Blog - ATG Title

The FHA 90 Day Flip Rule – Here’s What to Know

February 1, 2022 By Jeremy

The FHA 90 day flip rule is a policy that requires you as a property buyer to wait at least 90 days from the last approved deed before you can get an FHA loan. The policy is reviewed by an FHA approved appraiser and only applies to FHA loans. So if you are not using an FHA loan, the FHA 90 day flip rule likely will not apply to you. There are also numerous exemptions to the FHA 90 day flip rule.

Exemption to the FHA 90 Day Flip Rule Include:

HUD resales
If the property was inherited and the seller just wants to get rid of it quickly
When an employer or relocator has purchased the property and no longer needs it
- This could also apply to movie studios or TV production companies
Houses being sold by not-for-profits and the government

The good news is that if you do not fall into the 90 day time frame, the normal restrictions will not apply to you. But that doesn’t mean you’re 100% in the clear.

If you’re using an FHA loan and the time frame on the last deed is between 91 and 180 days, you have a few more restrictions, although they are nowhere near as tricky as the ones in the 90 day flip rule. [Read more…]

What is Mortgage Insurance?

January 25, 2022 By Jeremy

Mortgage insurance is an insurance policy that covers lenders if you cannot pay back the principal cost of your mortgage. The cost of your mortgage insurance policy will vary depending on the type of mortgage insurance you buy, your credit score, the down deposit, if you want adjustable or fixed interest rate, and if you take a private or federally backed loan. And good news, not everyone is required to purchase mortgage insurance.

For example, some FHA loans and traditional mortgages will not require you to buy mortgage insurance if you put a minimum required down payment on the house. In many non-federally backed loans the amount is 20%. Some lenders and government programs may also not require mortgage insurance for lower down payments, but it all depends on your specific situation so it is important to shop around for a mortgage type and lender that can meet your needs.

And when you shop you’ll discover that there are multiple types of mortgage insurance.

The four most common mortgage insurance policies are: [Read more…]

10 Ways to Sell Your FSBO (For Sale By Owner) House Fast

January 18, 2022 By Jeremy Leave a Comment

When selling your house by yourself (FSBO, for sale by owner), you won’t have the assistance of a real estate agent which also means you do not have access to their expertise and unbiased view of what makes your home special. But that doesn’t mean you cannot sell your house by yourself.

You just need to be extra conscious of what a licensed agent would do, especially when it comes to listing your house, taking photos and marketing it as for sale by owner.

Below you will find ten pro-tips for doing am FSBO transaction which will help you to sell your house fast. [Read more…]

What is a Warranty and a Statutory Deed?

January 11, 2022 By Jeremy

A warranty deed is when a person selling a plot of land, a house, or a property, can guarantee they own the rights and title of the land and that this person is legally allowed to sell the property to you. Warranty deeds are not the same as quitclaims as a quitclaim is when the seller believes they own the rights to the land but cannot guarantee a clean title.

The purpose of the warranty deed is to give you some assurance as a home buyer that you will be able to buy the property without any issues. But even with a guaranteed warranty deed in place, it is still wise to have a title search done by a reputable and independent title company. By having the title company do a complete search for potential problems you have a second set of eyes and don’t need to just take the seller’s word for it.

Warranty deeds are normally transferred from the seller to the buyer during the escrow process, and if everything follows regular practices the transfer will be recorded by the county recorder’s office. This is one of the places a reputable [Read more…]

Will Buying a House Impact My Credit Score?

January 4, 2022 By Jeremy

Yes buying a house will impact your credit score negatively at first, but if you make payments on time regularly then buying a house will have a positive impact on your credit score.

At first, when you apply for a loan, your lender will issue a hard inquiry which will negatively impact your credit score. According to FICO, a single hard inquiry should only have a five-point or less drop to your credit score. Since hard inquiries are a common part of purchasing a home, this is an important point to keep in mind if you have bad credit.

After the sale has been finalized, you may see another small drop in your credit score. This is because any loan that adds to your total debt will slightly negatively impact your credit score.

While purchasing a home has a negative impact on your credit score initially, you will be able to recover and even improve your credit score quickly as you’ll be making monthly payments back to your lender and your lender will be reporting these payments to the credit bureaus. Thus you are building a better credit track record which helps to increase your credit score.

Let’s jump into a bit more detail about how buying a house benefits your credit score. [Read more…]

What is a Reverse Mortgage? Should You Take One?

December 21, 2021 By Jeremy

A reverse mortgage is a loan that allows seniors 62 and older to generate income off of their homes. Reverse mortgages work by calculating the amount of equity built into your home and then lending it out to you so that you can access it without selling your home.

For example, if you have $50,000 left on a mortgage and the home is worth $100,000, you could take out a loan to access that extra $50,000.

Reverse mortgages are perfect for seniors who want to supplement their monthly retirement income or need access to fast cash to finance expensive repairs.

In addition, most reverse mortgages get paid off by selling the home. For this reason, a reverse mortgage is perfect for people who don’t have any heirs to leave their home to or do not plan to pay off their mortgage in full. And even if you do have a heirs, your heirs are not on the hook for a reverse mortgage so you don’t have to worry about drowning them in debt.

Now that you know what a reverse mortgage is, lets jump into some more details about them.

How Can I Cash in On My Reverse Mortgage?

There are generally four different ways that you can cash in on the equity of your home using a reverse mortgage: [Read more…]

What is Real Property?

December 14, 2021 By Jeremy

Real property is defined as the ownership of a property (also known as a parcel), including the land and everything that is attached to the land or property whether it is natural or artificial.

Basically anything that is physically nailed down to the property or grows on the property and has roots in the ground can be defined as real property. A potted plant that is not growing in the ground is not real property whereas a plant whose roots have breached the ground surface is real property.

Common examples of real property include:

Your house
Flowers, trees, and crops that grow in the ground
Sheds, gazebos, or anything with a foundation
Doors and windows attached to the house
Ponds and waterways confined to the property boundaries
Any mineral or resource below the ground

What real property allows you is the right to lease, modify, rent, and do whatever you want with the property. On the contrary, anything not under the umbrella of real property is defined as personal property. This generally includes anything that is not nailed down or can be physically moved, such as your personal possessions.

You’ll come across the phrase “real property” in your property searches as well as a title search that evaluates claims on “real property”, which is why it’s important to understand what real property is.

Now that you know what real property is, lets dive deeper into the differences between real property and personal property, and also learn what is included in real property taxes.

Differences Between Real vs. Personal Property

The difference between real and personal property is that real property encompasses everything that is native or attached to the land and personal property is what you can take with you that is not attached to the land.

For example, any raw building materials such as wooden [Read more…]

What is a Mortgage Broker? And What Do They Do?

December 7, 2021 By Jeremy

A mortgage broker is a person that comparison shops home loans for you so that you can save time and find the best deal possible.

Mortgage brokers may work independently or on behalf of a larger brokerage. And while your real estate agent will likely have a broker recommendation for you, working with an independent mortgage broker may be advantageous if you have bad credit or are searching for loans that are not offered by traditional lenders. And saving time and getting a great deal aren’t the only benefits to using a mortgage broker.

Mortgage brokers are paid a commission, known as an origination fee, which is only paid once you agree to the terms of a loan. This means that they only get paid when they find a loan that you agree to, so they’re going to go to bat and get you a great offer.

It is important to know that mortgage brokers do receive a higher commission if you agree to a bigger loan with higher terms, so make sure you feel them out first. But rest assured that mortgage brokers also know you’ll likely be researching rates as well, so your researching incentivizes your mortgage broker to find you the best deal possible so that you are more likely to sign and your mortgage broker gets paid.

Now let’s look at what a mortgage broker does and how a mortgage broker benefits you as a buyer. [Read more…]

What is an Escrow Agent? How Are They Part of Real Estate?

November 30, 2021 By Jeremy

An escrow agent is the person who handles all escrow services when you buy or sell a home, such as distributing money between the buyer and seller and managing all of the necessary paperwork to help you close. Escrow agents help make sure that all financial documents are completed in a timely and accurate manner. They also may assist in a number of other jobs, such as writing the deed, initiating a title search, and finding title insurance.

Escrow agents are typically agreed upon by both your lender and the seller to help manage the transaction. By acting as a neutral party, escrow agents represent the interest of both the buyer and seller to help minimize risk in real estate transactions for both parties.

But, you still may be wondering who an escrow agent works for and who hires an escrow agent. Let’s dive in to learn more about who your escrow agent works for, what their job is and other questions you may be thinking.

Who Does the Escrow Agent Work For?

The escrow agent works for both the buyer and seller and is typically agreed upon by both parties or their agents. The primary interest of the escrow agent is to handle all of the terms and contingencies of a real estate contract and will help to ensure you have a smooth transaction. [Read more…]

What is Ownership Interest in a Property?

November 23, 2021 By Jeremy

Ownership interest in a property defines your rights as an owner of a property or that you have a claim to the property. Ownership is the highest form of interest and typically gives you the full rights as an owner to do what you please with the property, within the limits of the law.

You don’t have to live in a home to have an ownership interest in a property. Likewise, you can have an ownership interest if you inherit a property, split the property in a joint tenancy with your spouse, or invest a little amount in exchange for a percentage-based interest of the property.

While owning a property may seem fairly straightforward, understanding what ownership level is becomes important when applying for specific loans.

For example, HUD defines a first time homebuyer as someone who has not had an ownership interest in a home for the last three years. Even if you did not live in the home or had a 1% financial interest, you still would not qualify for an FHA loan or other first time homebuyer programs.

Now that we know what ownership interest in a property is defined as, we need to discuss what qualifies as ownership interest in a property. [Read more…]