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Monday Morning Mortgages>
Monday Morning Mortgages
January 4, 2010
Happy New Year 2010!
New RESPA GFE
Keep an eye out for the new GFE going to your borrowers from now on. It will certainly require some explanation from loan agent to borrower, but that is what we are here for; to educate the borrower.
Lender Required Real Estate Disclosures
We are seeing more requirements by lender to review specific real estate disclosures submitted with the executed purchase offer. Besides the Real Estate Transfer Disclosure Statement and Lead Based Paint disclosure, I’ve had a lender recently request the Agent Visual Inspection Disclosure signed by all parties to be submitted to underwriting. So it would be good habit to submit these to the loan agent with the executed purchase contract going forward, AND for loan agents to review the AVID prior to submission to be aware of any red flags cited by the AVID like a leaking roof.
5% Down Payment Conventional Financing
Want to avoid FHA financing for some reason or other? Home buyers can use My Community Mortgage (Fannie Mae) or Home Possible (Freddie Mac) for 95% LTV. Income limits apply: $80,200 household income limit in Sonoma County. Have your client call for pricing. The rate is quite good.
• 95% 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)
• Now available in CA, FL, NV, and AZ
• Downpayment can come from gift
• Reduced MI coverage available (16% MI coverage)
Rates
Rates hovering around the 5% mark. Economic data has been showing slight economic stabilization which leads to stock market strength and bond market weakness and slightly higher 30 year interest rates. With the Federal Reserves Treasury mortgage bond sales program wrapping up in March, expect rising rate pressure going forward.
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