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FHA to increase Mortgage Insurance & Down Payment

On January 21, 2010, in FHA Mortgages, Market News, Mortgage Programs & News, Tyler Ford & Todd Abelson, by Todd Abelson | Comments

In an attempt to recoup past losses, reduce the potential for future losses and sure up FHA’s sagging reserves a staggering series of changes will be implemented “soon”. Click here for article

First, and most immediate, the Up-Front MIP for all FHA loans will be increased from 1.75% to 2.25%. The start date for this increase will be announced today but Ianticipate it will begin with case numbers assigned starting February 1st. Following this in “the spring” will be an increase in the monthly MI fee as well.

Second, down payment requirements will be increase for 3 1/2% to 10% for “low FICO score borrowers” (under 580). This change is expected to be implemented “early summer”.

Third, the level of allowable “Seller Concessions” will be cut in half from 6% to 3%; this also will be implemented “early summer”.

Fourth, increased monitoring and enforcement on FHA lenders effective immediately.

These changes are H-U-G-E and will affect the entire market. While just loosening the anti-flipping rules 48 hours ago, this changes tighten – good for taxpayers, bad for sellers, buyers and the real estate markets.

For these and other breaking stories, stay in touch and call Todd Abelson and Tyler Ford at Sunstreet Mortgage in Tucson Arizona.

The Bad Jobs Report Wasn’t All Bad — Mortgage Rates Fell

On January 12, 2010, in Uncategorized, by Tyler Ford | Comments

Unemployment Rate 2007-2009Despite the headlines, it’s important to remember that December’s jobs report wasn’t all bad news.

Sure, the economy shed 85,000 jobs last month and the Unemployment Rate failed to dip below 10%, but for home buyers and rate shoppers in Tucson , the news was just fine.

The soft employment data led mortgage rates lower, making homes in Tucson, Arizona for example, more affordable for buyers.

There is two sides to every economic coin.

Since early-2008, the U.S workforce has been closely tied to home financing. As the economy slowed and jobs were lost, Wall Streeters pulled money from the risky stock markets and moved it to of the relative safety of bond markets, instead.

Safe haven buying led mortgage bond prices higher which, in turn, caused rates to fall. Mortgage rates fell to 6 all-time lows in 2009. In a related statistic, 4.2 million jobs were lost last year.

And this is why Friday’s non-farm payrolls report was so good for buyers.

See, in November, the economy added new jobs for the first time since 2007, housing looked strong, consumer confidence was growing.  The safe haven buying reversed and mortgage rates took off.  Analysts believed the nation’s economic turnaround was complete.

But now, after December’s jobs report returned to the red, Wall Street is forced to rethink its position. Safe haven buying is back and mortgage rates are lower because of it.

Over the next few months, expect a lot of this back-and-forth action in rates. In general, positive news for the economy will be met with higher mortgage rates and negative economic news will be met with lower mortgage rates.  There will be exceptions, but the general rule should hold.

Mortgage guidelines to tighten FURTHER!

On December 3, 2009, in Mortgage Educational Information, Real Estate Information, Recommended Readings, by Todd Abelson | Comments

Just when you though it might be getting easier to qualify for a home loan, Fannie Mae and Freddie Mac (aka “The Grinchs”) are implementing TIGHTER qualifying guidelines for their loans.

Beginning the weekend of December 12th, both Government Sponsored Enterprises (GSEs) are rolling out new versions of their Automated Underwriting Systems. To give you a taste of “why?”, here’s sentence from the Fannie Mae announcement:

“We are implementing these changes to help ensure that our guidelines reflect and appropriately respond to the current market conditions, and that we continue to provide sustainable home ownership opportunities to borrowers.”

In a nutshell, choke off some “riskier buyers” buy tightening qualifying guidelines ! The single biggest change will be (again quoted from the Fannie Mae Release):

“An updated to the maximum allowable total expense (debt-to-income) ratio to 45%, with flexibilities up to 50% for certain loan case files with strong compensating factors” (accents placed above be me!).

Maybe this is a good thing, that of limiting DTI ratios to 45%, but I estimate this may choke off approx 20% of currently prospective home buyers (from here-on forth they shall be called “wanna-bes”). At best, the timing of this change is horrible since the “first time home-buyer” and “move-up home-buyer” credit programs have been extended through 6/30/2010 (with contracts ratified by 4/30/2010). Talk about the left hand not knowing what the right hand is doing??? Santa’s putting a lump of coal in their stockings for sure!

To get the latest news, call Todd Abelson & Tyler Ford at Sunstreet Mortgage in Tucson, AZ

Arizona Veterans Lower Your Monthly Mortgage Payment

On December 21, 2008, in Mortgage Programs & News, by Tyler Ford | Comments

va-streamline-refi

ATTENTION ARIZONA VETERANS

Lower Your Monthly Mortgage Payment!

We can refinance your VA Loan at an extremely low interest rate

  • NO out of pocket costs
  • NO credit report required
  • NO appraisal required
  • NO junk fees

SKIP 2 MORTGAGE PAYMENTS

We have helped 100’s of Veterans just like you. Who Else want to reduce their monthly payment and skip 2 house payments?

Minimal documentation is required to refinance and your application can be taken by phone.

Call Today: 520-331-LEND (5363). We specialize in VA loans.

www.arizonaVArefinance.com

www.TucsonMortgages.com

$7,500 First Time Homebuyer Tax Credit

On September 25, 2008, in Mortgage Educational Information, Mortgage Programs & News, by Tyler Ford | Comments

govt banner 

President Bush signed the The Housing Stimulus Bill (H.R. 3221), which has a key provision for qualifying homebuyers: a $7,500 tax credit.  The $7,500 tax credit that would be would be available for any qualified purchase between April 9, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

The National Association of Realtors has put together two good documents summarizing what this might mean for you:

Questions and Answers

What is the First-Time Home Buyer Tax Credit?

The Tax Credit is part of the Housing and Economic Recovery Act of 2008, signed into law on July 30, 2008.

The intent of the tax credit is two fold:

  • To provide a financial resource for home buyers in the year that they purchase a home
  • To provide a stimulas to the housing market and the economy, helping to stabalize home prices and increase home sales.

First Time Home Buyers… Give Tyler Ford and Todd Abelson of Sunstreet Mortgage, right her in Tucson, AZ, a call so you can take advantage of this $7,500 tax credit.

PS: First Time Home Buyers receive the tax credit with any loan program: FHA loans, Conventional loans, VA loans, etc.

For more info visit:  www.GetHomeGetCash.com

CALL US @ 520-331-LEND (5363)

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