I recently attended a lending forum held by a local title company, and representatives from different lending institutions in the area. There are many options still available to our buyers. There does seem to be a gap for the middle to upper income buyers, and those who are self employed. I feel that there were two areas of information that will be helpful to pass on.
There was an appraiser in attendance. She is a local appraiser in our area, who has been around for awhile. Here are the highlights from her:
1. When you are putting together your comps for you cma appraisers prefer six months but they will go back 8.
2. On your comps look for 2 active, one pending, and three solds. Many times lenders want to know days on market as well.
3. Do not use short sales as comps.
4. She felt that we are in a stable market, and offered a website that gives market areas a number to quantify their stability. (cwbc.com/contenmanaged/files/sofmarkets.pdf)
5. Finally, she felt that it is important to use local lenders, and appraisers because they will understand you local market better.
They also featured a lender that spoke about maximum seller concessions on our buyers loans.
FHA: 6% with a 3% or 3.5% down payment.
VA: Seller can pay all buyers closing costs/prepaids and permanent interest rate buydowns, the applicable VA funding fee, up to 4% toward a buyer's debt pay off and up to 6 months of mortgage payments.
Maximum contribution for Conventional: 2% for investment purchase, 3% for 0/0 <10%down payment, 6% for 0/0 => 10% down payment.
How to apply FHA and Conventional Seller concessions: Permanent or temporary interest rate buydowns, closing costs and prepaids, up to 6 months mortgage payments (conventional 1 & 2 unit owner occupied only).
Of course this information seems to change daily, but hopefully you will find it helpful.