Mortgage Update

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!

Mortgage Update
· 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!!

Homestyle Loans- Rehab for Investment Homes

Please see the update below. There are some great programs for loan right now. I’d like to point out the Conventional – NOT FHA- Homestyle Loans. These loans are REHAB loans for Primary residences, Second Homes AND Investment properties! Call me for more information at 760-837-1488!! Talk soon! Homestyle Loan,

· FHA’s minimum down payment is being increased from 3% to 3.5% as of Jan 1, 2009. The only way to honor the 3% down payment option for your client, is to get their loan approved before the end of the year. So, if you don’t already have an approved offer and a loan submitted, then you should be notifying your clients about the change.

· FHA’s new Loan Limit for Riverside County is $355,350, not $500,000. This is also in effect on January 1, 2009, and under the same scenario as above.

· Conventional Loan limits have also been reduced back to $417,000, not $500,000 anymore. Any loan amount above 417K, is going to be considered a jumbo mortgage.

· Reverse Mortgages are going to be a great mortgage tool moving forward to help seniors over the age of 62 purchase a new home, with no income or credit qualification required. Yes, you heard that here first.

· Rates are great today, why not help you and your past clients out by sending them to us to do a cash out refinance on their primary residence at 5%, so they can get the down payment needed to buy a investment property from you today.

· USDA & VA Loan’s – both offer your clients 100% financing as long as they qualify for the program.

· 203(k) FHA remodel home loan – This program will allow your clients to include in the loan the cost of improvements the home will need to make it complete. This program requires only 3.5% down, and works on owner occupied properties only. Max loan $355,350.

· Fannie/Freddie’s Homestyle Loans – this program works very similar to the above program, which allows you to include the cost of the home improvements in the loan, except that it works for all occupancy types. Primary, Second Homes, and Inv. Properties. Loan amount goes to $417,000, and down payments vary based on occupancy.

A quick update on loan programs

Happy Halloween!

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.

It’s been another unbelievable week in the mortgage business.

It’s been another unbelievable week in the mortgage business. I am still getting your clients approved and deals are coming together! Yes, it’s true. Here are some tips that are helping as I am continuing to be creative.

1. Counting Rental Income if Converting a Primary to an Investment- If qualifying is a problem get a co-mortgagor to help offset the debt to income ratios if they are too high.
a. Conventional – 30% equity and 6 months PITI reserves to count rental income
b. FHA – 25% Equity and 6 months PITI reserves to count rental income
2. Source the down payment – getting a gift or having money in the bank makes getting approved easier. We can use gift down payments from relatives.
3. Zero Down? – I have USDA Zero down programs for rural housing, CALHFA for 100% financing with a 680+ fico, and VA loans with no mortgage insurance.
4. Low Down – 3% down until January 1, 2009 and 3.5% thereafter! We can use gift money from a relative it’s so easy!
5. Credit Problems? Talk to about a credit repair program. It’s easy and its low cost to turn your clients into approved buyers.
6. Think Full Documentation – 2 years tax returns, 2 months bank statements, current paystubs. Set realistic expectations.
7. Investors – 20% down with no more than 4 properties with loans on them – Per Fannie Mae Guidelines
8. Investors – 30% down with more than 4 properties with loans –

Hope this helps! Oh by the way, I am never too busy for referrals!