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FHA changes – here’s a quick run-down

On February 3, 2010, in FHA Mortgages, by Todd Abelson | Comments

I’ve received alot of calls asking me to summarize the “wassup in FHA?” Here’s quick run-down for your reference:

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!

Best time to buy or refi, but time is running out!

On January 30, 2010, in Interest Rates, Real Estate Information, Tyler Ford & Todd Abelson, by Todd Abelson | Comments

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 are considering buying a home, I STRONGLY SUGGEST that you get in contract and lock in your rate in the next 45 days.
  • If you are considering refinancing your mortgage, I STRONGLY SUGGEST you proceed NOW! Rates are drifting higher and will continue until March 31.

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!

Tucson homes are a bargain!

On January 7, 2010, in Market News, by Todd Abelson | Comments

tucson home
What does Tucson have in common with Akron, Topeka, New Haven, Minneapolis, Portland, Miami, Kingston, South Bend and Trenton? It’s being called one of the “top 10 cities for bargain homes”.

Barbara Corcoran, a self-proclaimed real estate mogul and business consultant used points including but not limited to home size, city job status, and year-over-year home prices to rank her findings.

More noteworthy to me, she foresee’s that the foreclosure process as being more than half over, that “…the city is reinventing itself” with growing population and “It’s a great city to live in.” I think she’s right on!.

As we’ve been saying – high inventory with low rates, coupled with the First Time & Move-up Homebuyer credits,  make this what could be the BEST TIME EVER to buy a home!

Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your mortgage needs.

The Arizona Economy, according to Marshall Vest

On December 18, 2009, in Market News, Real Estate Information, Tyler Ford & Todd Abelson, by Todd Abelson | Comments

Every year, around this time, the University of Arizona presents their Economic Forecast Luncheon. Every year for the past 20 (or more) Marshall Vest, Director of the Economic and Business Research Center, Eller College of Management, spins the yarn of information. I have had the priviledge of attending for the past 12 years and cherish the contact and information.

Some years, Mr. Vest has actually been seen cracking a smile; some years maybe a sigh. This year he was making a few jokes attempting and ease the sting from what he was presenting. Taking copious notes, and presenting them here in my own words, is a summary of what I heard him say:

  • Tucson is locked in the teeth of a great recession and will lag behind the rest of the country, but we are coming around
  • Arizona has been the hardest hit state ranking 50th in job growth, 4th worst in residential foreclosures, and 2nd worst with respect to home-owner equity
  • The State budget has a $2 BILLION shortfall  and there is no way the state can cut enough to balance; therefore the only option is to raise taxes ALOT (i.e., the State is technically “insolvent”). The “system” is clearly broken and our way of life is at stake.

The key to Arizona’s recovery is JOBS. The questions are – what will it take? how long will it take? He projects negative job growth through 2010 with unemployment peaking (locally) at 10.5%. Jobs growth is expected in 2011 and 2012 at a rate of 3%-5% with unemployment dropping to a respectible 6% in 2014 (5 years from now!).

Click here to view his presentation in it’s entirety.

Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson Arizona for all your Mortgage Needs!

Richard & Thalia – Happy Homeowners care of Todd Abelson

On September 29, 2009, in Testimonials / Happy Home Owners, Tyler Ford & Todd Abelson, by Todd Abelson | Comments

Rick & Thalia - Happy Clients for LIFE!

Richard & Thalia Cunningham of Tucson Arizona discuss their experience with Todd Abelson at Sunstreet Mortgage

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Recent Comments

  • Tyler Ford: Great job Todd!
  • Tyler Ford: Seems as through the real estate market is picking up and home prices are stabilizing.
  • Gail Richards: Thanks Todd! More Great Information! Thanks for being on top of everything…your the best! Gail
  • admin: Hey Todd, Can’t wait to pick a winner!
  • steve kargel: Thank you Todd for sending us your updates and especially for insights like the Eller annual economic...

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