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