ATTN:  ACTIVERAIN LOAN OFFICER MEMBERS - A CHALLENGE

JOIN THE "ASK THE MORTGAGE" GROUP and participate by posting to the new group "ASK THE LOAN OFFICER". 

POINTS  *  POINTS * POINTS * POINTS * POINTS * POINTS               

• First place - 2000 points
• Second through sixth place winners - 500 points each.

FREE ADVERTISING * FREE ADVERTISING * FREE ADVERTISING * FREE ADVERTISING

The six winning loan officers will be invited to participate in a HOME MORTGAGE Q&A on Homefinders.com.  The winners will be identified by name, mortgage company and contact information. 

CAN THE AVERAGE FAMILY QUALIFY FOR HOMES IN THE AVERAGE PRICE RANGE IN FAIRFAX COUNTY, VIRGINIA?  ALMOST. . .  MAYBE. . . .  CLOSE. . . .  DEPENDS.   Give me your answer in the comments. 

This is not a real buyer.  These numbers represent the statistical averages for Fairfax County, Virginia. 

The average income for Fairfax County is, by averaging several reporting sources, about $123,000.  Many reporting sources provide only median incomes but our homes sell by average prices, not median.  As prices come down and closer and closer to the qualifying range of the average home buyer, the challenge will be financing.  Mortgage financing is a moving target these days and prospective home buyers have multiple questions.  My goal is to add content to the mortgage page(s) on my web site to answer some of these questions.  The Q&A format will be utilized to appeal to the consumer. 

Below is the May 2008 report of home selling activity in Fairfax County.  The focus is on detached single family homes in the county because that is what 80% of our buyers request. 

FACTS:  Price - $605,000,  10% Down, Int. Rate 6.5%, Term 30 yrs, Taxes $6000 yr., Ins. - $100 mo.

Monthly income - $10,250 X 30% = $3075.

Average price - $605,511 X .90 = $544,960 @ 6.5% X 30 yrs = $3,445 PI.

$3,445 + $500 mo. TX + $100 INS. = $4045 PITI.

Credit Score = 699, 705 and 715. 

Cash on hand - $100,000.

Looks like about a 38 front ratio.  .   Cost of money?  Good question.  This is still in FHA range, but the ratio is a tad high.  Mortgage Insurance isn't included because the rate I used may (or may not) include MI for conventional financing.  MIP would be a part of an FHA loan PITI.

With the scenario above, what could mortgage lenders do? 

Question:  For the average price range for a Single Family Home in Fairfax County VA which is $605,500, how much income / credit score / would you be looking for to qualify a buyer with 5% down?  I'm using a 5% scenario for this exercise because I know our buyers and 5% down is a realistic scenario. 

OR

For an income of $123,000, with the above profile, what is the home buyers qualifying price range?

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If this adventure is successful, I plan to post questions to the group on a regular basis inviting responses to be posted with the loan officer's contact information.  I would like to expand a mortgage Q&A page on Homefinders.com to a Library of mortgage related subjects.  This post is about Fairfax County, Virginia, but my market area also covers Maryland.  Loan officers do not have to be local to participate. 

I look forward to some interesting ARTICLES.  I can have the "ASK THE LOAN OFFICER" page up in a couple of days and the Q&A for the first page will be published a few days following end of contest. 

Any delay would be caused by the fact that I'm installing 2 new servers and it may take a couple of days to get everything on line.  Right now I have no e-mail and expect my web pages to be off line all day Friday June 20th.  The migration to the new servers may take all day Friday. 

RULES:

Write post answering the question "what could mortgage lenders do?" 

Submissions welcomed through June 30, 2008, Midnight PT. 

PRIZE:   Six winners will be selected who will be invited to participate in a HOME MORTGAGE Q&A on Homefinders.com.  The winners will be identified by name, mortgage company and contact information and will be linked from the page with their Q&A content. 

NOTICE:  I realize that many ActiveRain loan officers are not licensed to do business in MD and Va.  I'm not looking for loan officers.  I have local loan officers to whom I refer business.  However, they are not ActiveRain participants.  The purpose of this Q&A library is public information and to enhance my web presence.  The rewards, if any, for participation in the Q&A pages on Homefinders.com will be possible business for the loan officers participating.  While I prefer to refer local buyers to local loan officers, Homefinders.com is available on the Internet nationally.  With proper SEO, these pages will have stand alone SERP.  If a loan officer in CA or NV participates, they may attract business in their states.  If I have a group of six participants rotating on the mortgage pages of Homefinders.com, there will be some exposure.  How much?  We'll see.

I look forward to reading and learning from the entries.  The panel of judges will be announced as soon as I can find three vic. . . . er um volunteers.  Judges will be announced in a day or so, volunteers, please send mail through ActiveRain. 

1.  JOIN THE GROUP, "ASK THE LOAN OFFICER".

2.  Post article to Public/Active Rain Community.

3.  Tag your post "ask the loan officer".

ENJOY.  Join the contest, participate in the Homefinders.com Q&A web page.  Lets get some Google juice.  Who knows, a buyer just might contact you.  

It's free advertising. 

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TAXES:  There have been some questions about annual taxes for the target area.  The table below reflects the actual TOTAL taxes, which includes county and town taxes of record for homes in Fairfax County SOLD in May 2008.

THE CHALLENGE * THE CHALLENGE * THE CHALLENGE * THE CHALLENGE * THE CHALLENGE *

With the scenario above, what could mortgage lenders do? 

Question:  For the average price range for a Single Family Home in Fairfax County VA which is $605,500, how much income / credit score / would you be looking for to qualify a buyer with 5% down?  I'm using a 5% scenario for this exercise because I know our buyers and 5% down is a realistic scenario. 

OR

For an income of $123,000, with the above profile, what is the home buyers qualifying price range?

POINT OF CLARIFICATION:  THE ABOVE ARE HYPOTHETICALS.