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
Wednesday, February 25, 2009
Friday, February 20, 2009
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
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
Thursday, February 19, 2009
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
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
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
Friday, February 13, 2009
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
Credit scores as low as 620
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
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
Friday, February 6, 2009
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
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
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