The World of Mortgage Blog - According to Kimberly and Cathy

Programs That Save Deals...

Want to Lower House Payment:  We allow a buyer to buy out of paying monthly Mortgage Insurance….makes the house payment much lower.

 

Low Credit Scores:  FHA will allow 600 minimum score if the buyer has their own 3.5% Down Payment (no gifts)

 

Need $ for Down Payment:  Utilize USDA Zero Down Programs, Utilize State Bond $10,000 Down Payment Assist Funds.  Ask Seller to pay closing costs, or raise the interest rate to cover the closing costs.

 

No Income:  Utilize FHA with parents co-signing on loan.  Try one of our Asset Based loans.  If the buyer has a ton of cash in their own savings. 

 

Stretching Buying Power:  Pay off debts, utilize a 5/1 ARM with lower rates, Get a co-signer on FHA. 

 

Interest Rate update. 

Rates are improving and staying steady because of the possible need for a bailout for Spain. This means investors believe investing in US Treasury Bonds is more safe….making rates good for us all.

 

Financing for Condos, Non-Conforming Condos and Condotels

Financing for Condos, Non-Conforming Condos and Condotels

“Normal” Condo Financing:

€        For new construction/conversion: 70% of units sold or under contract for owner occupied/second homes

€        Existing Projects: NO owner-occupancy ratio requirement if purchasing as an Owner Occupied/2^nd Home. If the subject property is an investment purchase then the owner-occupancy requirement is 51%.

€        100% LTV – through USDA

€        95% LTV – through conventional loan

€        96.5% LTV – through FHA – condo project must be FHA approved

€        Rates are at current market (except conventional loans that have an additional Fannie Mae charge of .75% of the loan amount for condos over 75% LTV)

Home Path Condos

€        If property is classified as a Home Path property, no condo certification or appraisal is required.  So, none of the condo requirements above apply.

€        Rates vary by LTV and credit score

Non-Conforming Condos

€        Defined as: Less than 51% owner occupancy on an investment purchase, over 10% of the units held by one entity, greater than 15% HOA delinquency, some litigation

€        Minimum Loan amount $300,000

€        Max 60% LTV

€        Rates in the 5’s.

€        3 year, 5 year, and 7 year ARMs only

Condotels

Evergreen Home Loans can help under these scenarios:

€        Minimum Loan amount $300,000

€        Max LTV 50% (60% on a case-by-case basis) – so price on the condo would have to be $600,000.

€        Interest Only possible

FHA Changes and Exciting New Programs

Exciting New Programs – We can offer loans with the following situations: 

• Revocable or Irrevocable Trusts. 
• LLC, Partnerships and Corporations
• Job Transfers when job has NOT started.  Just need signed offer letter.
• Foreign Nationals – Requires a sizeable down payment.
• Asset-based loans for people who have a lot of cash and not job income.

FHA Changes: 

FHA buyers need an FHA Case Numbers before April 9, 2012 or they will be subject to the new higher upfront MI fee.  Increasing from 1% to 1.75% upfront MI that is added to buyer’s loan amount.  AND the monthly will increase from 1.15% to 1.25% monthly.  That will increase their monthly payment by approx $17 per month.

Rates Have Dropped For WSHFC Loans

Washington State Housing and Finance Commission have lowered it's rates....

Effective March 2, 2012, for new reservations only:
 

House Key State Bond:

4.00% with 2 points

4.25% with 1 point

4.50% with 0 points

(Inclusive of Origination point) 

(this is a .25% drop in rate from the previous issue)
 

New Home For You:

3.75% with 2 points

4.00% with 1 point

4.25% with 0 points

(Inclusive of Origination point)