Mortgage Update

FHA reaching out to condo buyers - Self managed credit repair/improvement

Paul Luykx (Prospect Mortgage) — Sat, 21 Nov 2009 15:57:34 -0600

Mortgage applications for home purchases have fallen to the lowest level in 12 years. The Nov 30 deadline for tax credit deals caused an increase in applications through mid-October, followed by a remarkable decrease since of course, but the housing market is still facing major hurdles. /// Both Fannie and FHA have now delegated condo approvals to lenders. I believe this will be a huge improvement. /// Have a wonderful Thanksgiving! - Paul :))

Reaching out to condo buyers
Industry executives say the FHA.’s new rules will open an important lending option to condo buyers, especially those with weak credit. Read more.

The struggles continue for Fannie Mae and Freddie Mac
It appears, our government thinks the Fannie/Freddie experiment is working well despite evidence to the contrary. Read more

AVAIL - Self managed credit repair and improvement
Credit repair, rescore, and credit coaching - the 3 pillars for improving and maintaining credit scores - all in one! Check out AVAIL. It helps you understand your credit profile, and puts you in charge of your own improvement plan. Video. Contact me for assistance.

15-year fixed drops to lowest ever recorded by Freddie Mac

4.32%, with an average 0.6% fees.... The 30-year fixed averaged 4.83% with average 0.7% fees. Freddie Mac Rates Surveys.

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"Life is a long lesson in humility".

James M. Barrie (1860-1937)

Fannie requirements up again - bigfunnels.com - Jumbo limits extended

Paul Luykx (Prospect Mortgage) — Mon, 16 Nov 2009 08:18:03 -0600

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service!

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"The road to success is always under construction" -
Lily Tomlin

Fannie goes to 620 - Home buyer tax credits extended and improved - Big funnel building

Paul Luykx (Prospect Mortgage) — Sat, 07 Nov 2009 16:41:11 -0600

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service!

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"Ignorance is a voluntary misfortune" -
T.L. Haynes, The Royal Path of Life, 1886

Home Buyers Scouting Report - HB tax credit extended and expanded? - Mixed housing data

Paul Luykx (Prospect Mortgage) — Sat, 31 Oct 2009 15:58:34 -0500

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"Chaos is the score upon which reality is written" - Henry Miller

Rates up a bit - New tax credit deals - New FHA condo rules delayed - Big sales rebound

Paul Luykx (Prospect Mortgage) — Sat, 24 Oct 2009 13:03:18 -0500
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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"Only as high as I reach can I grow, only as far as I seek can I go, only as deep as I look can I see, only as much as I dream can I be." - Karen Ravn

Rates up a bit - Credit rescoring - 2010 predictions - 5 reasons to use concessions

Paul Luykx (Prospect Mortgage) — Sat, 17 Oct 2009 10:46:19 -0500
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

Read more

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"Time is what we want most, but what we use worst"
Wiliam Penn (1644-1718)

New FHA condo rules - Tax credit extension? - Min down pmt to 5%?

Paul Luykx (Prospect Mortgage) — Sat, 10 Oct 2009 00:07:22 -0500
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

- Read more

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"When you have a dream, you've got to grab it and never let go"
Carol Burnett

New Fannie condo rules - Fico fixes - Rates down

Paul Luykx (Prospect Mortgage) — Fri, 09 Oct 2009 23:57:41 -0500
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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"A billion here, a billion there,
and pretty soon you're talking about real money."
Everett Dirksen (1896-1969)

An end to low rates? - Home sales slide in August - Credit habits - Rates flat

Paul Luykx (Prospect Mortgage) — Sat, 26 Sep 2009 08:12:34 -0500
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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"Wisdom begins in wonder"
Socrates (469-399 BC)

FHA Fico still at 620, but... - HB Tax Credit gridlock on the horizon - Rates down again

Paul Luykx (Prospect Mortgage) — Sun, 20 Sep 2009 15:21:34 -0500
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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"What is not started today is never finished tomorrow"
Johann Wolfgang von Goethe (1749-1832)

Current reno/rehab/construction loan options

Paul Luykx (Prospect Mortgage) — Sun, 23 Aug 2009 13:30:42 -0500
Construction/renovation loan options are limited at the moment. Below is a synopsis of the current landscape. Meanwhile rates are back to May levels, purchase volume is up, affordability is up, and prices are still declining - Sounds like the basics for a good market are here. Make it a good week folks! - Paul

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

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"First say to yourself what you would be, then do what you have to do"
Epictetus (AD 55 - AD 135)

New beginnings - 203(k) - Rates

Paul Luykx (Prospect Mortgage) — Sun, 16 Aug 2009 15:24:43 -0500
It is time to create new financial beginnings. Roughly 25% of mortgages are underwater, real estate markets may have bottomed, and loan modification possibilities will soon dwindle. For those negatively affected, and who have not already done so, this is might just be the time to make definitive plans for a new financial beginning. Status quo (doing nothing) is not a plan, and will not accomplish this. You can create a new financial beginning by "liquidating and rebuilding" (short sale, foreclosure, bankruptcy), OR "rebuilding" (loan modification, debt settlement, tax resolution, credit repair). I cannot help with liquidation, but I do offer low cost solutions for rebuilding. For further information go here. Make it good week folks! - Paul

5 changes to mortgage loans under new Fannie/Freddie rules
Many home buyers are seeking to take advantage of lower home prices, lower interest rates and possibly the federal first-time home buyer tax credit (which expires Nov 30, 2009). But before launching into a mortgage loan, buyers should be aware of how mortgage borrowing has changed. Read

203(k) Rehab/Renovation loans
Prospect is on of the few lenders offering 203(k) loans. Qualifications are no different. The process is a little longer, but that's about it. See slideshow.

Rates up a bit, and may be trending higher
For the week ending August 13th the 30-year fixed averaged 5.29% with an average 0.7% fees and points, up from last week when it averaged 5.22%. Bond yields keep rising, and it is making me nervous. Freddie Mac rate surveys.

New beginnings: Loan modification

Loan modification opportunities are dwindling, and those that wish to pursue it should not delay. The process is now simplified, and cheaper. More info

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

____________________________________

"If you want to double your success rate, double your failure rate"
Thomas Edison (1847-1931)

Concessions re-visited - Prequal vs Pre-Approval - Rates may climb

Paul Luykx (Prospect Mortgage) — Sun, 09 Aug 2009 16:36:48 -0500
Seller concessions are not used enough. All too often people are tight for money at time of close, PMI could have been avoided, or buyers could have benefited from the use of lower payments by way of a (2/1) buydown. More below. // Market alerts seem to point to higher rates. Consider locking now. Again, more below. // The loan modifications scene is a mess. Lenders are not responsive to the point of not living up to their agreements with the Treasury, Go here if you want to read up on it, and here if you are looking for loan modification assistance. // Make it good week folks! - Paul

Why use a seller concession?
There are many more reasons than the obvious to use an SC:

* Reduce the cash required (that was the obvious one :))
* Lower LTV to avoid PMI, or get a better rate
* Qualify at a lower rate, bought down with the SC
* Reduce monthly payments (temporarily) with a SC bought down rate

What's the benefit of a seller concession?

Buyer happy, seller happy, realtor happy - and nobody loses. The essence of an SC is that the seller gets nothing less and the buyer gets to finance the "closing costs". (Note the quotation marks. There is much more than closing costs that can be included). To run scenarios with my Seller Concession Calculator. To read up on SCs go here.

Why NOT use a seller concession?

Here is one: Irrational pushback. Just bringing it up can be risky business. I have witnessed the mere mention of an SC scuttle more than a few deals. Fact is that SCs are allowed with virtually every mainstream mortgage program. It does not mean that the buyer is not qualified, nor does it mean that the seller is selling too cheap. I welcome any feedback on this. Read more

Rates up a bit, and may be trending higher
For the week ending July 6th the 30-year fixed averaged 5.22% with an average 0.6% fees and points, down from last week when it averaged 5.25%. Bond yields keep rising, and it is making me nervous. Freddie Mac rate surveys.

Mortgage bond yields rise to 2 months high; Rates may climb

August 6 (Bloomberg) -- Yields on Fannie Mae and Freddie Mac mortgage securities held near the highest in almost two months, signaling that interest rates on new-home loans will climb and hurt the U.S. housing market. Read more

Pre-qualifications versus pre-approvals - What's the difference?

I was asked this after I wrote last week that pre-approvals are what is needed now. Big difference, here it is: For a PA we complete the entire application in detail and run formal a formal pre-approval through Underwriting. I also review the property, and if there is anything that gives rise to concern, I dig deeper.
If the applicant's qualifying income is in doubt I will get supporting docs and review those also. A lot more upfront work, but well worth it! Better safe than sorry! Contact me if you have clients that need to be pre-approved.

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)

- 90% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property loans

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

____________________________________

"Everything you can imagine is real"
Pablo Picasso (1881-1973)

Prequals not enough - Home prices rise - Condo certifications

Paul Luykx (Prospect Mortgage) — Sat, 01 Aug 2009 16:30:31 -0500
Prequals are not enough. Prequals serve their purpose, namely to confirm approximate mortgage loan qualification - Probably ok as a first step. To support an actual offer to purchase, I now recommend full (property specific) pre-approvals - to eliminate ever possible upfront doubt. There are too many uncertainties in today's mortgage market! Better to play if as safe as possible. // Good news on the pricing front: Home prices rose across the country in June. // Make it a good week folks! - Paul

U.S. home prices see first rise in 3 years
Home prices in major U.S. cities registered the first monthly gain in nearly three years, according to a new report that provided fresh evidence that the severe U.S. housing downturn could be easing. News and charts.

Rates up a bit
For the week ending July 30th the 30-year fixed averaged 5.25% with an average 0.7% fees and points, up from last week when it averaged 5.20%. "Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed those yields," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the Federal Reserve reported in its July 29th regional review that residential real estate markets in most of its districts remained weak, but many reported signs of improvement. In addition, it noted that entry-level homes continued to perform relatively well in part due to the first-time homebuyer tax credit. Freddie Mac rate surveys.

Condo listing or purchase? - Get a certification right away!

As we are all painfully aware of how condo financing can be a real curse. Read more. Don't wait till the end to see if the condo qualifies for financing!
I recommend certifying any condo upon listing OR contemplated purchase offer with the use of this certification form. Send it to me for review by our dedicated condo team. Prospect is a direct lender and, we stand behind our condo certifications!

Congress unlikely to consider tax credit until October
The health reform efforts in both the House and Senate will completely dominate the agenda in both tax-writing committees until the end of September. Accordingly, their leaders have announced that they will not take up expiring provisions, including the first-time homebuyer tax credit, until they have disposed of the health reform legislation. Thus, extension and possible expansion of the $8000 tax credit are unlikely to be considered until October.

5 best places for youthful retirees
Younger retirees are settling in cities that offer fun and cost-effective living. Find out which cities made the list.

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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

____________________________________

"I am not embarrassed to tell you that I believe in miracles"
Corazon Aquino (Jan 25, 1933 – Aug 1, 2009)

Constr/rehab loans - Commercial mtg problems - Loans for <600 Fico

Paul Luykx (Prospect Mortgage) — Sun, 26 Jul 2009 12:26:39 -0500
Construction and rehab loans are available for virtually all scenarios. Planning is important: Underwriting criteria, loan structure, and pricing vary. Call me early on. //  Conventional and FHA loans are still available at less than 600 Fico. // The new appraisal code continues to create havoc. // Despite this week's increase, rates are trending down. Make it a good week! - Paul

Trading on home prices
With two new vehicles from MacroMarkets, you can invest in the outlook on housing prices whether they go up or down. Read

Rates up a bit
For the week ending July 23rd the 30-year fixed averaged 5.20% with an average 0.7% fees and points, up from last week when it averaged 6.63%. Freddie Mac rate surveys.

Get ready for banking's next headache

Regional banks can no longer ignore the elephant in the room -- their exposure to the commercial real estate bust. Read

Commercial mortgage delinquency up 585%

Business Journal Delinquencies on commercial mortgage backed securities soared $10 billion in June, hitting a 12-month high. Read

Top 10 places to start over

If you're looking for a place to get a fresh start on life, you should consider moving to one of these places. Read

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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

____________________________________

"All the problems of the world could be settled easily

if men were only willing to think."
Thomas J. Watson, former President of IBM (1874-1956)

(New) problems and opportunities

Paul Luykx (Prospect Mortgage) — Sat, 18 Jul 2009 14:15:59 -0500

I don't like delivering bad news, and I know you don't like receiving it (I get unsubscribes). At the same time I want to tell you what I see: There are some serious (additional) problems right now, directly affecting real estate. It looks to me like it's going to get a lot worse worse before it gets better. Yet, when doors close, others open - there are resulting opportunities as well (See below). Here are some of the reasons/symptoms:
- 1.5 million homes in foreclosure

- Appraisal chaos due to new ordering rules and short sales

- High, and still increasing unemployment. Mortgage aid for unemployed

- Collapsing commercial market. Commercial paper falls most ever

- Slow implementation by lenders of loan modification iniatives. Articles

- Lack of ability or willingness to lend. What to do with the Fed

- The Case-Shiller index continues to point towards further declining markets.

What this means in practical terms

- Appraised values as much as 30-40%(!) low, especially for refi's

- Restrictive lending environment, and tightening up more

- Construction loans virtually unavailable (unless hard money)

- Hard money lenders are raising lending criteria and pricing

- Conventional financing maximum is 90%ltv

- PMI requires 680 Fico

- Higher lending standards and erratic pricing for commercial loans

Good news, opportunities

- Investments with good cash on cash returns available

- Affordable price levels - especially for first time home buyers

- First Time Homebuyer tax credit (must close by Nov 30th!)

- Rehab homes (foreclosures) can be bought with 203(k) loans

- FHA loans, including FHA rehab loans (203k), readily available

- Fannie Mae REO opps with Prospect Mortgage Homepath (rehab) loans

- Higher Fico's get lower rates

- Rates are not likely to increase (I think)

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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

____________________________________

"To accomplish great things, we must not only act, but also dream;
not only plan, but also believe."
Anatole France (1844-1924)

Homebuyer Scouting Report - Use of LLC - Some constr loans, helocs not available

Paul Luykx (Prospect Mortgage) — Mon, 13 Jul 2009 01:20:17 -0500
Next week I am launching the Homebuyer Scouting Report, a fabulous homefinding service for prospective homebuyers. It is a feature-rich online service that presents all MLS listings in real time and (only!) your contact info. A great way to firm up relationships with your prospects, and my relationship with you. - You'll be impressed. /// Some construction loans and helocs are not available at the moment. Call me early on if any of these are part of a planned financing structure! /// Make it a good week! - Paul

Rates down
For the week ending July 8th the 30-year fixed averaged 5.20% with an average 0.7% fees and points. 45-year mortgage trend.

Closing in an LLC
I recommend against it for properties with 4 units or less. Few lenders still allow it, and those that do - you've guessed it - will charge for it! I am advised that there are insurance policies available that, although not perfect, provide reasonable alternative protection. Contact me if you need help with this.

Real Estate seeing uptick
Forbes.com: Real estate might be seeing a seasonal uptick, after the RPX index for housing prices in U.S. metropolitan cities was up in April. "A lively discussion of property investments and the economy by a panel of real estate experts: Donald Trump Jr. of the Trump Organization, Peter Slatin of Real Capital Analytics and Michael Feder of Radar Logic". Read.



Year 2005 - a look back at popular mortgage programs

Here’s a look at some of the loan programs available in 2005 to finance real estate. The article is about AZ real estate, but with a few exceptions (conventional stated loans for example are available) applies to all states. Read.



Boom times for real estate fraud
The FBI reports a surge in suspicious activity. Expect more. Read.

Available
- Direct lender of FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans

- Same day loan decision (guaranteed)
- 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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Commercial loans

Contact me for excellent service.

_________________________


"The most effective way to do it, is to do it"
Amelia Earhart (1897 - declared dead 1939)

Where do prices really stand? - 100% financing - Loan mod prospect #1 question

Paul Luykx (Prospect Mortgage) — Sat, 27 Jun 2009 15:31:53 -0500
span lang="EN">Meltdown 101: Where do home prices really stand?
Is the historic U.S. housing market crash close to being over, or is the end still far, far away? Good read.

Home Buyer Tax Credit could expand
A first-time home buyer tax credit of up to $8,000 has helped to move housing inventory during an otherwise sluggish real estate cycle. Now both legislators and the business community are hoping to build on the incentive's success by expanding it. Read more

100% financing not available? - Wrong!
USDA financing (which we offer) allows for 100% financing PLUS seller concession closing cost. There is an upfront funding fee, but NO PMI, There are geographic and income restrictions, but it is amazing how many areas qualify. Here's the beef.

Should I pay my mortgage?
This seems to be #1 question for people considering loan modification. Unfortunately there are several answers and which is correct for you depends on the Circumstances. Attorney Richard Zaretsky addresses the common scenarios in this article. For loan modification help go here.



Reverse mortgages for home purchases
The feds issued new guidelines at the start of 2009 that would allow older borrowers to use reverse mortgages to buy a principal residence. But few lenders were ready to offer this option — until fairly recently. (We do - P). Read more



Rates mixed
For the week ending June 25th the 30-year fixed averaged 5.42% with an average 0.7% fees and points, up from last week when it averaged 5.38%. This time last year it averaged 6.45%. Freddie Mac rate surveys.

Available
- Same day loan decision (no ifs or buts)
- 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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Jumbo loans at near conforming rates

- Commercial loans

Contact me for excellent service.

_________________________


"Every horse thinks its own pack heaviest"
Thomas Fuller (1608-1661)

125%LTV refi's? - Non-warrantable loans - 203(k) summary - FHA loans at risk?

Paul Luykx (Prospect Mortgage) — Fri, 19 Jun 2009 15:53:35 -0500
FHA lending criteria have become stricter, and the trend will continue I think. The divergence between FHA and Fannie/Freddie is still significant. and F/F are not likely to lower their standards! /// And now the surging demand for FHA loans is putting the program at risk. US watchdog warning. /// Make it a good week folks. Call me if I can help - Paul

125%+ refinances?
The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125%, or higher. Read more

FHA 203(k) rehab loans
203(k) loans are the perfect for home renovations, handyman specials, and improvement of foreclosed property. The lending value can be as high as 110% of total cost. Summary

10 cities most likely to bounce back quickly
Forbes magazine has identified the top 10 cities that it believes are poised for recovery by examining unemployment figures, projected gross domestic product from Moody’s Economy.com, and housing affordability data from the National Association of Home Builders. Read more



Loans for non-warrantable condos
Condo's can be "non-warrantable" due to not enough (pre-)sales, too many renters, HOA control not turned over to owners, more than 10% ownership concentration, and many other factors. It is not "one size fits all" and it can be complex, but we do have loan options available. More information



Low inflation pushes rates back down
For the week ending June 18th the 30-year fixed averaged 5.38% with an average 0.7% fees and points, down from last week when it averaged 5.59%. This time last year it averaged 6.42%. Freddie Mac rate surveys.

Available
- Same day loan decision (no ifs or buts)
- 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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Non-warrantable property

- Reverse mortgages

- Jumbo loans at near conforming rates

- Commercial loans

Contact me for excellent service.

_________________________


"There is no such thing as a good excuse"
John P. Grier (1914-2002)

Rates heading to 6% - Buyer tax credit to $15K? - Borrow FHA down pmt

Paul Luykx (Prospect Mortgage) — Sat, 13 Jun 2009 10:27:40 -0500

Rates are headed for 6.00%. In just 2 1/2 weeks much of the Fed's work to drive rates lower has unraveled. 5 reasons they might retreat - and why they might not. /// The homebuyer tax credit may be expanded in a number of ways. Let's also hope the Nov 30 deadline gets extented (See below) /// You can now publish my newsletter on your website with ann RSS feed. Go here to do it. /// Make it a good week folks! - Paul

Congress weighs tax credit expansion
Legislation introduced in Congress Wednesday would expand the First Time Home Buyer Tax Credit to any purchaser and increase the maximum available to $15K. Read more.

Sources of FHA down payments
Did you know that a family member can take out a loan to gift the down payment, or that the home buyer is allowed to take out a fully collateralized loan for it? In all there are about 18 possible sources for FHA down payments. Check it out.

10 most undervalued cities
Homes in the majority of U.S. markets are undervalued right now, but housing prices may have yet to find a floor, according to IHS Global Insight. Here are 10 cities IHS finds the most undervalued.

Commercial mortgage defaults
The default rate on commercial mortgages held by U.S. banks may rise to the highest in 17 years in the fourth quarter as debt for refinancing remains scarce and the recession drags down rents. Read more



Rates hit 7-month high
For the week ending June 11th the 30-year fixed averaged 5.59% with an average 0.7% fees and points, up from last week when it averaged 5.29%, and increased again thereafter. This time last year it averaged 6.32%. "Higher mortgage rates are slowing refi's but not demand for home purchases. Over the 3 weeks ending June 5th, interest rates for 30-year fixed-rate mortgages rose nearly 1/2%. Applications for refinance fell each week during this period while applications for home purchases consecutively rose, according to the Mortgage Bankers Association" said Frank Nothaft, Freddie Mac vice president and chief economist. Freddie Mac rate surveys.

Available
- Same day loan decision (no ifs or buts)
- 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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Jumbo loans at near conforming rates

- Commercial loans

Contact me for excellent service.

_________________________


"There is nothing like a dream to create the future"
Victor Hugo (1802-1885)

Rates at 25 week high - Multi-family opps - Lowball appraisals - Credit repair

Paul Luykx (Prospect Mortgage) — Sat, 06 Jun 2009 19:47:51 -0500

Rates are at a 25-week high. They increased again by 0.25% approx on Friday, peaking at just under 6.00% (no points) ///  Reminder that FHA loans with 560+ Fico and stated loans to max 70%LTV are still available /// Make it a good week folks! - Paul

Opportunity: multi-family development and condo conversions
Multi-family development and condo conversions are low-hanging fruit as the market recovers. High density housing, just beginning to gain steam before the housing downturn hit, is poised to be one of a handful of straws that stirs the soup, according to many housing industry experts. Read more. Note that I offer financing and expertise for aquisition, construction/rehab, and sales. The 3 phases are connected and structuring the financing right is critical. The warrantability issue again is a significant issue here. Further information.

How you can get your (buyer's) credit score up..
Credit history and credit score reflect how a person has borrowed and repaid debt. Credit score improvement is something we automatically look for with every application because of the drastic implications (approval or not, and the rate). One can basically improve the record and score in 3 ways:

1. Good credit habits (6 months+). Read more

2. Credit makeover (75 days). Read more

3. Rapid rescore (2 weeks). Read more

What is credit repair?
Credit repair seeks to remove derogatory items by delivering proof of inaccuracy OR requesting creditors deliver the proof of accuracy. If the creditor cannot deliver, or will not (happens a lot), the item will be removed. The whole process is conceptually simple, but as so often - the devil is in the details. We do "everything right" with our very effective 75-day credit makeover, often resulting in 50-100 score improvements.



Rates hit 25-week high
For the week ending June 4th the 30-year fixed averaged 5.29% with an average 0.7% fees and points, up from last week when it averaged 4.91%, and increased again thereafter. This time last year it averaged 6.09%. "The 30yr fixed rate caught up to the recent rise in long-term bond yields this week to reach a 25-week high," said Frank Nothaft, Freddie Mac vice president and chief economist." And the slowdown in the housing market has now detracted from economic growth for the past 13 quarters, the longest quarterly stretch since at least 1947. Freddie Mac rate surveys.

Lowball appraisals cause problems
Real estate pros in some areas say too-conservative appraisals are hurting their businesses. Read more. (Realtors, I recommend you meet the appraiser at the property and provide him/her with a set of your own comps! - P).

Available
- Same day loan decision (no ifs or buts)
- 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)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Jumbo loans at near conforming rates

- Commercial loans

Contact me for excellent service.

_________________________


"The human race has one really effective weapon, and that is laughter"
Mark Twain (1835-1910)

Rates up 0.25%+ - Tax credit loans - Rehabs/teardowns - Stated loans

Paul Luykx (Prospect Mortgage) — Sun, 31 May 2009 16:56:09 -0500

Rates are up 0.25%+ So much for my comment of last week about flat trend lines! Read more. ///  Rates may be higher now but still very good. Particulary first time home buyers should not delay. /// Refinances that like to wait for the better rate should get fully approved and try a short lock on rate dip and close within the week. /// Minimum Fico for FHA is now 560. /// Stated income loans still available for homes and investments: 70%ltv max. /// Have a good week folks! - Paul

Tax credit loans for closing costs (but why bother)
Short-term loans to enable buyers to use their homebuyer tax credit benefits upfront, but the loans can't cover the 3.5 percent minimum downpayment. Read more.  But why bother? It is one more complication and using a seller concession will acomplish the same thing. And once the tax credit comes in, it does not need to be used to repay a loan. Remember, you must CLOSE by December 1 to be eligible for the tax credit. For details go here.

Construction and rehab loans readily available.
We have construction and rehab loans for residential (up to 4-unit properties) - investment and owner occupied. The lending value is based on the purchase price plus cost to complete, plus equity upon completion (in some cases). Presenting a rehab plan is a great way to enhance a rehab/teardown listing - and for buyers to create a dreamhome and significant equity. The timing is right. Call to discuss.

Is a commercial real estate bust inevitable?
Bailout watchdogs have something new to growl about: the lack of financing in the commercial real estate markets. Read more.

Rates up 0.25%+
For the week ending May 28th the 30-year fixed averaged 4.91% with an average 0.7% fees and points, up from last week when it averaged 4.82%, and increased again thereafter. This time last year it averaged 6.08%. "Fixed-rate mortgage rates followed long-term bond yields higher this week as financial markets try to discern the state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer confidence rose again in May and represented the largest two-month rally since records began in 1967. Freddie Mac rate surveys.

Down Payment Assistance programs on their way back?
Congress is currently considering H.R. 600, bipartisan legislation that would make DPA an allowable gift source for FHA loans. Read more.

Available
- Same day loan decision (no ifs or buts)
- 30-day closes
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico

- 50-70% LTV stated income loans (600-700 Fico)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab and construction loans

- Jumbo loans at near conforming rates

- Commercial loans

Contact me for excellent service.

_________________________


"Better to remain silent and be thought a fool
than to speak out and remove all doubt"
Abraham Lincoln (1809-1865)

NO use of tax credit as down pmt - Rates to remain flat? - Fico reqs up for FHA

Paul Luykx (Prospect Mortgage) — Sun, 24 May 2009 10:07:51 -0500

Rates to remain flat? Rates are now controlled by the Fed through Treasury purchases. Judging by the trend lines, it looks like they want to keep rates roughly where they are now (30-yr fixed around 5%). For rate shoppers - the way to get the lowest rate is to get the loan approved, set for funding, and then use a short-term lock on a rate dip and close. (This strategy for refi's only!) /// Predictably, FHA loan criteria are going up again: 640 Fico or get no loan, or a higher rate. (FHA 540 Fico still available). Read more /// Speaking of Fico, we can often accomplish 50-100 score improvements in just 75 days with a credit makeover. /// Make it a good week folks! - Paul

Tax credit NOT eligible for down payment
Federal officials reversed an earlier decision to allow first-time home buyers to use an $8,000 tax credit to borrow the down payment on a home. Read more. For tax credit details go here. (Remember, you must CLOSE by December 1, 2009 - P).

The real estate bubble won't re-inflate
Over time, homes track with inflation and bubbles rarely re-inflate. In fact, some housing markets will break below historic averages. Read more.



Rates basically flat
For the week ending May 21st the 30-year fixed averaged 4.82% with an average 0.7% fee, down from last week when it averaged 4.86%. This time last year it averaged 5.98%. "Long-term fixed-rate mortgage rates have remained below 5% for the past 10 weeks as the U.S. Treasury and Federal Reserve keep rates low through security purchases," said Frank Nothaft, Freddie Mac chief economist. Freddie Mac rate surveys.

More takers for 15-year loans
30-year fixed-rate mortgage has traditionally been the go-to loan for borrowers who want stability and lower payments. Read more.

Available
- We are a direct lender: Same day loan approvals!
- 30-day closes!
- Condo (conversion) financing services. Information
- FHA loans down to 540 Fico

- 50-70% LTV stated income loans (600-700 Fico)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab loans and lines of credit

Contact me for further information or assistance.

_________________________


"The young man knows the rules,
but the old man knows the exceptions"
Oliver Wendell Holmes (1841-1935)

Use tax credit as down pmt - Fed help for short sales - Same day loan approvals and 30-day closes

Paul Luykx (Prospect Mortgage) — Mon, 18 May 2009 06:40:24 -0500

Using the tax credit as a down payment may shortly be an option. This could potentially be even bigger than the now extinct down payment assistance programs! Read more. /// Same day mortgage approvals (subject to verifications) and 30-day closes are now available to serve you better! /// Note the Dec 1 deadline for the completion date of sales involving the $8K tax credit! /// Make it a good week folks! - Paul

Treasury's offers for loan modifications and short sales (Update)
The U.S. Treasury, seeking to strengthen government anti-foreclosure programs, will provide new incentives for lenders to modify mortgages where home-price declines are most severe or to pursue short sales. Read more. For loan modification assistance go here.

Time limitation alert for tax credit
The $8,000 tax credit is available to first-time buyers (defined as persons who have not owned a home for the last 3 years) who purchase a home before December 1 of this year. Note that the date when the home buyers take occupancy of the house is considered the purchase date, not when the sales contract is signed! Read more

Rates up a bit
For the week ending May 14th the 30-year fixed averaged 4.86% with an average 0.6% fee, up from last week when it averaged 4.84%. This time last year it averaged 6.01%. Freddie Mac rate surveys.

Available
- Same day loan approvals and 30-day closes
- Condo (conversion) financing services. Information
- FHA loans down to 540 Fico

- 50-70% LTV stated income loans (600-700 Fico)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab loans and lines of credit

Contact me for further information or assistance.

_________________________


"Truth has no special time of its own. Its hour is now - always"
Albert Schweizer (1875-1965)

Loan mods for 2nds - Investment loans - Home Valuation Code of Conduct

Paul Luykx (Prospect Mortgage) — Sat, 02 May 2009 06:53:02 -0500

The lending criteria for residential investment property (1-4 units) have tightened up and rates are relatively high. Prequal of both the borrower and the property is recommended! /// Few lenders are still prepared to advance loans for investments in residential property (1-4 units) in a company name by the way. And those that do - you've guessed it - charge more. I recommend investors weigh the pros and cons (legal and tax implications, cost of borrowing) carefully. Feel free to call if I can help. /// Make it a good week folks!  - Paul

Measure to let judges rework mortgages fails in the Senate
A measure to allow bankruptcy judges to rework the mortgages of strapped homeowners failed in the U.S. Senate. Read more

Foreclosure Prevention Plan expanded to 2nd mortgages
The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors. Read more (For loan mod info and help go here - P)

High yield, short-term mortgage investment opportunities

- $70K 2nd 60% LTV, 12 month term, 14% rate


Home sales can't fall forever
Forbes: March's numbers are bleak, but in time, demographics will trump the collapse. Read more

Rates at record lows
For the week ending April 30th the 30-year fixed averaged 4.78% with an average 0.7% fee, down from last week when it averaged 4.80%. This time last year it averaged 6.06%."The housing market may be edging towards a bottom. Existing home sales stayed near its 4-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since Jan 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since Dec 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the NRA, which date back to Jan 1971". Freddie Mac rate surveys.

Home Valuation Code of Conduct in short...
Consumers cannot order an appraisal directly from the appraiser. -

Mortgage brokers cannot be directly involved in selecting an appraiser. - Lenders must order appraisals through an appraisal-management company, or an employee not involved in loan origination. - The rules do not apply to government-insured loans such as FHA or VA loans.

New home-appraisal rule stirs opposition

The rule change, effective today, has been criticized for months by local mortgage brokers and appraisers. Read more

Contact me for further information or assistance.

_________________________


"Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less"

Marie Curie (1867-1934)