WORDS FROM THE LENDING SIDE | Good things are starting to really happen. My purchase applications have doubled the last couple of weeks, and peoples' attitudes really are more optimistic. I am seeing some amazing deals come across my desk. It is such a smoking market for buyers. We have great programs, the rates continue to stay very low ~ and prices are unreal.
GREAT NEW MINI-JUMBO LOAN | We at Directors, now have access to a new investor for this price point. These products will go up to $600,000 and have a rate today (4/17/09) of 5.5% on a 30-year fixed. This is a great niche, as jumbo rates continue to be quite high; as the secondary markets do not want anything to do with them. I am seeing a lot of properties that have been reduced to fit into this price point, that would otherwise only qualify for jumbo pricing. This investor has amazing customer service and their underwriting times are decent and guidelines fairly flexible. It is almost too good to be true, but I have closed a few files already that have gone very smoothly. Please let me know if I can answer any further questions about this loan product.
BUYING NOW | Now is the time to be a buyer, as there are so many wonderful opportunities. The FHA program still goes down to a 620 credit score and only requires a 3.5% down payment. For the rest of the year, the loan limit is $418,000 and the down payment on this program can be a gift from a relative, employer or taken from a 401k. FHA guidelines, pertaining to the properties are probably more liberal than they have been in many years. FHA no longer requires the seller to pay some of the costs, as used to be the case. FHA also does not have the tiered credit score pricing, that is in place on conforming loan.
APPRAISALS TODAY | Starting May 1st, there are going to be a lot of new rules impact the ordering of property appraisals. We do not know all the details yet, but do know that they will make a difference in our turn times. This is being put into place, to hopefully gain more consistency in appraisals. Another plus for FHA. They are not required to follow these new rules, as they are only for Fannie Mae and Freddie Mac loans. All good reasons to go FHA. This program is easy for buyer, seller and everyone involved. I am doing more FHA than I have done in the past 16 years.
Please let me know if you have any questions on any of the above. As always, I am available 24/7. Have a great weekend!
Tere Maurer
Senior Mortgage Banker
Directors Mortgage Inc.
Lake Oswego, Oregon
503.636.6000
www.directorsmortgage.net
