Rates declining - FHA changes - Sub 620 Fico financing
Surprisingly rates are declining, despite expert opinions consistently projecting the opposite. That, in combination with the home buyer tax credits (must be in contract by end of April and close by the end of June) makes homes more affordable than at any time the last 30 years or so. Life is good! /// Even Jumbo loans are better priced, reflecting increased lender confidence. /// Reminder: FHA insurance premiums are increasing effective April 4th (see below) /// Make it a good week folks! - Paul
FHA forthcoming changes
The upfront insurance premium will increase from 1.75% to 2.25%, minimum Fico for 3.5% down payment will become 580, and allowable seller concessions will go from 6% to 3%. Read more.
FHA loan 12 months following bankruptcy?
The rule is 24 months following discharge. 12 months if a case can be made that the bankruptcy was due to reasons beyond the borrowers control. Read more
Crisis leftovers: Fannie, Freddie force more mortgage buybacks
Fannie Mae and Freddie Mac are forcing the nation’s biggest lenders to buy back more of the badly-written mortgages. Do you want to know why lenders are so ridiculously over the top cautious? Read this.
The rule is 24 months following discharge. 12 months if a case can be made that the bankruptcy was due to reasons beyond the borrowers control. Read more
Crisis leftovers: Fannie, Freddie force more mortgage buybacks
Fannie Mae and Freddie Mac are forcing the nation’s biggest lenders to buy back more of the badly-written mortgages. Do you want to know why lenders are so ridiculously over the top cautious? Read this.
Bid to curb mortgage tax break falters
The latest effort to scale back some tax deductions on mortgage interest, one of the nation's most-enduring tax breaks, is finding little support in Congress. Read more.
Sub 620 score financing
Available! - Call me: 800-405-0676 (direct), or email.
Available! - Call me: 800-405-0676 (direct), or email.
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"There is more to life than increasing its speed"
Mohandas Ghandi
Mohandas Ghandi
0 comments • Paul Luykx • March 06 2010 05:37PMHow to build best credit in as little as 5 days: Get the loan, get the best rate
Building a perfect credit profile is a little like losing weight or lowering cholesterol. You need to do the right things for long-term effect. It can take 3-6 months, up to a year even to "get there". Having said that, we can often achieve drastic credit score improvements in as little as 5 days. Whether to get the mortgage, or to get the best rate, getting a Mortgage Ready Credit Score is now an important step of the prequalification/application process. Below is a summary FYI. - Paul
Three things to do
1. Removal of derogatory items that depress your credit score long-term
2. Maintain good credit habits
3. Add tradelines if needed
1. Removal of derogatory items that depress your credit score long-term
2. Maintain good credit habits
3. Add tradelines if needed
Removal of derogatory items
Contacting creditors to challenge, settle and/or pay off debts may be an honorable thing to do, but it is usually NOT the correct first step! The negative effect of an old collection is often less than the negative effect of a recent update, or paid collection. Also, debts may have already been written off, or creditors can be compelled to do so! Contact me for a quick review before you do anything!
Good credit habits
1. Pay bills on time :)). If you slip up, request a goodwill adjustment right away.
2. Apply only for credit you really want. Too many applications depress scores.
3. Do not close accounts unless necessary. It reduces the credit history.
4. Keep card balances below 50% of the limits at all times, and earn points.
5. Have at least 4 tradelines
Add tradelines if needed
Make sure you have at least 4 tradelines. If your score is good, you can get a credit card here. (If you have any doubt about getting approved, go for a secured credit card (See below).
If your score is low, request a VISA Secured Credit Card - 0% APR
, and/or here: Silver Prepaid MasterCard card
(guaranteed approvals on both).
If you need more than two tradelines, contact me first.
Contacting creditors to challenge, settle and/or pay off debts may be an honorable thing to do, but it is usually NOT the correct first step! The negative effect of an old collection is often less than the negative effect of a recent update, or paid collection. Also, debts may have already been written off, or creditors can be compelled to do so! Contact me for a quick review before you do anything!
Good credit habits
1. Pay bills on time :)). If you slip up, request a goodwill adjustment right away.
2. Apply only for credit you really want. Too many applications depress scores.
3. Do not close accounts unless necessary. It reduces the credit history.
4. Keep card balances below 50% of the limits at all times, and earn points.
5. Have at least 4 tradelines
Add tradelines if needed
Make sure you have at least 4 tradelines. If your score is good, you can get a credit card here. (If you have any doubt about getting approved, go for a secured credit card (See below).
If your score is low, request a VISA Secured Credit Card - 0% APR
If you need more than two tradelines, contact me first.
Get your buyers Mortgage Ready
Obtain thorough prequalification and maximize the score to secure approval (faster), or to get the best rate. The rate difference can be as much as 0.50% nowadays! We can get your clients Mortgage Ready in as little as 5 days. Don't skip this important step!
More credit scoring information
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"Life must be understood backwards; but... it must be lived forward"
Soren Kierkegaard
Soren Kierkegaard
0 comments • Paul Luykx • March 01 2010 09:44AMSpot approvals no more - Mortgage Ready - Post foreclosure (short sale) liability
FHA spot approvals are out the door. Just like Fannie Mae, HUD has for the most part delegated project approvals to the lenders. While the procedures have changed a bit, it is business as usual. We can lend on any property that meets the criteria: FHA to 97.5% and conventional to 95% LTV, condos included. /// The difference between the worst rate at 620, and the lowest rate at 700+ Fico is now 0.375%, or even more. (See below). /// Just like last fall, the market is heating up again to meet the tax credit deadline. Don't wait till the last moment and do as much homework as possible and get Mortgage Ready! /// Best.... - Paul :))
Perfect your credit (score)
Score isn't the only thing - but a good thing if it's high ;). Potential benefit of a high score: Over $8,000 per $100K mortgage amount over a 30 year period. I can get you Mortgage Ready and optimize your score in 5-90 days, depending on what's needed: Credit repair or credit improvement. Cost: Usually very little, and always well worth it. And the peace of mind is priceless: You know you QUALIFY and you know you QUALIFY ON THE BEST TERMS. Contact me
The 10 most undervalued housing markets
A new study finds that 242 of the 299 largest U.S. housing markets are selling for prices that are lower than what bankers think are fair market value. Read more
A new study finds that 242 of the 299 largest U.S. housing markets are selling for prices that are lower than what bankers think are fair market value. Read more
Lenders pursue homeowners even after foreclosure
As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right? - Wrong.
Former homeowners may still be on the hook if there's a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these "deficiency judgments" are ticking time bombs that can explode years after borrowers lose their homes. Read more. Check the foreclosure rules for your state. (The same applies to virtually all short sales! Very few lenders absolve the borrowers of the debt - P)
As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right? - Wrong.
Former homeowners may still be on the hook if there's a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these "deficiency judgments" are ticking time bombs that can explode years after borrowers lose their homes. Read more. Check the foreclosure rules for your state. (The same applies to virtually all short sales! Very few lenders absolve the borrowers of the debt - P)
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Courage doesn't always roar. Sometimes courage is the quiet voice
at the end of the day saying: "I will try again tomorrow."
Mary Anne Radmacher
at the end of the day saying: "I will try again tomorrow."
Mary Anne Radmacher
0 comments • Paul Luykx • February 23 2010 08:20AMFHA loan criteria changing - Tax credit deals need to close by June 30th - High scores get even lower rates
HUD is looking to increase down payment requirements, mortgage insurance premiums, reduce the allowable seller concession from 6% to 3%, among other things. Read more. /// The good thing about risk-based pricing is that much lower rates can be obtained with high credit scores. Better yet, we can often make good scores even better to secure that better rate. Mortgage Ready Credit Score /// The most common misconception about the homebuyer tax credits is that the close must occur by April 30th. The date is actually June 30th. Details. Make it a good week folks! - Paul :))
Hint: Flips
When a home is resold after improvements have been made, 91 days have to lapse from the day of recording and the day the mortgage application is submitted. Less than 91 days is viewed as a flip and loan will be declined until seasoning requirement is met. Even if the 91 day has been met, the underwriter may view the increase of the new sales price as excessive, and may request a second appraisal and invoice receipts validating the increased sales price.
S&P Case-Shiller: Home prices lose momentum in November
On a month over month basis, home prices in 20 US cities fell 0.2% in November. The 10 city index also fell by 0.2%. Read more.
When a home is resold after improvements have been made, 91 days have to lapse from the day of recording and the day the mortgage application is submitted. Less than 91 days is viewed as a flip and loan will be declined until seasoning requirement is met. Even if the 91 day has been met, the underwriter may view the increase of the new sales price as excessive, and may request a second appraisal and invoice receipts validating the increased sales price.
S&P Case-Shiller: Home prices lose momentum in November
On a month over month basis, home prices in 20 US cities fell 0.2% in November. The 10 city index also fell by 0.2%. Read more.
HAMP guidelines updated to improve loan modification conversion rate
The program has enrolled over 850,000 homeowners who are seriously delinquent in their mortgage payments in a trial modification period but has encountered significant problems in converting those trials into permanent loan modifications. Today the two departments released updated guidance for the mortgage servicers who initiate the modifications and monitor the trial periods. Read more
The program has enrolled over 850,000 homeowners who are seriously delinquent in their mortgage payments in a trial modification period but has encountered significant problems in converting those trials into permanent loan modifications. Today the two departments released updated guidance for the mortgage servicers who initiate the modifications and monitor the trial periods. Read more
Rates hold steady
Mortgage rates held steady this week ahead of the Federal Reserve's (Fed) policy committee meetings. The 30-year fixed averaged at 4.98%, with an average 0.6% fees. Freddie Mac Rates Surveys.
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"Sometimes our enthusiasm for change depends on our willingness to take chance on tomorrow by risking what we have today".
0 comments • Paul Luykx • January 31 2010 08:52PM2010 Market Assessment
Market assessment
The 30yr fixed is expected to go up to around 6% as the Fed stops buying mortgage backed securities in March, the home buyer tax credit program will expire the following month, and foreclosures are expected to flood the market. Prices are expected to drop. Prices may come down, BUT the cost of borrowing (30yr fixed) will likely go up about 20% (from 5% to 6% is a 20% increase cost of borrowing), compensating for possible lower prices. Low prices may be obtained by purchasing foreclosures. FHA and Fannie are trying harder to sell REOs. Lastly, the trend in mortgage lending is still towards more restrictive criterica, adding to processing time: Full prequals and credit score planning important! - I wish all of us a succesful 2010! - Paul
Tax credit deals
If a purchase needs to be eligible for a home buyer tax credit, get fully pre-approved, buy asap, and get a rate lock with a floatdown right away. Don't wait! The gridlock for the Nov 30 tax credit dependent sales (mortgages) was horrific and the extension of the program avoided last moment buyers losing out on their tax credit.
Foreclosures
Fannie Mae is offfering REO properties through Homepath.com. For HUD (FHA) REOs go here. Note that Prospect Mortgage is one of the few approved Homepath lenders, and we also offer the $100 down mortgages for the HUD foreclosures. Both HUD and Fannie are keen to sell.
Credit scores
Loan requirements and pricing are becoming even more dynamic. The minimium Fico is formally 620 (for now). With compensating factors a 560 score still offers possibilities. To get best rates, plan for a 720 score, which will give you a 0.375%-0.50% better rate then with a 620 score, depending.... Contact me for assistance.
Mortgage modification are still a disaster
The Obama administration's mortgage modification program was originally projected to keep 3-4 million people in their homes. Promised help is sorely lacking. To date, almost a year after launch, it has permanently changed the mortgage terms of only 31,000 homeowners. Opportunistic loan defaults have not helped either. It was easier to get a loan modification in mid 2008 then it is today!
The Obama administration's mortgage modification program was originally projected to keep 3-4 million people in their homes. Promised help is sorely lacking. To date, almost a year after launch, it has permanently changed the mortgage terms of only 31,000 homeowners. Opportunistic loan defaults have not helped either. It was easier to get a loan modification in mid 2008 then it is today!
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
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1 comment • Paul Luykx • January 10 2010 08:55PMFHA reaching out to condo buyers - Self managed credit repair/improvement
Mortgage applications for home purchases have fallen to the lowest level in 12 years. The Nov 30 deadline for tax credit deals caused an increase in applications through mid-October, followed by a remarkable decrease since of course, but the housing market is still facing major hurdles. /// Both Fannie and FHA have now delegated condo approvals to lenders. I believe this will be a huge improvement. /// Have a wonderful Thanksgiving! - Paul :))
Reaching out to condo buyers
Industry executives say the FHA.’s new rules will open an important lending option to condo buyers, especially those with weak credit. Read more.
Industry executives say the FHA.’s new rules will open an important lending option to condo buyers, especially those with weak credit. Read more.
The struggles continue for Fannie Mae and Freddie Mac
It appears, our government thinks the Fannie/Freddie experiment is working well despite evidence to the contrary. Read more
It appears, our government thinks the Fannie/Freddie experiment is working well despite evidence to the contrary. Read more
AVAIL - Self managed credit repair and improvement
Credit repair, rescore, and credit coaching - the 3 pillars for improving and maintaining credit scores - all in one! Check out AVAIL. It helps you understand your credit profile, and puts you in charge of your own improvement plan. Video. Contact me for assistance.
Credit repair, rescore, and credit coaching - the 3 pillars for improving and maintaining credit scores - all in one! Check out AVAIL. It helps you understand your credit profile, and puts you in charge of your own improvement plan. Video. Contact me for assistance.
15-year fixed drops to lowest ever recorded by Freddie Mac
4.32%, with an average 0.6% fees.... The 30-year fixed averaged 4.83% with average 0.7% fees. Freddie Mac Rates Surveys.
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"Life is a long lesson in humility".
James M. Barrie (1860-1937)
0 comments • Paul Luykx • November 21 2009 03:57PMFannie requirements up again - bigfunnels.com - Jumbo limits extended
Fannie Mae is again raising lending criteria: DTI to 45%, Fixo to 620, financing 5 years following foreclosure with 680 Fico, higher PMI requirements, 75% ltv max for 2-unit+ investment property, higher reserves, the official retirement of construction-to-permanent financing!, and more. /// Fannie changes take effect Dec 12. I think it is more than likely that FHA will also up the standards again. Elimination of seller concessions and raising the minimum down to 5% are possible. Read more. /// Make it a good week folks :) - Paul
Do you qualify for a jumbo mortgage?
Plenty of lenders offer jumbo mortgages now, although the requirements are stricter than they used to be. Read more. (Prospect Mortgage has the most liberal lending criteria in the industry! - P).
Plenty of lenders offer jumbo mortgages now, although the requirements are stricter than they used to be. Read more. (Prospect Mortgage has the most liberal lending criteria in the industry! - P).
BigFunnels.com
Interested in working with me, build a huge funnel, and do many sales? Check the ultimate funnel building, and contact conversion solution. BigFunnels.com.
Temporary jumbo loan limits extended through 2010
The temporary increased maximum loan limits originally set to expire at the end of the year will remain in place through 2010, according to the Federal Housing Finance Agency (FHFA). The limits for conforming jumbo loans eligible for purchase by the government-sponsored enterprises (GSEs) was set at $417,000 for single-family homes by the Economic Stimulus Act of 2008 (ESA) and the Housing and Economic Recovery Act of 2008 (HERA), but were set to expire at the end of 2009. more
Rates down a bit
Interested in working with me, build a huge funnel, and do many sales? Check the ultimate funnel building, and contact conversion solution. BigFunnels.com.
Temporary jumbo loan limits extended through 2010
The temporary increased maximum loan limits originally set to expire at the end of the year will remain in place through 2010, according to the Federal Housing Finance Agency (FHFA). The limits for conforming jumbo loans eligible for purchase by the government-sponsored enterprises (GSEs) was set at $417,000 for single-family homes by the Economic Stimulus Act of 2008 (ESA) and the Housing and Economic Recovery Act of 2008 (HERA), but were set to expire at the end of 2009. more
Rates down a bit
The national average for the 30-year fixed was at 4.91% with 0.7% fees and points last week. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
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0 comments • Paul Luykx • November 16 2009 08:18AM
"The road to success is always under construction" -
Lily Tomlin
Lily Tomlin
0 comments • Paul Luykx • November 16 2009 08:18AMFannie goes to 620 - Home buyer tax credits extended and improved - Big funnel building
Home buyer tax credits have been extended and improved! Up to $8,000 for qualified first-time home buyers purchasing a principal residence is available. And up to $6,500 for qualified repeat home buyers. Details. Make it a good week folks! - Paul
What will your business look like in 12 months from now?
The Home Buyers Scouting Report, the ultimate funnel building, and contact conversion solution - is off to a flying start. If you missed it last week, go to my blog to read up and go for a test drive! Note that it is also my program to refer clients to you!
Minimum Fannie Fico to 620
Minimum Fannie Fico to 620
The minimum Fico for Fannie Mae loans is going up to 620 effective December 12th. Read more. Note that as of today my minimum FHA Fico's for a purchase still start at 560!
What the Fed's latest move means for mortgages
What the Fed's latest move means for mortgages
The Federal Reserve may be keeping interest rates intact at near 0%, but consumers planning to buy a home or refinance one in the following months may want to take note: The end of record-low mortgage rates appears to be a step closer. Read more. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 30-day closes (45-days for FHA)
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
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0 comments • Paul Luykx • November 07 2009 04:41PM
"Ignorance is a voluntary misfortune" -
T.L. Haynes, The Royal Path of Life, 1886
T.L. Haynes, The Royal Path of Life, 1886
0 comments • Paul Luykx • November 07 2009 04:41PMHome Buyers Scouting Report - HB tax credit extended and expanded? - Mixed housing data
I am pleased introduce the The Homebuyers Scouting Report. The Home Buyers Scouting Report is the "MLS for buyers" - a contact capture and conversion system. It is a revolutionary new system that can drastically improve your sales volume. (See below). /// It looks like the home buyer tax credit will be extended and expanded. /// Mortgage applications are down due no more tax credit driven purchases. /// Make it a good week folks! - Paul
Problem: You are losing most of your contacts!
Problem: You are losing most of your contacts!
How often do you connect with prospective clients (open house, ad call, personal sphere, cold calls, etc.), hand them your business card, follow up with them, and never have them convert to a sale? 80%, 90%, 95% of the time? Do you have to have to maintain a HUGE funnel of clients in order to actually get a few sales? You also know that buyers want all the available information, but they want to be able search for what they want when they want it - without having to wait for you to send them listings. If you're not around, they may go to someone else. NAR reports that buyers will on average visit 7 websites, connect with 17 realtors, and spend 6-9 months in their education phase. So how can you beat the odds and increase your conversion rate?
Solution: The Home Buyers Scouting Report!
The Home Buyers Scouting Report can help you beat the odds an increase your conversion rate in a big way! You use the MLS to list your sellers. And you use the HBSR to show the listings to your buyers. What if you could also use it to allow your buyers to peruse real time listings at their leisure with only YOUR contact info associated with all listings? The Home Buyers Scouting Report is a contact capture and conversion system which allows you to "own" and support literally hundreds of home shoppers, respond to their inquiries on a daily basis, and zero in on who is ready to buy/sell. Read more.
Rates flat
"Economic data releases this week offered mixed signals as to the state of the housing market. Total existing home sales jumped 9.4% to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the NAR. However, new home sales unexpectedly fell 3.6% to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices." said Frank Nothaft, Freddie Mac vice president and chief economist. Freddie Mac rate surveys.
"Economic data releases this week offered mixed signals as to the state of the housing market. Total existing home sales jumped 9.4% to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007, according to the NAR. However, new home sales unexpectedly fell 3.6% to 402,000 houses, the weakest since June of this year, based on figures from the Department of Commerce. Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices." said Frank Nothaft, Freddie Mac vice president and chief economist. Freddie Mac rate surveys.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, other loans
- Same day loan decision
- 30-day closes (45-days for FHA)
-- FHA loans down to 560 Fico
- 30-day closes (45-days for FHA)
-- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
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0 comments • Paul Luykx • October 31 2009 03:58PM
"Chaos is the score upon which reality is written" - Henry Miller
0 comments • Paul Luykx • October 31 2009 03:58PMRates up a bit - New tax credit deals - New FHA condo rules delayed - Big sales rebound
Fannie Mae is raising the minimum Fico to 620 from 580. Fannie pricing is also more dynamic (higher score, lower rate), has more restrictive program criteria: 680 needed for PMI, more reserves needed, and more. Count on FHA tightening up as well. Read more. /// Make it good week folks! - Paul