Just an FYI (especially for Minnesota), we still have the ability to issue (and are issuing) loan approvals based on income, asset and, on some refinances, even appraisal documentation waivers.....
I don't know of anyone else doing this....as a matter of fact, I was just referred a loan recently from a friend of mine at US Bank because they couldn't do a documentation waiver program-yes, I have the preliminary approval and the loan is locked!
The big difference is we don't have any chart like in the past that says "if this and this then it qualifies for that". It is a waiver program that is computer driven and it takes the whole file into consideration then gives us a decision and loan documentation requirements based on the the situation......I will say that, good credit still goes a long ways!
Just a heads up...if anyone has a situation where this may be valuable, it's definitely worth looking into-and I'd love to help!
12/12/08 Here's the updated list from Mortgage Implode (www.ml-implode).
Sad to think of all of the people that these lenders closings effects...... and what a ripple effect it has (title, appraisers, the paper guy, coffee guy, the restaurant next door, etc).
"Imploded" lenders: The "imploded" status is somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or a "firesale" acquisition. The Companies include all types (prime, subprime, or a mix of both; retail or wholesale; subsidiaries and entire companies). Note: Companies listed here may still be operating in some capacity; check with them before making assumptions.
Don't forget-because it's just around the corner, that FHA down payment changes go into effect on January 1st. The changes will be.....
Down payment minimum of 3.5%. Currently it is 3% total but in most areas it is 2.25% down with .75% being able to come from closing costs. Not anymore.....now it is 3.5% plus whatever closing costs are involved unless seller pays them subject to 6% seller contribution maximum).
The loan amount included the upfront Mortgage Insurance (UFMIP) can not exceed 100% of purchase price or appraisal-whichever is less.
Acceptable gift funds may still be used (relative, employer, etc.....just not the non-profits) and cash out refinances are still at 95% Loan to Value
FHA Maximum Loan amounts are DECREASING for the Twin Cities 11 county metro area
Currently: $365,000
Revised $318,550
Outside of the Twin Cities metro area the maximum loan amount will remain unchanged @ $271,500
Don't get to the closing table only to find out things are no loner approved.....Double check with your lender to make sure your approval and/r pre-approval letter is still valid!
BTW, rates have dropped so please keep me in mind!
Our FHA loan limits for a 1 unit home is currently $365,000 but effective 1/1/09, they will be dropping down to $318,550.
FHA is still a great program which is insuring most of the riskier, over 80% mortgage paper currently.
If you have a buyer looking in/around the $400k range, let them know about this.....
Not many people realize this but, the loan amounts are higher for multiple unit FHA homes (FHA insures 1-4 primary residence units)....see my table below!
2008 Limits 2009 Limits
1 unit $365,000 $318,550
2 unit $467,250 $407,800
3 unit $564,800 $492,950
4 unit $701,900 $612,600
This is a good program to utilize (and the MI should be tax deductible for you!)......
Posted at 12:25 PM on Thursday, October 30, 2008 by District 9 Web Admin
WASHINGTON (Oct. 30, 2008) -- Veterans and active-duty military not in uniform can now render the military-style hand salute during the playing of the national anthem, thanks to changes in federal law that took effect this month.
"The military salute is a unique gesture of respect that marks those who have served in our nation's armed forces," said Secretary of Veterans Affairs Dr. James B. Peake. "This provision allows the application of that honor in all events involving our nation's flag."
The most recent change, authorizing hand-salutes during the national anthem by veterans and out-of-uniform military personnel, was sponsored by Sen. Jim Inhofe of Oklahoma, an Army veteran. It was included in the Defense Authorization Act of 2009, which President Bush signed on Oct. 14.
I wanted to pass this along to our readers! Please remember the men and women serving our country overseas-and at home!
Wow! So much has happened recently....so, in trying to keep positive about this industry, I will say that there are some great housing deals out there for buyers. Other than that, well, you read the paper....(which BTW, is bad because it's all negative press)
With so that negativity all around us, lets look at a few positive's.....
We are alive
Most of us are somewhat healthy
Housing prices are low
Now's a great time to buy real estate!
Gas-Everyone can thank me for gas prices coming down. I sold my Durango right after I filled up the tank at $3.89-now look at us a few weeks later! if I hadn't of sold, gas would have still been in the $4 range (Murphy's law) :)
Prime back down to 4%
Greenspan still doesn't admit that, in one hand he was warning how so many people had adjustable rate mortgages and they could be in trouble when they reset...yes, on the other hand, he raised rates 14 consecutive times and THAT my friends is what caused the sudden housing bust-Yes, there was a correction coming (slowly) but with all of those mortgages resetting so high and at the same time, it had like a tsunami effect..... Just look back to some of my other newsletters with me denouncing his decisions to continue to raise rates.......
Definitions
Federal funds rate is what banks chargeto one another for overnight loans. The federal reserve board controls the federal funds rate.
Prime rate is simply the fed funds rate + 3% and is tied mainly to credit card and home equity rates
Mortgages are traded on the stock market in bond portfolios-market supply and demand dictate first mortgage rates NOT what the federal reserve board does.
Realtors, if you don't know about them, get to because this is a very special product! As the baby boomer generation begin to reach age 62 (age requirement for a reverse is age 62), this product will help them move to their next level (buying a home without spending all of their cash and without a mortgage payment EVER).
Some benefits of the Reverse Mortgage program include:
NO income qualifying
NO monthly mortgage payments
NO limitations on use of funds
Minimal credit requirements
Loan proceeds may be tax free (consult tax professional)
Homeowner stays on title
Insured to never owe more than home is worth!
Reverse PURCHASE benefits also include:
NO source of funding
NO Mortgage Insurance Premiums
NO Monthly mortgage payments
Larger loan amounts than traditional reverse mortgages
The way to determine which option for the buyer is best is to run a customized evaluation of the individual situation.
This product is going to be a big part of the real estate markets for some time to come. A reverse mortgage takes various factors into account so it doesn't have cookie cutter one size fits all guidelines. It is customized and takes into account house value, clients age and desired loan to value for starters.
Just know it's a product that is out there and, if you have buyers age 62 and older, this may be a very beneficial product for you!
We know that the bond programs are the only source of down payment assistance in many areas. None of the new bond programs have been able to begin because there are no buyers for these bonds.
For most of the 2000's, Fannie Mae and Freddie Mac were the major or only buyers of mortgage revenue bonds. That is no longer true. They aren't buying and there are no other investors.
This email is in regards to new bond programs. The bond programs that currently have money will continue to have funds until everything is reserved. So there is no worry with loans in the programs pipeline.
Please contact your voices in Washington -- your senators and representatives.
So, in this "buyers" market, to sell a home, it is no longer the practice of just putting it on the MLS and waiting for a buyer.
Outside of listing it, what are you doing as a Realtor to attract potential buyers to your listings?
Sign in yard
Place on MLS
Flyers (refilled as needed-hopefully...color.....a plus!)
Open houses-if so, how often?
(If you can comment on the post then I can edit and add to this list)
Does anyone talk over with the potential seller a detailed marketing plan when vying for a listing?
I want to personally list a home soon but I want someone to tell me how they are going to stand out from the crowd and help me sell my home faster and at a market rate (or close to). I've asked a couple of realtors this and they had no plan for me other than put it on the MLS and maybe the three items I listed above.
What makes a full service realtor stand apart from one of the flat fee listing services that are now offered?
CitiMortgage, the nation's fourth largest residential wholesaler, is making deep cuts in its table funding unit, cutting 500 account executive jobs, and slashing its broker network to 1,000 from a current head count of 9,500.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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