From Ryan Halldorson at Smart Mortgage:
Interest Rates have dropped since last Friday. Keep in mind that several loan programs will change on January 1, 2009. The FHA minimum down payment goes from 3% to 3.5%. The FHA maximum loan amount goes from $346,250 down to around $318,550. Once a buyer has a purchase contract we can establish an FHA case number which is the date used for cutoffs. Also, the USDA “Rural” Housing Program will eliminate some of the areas that are currently still eligible for 100% financing. Right now Buckeye, Maricopa (the city), and parts of Anthem and Queen Creek are all still eligible for 100% financing on this program. As of 11/7/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. 95% 30 Year Fixed = 6.25% (Requires PMI) 10/03/08
From Ryan Halldorson at Smart Mortgage:
Interest Rates are unchanged from last Friday once again. FHA loans continue to be very popular since they allow the lowest minimum down payment (other than VA which is 100%). There are two changes on the horizon for FHA loans. Effective January 1, the minimum required down payment goes up from 3% to 3.5%. Also, the FHA maximum loan limits will change. There has not been an official announcement but rumors are that our maximum loan limit in Maricopa County will be lowered from $346,250 down to $318,550. FHA bases their maximum loan limits on the Median Sales Price which has been dropping.
As of 10/3/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee. Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.
09/26/08
From Ryan Halldorson at Smart Mortgage:
Interest Rates are unchanged from last Friday. FHA made a major change to their underwriting guidelines this week with regards to a borrower that rents out his current primary residence and then buys a new primary residence. In the past, a borrower was allowed to provide a rental contract on the primary residence that he was vacating which could wash out the mortgage payment when calculating qualifying debt to income ratios. The new guidelines say that a borrower is only allowed to do this if they have 25% or more equity in the primary residence they are vacating. If they do not have 25% equity they need to qualify with both mortgage payments. Fannie Mae and Freddie Mac have already implemented a similar rule requiring 30% equity.
As of 9/26/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.
09/19/08
Interest rates increased this week as the market tries to figure out the impact of all of the new government programs being implemented to stabilize the financial institutions of the world. It will likely take several weeks to months to find out where rates are going to settle in at. We see wild swings on a daily and even hourly basis. With the elimination of seller funded down payment assistance, obtaining down payment money will be one of the biggest hurdles to loan qualification. There are several specialized programs such as VA and Officer/Teacher Next Door that still allow 100% financing. Another 100% program is available for “Rural” Housing. Some of the cities in Arizona that have access to this program are Maricopa (the city), Payson, Prescott Valley, and Kingman to name a few. The greater Phoenix and Tucson areas are excluded as is Flagstaff. The property must be a primary residence and qualification for the loan includes the typical income, asset and credit. To find out more on this program and view a map of eligible areas you can go to http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do Store that info in that back of your mind and someday you might be able to pull a rabbit (or better yet a buyer) out of the hat. 9/6/08
From our friend, Ryan Halldorson, comes this week's mortgage update... Interest Rates improved once again this week. With seller paid down payment assistance programs no longer available, there are still several specialized programs that can still be used to get a buyer into a home with no down payment. VA loans still allow 100% financing. Another program is called the Good Neighbor Program available to Teachers, Police Officers, Fire Fighters and Emergency Medical Technicians (formerly Teacher/Officer Next Door). This program allows a buyer to buy a HUD home (FHA foreclosure) at 50% of the list price with only a $100 down payment. This program can only be used in designated revitalization areas - much of South Phoenix and several other limited spots (type in a zipcodeto see all available areas here: Zip Code Availablity). More details can be found at http://www.hud.gov/offices/hsg/sfh/reo/goodn/gnndabot.cfm . For more information call Angela McDonald at (602) 369-6409.
7/25/08
More about Fannie Mae and Freddie Mac...
7/22/08
From Ryan Halldorson, our advisor at Smart Financial Mortgage:
After starting the week nicely, Interest Rates steadily increased later in the week. There have been a lot of rumors circulating that FHA no longer allows Down Payment Assistance programs such as AmeriDream. The fact is that these programs are still allowed with many lenders (including Smart Financial Mortgage). The Senate did recently vote to ban this program as part of its version of the housing stimulus package. But, the House of Representatives passed a bipartisan plan in May to preserve the program while tightening standards and protecting the FHA’s solvency. The next step is for representatives from the House and Senate to meet in the coming weeks to draft a compromise of their two plans. HUD tried to eliminate these assistance programs in 2007 but 2 Federal Courts ruled against HUD and in favor of keeping the programs alive so we’ll will keep our fingers crossed for the outcome of this round. As with anything in the real estate industry right now, it is smart to take advantage of these programs ASAP because no one knows what the future will bring.
As of 7/18/2008 based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Document Income Verification, paying no discount points and no origination fee...
95% 30 Year Fixed = 6.625% (Requires PMI)
80% 30 year Fixed = 6.625%
95% 15 Year Fixed = 6.25% (Requires PMI)
80% 15 Year Fixed = 6.25%
97% FHA 30 Year Fixed = 6.75% (Requires MI)
100% VA 30 Year Fixed = 6.75% (No PMI required)
75% Stated Income 30 Year Fixed = 7.375%
75% Jumbo 5 Yr ARM = 5.875% (417k+ Loan Amount)
Keep in mind…….Maximum Financing is still available on FHA loans. We still have access to AmeriDream which allows the seller to contribute for the borrower’s entire down payment and all of their closing costs/prepaids. Borrowers can still buy a home with nothing more than an earnest deposit if they can qualify for an FHA loan.
Update for 7/21/08
GREAT NEWS!
New Jumbo Program with Competitive Pricing Today's Rates:
PROGRAM RATE ORIGINATION 7/1 ARM 6.375% 0 Points 6.500% 1/2 Point 5/1 ARM 6.125% 0 Points 5.875% 1/2 Point Full income documentation, No assets verified.
$600,000 to 80% LTV
$1,500,000 to 75% LTV
Fannie Guideline Changes
Bankruptcy and Foreclosure Policy Changes
Fannie Mae is establishing a new policy for preforeclosure sales. A preforeclosure sale involves the sale of the property by the borrower to a third party for less than the amount owed to satisfy the delinquent mortgage, as agreed to by the lender, investor, and mortgage insurer. Due to the increased incidence of preforeclosure sales, Fannie Mae is establishing a 2-year elapsed time period for reestablishing credit following completion of the action.
This is a change from the older stance of treating a short sale as a foreclosure or a deed in lieu. I am listing out the changes to all BK, Foreclosure, Deed in Lieu and Preforeclosure sales below.
New Requirements
Bankruptcy (All Except Chapter 13)
The 4-year time period remains the same but will now be applied from either the discharge or dismissal date of the bankruptcy action.
Chapter 13 Bankruptcy
The time period for Chapter 13 bankruptcy actions is measured as follows:
• 2 years from the discharge date, or
• 4 years from the dismissal date.
Exceptions for Extenuating Circumstances - All Bankruptcy Actions
The 2-year time period will be measured from the bankruptcy discharge or dismissal date. No exceptions are permitted to the 2-year time period after a Chapter 13 discharge.
Multiple Bankruptcy Filings
5-year time period from most recent dismissal or discharge date required for borrowers with more than one bankruptcy filing within the past 7 years.
Exceptions for Extenuating Circumstances - Multiple Bankruptcy Filings
3-year time period from the most recent discharge or dismissal date
Note: The most recent bankruptcy filing must have been the result of extenuating circumstances.
Foreclosure
5-year time period from completion date
Additional requirements that apply after 5 years up to 7 years following completion date:
• The purchase of a principal residence is permitted with a minimum 10 percent down payment and minimum representative credit score of 680.
• Purchase of a second home or investment property is not
permitted.
• Limited cash-out refinances are permitted for all occupancy types pursuant to the eligibility requirements in effect at that time.
• Cash-out refinances are not permitted for any occupancy type.
Exceptions for Extenuating Circumstances -
Foreclosure
2-year time period from completion date
3-year time period from completion date
Additional requirements that apply after 3 years up to 7 years following completion date:
The same additional requirements apply as above except the minimum credit score of 680 is not required.
Deed-in-Lieu of Foreclosure
No change
Additional requirements that apply after 4 years up to 7 years following completion date:
• Borrower may purchase a property secured by a principal residence, second home, or investment property with the greater of 10 percent minimum down payment or the minimum down payment required for the transaction.
• Limited-cash-out and cash-out refinance transactions secured by a principal residence, second home, or investment property are permitted pursuant to the eligibility requirements in effect at that time.
Exceptions for Extenuating Circumstances -
Deed-in-Lieu of Foreclosure
No change
The same additional requirements noted above for deed-in-lieu apply after 2 years up to 7 years following completion date.
Time Period After Preforeclosure Sale
2-year time period from completion date.
Additional Requirements: None
Note: No exceptions are permitted to the 2-year time period due to extenuating circumstances.
Please call me with any questions or concerns you may have at 602-369-6409.
Rate Update for 5/24/08
The current national average for 30-year fixed rate mortgages is 5.98%.
Did you know?
Queen Creek and Maricopa are eligible as Rural Housing areas. This can mean great deals for buyers looking in these regions!
- 102% Financing
- No Mortgage Insurance
- No First-TIme Home Buyer Reuquirements
- Easy Qualifying - NO FICO REQUIREMENT!
- Unlimited Seller Concessions & 100% Gifting Allowed
- Great Pricing
Update on Streamline -K
Streamline-K is easy and can save deals. A buyer was previously qualified with another lender but due to the property's condition, the lender was not able to finance the property "as-is". The realtor knew about the Streamline-K program, called his mortgage loan officer and was able to get financing for the property with repairs and renovations included his loan. His buyer has new flooring, new appliances, and new paint throughout, and we were able to close the loan within 15 days!
Fannie Mae Drops Decline Requirements
Fannie Mae has announced that they are removing their requirement on loans in decline markets. What does this mean? 5% down conventional loans are back! Some restrictions apply due to mortgage insurance.
Bill Chenier, Certified Mortgage Planner
Please call or email me for more information.
Angela McDonald
(602) 369-6409
_________________________________________________________________________________________
From the desk of Ryan Halldorson 5/17/2008
"A" Paper Interest Rates held steady this week. Did you know that VA loans can go up to a $1.5 million dollar loan amount? Even today, VA loans still allow a borrower to do a 100% loan with no Private Mortgage Insurance up to a loan amount of $417,000. Above a $417,000 loan amount the borrower has to do a down payment but they still get a great rate (low 6% on a 30 Yr Fixed) and have no Private Mortgage Insurance on their loan. The down payment requirement increases as the loan amount increases but as an example, a $700,000 Purchase price would still only require a 10% down payment. With Jumbo rates and down payment requirements increasing, a VA Jumbo is great option for those who have VA eligibility.
As of 5/9/08 based on a $200,000 Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Documentation Income Verification, paying no discount points and no origination fee:
- 95% 30 Year Fixed = 6%
- 95% 15 Year Fixed = 5.5%
- 97% FHA 30 Year Fixed = 6%
- 100% VA 30 Year Fixed = 6%
- 70% 30 Year Fixed = 6.5% (Stated Income)
- 80% Jumbo 5 Yr ARM = 5.625% ($417,000+ Loan Amount)
If you have any questions or are looking for a loan, please call or email...
Angela - 602-369-6409
House votes to offer as much as $300 billion in mortgages and to back up Fannie and Freddie. Bush says he'll sign it. Senate approval is likely.
NEW YORK (CNNMoney.com) -- The House on Wednesday voted 272-152 to pass sweeping legislation that will offer up to $300 billion in assistance to troubled homeowners and throw government support behind mortgage finance giants Fannie Mae and Freddie Mac.
- Help at-risk borrowers
- Permanently increase "conforming loan" limits
- Create home-buyer credit
- Create an affordable housing trust fund
- Give grants to states to buy foreclosed properties
You may want to contact your state's senator to share your views on this bill. To do so, just Google: Arizona State Senators and you will find their names, office locations and phone numbers.
House votes to offer as much as $300 billion in mortgages and to back up Fannie and Freddie. Bush says he'll sign it. Senate approval is likely.
NEW YORK (CNNMoney.com) -- The House on Wednesday voted 272-152 to pass sweeping legislation that will offer up to $300 billion in assistance to troubled homeowners and throw government support behind mortgage finance giants Fannie Mae and Freddie Mac.
- Help at-risk borrowers
- Permanently increase "conforming loan" limits
- Create home-buyer credit
- Create an affordable housing trust fund
- Give grants to states to buy foreclosed properties
If you wish to contact your state senators with your opinion, just Google: Arizona State Senators, and you will be shows sites with your senators' names, office locations and phone numbers.
House votes to offer as much as $300 billion in mortgages and to back up Fannie and Freddie. Bush says he'll sign it. Senate approval is likely.
NEW YORK (CNNMoney.com) -- The House on Wednesday voted 272-152 to pass sweeping legislation that will offer up to $300 billion in assistance to troubled homeowners and throw government support behind mortgage finance giants Fannie Mae and Freddie Mac.
- Help at-risk borrowers
- Permanently increase "conforming loan" limits
- Create home-buyer credit
- Create an affordable housing trust fund
- Give grants to states to buy foreclosed properties
If you wish to contact your state senator with your views on this or any other matter, simply Google: Arizona State Senators . You will be be able to access sites with your senator's name, office locations and phone numbers.
As of 8/8/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.
The Housing and Economic Recovery Act of 2008 (Pub.L. 110-287)
Permanently increases the limit and establishes a local area-based system. The new limit will be based on 115 percent of the area median home price, but in no case will the limit be more than 150 percent of $417,000, or $625,500, or less than $417,000. The ceiling is indexed and will not decrease. Decreases in the underlying index will be netted out of future increases. Will be effective upon the expiration of the Economic Stimulus Act of 2008, which means the new limits apply to loans delivered on or after January 1, 2009.
Under the Economic Stimulus Act of 2008 (Pub.L. 110-185), the conforming loan limit for the remainder of 2008 is the greater of $417,000 or 125 percent of the area median house price, but in no case more than 175 percent of $417,000, or $729,750.
There will be no change in Conforming loan limits in our market
FHA Loan Limit:
The new limit will be based on 115 percent of the area median home price, but in no case will the limit be more than 150 percent of $417,000, or $625,500, or less than 65 percent of $417,000, or $271,050. Will be effective upon the expiration of the Economic Stimulus Act of 2008, which means the new limits apply to loans endorsed for insurance on or after January
Under the Economic Stimulus Act of 2008, the FHA loan limit for the remainder of 2008 is 125 percent of the area median home price, but in no case will the limit be more than 175 percent of $417,000, or $729,750, or less than 65 percent of $417,000, or $271,050. This will lower our current FHA limits from 346,250 to aproxitmently 298,700
Borrower Cash Requirement:
Seller-Funded Downpayment Assistance:
Maximum Up-front Mortgage Insurance Premium
Tax Credit:
