The World of Mortgage Blog - According to Kimberly and Cathy

Summary Of Lending Ideas To Spark A Sale!

With the inventory shrinking a bit, we thought a quick email reminding you of “What’s Working” in this market with regards to financing:

High End

• Up to 90% loan-to-value for a primary residence
  • Max price of $890,000
  • No Monthly mortgage Insurance
  • 5 and 7 year ARM rates very low right now.  In the low 3s.
  • If your client is considering a remodel, can get cash out of up to $200,000 an avoid a construction loan.

Does the House need some Love?

•  203K rehab – max loan amount is FHA loan limit
  • Streamline rehab to about $32,000 of non-structural repairs
  • Work is done after closing
  • Great loan for fixing kitchens, baths, flooring
  • Did the home get abandon prior to completion?
    • We have an investor that will provide construction financing to complete the home
    • We would provide ‘take out’ financing after construction is completed.

First Time Home Buyers

• Remember FHA can be combined with down payment assistance to make it Zero Down
  • Minimum credit scores 620
  • Fannie Mae Homes offering the Home Path program
    • Minimum 3% down.  No mortgage insurance (but higher interest rates on the higher Loan-to-values).  This is a bit more difficult for buyer to get approval on a high LTV. 
    • We have a conventional loan with 5% down payment requirement, with 3% coming from buyer’s own funds and the additional 2% can be from a gift.  This is a good solution for a condo that’s not FHA approved.  

 

Focus On Listings!

Happy Friday

Yesterday Evergreen Home Loans celebrated our 25^th Anniversary with a little campaign and… reflection!  Each year has its own challenges.    Right now it’s LACK OF GOOD INVENTORY for you all to sell.  

The owner of our company, Don Burton said that as a young realtor in the 1980s he didn’t know anything about why high interest rates would make it difficult to sell homes.  He had a strategy for focusing on where the business is and letting the rest go: 

“Pick up the Quarters and Dimes… Leave the nickels and pennies”

The “Quarters” right now are listings:

• Sellers that have equity in their homes
  • Check out neighborhoods that have had recent sales that bring values back up.  One of the guys in our company bought a home at the height of the market in a new neighborhood.  Values have of course dropped since then, but recently a home sold in the area at a price comparable to about what he bought his home for….don’t you know, a couple weeks later 2 more ‘for sale’ signs popped up in his neighborhood.  Be that listing agent.
  • Divorces – align yourself with a family practice attorney or two.  Their clients will likely need to sell their home.
  • New Babies/recent marriages – talk to your past clients.  Whether it’s them, or their kids/friends kids someone might need more space. 

While many lenders are focusing on the new HARP2.0 loan right now,  we’re focused on our purchase business…last year it was 82% of our closings.  Let us know what we can do to help you. 

Rates are still ridiculously low, with no signs of reversing that trend.    

Interest Rate Charts And More!!