Conforming rates on nearly all products have inched downward for Today, with good discounts to lower rates available. ARM money is stronger for nearly all terms. Some discounts to lower rates are available, but not really worth the money right now.
Government money remains steady as ever. There is slight movement up and down, but overall, very steady. Government ARM money is very attractive right now, perfect for the First Time Home buyer who may have Debt to Income issues. Remember that FHA, theoretically has no minimum credit score. The restriction comes from the investor themselves. Score restrictions across the board stand at 620 mid FICO, with some investors going as high as 640. The exceptions to this are streamline refinances and non-traditional scores. We have a lender in our portfolio that will underwrite an FHA purchase, cash out refinance or Rate/Term refinance with a score as low as 530. You will need to contact me with the scenario for these products, as there are DUH, restrictions.
There are still lots of Investors with lots of products out there for your customer to choose from such as My Community, DU Refi plus, Home America etc. Make sure your customer is getting the best rate.
Turn times:
5-7 Days for Purchase
15-17 days for refinancing
There are a couple of Investors, both FHA and conventional that offer 48 to 72 hour turns, however these are for A PAPER, slam dunk loans. Call me with a scenario, if you need the service.
Not sure how the collapse of TBW is affecting the pipeline right now. I do know there are lots of angry customers out there.
A couple of thoughts on LTV's/CLTV's and cash out refinancing. Remember, the LTV is the Loan to Value on the property ( loan amount divided by the appraised value ). The CLTV is the Combined Loan to Value, which is the 1st lien and any secondary financing ( HELOC's etc.) . With a purchase, your customer can choose to finance the entire amount, less the down payment or a lower the LTV to 80%, so they avoid PMI. With this scenario the customer would need to secure secondary financing for the remainder of the loan amount. Other than FHA most lenders require at least 5% down payment.
Purchase Price = $100,000.00 (Appraised value)
Down Payment = $5000.00 (5%)
1st Lien = $80,000.00 (80% LTV)
2nd Lien = $15,000.00 (95% CLTV)
Obviously, the above numbers are very crude, but that is how the breakdown looks. Now, when this customer looks to refinance this loan and combine both loans into a lower rate (don't worry, I am getting to something here), they can refi as a RATE/TERM, rather than a cash out.Because the 2nd lien was used to purchase the house.
If you wish to refinance your home and there is a second lien attached, if the second was NOT used for purchase money, the loan will be considered a Cash-Out refi and will be restricted to an LTV of 80% for most lenders.
Call me with any questions or scenarios that I can help with.
GOOD SELLING!!!
Greg Brown
Buckhead Residential Services
678-943-0423
gregbrown@buckheadresidentialservices.com
gregbrown93@gmail.com
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