The Romo Report

The Mortgage Blog Of Alex Romo – 312-738-8430

FHA CONDO APPROVAL – PROS/ CONS & MISCONCEPTIONS

What are the benefits of FHA condo approval?

1 FHA condo approval dramatically increases the pool of potential buyers

Statistics show that approximately 60% of new homebuyers intend to use an FHA Loan. If your community does not have FHA condo approval, you potentially limit the buying pool to only 40% of homebuyers. NOTE: These are “regular” buyers – an FHA loan is not associated with low-income HUD programs, such as Section 8. In some counties, an FHA insured loan can reach amounts of $800,000.00 or more. Since the recession, most American buyers are using FHA insured loans, and this will be the trend for years to come.

2 Increased Home Value

FHA approved Condos have a larger pool of prospective buyers, therefore increasing competition and demand for the product. This can result in higher purchase prices and an increase in market value. This will increase the value of units throughout the community.

3 FHA Loans are Assumable

This means that in the future an FHA Loan can be assumed (including the interest rate) by a new buyer. With interest rates at an all-time low, this can be a very valuable asset to an HOA community.

4 Marketability

Some real estate agents won’t show units that aren’t FHA Approved. Being approved sets your community apart from others in your same area.

5 Awareness

Going through the FHA condo approval process gives your Homeowners the sense that you as a Board cares about the community and wants it to thrive. By avoiding the approval process it will hamper your owners when they go to sell their units.

6 Less Renters in the Community

Generally speaking, Buyers who use FHA loans are more likely to reside in the unit, and not rent it out. Conversely, communities without FHA approval will attract buyers that can make large down payments. These buyers are usually investors who will rent the property for a profit.

7 Fiduciary Duty

Board Members and Property Managers are expected to maintain property values in their communities. Several HOA attorneys advise that it is the fiduciary duty of the condo Board to apply for FHA condo approval to maintain or increase property values for residents.

 

What are the cons of FHA Condo Approval?

There are no “cons” to being FHA Certified. Remember, chances are, your community was certified when it was developed. Most communities in the US are currently seeking FHA eligibility, but may not meet the strict FHA guidelines, and will not qualify. Misconceptions regarding FHA Condo Approval:

Misconceptions of Obtaining an FHA Approval

1 Being FHA Certified will bring in “low-income” buyers – FALSE

This is completely false! FHA Condo approval is completely unrelated to affordable housing programs. The FHA can insure loans upwards of $800,000.00 in some areas. Since the recession, most American buyers are using FHA insured loans, and this will be the trend for years to come.

2 FHA Loans caused the mortgage crisis – FALSE

FHA loans are not Sub Prime Loans. Although they do offer lower down payments than traditional mortgages, there are credit score requirements, debt to income analysis, and income verification. Also, in 2009 FHA loans made up about 2% of the loan market, in 2010 they were up to 40% and climbing.

3 The guidelines are too strict and it’s cost prohibitive – FALSE

Well-managed and financially stable communities have no trouble becoming FHA approved. The cost has dropped dramatically since 2010. When the guidelines initially changed, Attorneys were charging upwards of $5,000 to review the documents. My team and I at The Federal Savings Bank work with the Condo Association to obtain all documentation and submit directly to HUD for FHA Approval for a very low fee of $0. That’s correct! I charge $0.00

If you or anyone you know lives in a condo development, call me today!

-Alexander Romo

Senior Vice President -Mortgage Lending

312-738-8430

The Federal Savings Bank

NMLS 217060

 

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Filed under: Mortgage Advice, , , , , , , , , ,

HOMES SELL BETTER DURING WINTER THAN YOU THINK

Homes sell better during winter than you think

Many homeowners are under the assumption trying to sell their homes during the winter is a bad idea. However, the numbers show otherwise. The housing market doesn’t dip in winter months as much as people think, and plenty of buyers are still out looking for the right deal. There’s no need for homeowners to wait until spring to put their houses up for sale or pull their properties from the market starting in November.

“There are plenty of people who need to buy a home in the winter, whether it’s because of a job relocation or major family change, like a new baby” said Redfin real estate agent Paul Stone. “These buyers want to get into a home quickly, and are sometimes willing to pay top dollar.”

Follow the numbers
According to data released by Redfin last December, homes put on the market during winter months between March 2011 and March 2013 were more likely to sell by 9 percentage points compared to homes listed during warm months. Not only were they more likely to sell overall, but the homes listed December through March sold faster and for more money compared to homes listed during other months. On average, 56 percent of homes entering the market during non​-winter months sold within six months, while 65 percent of homes listed during winter sold within six months.

Go against the grain
Homeowners willing to ignore the naysayers and follow the numbers should spruce up their homes for winter to draw in potential buyers.

It’s true the dark and cold could potentially put buyers off from house shopping, but the right amount of curb appeal will get them into their coats and to a seller’s door for a showing. Sellers can take advantage of the holiday cheer and winter aesthetics by adding outdoor lights and hanging wreaths on the front door – maybe even putting some flameless candles in the windows to make the inner warmth of the home seem enticing.

Not only is what buyers see important, but also what they smell when entering a home. Homeowners can use pine in wreaths to evoke pleasant winter memories or bake a few sugar cookies before a showing.

Additionally, sellers should make sure to always keep their walks clear of snow and ice so that buyers don’t see potential safety hazards before they get to the door.

First-time home buyers shopping in winter should contact Alex Romo at the Federal Savings Bank, a veteran owned bank, to learn more about low rate mortgages and the pre-approval process.

Alex Contact Info

Filed under: Housing Market, Uncategorized, , , , , , , , , ,

PURCHASING A HOME BUT CREDIT IS LESS THAN PERFECT? NO PROBLEM

With my exclusive program, I can help improve your credit so you can purchase that dream home!

Since I have launched this program 2 yrs ago, we witnessed extraordinary results instantly!

See for Yourself!

New Leaf success stories1watch my quick video on this awesome program!

CLICK HERE

Call me today

Alex Romo – Senior Vice President – Mortgage Lending

312-738-8430

Hablamos Español

Filed under: Housing Market, Mortgage Advice, , , , , , , , , , , , ,

DON’T BE LIED TO! GETTING A MORTGAGE IS TOUGH!!!

Just having good credit doesn’t mean you’ll be able to obtain a mortgage.  Whether you are purchasing a home or simply trying to refinance your current home – there are several important parts in order to getting approved!

It’s easy to walk in to your neighborhood bank and expect the process of obtaining a mortgage approval as easy as opening a checking/savings account.

Unfortunately, many of us have learned this is not always so.  Mortgages are tough to obtain. Plain and simple.

In today’s market, it’s gotten so tough that our nations Top Banker cannot even obtain a mortgage! He was denied when applying to refinance his home! read more

This is just another reminder to make sure and work with a True Mortgage Professional who is dedicated and knowledgeable of today’s mortgage program qualifications.

Filed under: Housing Market, Mortgage Advice, , , , , , , , ,

“BIG BANKS” REJECT MOST MORTGAGE’S

Denied

When it comes to obtaining a home loan, Big Banks do a great job wasting consumers’ time and money.

Wells Fargo, Chase and Bank Of America are the leaders of the pack! Chase takes the throne with rejecting 1 in every 3 loan applicants! read more

Home buyers who get rejected for a mortgage at one large bank could get approved at its competitor—assuming they know NOT to give up the search. “It absolutely makes a difference where you go,” says Stu Feldstein, president at SMR Research, a mortgage-research firm.

About 25% of my own business in 2012 came from “rejected” clients of these banks. All were discouraged/disappointed and most of all confused.  How could a bank who easily takes their checking/savings, just deny them from purchasing their dream home?? It baffles me.

I was able to close every single one of these clients in less than 30 days.

Share this article with anyone you know who is thinking of purchasing a home.

Alex Romo – Home Loan Expert

Filed under: Housing Market, , , , , , , , , , , , ,

STOP***HOLIDAYS ARE AROUND THE CORNER***

StopWith the Holidays coming up, stores are rolling out the “savings” with “discounts” and “zero % credit cards”.

Reports show the Holiday discounts are coming sooner this year.

Right after Halloween!

Buyers, do not open new credit or increase your current debt until AFTER the closing. This can definitely put a wrench in purchasing a home and can easily disqualify you.

Banks are required to do a soft pull on credit the day before closing to make sure NOTHING has changed.

REALTORS***This is the best time to reach out to your clients who are either under contract or thinking of purchasing in the near future.

Although I say this to all my clients, there is always one client who cannot resist opening that Bestbuy credit card to purchase a new flat screen.

Call me with any questions!

Alex Romo -Home Loan Expert

 

Filed under: Mortgage Advice, , , , , , , , ,

Important Steps To Land The Best Mortgage

I spent some time talking to key real estate professionals this week and a common subject came up.  Buyers are not doing their homework when it comes to getting a mortgage.  Producing Realtors know that Big Banks are not always the best options for homebuyers.  With issues from inexperienced Loan Officers to lenders outsourcing Appraisals through AMC(Appraisal Management Companies), realtors and buyers soon realize they lose complete control of the loan process and are at the mercy of the Big Bank problem. We all know someone who has experienced this.

Buyers – get informed!

Deciding to purchase a home can be an exciting life changing event.  City or burbs? If you have you children or planing to have in the future, school districts come to mind.

dont forgetKey steps to remember:

1)Prepare for the increase in mortgage rates – especially if you’re not purchasing in the next couple months . Feds are tapering off the purchasing of bonds which will indeed have a direct effect on interest rates

2)Work with a Mortgage Professional to run your credit report/analyze your liabilities and assist in improving your score to obtain the best rate and program for your home loan

3)GET PRE-APPROVED!!!! – Even before you start looking for a house, you should get pre-approved for a mortgage. This will make you a stronger buyer, because sellers will know you have the financing in place to move forward. In addition, getting pre-approved for a mortgage amount “sets boundaries around what you can afford. Those boundaries dictate what your price range is,” said McBride – read more

For the best mortgage advice and program options in the market, call me today!

 

Filed under: Mortgage Advice, , , , , , , , , , , , , ,

FHA – COLLECTIONS AND DISPUTED ACCOUNTS

Face it. We work with clients with less than perfect credit.  The majority of them seek FHA financing for this very reason. Don’t get left in the dark as FHA is changing!

New Rules Starting today!!

If you have Collections or are Disputing a creditor, this new rule will affect you obtaining a mortgage.

  • collections/judgements cumulative totalling $2,000 of more, they may have to be paid off or show proof of payment plans; which will affect qualifications debt-to-income ratio
  • Disputed accounts cumulative totaling $1,000 or more will require the loan to be downgraded as a Manul Underwite; which will affect qualifications

Call me today to discuss.

New FHA RULES EFFECTIVE TODAY!

New Rules

Filed under: Mortgage Advice, , , , , , , , ,

WE BACK OUR VETERANS!

Thank you for your service! Veteran owned, The Federal Savings Bank takes pride in helping our soldiers achieve the American dream of home ownership! NOBODY DOES IT BETTER THAN US!

Veterans

Filed under: Housing Market, Mortgage Advice, , , , , , , , , , , , , , ,

GET FULLY APPROVED TODAY!!! I will make you into A CA$H BUYER in this tough market!

HELPP

Filed under: Housing Market, Mortgage Advice, , , , , , , , , , , , , , ,

THINKING OF BUYING A HOME? CLICK BELOW TODAY!

Refinance Today! CLICK BELOW!

Start Saving today!

About Alex

Alex Romo is one the leaders in the mortgage lending industry. With over 10 years of experience, Alex has grown to be one of the top originating Loan Officers in the country. His extensive knowledge of today's programs and the ability to offer the best options for his clients has earned him a high level of respect with his Realtor partners.

Alex utilizes state-of-the-art client follow-up systems to provide superior service.

Alex specializes in referrals from past clients and works closely with Realtors in Chicago and the south and west suburbs where he has personal knowledge of the communities and neighborhoods.

The powerful combination of mortgage industry expertise, local market sensitivity, and top-notch customer service ensure a smooth transaction experience for clients and real estate professionals alike.

“My favorite part about my career is helping those who dream of homeownership achieve that goal,”

Expert in:
FHA Lending
First Time Home Buying
IHDA/USDA/VA
Credit Repair
Equity Repositioning
Jumbo Lending
Commercial Lending

Contact:

Alexander Romo

Senior Vice President
The Federal Savings Bank
300 N. Elizabeth St 3E
Chicago, IL 60607
Office: 312-738-8430
Cell: 773-550-2539
Fax: 312-628-8311
NMLS# 217060

Testimonials

**Alex is one of the best loan officers I have worked with. He is very skilled and gets the job done. He is great with his clients and walks them through the process from start to finish. He is hard working and very responsive to all his deals he takes pride in his work. I would give Alex 5 stars give him a call you will not be disappointed
- Marlene B. Realtor

**When we found a home at the beginning of January 2014, due to some pressing situations, Alex was certain we could close at the end of the month. And we did!!!! He was actually ready to close a week earlier. His knowledge of the market and about upcoming rule changes to home financing were very helpful for us to decide to buy a home. I would certainly recommend him to anyone looking to finance a home
- Mallari and Robert

**Alex was very helpful during the entire process. He took the time out to explain every step of the loan process from start to finish. Every time that I had an issue Alex was always a phone call away, and he actually answered it. No voice mail, which gave my wife some piece of mind. He did a great job, and I would recommend him to anyone.
- Anthony P.

**Alex, it was truly a blessing having you to work with, thank u so much for everything and for explaining everything to me in my language.
- Charles R. Jr.

**I was looking for a home in the Chicago area and because of my current credit situation I looked to my father to apply for the loan instead of applying myself. My father was a preferred customer at Bank of America and according to our loan officer there, it was a sure deal that the loan would be approved. After a long period of time and very little communication the loan was declined with no immediate explanation. After that whole mess, I was in contact with Alex Romo, not only did he get an approval but he helped me get my credit in line and I was approved by myself. I highly recommend that anyone looking to get a home loan contact Alex. He knows the mortgage process inside and out.
- Eric H.

**Alex really does go above and beyond in helping you get the mortgage that is right for you and your family. He is knowledgeable and more importantly he takes the time to EXPLAIN the often times too wordy jargon that is mortgage language.
- Janie

**Alexander Romo takes the stress out of purchasing a home! Alexander took care of everything for my family while applying for a loan. Alexander was with us from start to finish! When purchasing a home, I highly recommend Alexander when looking for a great loan!
- Jason P.

**Alex has been a pleasure to work with on a number of legal transactions. His extensive knowledge, initiative, responsiveness, and hard work are only overshadowed by his honesty and integrity. I wouldn't hesitate to refer any of my clients to Alex for their borrowing needs!
- Attorney Jay R.

**Alex was very Helpful, and was the only person that was able to get me approved. many others tried but just couldn’t close the deal. Thanks Alex
- Juan A.

**My experience with Alex has been great. He is very quick and responsive and does a great job for his client.
- Margaret L.

**Alex really knows how to take care of his clients. From beginning to end, he was always available to answer questions. His knowledge of the housing market puts him at the top!
If you're in the market to purchase, Alex is your guy! I will recommend Alex to everybody I know
- Maria O.

**Alex is great with follow up and has tenacity to get you or your client the best rate and make the deal work for everyone.
- Phil B. Realtor

**Alex is very professional as a loan originator for The Federal Savings Bank. He follows up with his clients and attends all his closings. I would feel compfortable in recommending him to my follow colleagues.
- Sylvia R. Realtor

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