TurnKey Mortgage Solutions Weekly Update

 

• Conforming Jumbo products from Fannie Mae and Freddie Mac are supposed to be delivered to the open market by April 15th.  This  means that your buyers could obtain a loan for up to $729,750 with  as little as 10% down.  Look for more  information including rates  and qualification guidelines in the coming week.
• Mortgage Insurance will become more difficult to acquire as of April 6th.   Many of the mortgage insurance companies will require a FICO  score of 720 or better in order to offer insurance for anyone putting  less than 20% down on a condo in “declining market” areas.
• Condos & townhomes are seeing an increase in restrictions when it comes to  lending.  Banks are placing “overlays” (added conditions) to existing  guidelines for Fannie Mae and Freddie Mac loans concerning owner  occupancy ratios of the complex and financial reserves/policies of  the HOA to name just a few changes.
• FHA spot approval requests are becoming more common.  Considering FHA  was not a viable financial option for much of Northern California  until recently, many condo and townhome complexes are not  currently FHA approved.  Therefore they need to receive spot  approval from FHA which can take several weeks due to a backlog  in the system.
  

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Mortgage Rate Update*
Rates as of Tuesday, 31st March, 2009: 

                          Conforming       APR       Super/Conf         APR   
30-Year Fixed       4.63%          4.81%          5.00%          5.21%
15-Year Fixed       4.38%          4.48%          4.63%          4.78%
5 Year Fixed         4.38%          4.44%          5.75%          5.47%
FHA                      5%               5.06%          5.50%          5.59%
*Rates are subject to change due to market fluctuations and borrower's eligibility.

 

 

TurnKey Mortgage Solutions will be hosting an FHA training seminar on April 29th.  Please watch for the next Weekly Mortgage Update for the time of the training.