loans: Once Again Fixed Rate Real Estate Loans Drop Again
- 09/23/12 04:00 AM
Once Again Fixed Rate Real Estate Loans Drop Again
From Freddie Mac's weekly survey, the average 30 yr fixed rate mortgage matched its all time low of 3.49 percent. This is down from last week at 3.55 percent. As I have pointed out in the past the difference is small or flat right now in loan rates. There is just not a lot of room to adjust. We cannot see much shifting down. There is a lot of room to move up.
… (6 comments)
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loans: The Perfect Government Catch 22
- 05/14/12 02:43 PM
The Perfect Government Catch 22
Did you know we have a serious dilemma.
Years have passed since many of the first short sales have been consummated, many homeowners, who went through a short sale desire to get back into a home and take advantage of the great buying opportunity which exists right now.
Every day we receive requests from both agents and their clients to determine the eligibility to purchase again. The most often stated re-approval terms, if late mortgage payments existed at time of sale, are a 2 year wait when financing conventional with 20% down … (28 comments)
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loans: FHA Borrowers Could Be Eligible to Purchase Even If They Did A Short Sale
- 04/25/12 01:40 PM
FHA allows borrowers to be eligible for a new FHA loan even if they just recently sold their principal residence with a short sale. Almost every lender will tell you there is a 3 year waiting period as most lenders will not allow this program to be used due to credit overlays they have. PrimeLending does allow this program to be used. However, there are specific guidelines that must be met for borrowers to purchase again without a waiting period.
Guidelines that must be met in order to purchase sooner than 3 years FHA
Borrowers are not eligible for … (8 comments)
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loans: The Cost of FHA Financing is Going to Increase!
- 03/05/12 10:45 AM
The Cost of FHA Financing is Going to Increase!
FHA has recently announced that "as part of ongoing efforts to encourage the return of private capital in the residential mortgage market and strengthen the Federal Housing Administration's (FHA) Mutual Mortgage Insurance Fund" a new premium structure will go into effect.
Beginning April 1st, 2012, FHA will increase its monthly mortgage insurance premium as well as the upfront mortgage insurance premium.
On June 1st, 2012, there will be an additional increase of the monthly mortgage insurance premium for the high balance areas.
Currently, the upfront mortgage insurance, the amount … (18 comments)
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loans: Financing a Home is Not Difficult!
- 01/24/12 04:51 PM
Financing a Home is Not Difficult!
One thing that I honestly can say is holding back the housing market is the overwhelming belief that buyers cannot get financing.
The consensus seems to be that only large down payments are required along with very high credit scores. Even then the belief is that the underwriting is so stringent that most buyers don't want to apply for fear of having their loan rejected.
What would really help and could make a difference is for agents to let their clients know that these misnomers could not be any father from the … (13 comments)
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loans: Lending Problems?
- 11/27/11 07:26 AM
Lending Problems?
A spokesperson, Dustin Hobbs, for the California Mortgage Bankers Association disputes that banks are the reason for Lending Problems. He was responding to the report that Realtors were blaming lenders for the stall in recovery. He points to high unemployment and economic instability as the problem.
I agree that those are to carry some of the blame. But in the resolution of the short sale and the foreclosure, issues the banks are front and center on the recovery problem. The banks have carried out the most outrageous rules for handling there two issues. Further, the Dodd Frank financial reform act rules are still being written. … (4 comments)
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loans: Senate Passes Amendment to Restore $729,750
- 10/24/11 08:41 AM
Senate Passes Amendment to Restore $729,750
Thursday the Senate approved an amendment to a spending bill which would restore the $729,750 maximum loan limit on government backed mortgages for two more years. In addition to increasing the ceiling, which dropped to $625,500 on October 1, the Senate amendment would also restore through 2013 the formula for determining the upper loan limit in high-cost housing markets.
The Senate approved the loan limit amendment by a 60-38 vote. It now moves to the House. It remains to be seen whether the House will approve the higher loan limits. The National Association … (12 comments)
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loans: Nontraditional Credit
- 07/24/11 09:24 AM
Nontraditional Credit
Fannie Mae and Freddie Mac (conventional) and FHA have guidelines determining the minimum number of trade lines and the length of the credit history a borrower should have. Trade lines are the credit history reported by the credit bureaus for revolving and installment debt on a credit report.
Conventional guidelines typically require a minimum of 3 trade lines with a minimum of 1 being open. 1 trade line should have at least a 24 month history and the other 2 should at least a 12 month history.
FHA guidelines typically require a minimum of 3 trade lines and … (8 comments)
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loans: Changes to FICO and Maximum DTI Requirements for FHA
- 06/26/11 09:12 AM
Changes to FICO and Maximum DTI Requirements for FHA
Recently banks have adjusted our guidelines on FHA purchase transactions to allow for lower FICO scores for the borrower. However, the guidelines for the maximum Debt-to-Income (DTI) ratios are more restrictive with the lower FICO scores than the standard higher scores.
The previous guidelines required a minimum FICO score of 620 for all FHA purchase transactions. The maximum debt-to-income was 45%. This was often allowed to be much higher with good compensating factors like job stability, good reserves or high FICO scores.
The new guidelines allow for a minimum FICO score of … (4 comments)
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loans: QRM
- 04/25/11 06:10 PM
QRM
The federal government is proposing new mortgage finance rules only which home purchasers who can afford a minimum 20% down payment on a conventional loan would get the best interest rates and terms. Under the Dodd-Frank financial reform legislation this provision is called the qualifying residential mortgage, or QRM.
Dodd-Frank imposed a requirement that mortgage lenders keep 5 percent of the risk on their books even when they've sold off the loans. The rule will have a huge impact on what sort of loans lenders offer, and to whom. Smaller, thinly-capitalized mortgage originators can't afford to keep any of the … (4 comments)
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loans: Buyer's The Time Is Now
- 04/10/11 09:36 AM
Buyer's you are probably woundering why I would suggest that now is the time to buy a home. Well as a buyer you can still purchase a home with a small down payment and the interest rates a really good. What you probably do not know is that there is a change coming and with each change it gets harder and harder for you to purchase a home. Don't want to do is make sure the prices will not drop further and they you cannot purchase because you cannot afford the less expensive home because of the increase in down … (4 comments)
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loans: Less Restrictive Guidlines on Loans
- 04/03/11 10:23 AM
Great News! I know Bank of America now has less restrictive guidelines on loan to values for both Conforming loan amounts ($417,000) and High Balance Conforming loan amounts ($729,750) effective immediately. They now offer Conforming loans to 95% loan to values and High Balance Conforming loans to 90% loan to values. This applies to Owner-Occupied single family homes and condominiums.
Here is Southern California we had been considered risky. Our guidelines were more difficult and we could not get the restrictions removed. Orange County was not as bad as Riverside County but still difficult. Riverside County residence should check with your … (3 comments)
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loans: HUD to Increase MIP
- 04/03/11 10:01 AM
HUD Increases MIP
The Department of Housing and Urban Development (HUD) has announced effective April 18th, 2011 an increase in the Annual Mortgage Insurance Premium (MIP) for all new loans registered on or after that date. The new monthly MIP factor will be 1.15%
In 2010, HUD increased the monthly MIP from .55% to .90%. At the same time HUD lowered the Up-Front MIP from 2.25% to 1.00%. The Up-Front MIP remains at 1.00% when the change takes effect April 18, 2011.
Example of the Annual Mortgage Premium Increase on a $400,000 Loan
.55% = $183 Monthly Payment
.90% = $300 … (4 comments)
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loans: Mortgage Credit Certificate
- 03/20/11 07:01 AM
Mortgage Credit Certificate
A Mortgage Credit Certificate (MCC) allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar-for-dollar reduction against their federal tax liability. The mortgage interest credit provided by an MCC is a non-refundable tax credit; therefore, the homebuyer must have a tax liability in order to take advantage of the tax credit.
A mortgage interest deduction differs from a mortgage tax credit. All homebuyers, regardless of income, may take a mortgage interest deduction, whereas mortgage tax credits are available only to holders of MCCs. A tax … (0 comments)
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loans: How Do I Get Rid Of PMI
- 03/20/11 06:53 AM
Many of my clients want to know how they might get rid of PMI. In order to get rid of the PMI (Private Mortgage Insurance) there are a few thing you need to know.
PMI, is generally required by the lender or the investor when the borrower does not have a 20% down payment. More precisely, mortgage insurance is required when the loan-to-value exceeds 80% of the sales price. The borrower has the right to cancel their mortgage insurance when certain requirements are met. This can happen automatically or by requesting the lender to cancel.
The borrower's PMI will be automatically cancelled by … (4 comments)
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loans: Fannie Freddie Will Not Be Here In the Future
- 02/14/11 06:20 PM
The White House outlined last Friday its plans to begin shrinking their support of both of the government sponsored entities (GSEs) Fannie Mae and Freddie Mac and they will not be here in the future. While the process could take several years, the effects will be felt in coming months.
The government took over both GSEs in September of 2008 when the financial crisis took place. Both agencies have been in receivership which has cost tax payers an estimated $134 billion so far. If the housing market was not so fragile the timeframes would be much quicker to dissolve the … (6 comments)
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loans: Changes to Fannie Mae and Freddie Mac
- 02/07/11 05:18 PM
Fannie Mae and Freddie Mac Changes
The last thing anyone wants is to have a problem with getting a home loan after the loan contingencies have been removed. Due to recent changes by Fannie Mae and Freddie Mac problems may now begin to happen.
The two mortgage giants, who buy the majority of mortgages from lenders, have now required lenders to be more diligent reviewing inquiries that show up on buyer's credit reports. This would include inquiries before and after the loan application has been taken and escrow opened.
Fannie Mae is requiring lenders to check the buyer's credit right before … (12 comments)
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loans: Waiting Period Requirements to Buy Again
- 01/31/11 05:40 PM
Waiting Period Requirements to Buy Again
The waiting periods in order to qualify for a home loan after a foreclosure, deed-in-lieu, short sale and bankruptcy varies both by the government agency purchasing or insuring the loan as well as the dollar amount of the loan.
Federal Housing Administration (FHA)
1) Foreclosure is 3 years
2) Deed-in Lieu is 3 years
3) Short Sale is 3 years
4) Bankruptcy is 2 years
Veterans Administration (VA)
1) Foreclosure is 2 years
2) Deed-in Lieu is 2 years
3) Short Sale is 2 years
4) Bankruptcy is 2 years
Conventional … (9 comments)
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Once Again Fixed Rate Real Estate Loans Drop Again
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