you find a solution if you’re just truthful.
Remember you’re on the same team. Your agent is looking out for your best interest. So provide him/her with all of the information he/she needs to help you find your dream home. In return, your realtor can guide you through the whole home buying process, including: looking at homes, choosing a home, negotiating on your behalf, handling the paperwork, helping you find a qualified home inspector and/or lender, and making sure the closing goes smoothly.

By following these guidelines, you’re on your way to building a successful relationship with your real estate agent – one which results in finding the home of your dreams.

When you’re ready to find a mortgage loan, contact a reputable mortgage broker, like Grandview Lending. We can take the confusion out of the lending process and provide you with the help you need.

Survey: Homeownership Still Preferable to Renting

April 4th, 2012

Sold Even though home values are down nationwide, the majority of Americans surveyed by Fannie Mae in the fourth quarter of 2011 continue to want to own versus rent their home. Nearly two-thirds of Americans currently renting homes want to buy a house at some time in the future.

Americans, across all education levels and demographic groups, think it makes more sense to own rather than rent. Safety and the quality of local schools still are the top reasons for buying a home.

“In spite of the impact of the housing crisis on home values and homeownership rates across the country, Americans by and large still hope to become homeowners,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Some may not be financially positioned to own a home in the near future, but Americans may begin to revisit that aspiration as employment and household balance sheets improve over the coming years.”

Renters specifically cited the following factors keeping them from buying a home now:

Poor credit
Bad economic times
The complexity of the mortgage process

Compared to mortgage borrowers, renters consistently think it would be difficult for them to get a home. They cite financial issues as the main reason why they cannot buy a home.

Other findings include:

African-Americans and Hispanics think it would be difficult for them to obtain a home mortgage, regardless of income level.
Renters who have lower levels of education think it’ll be harder for them to buy a home compared to people with higher education levels.
Hispanics and lower income Americans don’t think they’re getting enough information about home loans to make an informed decision.

While Americans with higher education and income levels think buying a home is a safe investment, only 63% of Americans believe homeownership has the highest investment potential.

Future improvements in employment and personal finances, a pickup in interest rates in response to stronger economic growth, and stabilizing home prices may lead Americans to become homeowners versus renting in the future.

If you’re ready to stop renting and buy a home, contact Grandview Lending. We’ll work with you to explain the home loan process and evaluate your current situation to determine the right lending solution based on your circumstances.

Refinance Your Home through New FHA Plan

March 28th, 2012

Refinance President Obama announced a new plan this month to help homeowners cut their monthly mortgage costs by refinancing their FHA loans. The program, which goes into effect on June 11, could help 2 to 3 million homeowners – even those who are underwater on their mortgages.

To qualify, you must meet these requirements:

You must have an FHA mortgage that was taken out before June 1, 2009. Mortgages backed by Freddie Mac, Fannie Mae, the Department of Veteran Affairs or private investors do not qualify.
You must be current on your mortgage payments for the past 12 months. Any late payments prior to one year are OK, but your payments in the past 12 months must have been on time.
Your refinance must lower your monthly principal, interest and mortgage-insurance payments and give you a net savings of at least 5%. If not, then you’re not eligible.

If you qualify for this program, you’ll receive some refinance perks to streamline the process and sweeten the deal:

You won’t have to verify your income or employment status.
Your credit reports or FICO scores won’t be reviewed.
You won’t have to have a home appraisal done. The refinance is not based on your home’s current value. Your loan amount will be based on the previous appraised value of your home when you took out your current FHA loan.
Your upfront insurance premium charges will be reduced from 1% of the loan amount to 0.01%. Plus your recurring annual insurance premium also will be lowered from 1.10% of the loan amount to 0.55%.

However, you’ll still need to pay closing costs on your refinance – either in cash or by having your lender include the costs in your loan at a slightly higher interest rate. This refinance program doesn’t allow you to add the closing costs to your loan balance.

To determine if you qualify for this refinance program and if it’s the best option for your situation, contact a trusted mortgage broker. We can help you figure out your potential savings and your suitability for the program.

10 Tips to Rejuvenate Your Home for Spring

March 21st, 2012

Tips Spring is officially here. Do you know what that means? It’s time for spring cleaning. Whether you’re getting your home ready for sale or you just want to freshen it up, here are 10 tips to rejuvenate your home’s appearance.

Clean the nooks and crannies. Vacuum behind and under sofas, chairs, beds, dressers and other heavy furniture. Dust the baseboards, crown molding, door frames, heating vents and the walls for cobwebs.
Deep-clean your rugs and carpets. Either have them done professionally, or rent a carpet steamer and do them yourself. Use fans or open the windows to dry the carpets out. Air out rugs on a clothesline or railing.
Dry-clean or vacuum and steam-clean your curtains. Check labels for specific care instructions.
Launder or dry-clean the bedding in all your bedrooms. This includes mattress pads, comforters, dusters, pillows, and pillow shams.
Polish chandeliers and all lighting fixtures. Wipe lightbulbs with a microfiber cloth dampened with water. Use a telescoping duster to reach recessed can lights.
Wash windows and blinds. Rubber-edged squeegees make window clean-up fast and easy. Use a cloth to clean windowsills. Wipe down wooden blinds with a wood cleaner. Take down aluminum blinds and scrub them with soap and water outside. Use a towel to dry them thoroughly.
Sanitize the refrigerator. Throw out old food – check the expiration dates. Wipe down all the surfaces, inside and out, with soap and warm water. Use a toothbrush to reach corners and other hard-to-get-at places. Vacuum dust from the condenser coils to keep your frig from overheating.
Wipe up oven spills. If you have a self-cleaning oven, run it for at least two hours. If not, first, use a metal spatula to lift up baked-on pieces. Then spritz the inside with ammonia, leaving it on for five minutes. Sprinkle baking powder on the oven surface and add a few drops of vinegar. Let the mixture bubble for a few minutes and then wipe it up with a wet scrub sponge.
Control clutter. Use bins, baskets, drawer organizers or boxes to organize small items. Sort papers – throw away what you don’t need and file what you do.
Throw out old toiletries and medications. Replace any toothbrushes or loofahs. Trash old make-up. Check the date on medications and discard anything that has expired.

These tips should have your home sparkling and smelling fresh in no time. If it seems too much to take on all at once, then concentrate on one item each week until it’s done.

If you still feel the need to do more, you can always add a fresh coat of paint on the walls or take on a larger renovation project. Contact Grandview Lending for information on remodeling loans. We’ll work with you to find a loan that’s tailored to your specific needs.

What Is a Short Sale?

March 14th, 2012

At the end of 2011, about 11.1 million homes were underwater – meaning the homeowners owe more on their mortgages than their homes are worth. When a home is underwater, it prevents the homeowner from selling their home unless they’re willing to take a loss. However, there is another option. The homeowner can talk to their lender to see if they would be willing to allow them to sell their property for less than the amount owed on the loan. This is called a short sale.

However, the bank or lender must agree to the short sale. And not all lenders will approve it. In each case, the lender will determine if it’s in their best interest to take a loss on the rest of the loan.

If the homeowner has a hardship, such as lost income due to a lay-off or an illness with rising medical costs, and he/she is facing possible bankruptcy or foreclosure, then the bank may agree to a short sale. In this instance, the bank will make more money through a short sale than having the property go into foreclosure.

For example, a homeowner in hardship has a first mortgage of $350,000. The bank agrees to accept a short sale. A potential buyer offers the lender $270,000 for the home. If the bank accepts the $270,000 as full payment for the mortgage, then this is considered a short sale.

Some reasons why lenders may be willing to accept a short sale are:

They don’t want to have a bunch of bad loans.
They don’t want to own a bunch of empty houses.
They may have to take an even bigger loss if the property is auctioned off, as well as pay fees to the auction company.
They have to pay extra fees for maintaining the home and property.
Foreclosures result in more paperwork and added time for them.

So what are the pros and cons to a short sale?

Short sales can help homeowners facing foreclosure, although it can still damage their credit. For homebuyers, a short sale means they may get a great home at a lower price. However, buyers need to be willing to go through the extra paperwork and time needed for a short sale. This may not be an option if the buyer needs to move into a new home quickly.

If you’re buying a home and need a mortgage, an experienced mortgage broker can guide you through the lending process. At Grandview Lending, we can help you find the right loan that fits your needs.

Protect Yourself and Your Property during Tornado Season

March 6th, 2012

Tornado The deadly outbreak of severe thunderstorms and tornados on March 2nd that ripped through the Ohio River Valley and the South will no doubt be recorded as a historic tornado event. The Weather Channel’s severe weather expert Dr. Greg Forbes says around 80 tornados touched down on Friday.

As the aftermath of these storms illustrate, it’s essential to develop a tornado safety plan for your home, especially since we’re only at the beginning of spring. Most tornados in the U.S. occur during the spring and summer – with the highest frequency reported in the May to June timeframe.

The following are steps you can take to prepare for tornado season that may possibly save your life and your property.

Prepare a tornado emergency kit that includes a battery-powered or hand-charged radio or TV, a hand-charged flashlight, extra batteries for devices, cell phone, cell phone charger, an emergency whistle, a first aid kit, sturdy shoes for every family member, spare keys for your vehicles, identification, and cash.
Maintain an emergency supply of food and bottled water – at least 72 hours worth for each family member.
Designate a shelter area. If your home doesn’t have a basement or an underground storm shelter, look for the smallest area in the lowest part of your home that is away from outside walls and windows. This could be a bathroom, central hallway or a closet.
If you live in a mobile home, you should determine where the closest permanent structure is to seek shelter. If a permanent building is too far away or your warning time is not long enough to get to your shelter, you should lay in a ditch or depression, covering your head with your arms. Be aware of potential flooding.
Determine where family members will meet if you are separated during a tornado.
Share your emergency plan with every family member – making sure everyone knows where to go and what to do. Routinely practice tornado safety drills – especially at night.
Keep tree branches and bushes trimmed, especially those around power lines.
Fix loose siding, shingles or shutters on your home.
Keep loose items in your yard, like toys, tools and lawn equipment, picked up so they don’t become dangerous projectiles.
Make sure your homeowners’ or renter’s insurance policy is up-to-date, and you have enough coverage to replace your home’s contents in case of loss. A personal property inventory will help you document your belongings. Either complete one yourself, or if you don’t have the time, contact a nationally certified inventory professional.
During severe weather, stay turned to local news and pay attention to all watches and warnings issued by the National Weather Service. If a tornado is spotted in your immediate area, you should grab your tornado kit, pillows and blankets; put on sturdy shoes; and seek shelter immediately. Secure your pets on leases or in carriers. Use the pillows and blankets to protect your head and neck.

The professionals at Grandview Lending hope you never have to experience the devastation of a tornado. But with advance preparation, you may be able to minimize any loss. And remember, we’re here to help you with all your home loan needs as they arise.