Jack & Margaret Tyrrell, owners of TYCOR Realty in Oro Valley, Arizona, have issued a good market alert which is welcomed news given the last 24 months. In a nutshell the figures for the first 2 months of ‘10 are positive; the question -> Is this the beginning of a trend?
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson Arizona 520-331-LEND for all your mortgage needs!
Brought to you by Todd Abelson and Tyler Ford of Sunstreet Mortgage – Tucson, AZ
Brought to you by Todd Abelson and Tyler Ford of Sunstreet Mortgage – Tucson, AZ
2/1 New condo rules begin. All condos must show as “Approved” on the FHA website https://entp.hud.gov/idapp/html/condlook.cfm. Select the HRAP/DELRAP option for searching. I usually just enter the zip code and select “All”. Many condos have different names or spellings and I find it helpful to check all of them in a zip code. There aren’t that many. No more “spot approvals” allowed by FHA.
2/1 Effective until 2/1/2011 the 90 day flipping rule has been suspended. HOWEVER, the loan must be an arm’s length transaction and if the value increases 20% over the seller’s acquisition price then we have to get a home inspection and justify all repairs, renovations, etc. with documentation.
2/15 HVCC rule applies to FHA loans. The FHA Connection has been revised (which is what caused the delay in implementation). No more Originator-to-Appraiser communication allowed, just like with Conventional loans.
4/5 New up front MIP for all loans including streamline refinances is 2.25%. This will make every loan at least 1/2 point MORE EXPENSIVE.
Other changes “coming this summer to a Lender near you”… increased Monthly Mortgage Insurance and increased downpayment requirements for low-FICO borrowers. Standby for updates as they are announced.
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your Mortgage needs!
We have all lived through MANY changes in 2009, not all good. However, we are at a critical point in the real estate and credit markets where it is the best time we may EVER see in which to buy a home or refinance an existing loan. Why? Rates are within ¼% of all-time lows, inventory is high, and the Federal Government is offering HUGE tax credits to first-time and move-up buyers.
BUT THIS IS ABOUT TO CHANGE AND YOU REALLY NEED TO BE AWARE!
FACT – the sole reason mortgage rates have remained low is because the Government committed to buying $1.25 TRILLION in “Mortgage Backed Securities” from Fannie Mae and Freddie Mac. This Program officially ends March 31, 2010. I guarantee you rates will increase swiftly and dramatically at that time. I expect rates to be about 6% by springtime and about 6.5% by autumn – up from the “4.somethings” we’re seeing now.
FACT – to qualify for the Federal Tax Credit of up to $8,000 for first-time homebuyers and up to $6,500 for move-up homebuyers you MUST have a formal contract in Escrow before May 1st. Given the activity I saw last November (before the extension) there was a noticeable run-up in prices and reduction in Seller concessions.
FACT – credit guidelines for Conventional, FHA & VA loans continue to tighten, while costs to obtain these loans increase. Effective April 5th, FHA is increasing the cost of their Up-Front Mortgage Insurance by ½% so, for example, the cost to purchase or refinance a $150,000 loan will cost you $750 more! And they’re not done; effective “early summer” FHA is increasing the cost of the Monthly Mortgage Insurance (amount unknown).
There is no other way to get across the TRUE message out other than for me to say:
If you or someone you know is considering purchasing a home or refinancing their existing mortgage please pass along this information. I cherish your trust and appreciate the opportunity to be of service to you, your family, friends and co-workers!
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your Mortgage Needs!
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