Sooner rather than later in purchasing a new home.

Up to $8000 tax credit for First Time Buyers, $6500 for current Home Owners.

• Must have valid purchase agreement by 04/30/2010. That may seem like forever, but it’s only 23 weeks with 5 holidays mixed in there. Click here for more info.

Up to 6% seller contribution and 3.5% down on FHA financing.

• 
  
  FHA financing has been under lots of scrutiny recently due to high delinquency. Some solutions rumored have been increasing the down payment amount, eliminating seller concessions and gift funds, tougher credit requirements and an increase in mortgage insurance premiums. Click here for more info.
  
  
  

Historically low interest rates. Click here.

• 
  
  Rates have been artificially suppressed do to US Treasury participation in Mortgage Backed Securities. This may be coming to an end. Click here for more info.
  
  
  

Lenders can still provide lender credit to be used toward closing costs for customers short on cash.

• 
  
  I may be able to provide 2-3% of the loan amount as a lender credit toward closing costs and prepaids – this will be reflected in the interest rate.
  
  
  

The math works when comparing renting to owning.

• 
  
  Rent payments are higher today then a year ago due to the demand for rentals. Rates are low, sale prices are low. $1000 mortgage principal and interest payment will afford you over $180,000 with today’s rates.
  
  
  

Lenders are offering initially FREE “Borrowers Protection Plans” covering your payment in the event of Involuntary Unemployment, Disability, Hospitalization and more.

Inventory of housing available for sale.

• 
  
  The tax incentives recently extended just may work (up to $8000 for First Time Buyers, up to $6500 for current home owners). Will the new found buyers drive up the prices of available inventory.
  
  
  

10/02/2009 Mortgage Monitor

October 2, 2009

30 year fixed rate mortgage nearing all time low.
The 30-year fixed-rate mortgage averaged 4.94 percent with an average 0.7 point for the week ending October 1, 2009, down from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.10 percent. The last time the 30-year fixed rate mortgage was below 5 percent was the week ending May 28, 2009, when it averaged 4.91 percent. More details --->

FHA borrowers may need bigger down payments in bill.
Representative Scott Garrett, a New Jersey Republican, is pushing a measure to recoup some of the FHA's losses by increasing the minimum down payment required for an FHA loan to 5 percent from 3.5 percent. More details --->

Only 60 days remaining for First Time Buyer Tax Credit.
First time buyers (have not owned a home in last 3 years) are still able to purchase with little to no money down and close by the program end date. But time is running out. More details --->

New GFE and HUD-1 requirements take effect 01/01/2010
HUD is requiring that loan originators provide borrowers with a standard Good Faith Estimate that clearly discloses key loan terms and closing costs and that closing agents provide borrowers with a new HUD-1 settlement statement. New regulations take full effect on January 1, 2010.
Frequently asked questions.
New GFE form.
New HUD1 form.

Mike Paige

07/27/2009 - The Mortgage Monitor

New Truth in Lending Act (TILA) requirements take effect 07/30/2009.
Key elements you should know about the new law:

* If financing the earliest any home purchase transaction can close is 7 business days after the home buyer is issued his or her initial mortgage disclosures from the lender.
* Upfront fees cannot be collected by the lender (except for credit report) until the initial disclosures are received by the customers.
* The homebuyer must be provided with a copy of his or her appraisal a minimum of 3 business days prior to closing.
* An increase of more than .125% in the Annual Percentage Rate (APR) from the initial disclosure will require a reissue of disclosures to the customer an additional minimum of 3 days wait before closing. Keep in mind the APR may not be affected by just a rate change but a change in fees collected.

Rates Continue at Historic Lows
The 30-year fixed-rate mortgage (FRM) averaged 5.20 percent with an average 0.7 point for the week ending July 23, 2009, up from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.63 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements. Read More->

First Time Home Buyers - 127 Days Remaining - Don't miss out.
127 days left for First Time Buyer Tax Credit (have not owned your own home in last 3 years). Financing is easy. Buy with little to no money down and still get up to $8000 back from government in weeks. Historically low rates. Why would you rent? http://www.miftb.com/

Mike Paige

07/06/2009 - Mortgage Monitor

July 6, 2009

Lower Long-Term Rates a Help to Housing Market.
The 30-year fixed-rate mortgage (FRM) averaged 5.32 percent with an average 0.7 point for the week ending July 2, 2009, down from last week when it averaged 5.42 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

Maximum Loan to Value for Obama Administration's Refi Program Increases to 125%
On July 1, 2009 HUD announced a major expansion of the Obama Administration's Home Affordable Refinance Program for Fannie Mae and Freddie Mac loans. The change will allow current borrowers with loan-to-value (LTV) ratios of more than 80 percent up to 125 percent (formerly 105 percent) to qualify if they meet other program requirements.

Revised "Truth in Lending" Disclosure Requirements Take Effect on July 30, 2009
Lenders will be subject to new disclosure requirements for mortgage loans under the Federal Reserve Board Truth in Lending Regulation (Reg Z). The new requirements apply to loan applications filed on or after July 30, 2009. Here are key highlights of the changes:

* The new requirements apply to all mortgages secured by a borrower's home, including primary and second homes and refinancings. Investor loans continue to be exempt.

* Lenders must give good faith estimates of mortgage loan costs within 3 business days after the consumer applies for a loan (early disclosure).

* The lender may not collect any fees before the disclosure is provided, except for a reasonable fee for obtaining a credit report.

* The closing may not take place until expiration of a 7 day waiting period after the consumer receives the early disclosure.

* If the annual percentage rate (APR) increases by more than 0.125 percent, the lender must provide a corrected disclosure to the borrower and wait an additional 3 business days before closing the loan.

* The consumer may modify or waive both waiting periods for a documented personal financial emergency, but must receive the disclosures no later than the time of the modification or waiver.

Mike Paige

06/06/2009 Mortgage Monitor

30-Year At Highest Rate Since Week Ending December 11, 2008
The 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending June 4, 2009, up from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.09 percent.: Read More-> Historical Rates: Read More->

First Time Buyer Tax Credit Can Be Used on Closing Costs
However the can't be used to cover the minimum 3.5 percent minimum down payment requirement on FHA loans. The 3.5% required customer investment can still come as a gift from qualified family member, Fiancé, Fiancée, domestic partner, close friend, employer or labor union. Read More->

Now is the Time for First Time Buyers
Up to $8000 tax credit, buyers market, high inventory, historically low rates, little to now down payment. Read More->

Refinance Your Current Mortgage Up to 105% of Current Value?
Fannie Mae DU Refi Plus Program:

• No current lender requirement.
• The maximum loan to value (LTV) ratio is 105% on the first mortgage alone.
• There is no maximum combined loan to value (CLTV)ratio (first plus second mortgage).
• For new transactions with an LTV that exceeds 80%, mortgage insurance may not be required.
• Full appraisal may not be required.
• Refi Plus loan may be a primary residence, second home, or investment property.
• Lower credit scores may not be an issue.

Does Fannie Mae own your mortgage? Contact me for details.

Mike Paige

05/18/2009 Mortgage Monitor

30 YEAR FIXED AT 4.86%
The 30-year fixed-rate mortgage averaged 4.86 percent with an average 0.6 point for the week ending May 14, 2009, up from last week when it averaged 4.84 percent. Last year at this time, the 30-year fixed rate mortgage averaged 6.01 percent: Read More-> Historical Rates: Read More->

USE FIRST TIME BUYER TAX CREDIT AS DOWN PAYMENT ON FHA LOANS.
Buyers will be allowed to use their first-time homeowner tax credits as down payments when they get FHA-insured loans, Secretary of Housing and Urban Development Shaun Donovan announced. "FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to 'monetize' the tax credit through short-term bridge loans," Donovan said: Read More->

FIRST TIME BUYER WORKSHOPS
Is this a good time to buy a home? Is my credit good enough to qualify? How much money will I need? What type of mortgage financing should I get? What is the home buying process? Fast, no cost, pre-approvals. First Time Buyer workshops coming soon. Contact me for details.

Mike Paige

04/18/2009 Mortgage Monitor

APRIL 18, 2009

MOST MORTGAGE RATES RECEDE THIS WEEK

The 30-year
fixed-rate mortgage (FRM) averaged 4.82 percent with an average 0.6 point for
the week ending April 16, 2009, down from last week when it averaged 4.87
percent. Last year at this time, the 30-year FRM averaged 5.88 percent.
Click Here for more details. View Historical Rates: Click Here

www.amcmichigan.com

04/11/2009 Mortgage Monitor

APRIL 11, 2009

APPLICATIONS FOR PURCHASE AND FOR REFINANCING UP NICELY AS MORTGAGE RATES REMAIN UNDER 5 PERCENT.
The 30-year fixed-rate mortgage (FRM) averaged 4.87 percent with an average 0.7 point for the week ending April 9, 2009, up from last week when it averaged 4.78 percent. Last year at this time, the 30-year FRM averaged 5.88 percent.
Click Here for more details. View Historical Rates: Click Here

OBAMA SAYS TIMING RIGHT FOR MILLIONS TO REFINANCE.
"Rates are as low as they've been since 1971," with the 30-year rate at 4.78%, Mr. Obama said after meeting with homeowners who have refinanced their mortgages recently. He attributed the decline in part to "extraordinary actions" taken by the Federal Reserve, and in part to actions taken by the administration. Click Here for full article.

Q AND A FOR THOSE CONSIDERING A PURCHASE OF A HUD HOME.

What is a HUD home?
HUD properties are homes in which the Federal Housing Administration insures the lender against loss in case of a buyer's loan default. Will HUD make property repairs? All HUD owned properties are sold "as is" but you may find many properties in move in condition.

What is FHA 203b financing?
FHA’s 203b loan is the basic loan package for the purchase of a home. This home purchase must be your primary residence; unlike conventional loans, the down payment may be a gift from a family member. Your FHA loan can include financing for the loan closing costs and the initial insurance payments; all you need to do is develop a source for the down payment. This loan may be used in conjunction with assistance from state and local housing programs including MSHDA. For individuals with limited down payment, limited credit or limited income the FHA 203b option offers the possibility of a non-occupant co-buyer to facilitate financing.

Click Here for HUD home listings.

What do the FHA Financing categories mean?
Insured (IN) An “insured” property means that the FHA believes the home requires less than $5,000 in repairs. This also means that the property qualifies for the FHA 203b Financing. In addition to the allowable lower down payment, FHA may pay some or all closing costs if requested.
Insured with repair escrow (IE) An "insured with repair escrow" property means that the property meets the requirements for FHA 203b financing. In addition to providing the home loan, HUD is willing to set up an escrow account at closing to help with certain identified repairs. These repairs are usually estimated to be less than $5,000.
Uninsured (UI) An "uninsured" property means that the property requires more than $5,000 in estimated repairs. Properties listed under this category do not qualify for financing under the FHA 203b. In most cases uninsured properties are purchased with cash or convention mortgage monies.

What does “203K Eligible” mean?
When a homebuyer wants to purchase a house in need of repair or modernization, the homebuyer usually has to obtain financing first to purchase the dwelling; additional financing to do the rehabilitation construction; and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage. Often the interim financing (the acquisition and construction loans) involves relatively high interest rates and short amortization periods. The Section 203(k) program was designed to address this situation. The borrower can get just one mortgage loan, at a long-term fixed (or adjustable) rate, to finance both the acquisition and the rehabilitation of the property. To provide funds for the rehabilitation, the mortgage amount is based on the projected value of the property with the work completed, taking into account the cost of the work.

What are “Owner Occupant Sales Incentives”
Some HUD properties will offer an “Owner Occupant Sales Incentive” including $100 Down Payment Finance Option (FHA financing only) and / or $2,500 Sales incentive (for properties with a purchase price $25,000 or greater).

How does a buyer looking for a primary residence compete with investor bids?
For the first 10 days after a HUD property is listed on the HUD website (see link above) and on the Realtors Multiple Listings Service (consult your Realtor), bids are considered exclusively from individuals who plan the purchase the home as their primary residence. Investors are allowed to bid on these listings only after the 10 day HUD moratorium, if the property hasn't received an acceptable owner-occupant offer.

Can I purchase a home directly from HUD?
When buying a HUD property, the service of a Realtor is required. There are certain forms, procedures and requirements that HUD wants to make sure all potential bidders are advised of prior to considering a HUD homes purchase.

Mike Paige

03/27/2009 Mortgage Monitor

MARCH 27, 2009

ANOTHER RECORD LOW SET FOR LONG-TERM MORTGAGE RATES THIS WEEK
The 30-year fixed-rate mortgage (FRM) averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
Click Here for more details. View Historical Rates: Click Here

FannieMae DU Refi Plus
To allow more borrowers to take advantage of today's historically low interest rates FannieMae is extending its refinance offerings through DU Refi Plus™. DU Refi Plus™ will streamline the underwriting of refinance transactions for potentially millions of current mortgage holders. Some of the features include and limitations include:

• Must be a FannieMae loan – Click here to verify.
• Appraisal may not be required.
• Reduced employment and income documentation requirements.
• Not required to go through your current lender.
• New loans must be either 10-40 year fixed rate mortgages or ARMS with initial 5 years fixed.
• No subordinate financing may be paid off with new loan.
• Cash back in an amount no more than the lesser of 2% of the new mortgage loan balance or $2000.
• Relaxing of minimum credit score requirements.
• Available for 1-4 unit primary residence and investment properties.
• Loan to Value Ratios (LTV%) up to 105%
• Mortgage Insurance (PMI) may not be required.

This program will be implemented in two phases, April 4th and May 2nd.

MORTGAGE ORIGINATIONS MAY DOUBLE TO $3.1 TRILLION THIS YEAR
Mortgage originations may double to $3.1 trillion this year as historically low interest rates and looser financing standards at Fannie Mae and Freddie Mac lure more borrowers, Bank of America Corp. analysts said.Click Here for full article.

Mike Paige

03/19/2009 Mortgage Monitor

MARCH 19, 2009

BOND YIELDS PULL LONG-TERM MORTGAGE RATES DOWN TO NEAR RECORD LOWS THIS WEEK
The 30-year fixed-rate mortgage averaged 4.98 percent with an average 0.7 point for the week ending March 19, 2009, down from last week when it averaged 5.03 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since the week ending January 15, 2009, when it hit an all-time low of 4.96 percent in Freddie Mac's weekly survey.
Click Here for more details.


WATCH MORTGAGE RATES
On the news that the Federal Reserve would buy as much as $300 billion of long-term U.S. Treasury securities, the rate on a 30-year fixed mortgage fell to 4.75% from around 5% on Wednesday. Will rates go even lower?
Monitor Average Rates: Click Here
View Historical Rates: Click Here

ATTENTION FIRST TIME BUYERS

• Mortgage Rates at historic lows.
• Home prices down as much as 30% in some areas from their peak levels in mid-2006.
• Over 4 million Realtor listings nationwide.
• Up to $8000.00 tax credit (10% of purchase price) for First Time Buyers (have not owned a home in past 3 years).
• Little or no down payment financing options still available.

Mike Paige

03/13/2009 Mortgage Monitor

MARCH 13, 2009

MORTGAGE RATES FALL BACK A BIT THIS WEEK
The 30-year fixed-rate mortgage averaged 5.03 percent with an average 0.7 point for the week ending March 12, 2009, down from last week when it averaged 5.15 percent. Last year at this time, the 30-year FRM averaged 6.13 percent.
Click Here for more details. Click Here for historical rates.

FANNIE MAE DU Refi Plus™ COMING APRIL 4 2009
Program Highlights:

• No current lender requirement.
• The maximum LTV ratio for Refi Plus is 105%. There is no maximum CLTV or HCLTV; however, new subordinate financing is not permitted.
• For new refinance transactions with an LTV that exceeds 80%, mortgage insurance may not be required.
• Full appraisal may not be required.
• Lender-purchased mortgage insurance (LPMI) is permitted
• Refi Plus loan may be a primary residence, second home, or investment property.
• The existing mortgage must be current.
• No minimum credit score required.
  Click Here for additional details.
  Does Fannie Mae own your mortgage? Click Here

LOOK FOR LENDER MINIMUM CREDIT SCORE CHANGES FOR FHA
I am starting to get a number of our lenders sending out e-mails that FHA minimum credit scores are increasing to 620 for loans at $417,000 or less and increasing to between 640 and 660 for jumbo FHA loans above $417,000 to the county limits.

APRIL 1 2009 – LOAN OFFICER REGISTRATION DEADLINE
The Mortgage Brokers, Lenders and Servicers Act, as amended requires each mortgage broker, lender and servicer licensee/registrant to be registered / licensed with the Office of Financial and Insurance Regulation by 04/01/2009. Click Here to verify loan officer registration.

Mike Paige

03/06/2009 Mortgage Monitor

MARCH 06, 2009

BOND YIELDS PUSH MORTGAGE RATES UP IN LATEST FREDDIE MAC SURVEY
The 30-year fixed-rate mortgage averaged 5.15 percent with an average 0.7 point for the week ending March 5, 2009, up from last week when it averaged 5.07 percent. Last year at this time, the 30-year FRM averaged 6.03 percent.
Click Here for more details. Click Here for historical rates.

HOMEOWNER AFFORDABILITY AND STABILITY PLAN
The plan claims it will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. The plan is purported to assist responsible homeowners on the verge of defaulting, in addition would prevent neighborhoods and communities from being pulled over the edge, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs.
Click Here to learn more. Click Here for full guidelines.

MORTGAGE BANKRUPTY BILL APPROVED IN HOUSE
The House approved "cram down" legislation that would allow troubled homeowners to ask bankruptcy judges for relief from mortgage debts.
Click Here to read more.

APRIL 1 2009 – LICENSING DEADLINE
The Mortgage Brokers, Lenders and Servicers Act, as amended requires each mortgage broker, lender and servicer licensee/registrant to be registered / licensed with the Office of Financial and Insurance Regulation by 04/01/2009. Low Number of registrations received Click Here to read more. Click Here to verify loan officer registration.

Mike Paige

The beginning - 09/30/1999

Fannie Mae Eases Credit To Aid Mortgage Lending
The New York Times
September 30, 1999
In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders. Read full article.

Mike Paige

02/20/2009 Mortgage Monitor

FEBRUARY 20, 2009

MORTGAGE RATES FALL FOR ALL PRODUCTS THIS WEEK
The 30-year fixed-rate mortgage (FRM) averaged 5.04 percent with an average 0.7 point for the week ending February 19, 2009, down from last week when it averaged 5.16 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
Click Here for more details. Click Here for historical rates.

THE HOUSING BAILOUT – WHO QUALIFIES?
First time buyer credits, refinance, modifications, relocation, double glazing and reverse mortgages.Click Here for full article

EVEN THE RICH WORRY ABOUT CREDIT SCORES
Getting the best rates could save thousands of dollars a year. Raising a score from a range of 640-659 to at least 760 could save someone with a 30-year, $500,000 fixed mortgage an average of $344 a month, according to Fair Isaac's Web site. Click Here for full article.

Mike Paige

Origins of the Mortgage Mess.

In May of 2008 a NPR broadcast of This Amercan Life highlighted the origins of the mortgage meltdown with a episode titled "The Giant Pool of Money". I found it engaging and interesting. Well worth reading or listening to if you have an interest in how the mortgage mess began.

This American Life - The Giant Pool of Money (audio)

This American Life - The Giant Pool of Money (transcript)


Mike Paige

First-Time Homebuyer

The Stimulus Plan was signed into law by President Obama on 02/17/2009. It contains a new tax credit for first-time homebuyers. Essentially, first-time homebuyers within certain income limits who purchase a home in 2009 before December 1, 2009 will receive a tax credit of up to $8,000. The program is similar to the $7,500 tax credit which applied to home purchases made in 2008 after April 9. A comparison of the two credit programs is outlined below.

While the Stimulus Plan was still being debated, the Senate version originally included a $15,000 tax credit for all homebuyers. To lower the cost of the Stimulus Plan, the final version of the Plan contained this smaller tax credit, and this tax credit is applicable only to first-time homebuyers.
To qualify as a first-time home buyer as defined in the programs, the purchaser (and the purchaser’s spouse) may not have owned a home in the three years prior to the purchase date of the home. Single family homes qualify for the program. The home must be the primary residence.

Both tax credits are subject to the same adjusted gross income limitations (full credit for AGI less than $75,000 single/$150,000 joint, phased out for AGI up to $95,000 single/ $170,000 joint).

The amount for either credit is the lesser of 10% of the home purchase price or $7,500 or $8,000, as applicable.

While a purchaser still owns the home, the $7,500 credit must be repaid in equal payments over a period of 15 years, starting with the 2010 tax filing. The $8,000 credit will not need to be repaid. Again, the $7,500 credit needs to be repaid, while the $8,000 credit does not!
Upon sale of the home, any portion of the $7,500 credit not yet repaid is due in full. No portion of the $8,000 credit is due upon sale of the home, if the home is owned for more than three years. If the home is sold within the first three years, the full amount of the credit is due upon sale.
The $7,500 credit was not available to any purchaser utilizing state/local revenue bond money to help finance the home purchase. There is no such restriction on the $8,000 credit.

Under both the $7,500 and the $8,000 programs, the credit will be claimed on the purchaser's income taxes. Any amount in excess of taxes owed will be refunded to the purchaser.
Additional information about the tax credit can be found on the websites of the National Association of Realtors (http://www.realtor.org/ ) and the National Association of Home Builders (http://www.nahb.org/ ).

Mike Paige

02/13/2009 Mortgage Monitor

February 13, 2009

Mortgage Rates Move Lower
A 30-year fixed-rate mortgage averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.Click Here for more details. Click Here for historical rates.

A Great Time for First Time Buyers – Click Here for Wall Street Journal Article

• Up to $8000.00 tax credit for First Time Buyers (have not owned a home in past 3 years)
• Home prices down as much as 30% in some areas from their peak levels in mid-2006
• Over 4 million Realtor listings nationwide.
• Numerous financing options available with limited to no down payment including:

Conventional

Up to 95% LTV

Credit scores as low as 620

FHA
The most popular financing program in today’s market.

• Flexible Debt to income ratios of 31/43
• Minimum cash investment by purchaser of only 3.5%, all funds can be gifted if originating from an approved source.
• Seller financing contributions can be 6% of sales price toward closing costs, pre-paids, inspections, lender required repairs and discount points.
• Cash reserves are not required for the purchase of a single family residence.
• Loans are assumable to a qualified individual.
• There is no pre-payment penalty.
• Citizenship is not required.
• Non-occupying co-borrower allowed.
• No LTV restrictions for "soft market" or "declining market" areas

VA
There are approximately 23.8 million living veterans. There are approximately 37 million dependents (spouses and dependent children) of living veterans’ and survivors of deceased veterans. VA guarantees an average of 11,109 loans a month for veterans realizing the American dream of home ownership.

• Low and no down payment options
• Up to 100% financing
• VA loans are not subject to “high risk market” appraisal deductions
• Seller concessions of up to 4% of appraised value, not sale price
• No mortgage insurance (PMI) required
• VA loans are fully assumable
• No pre-payment penalty
• VA loans use single debt to income rate (DTI) of 41%.
• No PITI reserves required.

MSHDA
Financing available for low-to-moderate income borrowers who meet MSHDA sales, price and income limit eligibility guidelines.

• Maximum LTV of 97% LTV / 103% CLTV
• Qualifying ratios generally should not exceed 30%/39%.
• Minimum credit score FICO requirement is 620.

Fannie Mae Home Path
This special financing is available on specific Fannie Mae homes.

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
• May qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (3% min) can be funded from savings; a gift; a grant, or employer
• No mortgage insurance
• No appraisal fees

Rural Development
Provide modest housing for moderate income families in rural areas.

• Up to 102% (with Guarantee Fee) financing based on appraised value versus purchase price
• Little or no credit history is not a problem
• No self imposed loan limits; appraisal and repayment ability set limits
• No monthly PMI payments, only a one time Guarantee fee.
• Not restricted to first time home buyers

Mike Paige

02/06/2009 Mortgage Monitor

FEBRUARY 06, 2009

MORTGAGE RATES CLIMB, BUT STILL REMAIN VERY AFFORDABLE
The 30-year fixed-rate mortgage averaged 5.25 percent with an average 0.8 point for the week ending 02/05/09, up from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.67 percent.Click Here for more details. Click Here for historical rates.

SENATE ADDS $15,000 HOME-BUYING CREDIT TO STIMULUS BILL
The Senate on Wednesday approved an amendment to the economic stimulus package that would provide a tax credit of as much as $15,000 to anyone buying a primary residence during a one-year period.Click Here for more details.

HOME VALUATION CODE OF CONDUCT
Effective May 1, 2009 a joint agreement between Freddie Mac, the Federal Housing Finance Agency to enhance the independence and accuracy of the appraisal process, and provide added protections for homebuyers, mortgage investors and the housing market. A lender will not accept any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any other third party (including mortgage brokers and real estate agents).
Home Valuation Code of Conduct, Frequently Asked Questions.

Mike Paige

01/30/2009 Mortgage Monitor

January 30. 2009

Mortgage Rates Hold Steady for Week
The 30-year fixed-rate mortgage averaged 5.10 percent with an average 0.7 point for the week ending January 29, 2009, down from last week when it averaged 5.12 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 5.68 percent.Click Here for more details. Click Here for historical rates.

Reverse Mortgages Now Available for Home Purchases
Seniors 62 and older can now obtain Reverse Mortgage (HECM) financing for the purchase of a primary residence. The purchase program allows for a single transaction by eliminating the need for a second closing. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs.
Click Here for more details. Click Here for Calculator

Some Lenders Tighten FHA and VA Mortgage Rules
With government-supported programs now accounting for more than 87 percent of new U.S. mortgages, tighter standards by private lenders that outpace the requirements used by the FHA may erode a steady source of home financing
Click Here for more details.

Mike Paige

01/26/2009 Mortgage Monitor

Long-Term Mortgage Rates Rise This Week, Reversing 11-Week Trend.
The average 30-year fixed rate rose to 5.12% from 4.96%, the 15-year fixed rate rose to 4.80% from 4.65%, and the 1-year ARM rose to 4.92% from 4.89%.
Click Here for more details. Click Here for historical rates.

Are You In Support of Down Payment Assistance?
Since 1997, downpayment assistance has helped more than one million working-class families realize the dream of homeownership. Dozens of national, regional, and community organizations—representing millions of Americans—recognize the need to restore downpayment assistance (DPA) and have officially offered their support including National Association of Realtors, National Association of Home Builders and the Mortgage Bankers Association . Click Here for more details.

More Seniors Turn to Reverse Mortgages
As the credit crisis has worsened, more seniors have turned to federally insured reverse mortgages to tap home equity and, in some cases, to prevent foreclosure.
Click Here from more details.

Mike Paige