Monday Morning Mortgages ~ Monday, May 2, 2011 (Today begins “National Bread Pudding Recipe Exchange Week”)
Monday Morning Mortgages is a brief week-opening report on mortgages in our area. This is a tool to assist my realty partners on loan trends, rates, program changes, and problem solutions.
Fannie Mae’s HomePath program is again offering 3.5% in concession to buyer for closing costs. This offer is good until June 30,2011; the transaction must close by then. This credit is for owner occupied purchases only. Remember, HomePath offers 3% down financing, no mortgage insurance, no appraisal required on their listed properties. Second home purchases requires 10% down and investors requires 15% down.
To search current listings, go to http://www.homepath.com/. Today there are 20 active listings in Santa Rosa
Besides VA, USDA is the only other 100% financing program available for designated “rural” areas in Sonoma County. Get this, no mortgage insurance required. The geographic areas eligible for Sonoma County are:
· North of Santa Rosa from Larkfield-Wikkiup (Healdsburg, Windsor, Cloverdale)
· East of Sonoma Valley from Kenwood
· West of Santa Rosa beginning at Sebastopol
· Russian River area
Here’s a link to the search for eligibility of a specific properties.
· Like VA’s funding fee, USDA also has a financed upfront “guarantee” fee of 3.5%.
· Household income is limited to a liberal $92,450 per year.
· Seller concessions and gift funds allowed for closing costs.
· Minimum FICO 620.
· Needs a 30 day close.
2011 Homeownership Facts
In the first quarter of 2011, there are 131 million housing units in the US. Of those, about 86% are occupied’ 57% by owners, 29% by renters, and 14% (nearly 19 million units) are vacant. In this country the home ownership rate is about 66%, down slightly from the previous quarter and year. The Census Bureau reports that the homeownership rates were highest for those householders ages 65 years and over (81%) and lowest for those under 35 years of age (38%) - no surprise there. Lastly, the homeownership rate for non-Hispanic Whites was highest at 74%, while "Black Alone householders" was lowest at 45%.
Use this link to find FHA approved condo projects, sorting by state and city.
Remember, project will still need an HOA certification showing no one owner owns more than 10% of units, at least 50% owner occupied ownership of units, no more than 15% of units delinquent on HOA dues (not including REOs) and no pending litigation.
On conventional financing for an owner occupied purchase with 20% down, occupancy of owner vs. rentals is no longer a determining factor in approval of project. So a project with lots of rentals can be purchased by an occupying buyer. Other standard restrictions apply; one owner cannot own more than 10% of units, HOA must have adequate insurance, and no pending litigation.
Check your listing carefully, PUD’s do not require to go through the condo approval process, nor are they restricted for FHA financing the way condos are. Some condo listings are really PUDs. HOA management or title can clarify this for you.
Today's Rates - with ONE LOAN POINT
Conforming (<= $417,000)
30 Year 4.875%
5/1 ARM IO 4. %
Jumbo Agency ($417,001 - $662,500 in Sonoma County)
30 Year 4.875%
5/1 ARM 3.75%
FHA Conforming (<= $417,000)
FHA Jumbo (to $520,950)
Super Jumbo (<= $2 million)
3/1 ARM 3.0%