Fannie Mae announced a plan to help homebuyers buy homes, stabilize neighborhoods (and reduce their inventory) through a 3.5% Seller Contribution at closing.
I’m investigating details so standby for details! (click for release).
Call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson, Arizona for all your Mortgage needs!
There is a new program is called Home Path and it is a FNMA product that helps Fannie Mae get rid of the foreclosed homes that they currently own. The benefits of the program are listed below. The homes must appear on the www.homepath.com website to be eligible for this program.
If you have any questions please contact Tyler Ford and Todd Abelson of Sunstreet Mortgage. We can help you get financing on ALL Home Path homes.
Great Benefits
1. NO appraisal, the contract price is the start point for LTV/CLTV
2. Up to 97% financing -Expands availability of credit to borrowers
3. NO declining markets policy….YEEEHAW.
4 NO MORTGAGE INSURANCE
5. 6% Seller contribution
6. Can by as investment properties with only 10% down and NO mortgage insurance
Things you need to be aware of:
1. Must be a FNMA owned home that can be found at www.homepath.com
2. Underwrite on purchases running 3-4 days
Once you are on the HomePath.com website you can search for the Tucson homes in the search section which is shown below.
Even though its effective date is April 1, 2009, mortgage applicants should start seeing Fannie Mae’s new fee structure from lenders beginning this Monday, January 12.
The reason why Fannie Mae’s mandatory loan fees are hitting lender pricing so far in advance is because lenders can take up to 30 days to package and sell a loan to Fannie Mae post-closing. In effect, this moves the April 1 start date to March 1.
Then, figuring that March 1 is roughly 45 days from now and that 45 days is a normal window on which to close on a home or on a refinance, the start date again pushes back, this time to January 15.
Given lenders’ typical timeframe to close, fund, and sell a loan to Fannie Mae, in other words, it’s normal that pricing reflects the fee changes two-and-a-half months in advance. Homebuyers and would-be refinancers would do well to take notice.
If you are floating a mortgage rate today — or shopping for one — consider locking it in before the close of business. Effective Monday, any number of traits in your home loan could increase your closing costs:
For a complete look at Fannie Mae’s new, mandated loan fees, visit the Fannie Mae web site. If you have trouble interpreting the worksheet, call or email me and we can talk about it together.
Earlier this year — and for the first time in its history — the FHA changed its funding fees and mortgage insurance structure.
Effective October 1, 2008, it’s repealing those changes.
Partly to keep FHA home loans affordable, and partly to comply with new laws, the FHA is rolling back its up-front fees and ongoing mortgage insurance requirements and replacing them with new ones.
The new up-front FHA fees are as follows:
These fees are paid as a one-time cost at closing, and are calculated by multiplying the loan size by the fee. A $200,000 FHA purchase, for example, now carries a $3,500 one-time charge.
Ongoing mortgage insurance requirements have changed, too. These changes are based on the loan type and the amount of equity in the home.
Mortgage insurance premiums are calculated by multiplying the initial loan size by the annual premium. The same $200,000 FHA purchase outlined above, using a 95% 30-year fixed mortgage, would require a monthly mortgage payment add-on of $83.33 until the loan is paid in full.
FHA-insured mortgages have grown in popularity this year because, while the guidelines of other mortgage products have tightened, FHA guidelines have remained relatively loose. FHA allows 3.500 percent downpayments on purchases, for example, and allows “cash out” refinances to 95 percent.
Fannie Mae and Freddie Mac do not.
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