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  1. Fixed FHA Mortgage Rates Fall to 3.750%

    By on September 14, 2011

    Mortgage rates have hit historic lows recently, and now it a great time to lock in the lowest rates in a lifetime.

    Perhaps you’re a long time renter with a good credit history, but without a lot of money for a down payment.  Don’t let a lack of cash stand between you and homeownership.  FHA-insured mortgage only require a minimum down payment of 3.5% of the price of the home that you are buying.

    Many banks require 20% down payments or more, and it can take years and years for the average person to save that much money.  While it is certainly preferable to start with more rather than less home equity, a 20% down payment is simply not within many people’s reach.

    Today we are able to offer FHA mortgages to qualified borrowers at a rate of 3.750% with an APR of 5.092%*.  If you have an existing FHA mortgage and are paying a higher interest rate, refinancing at today’s low rates can be quick and easy and can save you a lot of money.  The FHA streamline refinance program may allow you to refinance your home without a new appraisal, which will save you time and money.

    Mortgage rates are always changing. All rates were quoted at 12:56 P.M., on September 14, 2011.

    *All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 1 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, one points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.

    Category: Mortgage Rates

  2. FHA Mortgages Increasingly Popular With First Time Home Buyers

    By on July 18, 2011

    Are you a long-time renter?  Are you thinking about getting married or starting a family?  Home prices are down substantially since 2006, and now may be the time to purchase your first home. Home affordability is up, and mortgage rates are down.  Many prospective first time home buyers are using the FHA in order to secure a home loan, and you may want to do so as well.

    There are many benefits to getting an FHA-insured mortgage.  One of the biggest benefits that makes them attractive to first time home buyers is their low minimum down payment requirement. The FHA only requires a 3.5 percent down payment, which is significantly less than the 20 percent or more that is required by many other sources of home financing.  Additionally, credit score requirements on FHA mortgages are somewhat more lenient than credit score requirements on other types of loans.  This can be helpful if you have some minor blemishes on your credit history.

    Over the past couple of years, the percentage of loans originated by the FHA has increased substantially, especially among first-time home buyers.  This, along with an increased number of defaulting mortgages has caused the FHA’s capital reserves to fall below Congressionally mandated minimums.  As a result, some lawmakers have proposed increasing FHA minimum down payments to 5 percent or more.  Although it does not appear that any changes are imminent, it is worth being aware of this if you plan to get an FHA mortgage in the near future.

    Another change that is worth being cognizant of is that the maximum FHA loan limit is set to fall at the end of September from $729,750 to $625,500.  In some high cost markets (such as parts of New York City, Miami, Boston, California, Boulder, and Washington D.C., among others) , FHA loan limits were temporarily increased in 2008.  Now these higher loan limits are set to expire.  If you live in one of these markets, and were thinking about using the FHA for financing, you probably want to make a purchase or refinance prior to October 1.

    Continue Reading…

    Category: Mortgage Rates

  3. Home Sales Fall as First Time Home Buyers Wait on Sidelines

    By on June 21, 2011

    Existing home sales plummeted 3.8 percent in May according to new information from the National Association of Realtors.  Existing home sales are now down 15.3 percent compared to the May 2010 pace.  The national median home price for an existing home was $165,500 in May, which is down 4.6 percent year-over-year.  Lawrence Yun, eternal optimist and Chief Economist for the NAR commented:

    “Current housing market activity indicates a very slow pace of broader economic activity, but recent reversals in oil prices are likely to mitigate the impact going forward. The pace of sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year.  Even with recent economic softness, this is a disappointing performance with home sales being held back by overly restrictive loan underwriting standards.  There’s been a pendulum swing from very loose standards which led to the housing boom to unnecessarily restrictive practices as an overreaction to the housing correction – this overreaction is clearly holding back the recovery.”

    The number of first time home buyers is down significantly, despite low rates.  First time buyers now make up 35 percent of all home sales, compared to about half of all buyers in a healthy market.  This can be attributed to the uncertain employment situation driving low rates of household formation.  Falling home prices, increasing student loan debt, tight credit, restrictive underwriting guidelines, and stagnant real incomes are also keeping new home buyers on the sidelines for the foreseeable future.

    Continue Reading…

    Category: Mortgage Rates

  4. New Chief To Oversee FHA Home Loan Programs

    By on April 4, 2011

    FHA home loans, FHA streamline refinance, low down payment mortgageBob Ryan will take over running the Federal Housing Administration today as the FHA’s acting commissioner. Ryan, formerly the FHA’s chief risk officer, replaces David Stevens, who resigned to be chief executive of the Mortgage Bankers Association, an industry trade group.

    FHA lending exploded after the financial crisis, filling a vacuum left by private lenders. FHA home loans, which are insured by the FHA but made by private FHA-approved lenders, became the only option for home buyers with small down payments.

    FHA mortgages offer mortgage financing for low- and moderate-income borrowers and allow down payments as small as 3.5 percent. The FHA now insures about a third of home purchases, compared to less than 4 percent before the housing bubble burst.

    Plus, the FHA Streamline Refinance program allows homeowners with current FHA loans to refinance into current low mortgage rates without credit or income documentation and sometimes without an appraisal.

    Congress raised FHA home limit from $362,790 to $729,750 in high-cost markets during the housing market collapse. That helped prop up home values, but some experts worry that it increased risk for the FHA. More FHA loans went bad, but the agency now says it fewer are going delinquent.

    Ryan joined the FHA 2009 as its first chief risk officer. Before that, he was an executive at Freddie Mac for 26 years, working in a range of senior positions in the capital markets and single-family mortgage divisions. The permanent FHA commissioner must be nominated by the president and confirmed by the Senate.

    Category: FHA

  5. More Americans Are Optimistic About A Housing Market Recovery

    1 By on March 10, 2011

    home price trends, housing market recovery, first-time home buyersMore Americans are confident that home values will recover in the next year or two, indicates a survey by Prudential Real Estate and Relocation Services Inc.

    The survey reports that 68 percent of potential home buyers think home prices will recover in a year or two. Last year, 47 percent predicted home values would increase. Also, 86 percent believe real estate is a good investment despite recent housing market troubles. Potential home buyers, the survey points out, realize that this a good time to buy a home, but if they are current homeowner they are worried about selling their existing home for a decent price.

    Given home price trends and current mortgage rates, first-time home buyers are in a better position, provided they can qualify for a mortgage and have enough for a down payment.

    A recent Fannie Mae survey fewer people believe a home is a safe investment, 64 percent compared to 70 percent last year. The difference could be due to potential home buyers feeling more optimistic and sellers feeling disillusioned. Continue Reading…

    Category: Housing Market, Purchase

  6. Including Rents On Credit Reports Can Help First-Time Home Buyers Qualify For Lower Mortgage Rates

    By on March 7, 2011

    first-time home buyer, credit score, mortgage qualificationsSome first-time home buyers could find qualifying for a home loan and getting lower mortgage rates easier now that Experian, a major credit bureau, has started collecting rent payment histories.

    Building good credit is one of the biggest obstacles to qualifying for a home loan and finding the best mortgage rates available. Yet rent payments, usually a renter’s largest financial obligation, are typically not included in credit scores. Neither is phone, Internet, electric bills or other utilities, for that matter.

    Credit scores, including the FICO score used by most mortgage lenders, are based on credit cards and personal loans like car loans and student loans. Borrowers with little use for loans or credit cards have what lenders call “thin files” that can prevent them from qualifying for a mortgage.

    So, in the odd world of credit scoring, you can get a mortgage if you have $10,000 of debt but not if you have $10,000. This credit scoring quirk is especially troublesome for younger borrowers, who tend to lack credit histories, and immigrants who lack a tradition of using credit cards and debt. Continue Reading…

    Category: First Time Home Buyer

  7. FHA Home Loan Limit Should Be Reduced, Study Warns

    By on February 15, 2011

    FHA home loan, low downpayment loanFHA home loans should be limited to smaller mortgages to reduce FHA’s “large and risky market share,” argue housing experts at George Washington University.

    FHA home loans, which permit down payments as low as 3.5 percent and looser restrictions on credit and income, have helped many borrowers refinance or purchase homes, especially during the credit crunch. The low down payment is especially helpful for first-time home buyers, and the FHA Streamline Refinance program allows homeowners to refinance into current low mortgage rates without credit or income documentation and sometimes without an appraisal.

    The GWU study provides another bullet to those seeking to shoot down expanded FHA loan limits. That should prompt homeowners and home buyers to seek FHA mortgages while they still can. Learn more about FHA home loans.

    Congress allowed the size limit for FHA mortgages to skyrocket during the housing crisis, from $362,790 to $729,750 in high-cost markets. That helped prop up home values but it’s also riskier for the FHA, a government agency that insures the home loans.

    Loans over $350,000 perform 20 percent worse than smaller loans traditionally insured by FHA, according to the study from the GWU Center for Real Estate and Urban Analysis. And the FHA’s share of larger mortgages has jumped substantially. Continue Reading…

    Category: FHA

  8. Buying a Home May Be More Affordable Than Ever

    1 By on February 9, 2011

    Buying a home may be more affordable than ever in many areas. That’s the conclusion of Moody’s Analytics, according to an article in The Wall Street Journal.

    Homes are many areas were just as affordable or more affordable at the end of September as they were between 1989 and 2003 in 47 markets, says Moody’saffordable homes, home prices, housing markets Analytics. It based its conclusion on the ratio of median home prices to annual household incomes in 74 markets.

    In a recent blog, we reported that Trulia.com concluded that owning a home is more affordable than renting in most major cities. The online home-shopping service said it’s more affordable to buy a two-bedroom home in 72 percent of America’s 50 largest cities than it is to rent a similar home.

    The ratio of home prices to annual household income was at its highest point in late 2005 when it reached 2.3, noted the Journal article. It had fallen to 1.6 last September. That was the lowest its been in at least 35 years, or since the data have been collected, and well below the historical average of 1.9 between 1989 and 2003. Continue Reading…

    Category: Housing Market

  9. First-Time Home Buyers Benefit As Purchasing Becomes More Affordable Than Renting In Many Places

    By on January 25, 2011

    Owning a home is more affordable than renting in most major cities. That’s the conclusion of the latest rent vs. buy index from Trulia.com.

    The online home-shopping service says it’s more affordable to buy a two-bedroom home in 72 percent of America’s 50 largest cities than it is to rent it.

    first-time home buyers, purchasing vs renting

    Renting is less expensive than buying a home in just four cities in Trulia’s study: New York, Seattle, Kansas City and San Francisco. In 10 cities, buying may still be a financially sound long-term decision despite the relative affordability of renting.

    More Americans are renting, either by choice or due to unforeseen financial difficulties. Mortgage defaults caused by the subprime lending crisis and high unemployment have caused a flood of former homeowners to rent homes. Following the principal of supply and demand, that has caused rents to increase, said Pete Flint, CEO and co-founder of Trulia.

    “Though necessary for achieving true economic recovery, stricter bank lending practices have also further aggravated the struggling housing market in the short term,” he added. “Even highly qualified home buyers face intense scrutiny on their income, savings, existing debt and credit history before they can get a mortgage loan”

    Continue Reading…

    Category: First Time Home Buyer, Housing Market

  10. Housing Bust Makes Location More Important For Home Buyers

    By on January 6, 2011

    first-time home buyers, home purshases, home values, housing marketsLocation is even more important for home buyers in the wake of the Great Recession. The old maxim is more valid than ever. The three most important factors for picking real estate are location, location and location. That’s the conclusion of research sponsored by the Mortgage Bankers Association.

    While many housing markets will see increasing home values and will fully recover, some have reached a tipping point and will suffer protracted or even permanent problems, according the “Study of Real Estate Markets in Declining Cities.” Some neighborhoods may never again be economically viable.

    “This is a critical point that should be well understood by potential home buyers and lenders who want to avoid places plagued by high foreclosures, vacancies and a deteriorating housing stock due to deferred maintenance,” said James Follian, the study’s author. Are you ready to buy a home?

    Different cities and even submarkets within a city have widely varying housing market outlooks, said Follian, a senior fellow at the Rockefeller Institute of Government at the State University of New York. Continue Reading…

    Category: Housing Market, Purchase

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