Sorry it’s been awhile since I’ve blogged, but it’s been a super busy summer. Fall is here & the buzz word is “Change”. From politics to mortgage lending to the seasons- Change is happening!
FHA has had more change that came into effect Oct 1- a minimum credit score of 640 is needed.
There have also been changes in the Upfront mortgage insurance premiums & monthly mortgage insurance premiums charged FHA buyers. Some buyers that were preapproved months ago may not qualify any longer either because of the credit score change or the change in monthly mortgage insurance premiums raises their debt to income ratio over the acceptable 50% level.
The 0 down NO PMI USDA Rural housing loan is back for single family owner occupied purchase transactions only. Buyer can NOT own any other real estate & does NOT have to be a first time buyer.Program eligibility is based on property location, household income, credit score & debt to income ratio.
Rates are still at all time lows & some are trying to take advantage of low rates with refinancing albeit sometimes this is NOT possible due to low appraisal values. Fannie Mae & Freddie Mac still have their special refiance programs that will let lenders go up to 125% of current appraisal values if the current mortgage is owned by either Fannie Mae or Freddie Mac.
Fannie Mae is also offering an incentive to buyers of their Fannie Mae Homepath properties. Up to 3.5% to the buyer of one of these properties as long as its owner occupied. Minimum 660 credit score required & there is a NO appraisal & NO PMI option. There is a $1500 bonus to the selling agent for contracts after Sept 23 that close within 60 days of contract date. All contracts utilizing these incentives must close by 12/31/2010. You can search these properties at www.fanniemaehomepath.com
First Place bank is an approved Fannie Mae Homepath lender!
Yes I am blessed with being very busy but I’m never too busy for you or your clients. My business is referral based!! I look forward to serving you & your clients. Applications can be made 24/7 at www.firstplacebank.com/lizschneider or I can be reached at 440.452.3894!!