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Monday Morning Mortgages>
Monday Morning Mortgages
November 9, 2009
95% LTV Available Again in Sonoma County
Genworth mortgage insurance company is now insuring up to 95% LTV purchases in California and Sonoma County for specific loan programs including Fannie Mae’s My Community Mortgage and Freddie Mac’s Home Possible. This is an improvement over the previous 10% down requirement for all conventional lending in any declining market. Aand all of California had been deemed a declining market. There are some restrictions but the pricing is good (5.125% - 5.25%). An advantage of the My Community Mortgage program is the mortgage insurance comes at a lower rate than standard for conventional. Here are some highlights.
• Purchase Transaction only
• 680 Minimum Score Requirement
• 1 unit property only (SFR and PUDs. Condos maxed at 90% LTV)
• 2 mos. reserves required regardless of AUS findings
• Full appraisal required regardless of AUS findings
• 3% Seller Concessions maximum allowed
• Borrowers must meet GE's First Time Homebuyer requirements (must complete Homebuyer education course) and income limitation requirements (see product descriptions for specifics)
• available in CA, FL, NV, and AZ
• Freddie's Home Possible Doc #5335 (Fixed Rate only)
• FNMA MyCommunity Doc #5325 (Fixed Rate, 5 yr ARM and 7 yr ARM)
Fannie Mae’s Deed for Lease (D4L) Program
For loans owned by Fannie Mae (http://loanlookup.fanniemae.com/loanlookup/), the program Deed for Lease is meant to allow some homeowners facing foreclosure to hand the deed back to their lender but remain in the home as a renter. The servicer has to decide that the borrower qualifies for a "deed in lieu of foreclosure." The rent can't exceed 31% of their monthly gross income, the borrower cannot have 12 or more past-due payments on their mortgage and they must have made at least three payments since the loan was first taken out. Primary residence only – and no non-Fannie loans please! The borrower’s credit score is indeed impacted, but not as badly as a foreclosure.
Tax Credit Extension
Just a reminder that for the new tax credit, it needs to be paid back if the buyer sells the home within 3 years after purchase.
Rates
Rates remain excellent as the stock market retains strength in spite of unemployment numbers. The 7/1 ARM is an excellent product to consider as rates are down to about 4.125%. Especially good for first time homebuyers or investors getting into the market who know they will be out of that property within 7 years.
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