Fannie Mae is again raising lending criteria: DTI to 45%, Fixo to 620, financing 5 years following foreclosure with 680 Fico, higher PMI requirements, 75% ltv max for 2-unit+ investment property, higher reserves, the official retirement of construction-to-permanent financing!, and more. /// Fannie changes take effect Dec 12. I think it is more than likely that FHA will also up the standards again. Elimination of seller concessions and raising the minimum down to 5% are possible. Read more. /// Make it a good week folks :) - Paul
Do you qualify for a jumbo mortgage? Plenty of lenders offer jumbo mortgages now, although the requirements are stricter than they used to be. Read more. (Prospect Mortgage has the most liberal lending criteria in the industry! - P).
BigFunnels.com Interested in working with me, build a huge funnel, and do many sales? Check the ultimate funnel building, and contact conversion solution. BigFunnels.com.
Temporary jumbo loan limits extended through 2010 The temporary increased maximum loan limits originally set to expire at the end of the year will remain in place through 2010, according to the Federal Housing Finance Agency (FHFA). The limits for conforming jumbo loans eligible for purchase by the government-sponsored enterprises (GSEs) was set at $417,000 for single-family homes by the Economic Stimulus Act of 2008 (ESA) and the Housing and Economic Recovery Act of 2008 (HERA), but were set to expire at the end of 2009. more
Rates down a bit
The national average for the 30-year fixed was at 4.91% with 0.7% fees and points last week. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision - 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
Home buyer tax credits have been extended and improved! Up to $8,000 for qualified first-time home buyers purchasing a principal residence is available. And up to $6,500 for qualified repeat home buyers. Details. Make it a good week folks! - Paul
What will your business look like in 12 months from now?
The Home Buyers Scouting Report, the ultimate funnel building, and contact conversion solution - is off to a flying start. If you missed it last week, go to my blog to read up and go for a test drive! Note that it is also my program to refer clients to you!
Minimum Fannie Fico to 620
The minimum Fico for Fannie Mae loans is going up to 620 effective December 12th. Read more. Note that as of today my minimum FHA Fico's for a purchase still start at 560!
What the Fed's latest move means for mortgages
The Federal Reserve may be keeping interest rates intact at near 0%, but consumers planning to buy a home or refinance one in the following months may want to take note: The end of record-low mortgage rates appears to be a step closer. Read more. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision - 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
I am pleased introduce the The Homebuyers Scouting Report. The Home Buyers Scouting Report is the "MLS for buyers" - a contact capture and conversion system. It is a revolutionary new system that can drastically improve your sales volume. (See below). /// It looks like the home buyer tax credit will be extended and expanded. /// Mortgage applications are down due no more tax credit driven purchases. /// Make it a good week folks! - Paul
Problem: You are losing most of your contacts!
How often do you connect with prospective clients (open house, ad call, personal sphere, cold calls, etc.), hand them your business card, follow up with them, and never have them convert to a sale? 80%, 90%, 95% of the time? Do you have to have to maintain a HUGE funnel of clients in order to actually get a few sales? You also know that buyers want all the available information, but they want to be able search for what they want when they want it - without having to wait for you to send them listings. If you're not around, they may go to someone else. NAR reports that buyers will on average visit 7 websites, connect with 17 realtors, and spend 6-9 months in their education phase. So how can you beat the odds and increase your conversion rate?
Solution: The Home Buyers Scouting Report!
The Home Buyers Scouting Report can help you beat the odds an increase your conversion rate in a big way! You use the MLS to list your sellers. And you use the HBSR to show the listings to your buyers. What if you could also use it to allow your buyers to peruse real time listings at their leisure with only YOUR contact info associated with all listings? The Home Buyers Scouting Report is a contact capture and conversion system which allows you to "own" and support literally hundreds of home shoppers, respond to their inquiries on a daily basis, and zero in on who is ready to buy/sell. Read more.
Rates flat "Economic data releases this week offered mixed signals as to the state of the housing market. Total existing home sales jumped 9.4% to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the NAR. However, new home sales unexpectedly fell 3.6% to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices." said Frank Nothaft, Freddie Mac vice president and chief economist. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision - 30-day closes (45-days for FHA)
-- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
Fannie Mae is raising the minimum Fico to 620 from 580. Fannie pricing is also more dynamic (higher score, lower rate), has more restrictive program criteria: 680 needed for PMI, more reserves needed, and more. Count on FHA tightening up as well. Read more. /// Make it good week folks!- Paul
"I'll improve my Fico by paying off my collections" Not necessarily. Your score can actually go down! "A recent paid collection is often worse than a distant unpaid collection". Credit score and repair info.
New FHA condo rules delayed to Dec 7th Implementation of FHA’s new policy for condominium project approval and condo unit financing will be delayed until Dec 7th. Also note that the minimum down payment may go to 5%, and seller concessions eliminated next year.
Rates up a bit "Following bond yields, long-term mortgages rates edged up slightly this week," said Frank Nothaft, Freddie Mac vice president and chief economist.
"Although rates for 5/1 ARMs and traditional 1-year ARMs are around half a percentage point below 30-year fixed mortgages, consumers appear to be seeking the stability of fixed-rate mortgages. Freddie Mac rate surveys
Big rebound in existing home sales Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past 6 months, according to the NAR. Read more.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
The Fed is buying less mortgage backed securities for the 5th consecutive week. And this is why you care: The gradual effect may be a rise in interest rates. Read more. /// Basically 1 week left for sales that need to close by Nov 30th to take advantage of the tax credit! /// Make it good week folks!- Paul
What is rescoring?
Rescoring is a legitimate process that seeks to increase credit scores temporarily to secure a mortgage approval, or a better rate. Virtually any score can be improved by at least 20 points. It's cheap, and it takes only 5 days to do it. Contact me to make your clients "mortgage ready" !
Why use a seller conession?
1. Reduce cash required by up to 50%+
2. Avoid PMI if you hare hovering around the 80% LTV mark
3. Use it to pay for allowable expenses (much more than just closing costs)
4. Qualify for the loan by using it to buy down the rate
5. Ease payment shock by getting a temporary buydown
Long-term rates up slightly Rates rose slightly over the week, but the 30-years fixed remained below 5% (4.92% with 0.7% fees) for the 3rd consecutive week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Homeowners are taking advantage of these low rates to refinance their current balances. Over the past 5 weeks, more than 3 out of 5 applications were for refinancing, according the Mortgage Bankers Association. Freddie Mac rate surveys
MBA: Foreclosures will peak and sales will rise 11% next year Foreclosure rates will continue to climb through late next year, peaking only after the U.S. unemployment rate reaches 10.2% in the second quarter, and sales will rise 11%
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
There are new FHA condo rules. Just like with the new Fannie rules you will be disappointed if you think it will make things easier. Details. // Speaking of FHA, it looks like the minimum down payment may go to 5%. // Rates eased yet further this week. // Basically 2 weeks left for sales that need to close by Nov 30th to take advantage of the tax credit! // Make it good week folks!- Paul
What is credit repair?
Credit repair seeks to permanently remove derogatory items that will otherwise depress credit scores on a long-term basis. In essence it involves delivering proof of inaccuracy OR requesting creditors to deliver the proof of accuracy. If they cannot deliver, or will not (happens a lot), the items in questions will likely be removed. The whole process can deliver drastic score improvements and while conceptually simple - the devil is in the details. Contact me to make your clients "mortgage ready" !
New FHA condo rules
- Spot approvals eliminated
- No more than 30% of units can be financed with FHA loans
- 50% pre-sale requirement for new projects
- At least 50% of units must be owner occupied
Long-term rates easing further The 30-yr fixed is down from 4.94% to 4.87% with 0.7% fees and points this week. This time last year the 30-yr fixed rate was 5.94%. Freddie Mac rate surveys
Home Buyer Tax Credit extension likely Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said. Read more. (Don't count on the same terms, if and when. Last year's "tax credit" was nothing more than an interest free loan - P)
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals) - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
There are new Fannie condo rules. If you think it will make things easier you will be disappointed. Details. FHA is also introducing new rules. More on those next week. /// Rates are still edging downwards. /// Time will soon be running out for November closes (tax credit)!! /// Make it good week folks!- Paul
Credit score fixes - the basics
1. Credit repair - a long-term fix to permanently increase scores (75 days)
2. Rescoring - a quick fix to qualify for a loan or better rate (5 days)
Either fix (or a combination) can deliver increases over 100 points. For further information, please contact me.
Avoid stipulating mortgage and closing dates I recommend not defining mortgage and closing dates upfront to avoid a self-created time crunch. You could define the time frame as "x days following receipt of the signed, accepted purchase contract" or something like that.
Long-term rates remain low, increasing affordability "The 30-yr fixed is down from 5.04% to 4.94% with 0.7% fees and points this week. Freddie Mac rate surveys
Manhatten market stabilizing Though Manhattan home prices continued to fall this past summer, a surge in sales activity coupled with a decline in the number of properties on the block show the market could be turning a corner. Read more.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals) - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
The Fed is now buying up to 80% of ALL mortgage backed securities.
The Fed started buying billions of MBS in January to support the housing market, and says it will phase out the program over the next 6 months. This could lead to drastic rate increases. Read more. /// Lenders are upping Fico standards. Credit scores are increasingly more important. They determine IF you get credit and at what RATE. /// Make it good week folks!- Paul
Good credit habits - the basics
1. Pay your bills, on time :))
2. Keep credit card balances below 50% of the limit.
3. Don't apply for credit excessively. Frequent inquiries can reduce score.
4. Don't close accounts unless you feel you need to. Reduces credit history.
For more credit score information go here.
Unemployed homeowners may get assistance Potential financial assistance in the form of grants and loans is being discussed by the Obama administration and major lenders for unemployed home owners. Read more
Long-term rates remain low, increasing affordability "The 30-yr fixed remained unchanged this week at 5.04% with 0.6% fees and points. See Freddie Mac rate surveys
Commercial prices continue to drop From June to July, commercial prices fell 5.1% according to Moody's/REAL Commercial Property Price Indices. Read more.
Existing home sales slide unexpectedly in August The NAR said sales of existing homes fell 2.7% in August. Compared to 12 months ago that pace is up 3.4%, but analysts were expecting a 2.1% boost this month due to low mortgage rates and the soon-expiring tax credit for first-time homeowners. Read more.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals) - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
The industry standard for FHA loans remains at 620 - for now. It appeared for a little while the standard would be raised to 640, 660 even. (Regardless, I do have FHA and other solutions for scores as low as 500). /// You can still count on FHA standards increasing however. /// 203(k) loans remain the single best (and virtually only) option for rehab/renos. New alternatives are expected soon. Stay tuned. /// There is gridlock on the horizon due to the homebuyer tax credit which requires sales to close by the end of Nov. 30th. Get your mortgages fully pre-approved to minimize the chances of delays! /// Make it good week folks!- Paul
Federal incentives coming for short sales, deeds-in-lieu/default The mortgage servicing industry in coming weeks will see details of an incentive program aimed to prevent foreclosures by encouraging servicers to pursue short sales and deeds-in-lieu of foreclosure. Read more
Homebuilder confidence up
Low mortgage rates are aiding new home construction. Housing starts for single family homes have increased consecutively over the five past months ending in July, although starts eased slightly in August. Moreover, homebuilder confidence improved for the third straight month in September, with all four regions showing positive gains, according the National Association of Home Builder’s Housing Market Index
Long-term rates down for 3rd consecutive week "Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at 3-month lows," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for 30-year fixed-rate mortgages have averaged just above 5% through mid-September, which is roughly 1% below last year’s average and suggests that 2009 may reach a record annual low since the Freddie Mac rate surveys started in 1971.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals) - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
The most popular reno/rehab loan is the FHA option 203(k), available for owners and purchasers. Basically, as long as the foundation remains in place (you can still expand the footprint of the house), it is owner-occupied property, and the applicants qualify for an FHA loan, it's a go. Prospect Mortgage is an active 203(k) lender.
Outright construction loans are tougher to get approved on conventional terms. Fannie/Freddy are not buying them at the moment, and portfolio loans cost more, so it can be expensive. Yet in many cases it involves the acquisition of distressed property so the additional expense is offset by profit. If it involves owner-occupied property I will also arrange the permanent loan up front, so the borrowers are sure they can refi when the property is finished and not get stuck in a high interest loan!
Homepath mortgages are an option, but only for Fannie Mae owned property. Prospect Mortgage is an approved lender under the program. Fannie cooperates with realtors. Great deals and currently the best financing options for investors! Check the details here.
Developer financing is available for financially strong and experienced borrowers. Loan- and cost-to-values, structure, and cost of borrowing span a wide range.
Personal credit scores are valuable: Higher scores means more options and better pricing. Above 700 is a good thing. Below 660 I often recommend credit make-overs.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals) - 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
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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