WY Mortgage
Looking Closer at WY Mortgage Laws
Homeowners who purchase a property don't always read the fine print. However, every WY mortgage comes with terms and conditions, as well as local laws and jurisdictions that apply to each legal agreement. In order to be in the smartest financial position, you need to understand what laws apply to Wyoming homeowners and what things are most often overlooked that can come back to haunt you later.
Foreclosure Laws
The first thing that you need to know is that most of the WY mortgage notes written fall under what is known as title theory. This means that a clause will be written into the mortgage agreement saying that a trust is created for the title of your home. If you default on the note, the entity that holds that title regains the right to do with the property what they see fit. There are, however, legal requirements in Wyoming to execute a foreclosure without intervention from a judge. For example, your lender must publish a notice of foreclosure in a public place, such as a newspaper, providing the proper documentation. After a four-week publishing period, your home may then be sold to the highest bigger at auction. Still, this usually doesn't happen any sooner than ninety days.
If provisions are not in your WY mortgage for the title theory method of foreclosure, they have to follow the proper legal channels. You will be officially notified of the proceedings, and it will more difficult for the lender to evict you. They must wait for the judge's decision before foreclosure can occur.
Whichever type of foreclosure is being attempted against your home, you have rights in Wyoming. In the event that you pay the delinquent amount in full within a three month period, plus an extra ten percent of the amount needed from the sale date, you can regain control of your home. This brings your WY mortgage current.
For a full reading of the foreclosure laws that are specific to Wyoming, refer to the Wyoming Statutes, Title 34, Chapters 3 and 4.
What about Licensing?
There are also laws in place that regulate the licensing of the professionals that can deal with your WY mortgage. This area of Wyoming law is regulated by the Division of Banking in the Wyoming Department of Audit. Beginning in 2005, all loan officers in Wyoming are required to carry a valid Mortgage Broker License. Some exemptions are required, but they shouldn't apply in most situations where you are buying a home in Wyoming. Testing and financial guarantees of solvency can be required, so this is a protection that is in place for you, the homeowner. Even loan professionals who are located out of the area will need proper documentation to legally issue a WY mortgage to local residents, so don't be fooled by those who claim otherwise.
What About Predatory Lending?
No one wants to wake up from their dream of owning a home to the nightmare that is created by predatory lending. Luckily, if this does happen to your WY mortgage, there are laws in place to protect you and provide recourse. All federal programs fighting predatory lending, including those offered under the umbrella of the Federal Trade Commission, can be utilized by Wyoming residents. In addition, more localized laws provide an extra layer of protection against fraud. Wyoming built its predatory lending laws around the parameters that the FTC uses. Citizens can take their own legal action, as well as asking the Attorney General's office to intervene in their behalf.
Using Stillwater Mortgage Inc. for Your WY Mortgage
Buying a home can become a long and drawn out process. Many new buyers go into obtaining their WY mortgage without a good idea of what to expect, or even a list of things that they need to do in order to make this happen. That's isn't always a good idea. In fact, not doing your homework can cost you time and money, so knowing what the process entails when buying a Wyoming home is important. Here we will discuss the offerings from a popular Wyoming bank, Stillwater Mortgage Inc. This company has three loan officers available: Kristi Hack, Sarah Johnson and Kate Bury. Their office is based in Casper, WY.
What Stillwater Offers for Your WY Mortgage
There are several products that Stillwater Mortgage specializes in. Through this Wyoming company, you can apply for both fixed-interest and adjustable-rate mortgages. Within these broad categories, there are even more specific choices that you can find listed on the company's website. For example, there are special programs for first-time home buyers that provide applicants with a chance to decrease their required upfront costs to get a WY mortgage. These may be offered in partnership with the FHA or VA programs, which are federally backed funds that are filtered to qualified applicants in Wyoming. In addition, community homebuyers programs may be something to look at. All but 3% of the down payment can be obtained via grants, gifts and other supplemental funding sources. First-time buyers can also ask about qualifying for income tax credits on your federal taxes via a mortgage credit certificate.
Other popular choices for your WY mortgage include things like no-interest loans, reverse mortgages and balloon-payment terms. A reverse mortgage allows senior residents of Wyoming to obtain access to the money that is tied up in equity without risking the loss of their home. Balloon payments provide lower upfront costs, with a large sum being due all at once.
Not Buying New?
Even if you are not attempting to finance a new WY mortgage, this local mortgage company has plenty of other products. For those that need to realize equity or refinance, Stillwater provides plenty of choices. Always work closely with your professional to decide which option is right for you. For example, Wyoming allows you to get lower closing costs and fees on your Wyoming refinance or equity line of credit. However, this usually is a trade-off, resulting in higher overall interest rates. This is sometimes referred to by Wyoming brokers as a point system. You need to understand how this works before making any firm decisions.
What About Proof of Income
As a more rural state, Wyoming has plenty of self-employed residents. For this reason, many people wonder what is required to prove income on a WY mortgage. Frankly, this used to be easier than it is now. Before 2009, almost all states allowed self-employed people to state their income for loan purposes. However, many banks now highly favor provable income documents, such as a tax return or verifiable pay stub. For those that live in Wyoming, however, it is nice to know that Stillwater Mortgage will still work with self-employed individuals to accomplish a stated-income loan application. However, you may find that you pay more for this option, so fully documented sources may still be preferable for your WY mortgage.
New Program for Getting a Low-income WY Home Loan
Owning your own home is the American dream. With the recent economic downturn, however, that dream is becoming out of reach for many people. For others, what they thought was the fulfillment of that vision has become a nightmare. That doesn't mean that there is no hope for getting a WY home loan. Actually, a new program in Wyoming is providing a ray of hope to locals that wish to get into a new home.
What is the WCDA Program?
The Wyoming Community Development Authority is a program, specific to the state, that provides access to a WY home loan for qualifying families. There are loans offered to build, buy or rehabilitate a house. There are income requirements in place to determine who can take advantage of this program. In addition, all homes that are purchased using a WCDA loan must be owner-occupied. You can not use this type of loan to fund investment properties. This is because the WCDA must comply with government law, as their programs are funded with mortgage revenue bonds, which are tax-exempt.
Can I Sell or Rent my Home?
If you have obtained a WY home loan via the WCDA's plethora of programs, there are certain things that you must know. First, you can still sell your home. If the buyer qualifies for all the income parameters, they may actually be able to assume the loan. If not, you can sell the home to someone with financing already in place. You may be required to pay a penalty, known as the Recapture Tax. This applies only if you sell the home before nine years and have equity that you are realizing. It also makes a difference how much income you have.
It is against the rules of the WCDA's WY home loan regulations to rent your house. These homes must remain owner-occupied. The only exception is in the event of death or extreme hardship, such as a move that is out of your control. With special permission, you may rent the home. However, it must be placed on the market for sale, and available for viewing at any time.
Partner Lenders
The WCDA program is already being offered to residents of the state. There are dozens of partner lenders who are participating in this program. This includes, but is not limited to, 1st Bank Corporation, Wells Fargo, Buffalo Federal Savings Bank, Wyoming Bank and Trust, Cheyenne State Bank and First National Bank of Wyoming. There are many more lenders that offer a WY home loan under this program, with lending institutions all around the state.
More than Just a WY Home Loan
The WCDA has other programs in place that focus on low-income housing. For example, the Community Pride and Revitalization fund is available to community volunteers to perform renovations on low-income and senior housing. You can also obtain renovation funding to purchase a fixer-upper yourself. This type of WY home loan requires that the home in question be under-par and in need of at least $5,000 in repairs to get it to a decent standard of living. Applicants must be applying for a home loan for the first time and meet the income guidelines. The WCDA also funds larger low-income housing projects through various grants and programs.
For those that have a low income, the American dream of home ownership can seem out of reach. However, obtaining a WY home loan is more available to these families, thanks to the various programs offered by the new WCDA organization. They are truly committed to opening the doors of a new home to all families in Wyoming.
Factors Affecting Availability of a WY Home Loan
It isn't hard to dig up statistics about how the economy is affecting different areas. However, putting those numbers and sound bites into perspective is a bit more difficult. What most people want to know is what statistics mean and how they will affect your ability to get a WY home loan. Where are the good deals? What areas are depressed in the state of Wyoming? Is there higher job availability in some places, providing greater economic and employment stability for homeowners to build upon?
What's Going on With the WY Home Loan Market?
To say that the market is being affected by the economy would be a true statement. However, it would also leave a lot of gaps in your understanding of what the effect actually is. In order to see a clear picture, more specifics are needed.
Because of the tighter parameters being placed on lenders, it is still harder to get a WY home loan. There is less construction in Wyoming. Rentals are seeing higher vacancy rates in the state, or holding at their prior numbers. Most areas report that average home prices are falling. For example, the average in the entire state of Wyoming fell approximately 3 1/2 percent from the 2007 to the 2008 calendar year. Some counties, however, are bucking this trend. Teton county, for example, saw a slight increase. Even Niobrara county, which has the lowest average home prices in the state, saw an increase of almost 18%.
Economic Factors
Like the rest of the country, Wyoming has seen an economic impact to the recent financial crisis. Unemployment has risen. However, it is remaining below the national averages. This may be because Wyoming residents already earn less than other Americans for the same job skills. The consistent employment may make it easier to qualify for a WY home loan, but lower reported incomes may mean that your loan amount is for less.
Where you live with largely determine how much you can expect to pay for your WY home loan. Seven counties in the state feature median home prices that are under $150,000. These include Niobrara, Big Horn, Weston, Goshen, Hot Springs, Washakie and Platte. Teton is, by far, the most expensive area, being as much as five times more expensive than the closest competing county, Sublette.
Low-Income Options
Just under 10% of Wyoming residents sit underneath the poverty line. For this group of people, getting a WY home loan can be extremely difficult. Luckily, there are still options. In fact, the publisher of the study used above, the WCDA, offers access to funding for qualifying families. There are also low-income loans available via federal programs, such as HUD. HUD housing is often auctioned off to Wyoming residents, with single-family occupants given an edge in the bidding process.
As you can see, statistics do mean something. There is a face and a family behind every number and pie chart that you see. These factors affect not only the availability of a WY home loan, but also the prices that are paid and the incentives given. The market is loosening up a bit, as both buyers and lenders get a bit more comfortable with the newer parameters. Still, there is a long way to go before anyone can honestly consider real recovery to have taken place.
