Market assessment
The 30yr fixed is expected to go up to around 6% as the Fed stops buying mortgage backed securities in March, the home buyer tax credit program will expire the following month, and foreclosures are expected to flood the market. Prices are expected to drop. Prices may come down, BUT the cost of borrowing (30yr fixed) will likely go up about 20% (from 5% to 6% is a 20% increase cost of borrowing), compensating for possible lower prices. Low prices may be obtained by purchasing foreclosures. FHA and Fannie are trying harder to sell REOs. Lastly, the trend in mortgage lending is still towards more restrictive criterica, adding to processing time: Full prequals and credit score planning important! - I wish all of us a succesful 2010! - Paul
Tax credit deals
If a purchase needs to be eligible for a home buyer tax credit, get fully pre-approved, buy asap, and get a rate lock with a floatdown right away. Don't wait! The gridlock for the Nov 30 tax credit dependent sales (mortgages) was horrific and the extension of the program avoided last moment buyers losing out on their tax credit.
Foreclosures
Fannie Mae is offfering REO properties through Homepath.com. For HUD (FHA) REOs go here. Note that Prospect Mortgage is one of the few approved Homepath lenders, and we also offer the $100 down mortgages for the HUD foreclosures. Both HUD and Fannie are keen to sell.
Credit scores
Loan requirements and pricing are becoming even more dynamic. The minimium Fico is formally 620 (for now). With compensating factors a 560 score still offers possibilities. To get best rates, plan for a 720 score, which will give you a 0.375%-0.50% better rate then with a 620 score, depending.... Contact me for assistance.
Mortgage modification are still a disaster
The Obama administration's mortgage modification program was originally projected to keep 3-4 million people in their homes. Promised help is sorely lacking. To date, almost a year after launch, it has permanently changed the mortgage terms of only 31,000 homeowners. Opportunistic loan defaults have not helped either. It was easier to get a loan modification in mid 2008 then it is today!
The Obama administration's mortgage modification program was originally projected to keep 3-4 million people in their homes. Promised help is sorely lacking. To date, almost a year after launch, it has permanently changed the mortgage terms of only 31,000 homeowners. Opportunistic loan defaults have not helped either. It was easier to get a loan modification in mid 2008 then it is today!
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)
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
- 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)
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
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