Liz Schneider's Mortgage Blog

Effective Feb 12, 2010, any properties listed and/or sold with FHA financing as of this date are no longer eligible for the $100 downpayment buyer incentive.

The sales allowance of $2500 for owner occupant purchasers will also b discontinued as of February 12, 2010 for all new contracts accepted on or after this date.

The $500 broker bonus for owner occupant purchasers who took advantage of the $2500 sales allowance is also discontinued as of February 12, 2010.

1. mortgage banking that’s built on local, personalized service!

2. local management with decisions made at branch level, so you get a quicker response from people who live & work in your community and know it’s challenges.

3. one stop shopping from application to closing

4. in office underwriting, processing and closing

5.local appraisal process

6.among the top 5 lenders in many markets we serve

7.currently operate 18 lending centers with 100 of the top mortgage lenders in the business, averaging 15 years experience

8.have averaged over $1 billion in mortgage loan production for 5 consecutive years

9.chosen to participate in numerous nationwide lending initiatives

10.First Place originators included in Mortgage Originator Magazine’s list of the top 200 mortgage originators for 10 consecutive years including 6 recognized for their 2008 performance.

Another reason to refer your clients to First Place Bank!!

Call 440.452.3894 or apply 24/7 at www.firstplacebank.com/lizschneider!

First Place Bank has 0 down payment USDA Rural Housing loans! This program along with VA loans is the only loan program that allows for 0 downpayment & 0 PMI!

Program availability is based on property location,  household income & credit score.

The program allows for a maximum 6% seller contribution to pay for buyers closing costs. Buyer can NOT own any other property & does NOT have to be a first time buyer.

To determine property eligibility go to-

http://eligibility.sc.egov.usda.gov

To see income limits -

http://www.rurdev.usda.gov/rhs/sfh/sfh%20guaranteed%20loan%20income%20limits.htm

Property must be single family primary residence- no manufactured homes. Minimum credit score 620.

Call for more details 440.452.3894 or apply at www.firstplacebank.com/lizschneider.

To encourage the sale of REO (real estate owned)  properties, FNMA has announced a 3.5% of the final sale price incentive to buyers of FNMA REO’s for closing costs and/or Whirlpool appliances.

Buyers must have contracts accepted on or after January 28, 2010 & close by May 1, 2010. Must be owner occupied. First Place Bank is a FNMA Homepath approved lender. FNMA Homepath financing is a 3% downpayment, NO PMI & NO appraisal program. Buyer must have 660 minimum credit score.

Go to www.homepath. com to check out listings in your area!

Call 440. 452. 3894 or apply 24/7 at www.firstplacebank.com/lizschneider

HUD announced changes to the Upfront mortgage insurance premium charged to borrowers utilizing FHA financing.  The premium is currently 1.75% of the base loan amount  & is being raised to 2.25%  effective with all case numbers ordered on or after April 5, 2010. 

Look for more FHA financing changes!!

This month brings many changes in mortgage financing!!

Two unit properties owner occupied properties  will require 20% down- if the buyer doesn’t have that FHA is the way to go! Buyers can still buy an owner-occupied 2 unit property with 3.5% down.

Debt to income ratios have been tightened up also. Maximum total debt to income ratio is 50% on FHA regardless of automated underwriting findings.

Debt to income ratios on conventional financing without PMI are 45%. If you need Private mortgage insurance (have less than 20% down)- PMI companies are tightening the ratio to 41%! If you have less than 20% down- FHA is clearly the way to go!! Debt to ratios are higher & the mortgage insurance rate is lower & automatically issued by HUD- no getting approval from a Private Mortgage Insurance company!

If you’re purchasing an investment property, you need at least 20% down & if you own more than 4 properties, you’ll need at least 25% down, a solid credit score above 720 & lots of cash reserves!

The tax credit was extended & also opened up to “move up” buyers that have owned their current home for the last 5 years out of the last 8 years. Tax credit is $6500 max, max sale price is $800k & max income is $125k for single filers & $225k for married tax filers. A purchase contract must be signed by April 30, 2010 & the transaction must be closed by June 30, 2010. That should keep those of us in the real estate & mortage banking industry busy through the summer of 2010.

Rates are still very low (30 year FHA today is around 4.75%) which should also keep buyers out there looking!

All the signs are pointing to “buy now”- a person who doesn’t own a home & wants to would be foolish not to buy now- interest rates on mortgages are low, home prices are low, but will be rising again!  Mortgage money is “cheap” now & your investment will grow- buy for the “long haul investment” not for a “flip”!

Bottom line- BUY NOW!!!

Give yourself the gift of a new home this holiday season!!!

Us Banker Magazine, August, 2009 issue, named First Place Bank on of the Top 100 MidTier Banks. First Place Bank was the only Northeast Ohio headquartered bank to be includedUSBankerFlier

First Place Bank is one of the few lenders approved to do HomePath Loans for Fannie mae owned properties. You can search Fannie Mae owned properties by going to http://www.homepath.com/.  Owner occupied properties can be purchased with as little as 3% down payment- all of which can be a gift. For investors, if you own less than 4 properties you can purchase an investment property with 10% down or for investors with more than 4 properties you’ll need 25% down. For owner occupied buyers, there is a No appraisal & NO Private Mortgage insurance option- saving on your monthly payment.  We are able to do HomePath Loans in all 48 states.HomePathFlier_FPB