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What makes 1st Alliance better?

If you are looking to buy a home you should do some research on potential lenders prior to selecting one. You will have a relationship with the lender from day 1 until you have paid your final mortgage payment, which is often 15-30 years later. Regardless of your situation (first home, purchasing a home after foreclosure or short sale, etc.) you will want to make sure you are comfortable with the lender selected for your new home mortgage loan.

If you have heard of 1st Alliance Lending you may have know what makes us different from other lenders. We believe our personal touch differentiates us from other lenders.  Here are some of the features that we think highlight why we are the best choice in lenders.

Expertise

1st Alliance Lending is recognized as a leader in helping borrowers that had a previous foreclosure or short sale obtain a new home.  1st Alliance Lending has also helped thousands of borrowers avoid foreclosure.  We continue to work with borrowers who have faced or are facing financial hardship.  We also use our experience to help first time homebuyers establish a mortgage they will be successful at today and long into the future.  We have seen it all and know what works and what doesn’t work. We pride ourselves on creating sustainable loans.

1st Alliance Lending specializes in FHA Back to Work loans which allow homebuyers who have had a previous foreclosure or short sale obtain a new home in as little as 12 months.  We can provide you the details of the Back to Work loan program including requirements and the process.

Welcome Home Specialists

Our Welcome Home Specialists are our loan officers.  We assign one to each homebuyer so you will only be in contact with one person.  That person will know your situation and your needs.  You will be provided their phone number and email so you can contact them with any questions you have.  They will take the time to walk you through the home buying process. Your Welcome Home Specialist can evaluate your financial circumstance and make sure you understand the details of your mortgage.  They can provide you guidance to improve your credit if needed.  At 1st Alliance Lending you will have the one advisor who will focus on you and guide you from beginning to end.
 

Evaluate More Than Just Credit Score

Most lenders will just look at a computer generated credit score to determine if they want to work with a homebuyer.  We believe that people are more than a number.  We realize that many people experienced financial hardships that were beyond their control such as loss of job or overwhelming medical expenses.  We take the time to listen to homebuyers to find out their story.  We want to figure out what works and what doesn’t for you so we can find a way to help you achieve the dream of homeownership again.
       
1st Alliance Lending is a company with integrity.  We believe who you choose for your lender is just as important as which house you decide to buy. Contact us to learn more about 1st Alliance Lending and how we can become your lender partner.

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I had a foreclosure and want to own a home again. What should I do?

If you had a foreclosure but want to own a home again and are wondering what steps you need to take to get there, 1st Alliance Lending is here to help.  There are many steps you can take to get you back to homeownership. Here are few useful tips to get you started.

Evaluate Your Credit and Take Action

Many lenders only look at your credit score when evaluating a mortgage application.  1st Alliance Lending isn’t one of them.  We believe in evaluating the whole picture.  However, the fastest way to get back to home ownership is through the FHA Back to Work program.  This program requires you pay all rental-housing payments on time for a period of 12 months.  In addition you have to have a satisfactory rate of paying your other monthly bills (such as credit cards) on time.  Depending on your situation you may also need to reduce your debt amount.  If you meet the criteria for the Back to Work program you may be able to own a new home in as little as 12 months.

     
    Here are some tips to help improve your credit:

  • Evaluate all of your monthly expenses and categorize by ones you really need and ones you want.  Things you really need should include things like food, rent, and electricity.
  • Eliminate items you don’t need.  Consider your cable, cell phone, magazine subscriptions, etc. as possibilities to eliminate.  Check your local library to see if they provide alternate entertainment options such as free DVD rentals or a magazine exchange program.
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  • Consider contacting companies to see if you can reduce your bill or check into using an alternate company to save money.  For example your garbage company may be willing to reduce your bill or you may find an alternate company that is cheaper.  Check to see if you can reduce your auto insurance cost as well.
  • Avoid impulsive purchases.
  • Consider selling any items you no longer need or use.  Look into selling on online services such as Craigslist or EBay.
  • Eat at home and pack a lunch.  Eating meals prepared at home saves a significant amount of money.
  • Look at your debts.  Create a list of the amount you owe, the minimum monthly payment and the interest rate of each account.
  • Use money you save on steps 1-6 above to pay off debt with the highest interest first.  Keep making the minimum payments on all other accounts.
  • After the highest debt is paid off, next pay off the smallest balance.
  • Feel good that you are being proactive in improving your circumstance!
  • Keep alternating paying off the highest interest and then the smallest balance.
  • Even if you are only able to pay off a little debt at a time, every little bit helps so keep working at it.

Contact 1st Alliance Lending

Contact us at 1st Alliance Lending for assistance.  A loan officer would be happy to review your financial situation and let you know if we think you are ready to own a home again.  If not, we will help guide you on what you need to do to get there whether it is paying down your debt or fixing your credit. We are proud to be Back to Work Program Lenders and are happy to help you achieve your dream of homeownership.

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How to get a new FHA housing loan after a prior bankruptcy or foreclosure

In the past a foreclosure or bankruptcy were two situations that could have prevented you from acquiring a new housing loan from the Federal Housing Authority right away.Because of this, families or individuals who wanted to own a new home a year after an unexpected economic crisis were left with no choice but to approach other financing agencies that offered loans with higher interest rates or down payments.Fortunately, the FHA has recently released a bulletin to change their policy. Now, you are allowed to apply for a new home loan with them in as short as one year after a bankruptcy or foreclosure. There are several conditions you must meet prior to being approved for this new program.

First, you must provide proof that the foreclosure or bankruptcy was caused by factors that are beyond your control, like a drop in business profits due to the dwindling economy.
Prior to this change, the death of a spouse or a medical crisis was the only exception that would make you qualify for a housing loan a year after foreclosure.

Second, you must, for a term of one year, pay your financial liabilities regularly. This would include your credit card bills and rent if applicable.

Third, you need to undergo housing counseling that is conducted by an authorized agency.

Once you have met these conditions, you can then apply for a new loan with the FHA.

Including the loss of income in their list of exceptions is a good sign that reflects how the FHA is reassessing their policies to meet the current needs of the people.
No matter how careful homeowners are at managing their finances, a recession can affect everyone. That is why the FHA is being more supportive of people who want to get back on their feet after a huge financial crisis.Please contact us if you would like to learn more about financing a home with an FHA loan.

New FHA regulations reduce waiting time for mortgage after prior foreclosure

New FHA regulations reduce waiting time for mortgage after prior foreclosure

Due to changes in FHA regulations regarding prior foreclosure, former homeowners now only have to wait a year before beginning the process of mortgage re-qualification. Previously, the wait time following a foreclosure was three years.

Along with the newly reduced wait time, there is a new federally backed program call Back to a Home being offered by UPLINC Lender Systems that will help individuals with information and assistance regarding the FHA re-qualification process. These individuals also receive referrals to lenders and realtors who participate in the program. 1st Alliance Lending, based in East Hartford, Connecticut, is one of the participating lenders in this program.

There is no cost or obligation to find out if you’re eligible to begin the FHA re-qualification process through the Back To a Home program. Those who don’t currently qualify can participate in a program that will better prepare them to qualify in the near future.

Many people have lost their homes due to the bad economy. Many others have dealt with a foreclosure that stemmed from events such as a job transfer, a divorce, or even a death. Serving individuals in 46 states, 1st Alliance doesn’t concern itself only with your credit score. We want to know what happened and what needs to happen in order for you to again be a person who pays his or her mortgage on time. By looking at the full picture, we are able to design a loan for you that you can manage now and for years to come. Let us help you get your second chance to be a homeowner. For more information, contact us.

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Getting ready for your first time home loan: Five Solid Tips

Your very first time home loan is ready and waiting for you to take advantage of it; here are five tips to help you get ready.

  • Save your money. Of course, that’s obvious, but there is more than just a down- payment to consider. There are closing costs and other expenses. You may not want to pay interest for a lot of extras during an overall mortgage term lasting up to 30 years.
  • Check your credit. Before applying for your first mortgage, why not sign up for credit monitoring? This is the time to correct any inaccurate information that may be listed on your credit report. The efforts you make now to correct your record might save you a loan rejection later. All credit information remains on your credit report for seven years. This includes any credit rejections. These may have been the result of inaccurate information on your original report. Having access to your 3-bureau credit scores gives you the power to know where you stand with lenders. It is your responsibility to correct any incorrect data.
  • Review your debt-to-income ratio. Mortgage lenders look at what percentage of your monthly income would go into a house payment. FHA prefers no more than 29%. Other lenders aim for 33%.
  • Now review your debt-to-payment ratio. Mortgage lenders add your consumer debt to your proposed mortgage payment to see how that compares to your income. FHA allows up to 41% whereas other lenders veer more towards 38%.
  • Ask your mortgage broker about any programs that you may qualify for. FHA offers first time buyer programs. If you or your spouse happens to be a veteran, a VA loan may be your best choice. Oftentimes, the terms are more favorable than conventional loans.

Getting ready for a new home purchase is exciting, stressful and more than a little daunting. Nevertheless, if you plan and prepare well, it is possible to get your very first home loan. The age-old standards still hold true when it comes to saving your cash and keeping your debt ratios in check. Modern day loan seekers really need to know what the credit bureaus are reporting. The days of not proving income are long gone. In today’s market preparation is key.

To discuss this program, or to answer any questions you may have about purchasing a home, please contact us. Thanks

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I had a foreclosure and worry I will never be able to own a home again

Many people who have suffered a foreclosure worry they will never be able to own a home again. The good news is that most foreclosure victims will become homeowners again! If you had a foreclosure, consider taking the following steps to help you achieve the dream of owning your own home again.

Waiting Period

If you recently had a foreclosure or short sale, you will be required to wait for a certain period of time before you are able to obtain a new mortgage. The good news is that the waiting period has decreased. If you qualify for the Federal Housing Administration (FHA) Back to Work Program you can own a home again in as little as 12 months. The government has recognized that millions of people lost their homes in the recent economic downturn and wants to help people return to home ownership.

Improve Your Credit

While you are in the waiting period do your best to improve your credit. Make sure you make all payments (credit cards, rent, etc.) on time. If possible pay down your debts, even if it is just a little amount. Paying more than just the minimum amount will be reflected in your credit numbers. The more you improve your credit score, the better your options, such as interest rates, and the variety of available loan programs. You will be one huge step closer to having a new mortgage.

Save Up For a Down payment

If possible, save up for a down payment. The FHA Back to Work Program requires a 3.5% down payment for your new home. Try to save at least 3.5% or even more. This is a great percentage rate. Many other home loan programs require a 20% cash down payment at the time of closing the home loan. That large amount can often be the one factor that determines whether someone can afford a home loan or not.

Complete Required Counseling

The FHA Back to Work Program requires borrowers complete a financial counseling program. The counseling must be finished at least 30 days before applying for a new mortgage but expires after 6 months. So don’t complete your counseling until you are almost finished with the 12-month waiting period.

At 1st Alliance Lending, we have experience helping people who have had a foreclosure or short sale achieve home ownership again. We are an honest, trustworthy lender who will partner with you. We specialize in the FHA Back to Work Program and pride ourselves on creating loans you can sustain over the long term. Contact us when you want to discuss owning your own home.

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Worried about losing your home? We’re here to help.

Are you having trouble making your mortgage payments? Sometimes changes happen in life that make it hard to keep up with your financial obligations. People lose jobs or require expensive medical treatments. Companies reduce health care benefits meaning more money has to come out of your paycheck and pocket. These unexpected changes can not be controlled.

At times, you might feel like it is difficult to keep up with your mortgage payment. At 1st Alliance Lending, we have worked with numerous homeowners to use a new mortgage loan that they can afford both now and down the road.

    1st Alliance Lending has a strong history of helping struggling borrowers achieve sustainable loans:

  • In July of 2008 1st Alliance Lending worked with the government to improve the Hope for Homeowners (H4H) program so it would help a greater number of homeowners.
  • In 2010, 1st Alliance became an approved Ginnie Mae issuer as a result of being a pioneer in the field of principal reduction loans.
  • In 2011, 1st Alliance was featured in the NY times for the loss mitigation products created for struggling homeowners.
  • The founder of 1st Alliance, John Dilorio, recognized as a thought leader and expert in the field of principal reduction refinance, testifies before the Senate Sub Committee on the Housing, Transportation, and Community Development in a hearing entitled “Strengthening the Housing Market and Minimizing the Losses to Taxpayers, in March of 2012.
  • Over the years, 1st Alliance Lending has helped people get back on track. 1st Alliance listens to clients to learn what works and then helps identify which actions will help position the homeowner for success in the future.

If you are having trouble making your mortgage payments, you don’t need a letter threatening foreclosure. You need a lender that is willing to help you – a lender who is willing to listen. 1st Alliance Lending wants to work with you so you can keep your home. It can be hard to ask for help. Remember, we have helped many people in your situation. Contact us so we can help you today

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What are the FHA Back to Work Counseling Requirements?

The housing collapse caused many homeowners to short-sell their homes while others faced devastating foreclosures. If this unfortunate situation affected you and your family you may be interested to learn about the FHA Back to Work program.

The government recognized the impact the collapse had on millions of Americans. The Federal Housing Administration (FHA) created the FHA Back to Work program in an effort to help borrowers purchase a new home. This loan allows borrowers to obtain a new home loan in as little as 12 months. The borrower requirements include:

  • The borrower is able to prove their credit was damaged due to temporary loss of employment or reduction of income.
  • Show they have substantially recovered.
  • Prove their credit was damaged due to temporary loss of employment or reduction of income and show they have substantially recovered.

One of the requirements of this program is completion of counseling. Many prospective borrowers wonder what the counseling entails. Details include:

  • Borrowers can receive homeownership counseling or a combination of homeownership education and homeownership counseling.
  • A minimum of one hour of one-on-one counseling is required.
  • Counseling must be completed a minimum of thirty days prior to submitting a loan application.
  • Counseling expires in 6 months so if you have not submitted your loan application within 6 months of completing counseling you will have to repeat the counseling program.
  • Counseling involves a certified counselor assessing your debt, evaluating your ability to afford a mortgage, discussing features of a mortgage, explaining the loan application process and educating you about mortgage insurance.
  • A HUD-approved housing counseling agency must provide the counseling.
  • Homeownership education may be provided by HUD-approved housing counseling agencies, state housing finance agencies or through an online course.
  • Education can be done in person, via telephone or via Internet.

If you lost your home due to short sale or foreclosure and are ready for a fresh start the FHA Back to Work program may be right for you. The counseling requirement is a small step in the process and is intended to make sure you don’t face another foreclosure or short sale. Your dream of owning a home can become a reality. 1st Alliance Lending is an FHA Back to Work specialist. Contact us so we can help you determine if the FHA Back to Work program is right for your situation. We look forward to helping you on your path to a new home.

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The FHA Back to Work Program Can Give You a Second Chance at the American Dream

The recession hit many families hard. All across the country, people found themselves facing situations they never expected to be dealing with, including bankruptcies, foreclosures, and the unemployment line. By the end of the recession in 2009, unemployment reached nearly 10%. And while the government has declared the recession to be over, the impact is still being felt by millions of families who suffered from bankruptcies and foreclosures over the last several years. The shock waves of the recession will be felt for years to come, too, but that doesn’t mean it is stopping people from starting to rebuild their lives. Finally, it is beginning to feel like our economy is rebounding, as people are finding work again and getting back on their feet. They are rebuilding their lives, and a big step in that rebuilding process is purchasing a home.

If you are one of the millions of people who had to declare bankruptcy or had a foreclosure in the last year, you might think it will take years for you to be eligible to purchase a home again. Thanks to the FHA Back to Work program, though, you may be able to get qualified for a home loan sooner than you imagined. This program can shorten the time it takes to become eligible for home ownership after bankruptcies, foreclosures or other extenuating circumstances to as little as one year.

1st Alliance Lending is an FHA Back to Work lender. We want to look beyond what a computer tells us and learn about you. We want to know about your circumstances, your family, the tough times you’ve been through, and where your life is going now. We’re excited to help families get a second chance at the American Dream, and this program could be the key that helps unlock the door to your new home. If you are interested in seeing if you qualify for this exciting program, contact us. We want to hear from you, because we want to be more than just a lender; we want to be a community builder. Let’s get started on rebuilding those dreams today!