Well….August 2007 is over.... let us all give a big sigh of relief. Do you realize that you have sat on the “front row” of history this month (whether we wanted to be there or not!)? The lending industry as we knew it 30 days has changed forever (or as long as memory will serve as a boundary). Per www.ml-implode.com, we have lost 144 medium/large retail or wholesale lenders as of today. So what type of mortgages are still available? As of today (and subject to change), read below…..
FHA- Still an awesome loan!
No minimum FICO score- FHA allows “common-sense” decisions.
Maximum loan amount for Dallas, Kaufman, Collin, Denton, Rockwall and Hunt Counties is $200,160 (Sales price of 204,760 with the 2.25 downpayment)
Minimum Down Payment is 2.250%, but can roll in all cost with $0 out of pocket.
Buyer must make a 3% investment unless down payment is paid as a Grant/Charity (DAP) contribution.
Seller can contribute up to 6% of the Sales Price without using a Charity (DAP) contribution.
No Termite Inspection Required.
No Non-Allowables required for the seller.
Buyer can currently be in a Chapter 13 Bankruptcy.
It is an assumable loan (important when rates go to 8% and they are at 6%).
Buyer can have Federal Tax Liens and not have to pay them off!
FHA is now using the standard Fannie Mae appraisal form- No more VC sheets!
(Did you know that we are #4th Team in the industry for FHA purchase closings last year? Don’t let inexperienced loan officers “practice” on your clients- let us help!)
Freddie/Fannie-
Conforming up to $417,000.
AU (Automatic Underwriting) has tightened significantly.
Lender paid mortgage insurance and/or Buyer/Seller paid mortgage insurance becoming a popular option for borrowers.
Investment Properties up to 90% LTV (10 % down)
$0 Down Mortgage Programs Still Available:
Fannie Mae My Community Mortgage
House America Mortgage
Flex 100
Freddie 100
Freddie Mac Home Possible
Dream Maker Mortgage
Home Run Mortgage
Home Opportunities Program
Expanded Financing Alternatives Program
Emerging Market Programs
80/20 (Note that the criteria for 2nd liens has tightened significantly)
USDA-
No Down Payment to Qualified Borrowers
No Monthly Mortgage Insurance
Seller can pay UNLIMITED toward closing costs and prepaids!
$0 Move-In Possible for Qualified Borrowers
No Cash Reserve Requirements
Must Purchase in an Eligible Rural Area* (Contact us for the complete list- this is one of our specialty loans!)
VA-
NO Minimum FICO score is required*
There is NO downpayment required!
Seller can pay any/all of reasonable buyer’s closing cost!
Buyer CAN currently be in chapter 13 BANKRUPTCY*
Sales Price can go up to $417,000*
Can have unpaid collections
Can go as low as an 4.20 Fixed Rate if used in conjunction with a Texas Veterans Land Board program.*
*Some limitations apply
VA and TVLB loans are unique- trust them only to loan teams who know them well- we are experts in these- let us help!
Reduced Doc Loans-
This is one of the areas that has had the most changes. A large majority of the “Alt A” market has practically gone away. Stated loans are still available with excellent credit at 5% down and 10% down with FICO scores 620 or above. Stated loans below 600 typically does not exist regardless of downpayment.
Investor Financing-
$417,000 for qualified full doc borrowers w/ 10% down (Freddie/Fannie)
95% investor financing still available for extremely qualified borrowers
Remember the 100% investor financing, stated income loans?…… As Kelly Clarkson sings…. Never Again!
Jumbo Loans-
Earlier in the month rates shot up over night. We are now seeing an improvement to pricing. Loans up to 2,000,000 will require anywhere from 5%-30% down (depending on multiple factors)
2nd Liens-
80/20 and 75/25 financing is still available, however, minimum FICO scores has increased, as well as requirements for reserves and debt-to-income requirements. This is a very shaky market, so buyer (and seller) beware before closing.
Reminder that PMI is tax deductible as of January 2007 for borrowers making less than $100,000 yearly.
No comments:
Post a Comment