To all my readers- sorry I haven’t been blogging the last 8 months. The unexpected,devastating loss of my mother I suffered in April, 2011 has put my life and mind in a tail spin. But I’m happy to report, I’m back and ready for a great 2013! Ihope to be back blogging at least once if not twice a month in 2013 (or whenever important changes are announced!).
There have been so many changes in mortgage lending in 2012, mostly for the good. FHA loans are still the best loan for first time buyers, unless based on property location and household income the buyers can qualify for a 0 down USDA Rural housing loan. There’s also a 3% downpayment conventional loan that I’ve had success with both on purchase and refinance loans of single family owner occupied properties with borrowers that have great credit and some cash reserves (the PMI companies require 2 months PITI in reserves) and the downpayment can be a gift just like FHA and the downpayment is slightly less than FHA, there’s no upfront mortgage insuance and the monthly mortgage insurance rate is lower than FHA- so for buyers with great credit and debt to income ratio, this is a great alternative (most times it’s also a lower payment!!).
The state of Ohio’s OHFA first time buyer program has crazy low rates of of 3.25% with 0 points for a 30 year fixed rate and 3.75% with 0 points for 30 year fixed rate with 2.5% of the sale price downpayment assistance. Buyer must have minimum 620 score or 640 for loans with downpayment assistance. If you’re a first time buyer (haven’t owned a home in the last 3 years) and you meet the income and credit score guidelines- this is a great option for you!
HARP refinances are still going strong for homeowners who’s loan is owned by Fannie Mae or Freddie Mac and closed prior to June 1, 2009. It’s a great program in that if your current loan has no Private mortgage insurance on it, the new loan – no matter what the current appraised value- will NOT have Private Mortgage Insurance- so you can get today’s great low rates!! There’s also talk of including loans not owned by Fannie or Freddie into this program- as soon as I find out anything, I’ll post it here!
Construction loans are still being done with as little as 5% downpayment (must be buyers own funds- no gifts allowed) with great credit, good debt to income ratio and 6 months cash reserves (401k or retirement accounts can be used for reserves). I’ve done quite a few this past year and with builder confidence getting better http://www.nahb.org/news_details.aspx?newsID=15643, I am looking forward to doing more in 2013!
Jumbo loans (for loans over $417000) are still available. The conforming loan limits did NOT change for 2013- so the maximum conforming loan limit for a single family owner occupied property in Ohio is still $417000 http://www.fhfa.gov/webfiles/24718/LoanLimitsFor2013112912Final.pdf
Investment property purchases are still available too with as little as 20% downpayment (NO PMI companies doing PMI on investment properties).
Rates are so crazy low still- you’d be crazy not to think about refinancing if you’re not planning on moving, purchasing your first home or moving “up” or building your dream home! The winning combination of my many years experience and the vast array of mortgage products First Place Bank has to offer is why you should call me to discuss your mortgage financing or refinancing options!
Apply 24/7 at www.firstplacebank.com or call 440.452.3894. Preapprovals are done at no cost.
I look forward to being your Mortgage Lending Specialist for 2013!
May the every moment of the coming New Year bring happiness and prosperity in life. Enjoy the every moment in life. Happy New Year!