My Mortgage Blog

Change!!  America asked for it and we got it...more FHA changes.  Here are the changes coming:

-Minimum credit score for the standard 3.5% is now 580(below 580 is 10% down)

-Seller concessions towards the buyers closing costs are being reduced from the current 6% (which usually covers all closing costs) to the MUCH lower 3%

-Up front mortgage insurance is increasing .5%

-We (the mortgage specialist) cannot order the appraisal through an appraiser that we trust.

All of these changes are going to cost you, the borrower, more out of pocket money at closing.  These changes have not gone into effect yet...so now is the time to buy before it happens.

Call us now...772.263.2820 or 772.263.2179

Well we already lost control of ordering appraisals for conventional financing, now on February 15th we lose it for FHA.  This means even more delay in the process as your appraisal order goes into a corporate black hole of appraisal orders only to be found by an appraiser that lives 50 minutes away from your new home and knows nothing of the area. 

But, it is what it is and the bottom line is that there are still some great homes to buy...just be patient!

Call us with your questions 772-263-2820.

FHA just put in place a waiver that will allow a buyer to purchase a house that has been flipped in less than 90 days.

The waiver goes into effect February 1^st and is in place for 1 year. There are a few conditions for this though.

All transactions must be arms-length, with no identity of interest between the buyer and seller.

The purchase amount should NOT exceed 20% of the seller’s acquisition cost. But, if it does FHA has a few additional guidelines to follow…if the lender chooses to push this 20% limit.

As of right now many lenders are still reviewing this update to determine if they are going to adopt or NOT.

We’ll let you know!!

Here’s a quick look at the market…

Rates were better just over a .25% on the 30 year…this is compared to the prior week.

But overall rates are higher and are going to continue in that upward trend.

We might see a little rebound so float with caution if you want to try to work it for every penny!

This week we have a few events going on…

The most important are December retail sales, CPI, and industrial production and factory usage.

But rates are going to be influenced this week by the demand…or lack there of demand we see in the $84B of notes and bonds being sold off this week by the treasury.

So again…float with caution…especially if you're closing within the next week.

Don’t forget that Monday is Martin Luther King Jr Day so Banks and markets are closed!!

Need a mortgage?  Call now 772.263.2820

House Passes Bill...On to President for approval

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

· Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between the date the bill is signed by President Obama and April 30, 2010.

Under the Extended Home Buyer Tax Credit which is effective on the date the bill is signed by President Obama single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit. These numbers are up from the current plan which states: single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

So clients that close before the president signs the new bill will be tied to the current guidelines.

The tax credit ends the end of November 2009 and it has not been extended.  This has been a huge boost to the real estate market and the economy as a whole!

So what can you do to keep our economy moving in the right direction...Click here and sign the petition to extend it.  It only takes a minute so please take the time to help!

If you need to get prequalified call now...772.263.2820

Rates are still GREAT and the $8,000 tax credit has been helping the market!  The level of inventory of houses on the market for sale has been decreasing.  It is actually around 8 months of inventory which is getting closer to our standard level (pre-Great Recession) of 6 months of inventory!!!  This is going to help stablize current sale prices and equity for those that currently own.

Sounds like they may extend the tax credit through 2010. 

Let's hope so! 

But don't delay...call today to get approved...772-263-2820.

Here is an interesting video from "Think Big Work Small" about how the new regulations are impacting the real estate market/buyers.  Check it out...you'll enjoy it!

Watch Video