Refinances and purchases are really picking up the market this week. With these low rates there’s no telling how busy you’re going to be!
· Check out my jumbo rates!!!
· Check out my 5 Year Fixed $$$$$ as well.
· Get your buyers off the fence with today’s Low Rates.
QUICK TIP 1: VA loans allow up to 4% towards sellers paid closing costs while FHA allows up to 6%!!
QUICK TIP 2: USDA loans allow for the buyer to finance closing costs and repairs if the appraised value comes in higher than the purchase price. You can use up to the appraised value.
These three programs will help you get more buyers!!
Attached are several updates for rates, working with the tax assessor’s office, and the changes for FHA refi’s taking cash-out.
Updating Property Taxes
I’ve had many requests for information regarding the tax assessor’s office and lowering your clients property taxes. See the form attached, have your clients fill it out, and send it in. I recommend they send it certified mail so they know it was received. When I close a loan or estimate payments I estimate taxes based on the new purchase price It’s possible, that after closing, that based on the old tax basis the county could try to collect at the higher previous tax basis (ie previous owner). This is especially pertinent on foreclosed homes in Southern California. Use the attached forms for your clients benefit and get in the habit of completing them at closing so the changes will be nearly immediate.
FHA Financing Update:
New loan limits are supported and available to lock at $500K.
Down payment requirement is still only 3.5%.
Fico score is also the same, which is required to be a 620 Fico.
The biggest difference you all need to know about is the appraisal requirements. For all loan amounts above $417K, and have a LTV greater than 95%, will be required to have 2 appraisals. The best way to avoid a second appraisal we can have the buyers put 5% down. If they want to do the second appraisal this can be done too. This is a FHA requirement.
There is only 1 more week to pull a case number for anyone interested in doing a cash-out refinance to 95% loan to value using the FHA program. The loan to value changes to 85% after next week. See the attached mortgagee letter from HUD.
Conforming Loans – or High Balance Loan Amounts
Loan Amounts also extended in Riverside County to $500K.
Max cash out is $200K on all these loans.
I hope this information is helpful. Call me with questions and make it a great week!
I am never too busy for any of your referrals.
A quick update on loan programs. Please call with questions.
Agency Jumbo Loans : Loans that are between $417k -500k… your clients have 2 weeks to lock their loans in to get the benefit of conforming jumbo pricing which have lower interest rates than loan amount over $500,000. An agency jumbo loan was part of the economic stimulus program rolled out by the Government in February 2008 and is set to expire at the beginning of 2009. Loans must be locked by November 13th and closed by year end.
USDA:100% financing is still available for your listings in DHS and Coachella and selected areas of Indio through the USDA! No credit score? That’s ok. No mortgage insurance required either. Call me to find out more info.
Cal- HFA (Chaffa) still allows 100 percent financing with a 680 fico or better if you meet the low income requirements. USDA,
Calsters – teacher program. 3% down 80% 1st and 17% 2nd with no mortgage insurance and payments are deferred on the 2nd mortgage for 5 years!
FHA is still my favorite program because it has no income or property eligibility restrictions and is the most lenient for underwriting guidelines. Current down is 3%; however it will change January 1, 2009 to 3.5%. Get your buyers off the fence now!
Canadian/ Foreign Nationals: 30% down with a minimum loan amount of $200,000. Full Documentation with an International Credit Report and reserves with the servicing bank.
Franklin Loan Center provides me the platform to stay competitive for you in this market. In-house local approvals and 30 day fundings! I look forward to working with you soon.
I am NEVER too busy for any of your referrals! Make it a great day.
Rates closed the week down on some products and flat on other.
·The market is still volatile and rates are changing everyday.
·The Fed kept interest rates at 2.00% and 5.00% for the prime rate. This is what I predicted last week would happen.
·Mortgage pricing went on a rally today and things are looking pretty good at week’s end. We are currently testing levels of support. I would encourage your clients who may be purchasing in the next 30-45 days to get locked in if they have an offer accepted. Things are getting good.
·Mortgages have shifted a lot in the “jumbo” market and make sure you see the difference for the 30 year fix and 5 year ARM for JUMBO loans!
Rates closed flat for the week which is fortunate because we had a bad stretch mid week with rates rising temporarily.
Agency Loans are priced great, but make sure to have your borrowers call me to make sure they qualify for the restrictions attached to these mortgages.
Agency jumbo loans, are loan amount between $417K – $500K. There are only two competitive programs offered.
30 year Fixed – 6.000%
5 Year Fixed Arm – 5.375%