On April 2010 the Department of Housing and Urban Development initiated new regulations for FHA loans.
Among the changes that took effect on that date are as follows:
The mortgage insurance premium for FHA mortgage insurance on loans that were assigned after April 5, 2010, were raised from 1.75% to 2.25% of the loan amount.
Individuals who now have a credit score of less than 580 will be required to pay a minimum down payments of 10% of the sales price, rather than the traditional minimum of 3.5%
The percentage of loan fees and closing costs that the Seller is allowed to provide was reduced from 6% to 3%.
Minimum Credit Scores Announced for FHA loans effective October 4, 2010
Borrowers with a credit score below 500 will not be eligible for FHA insured mortgage financing. Buyers eligible for financing requires a minimum of 3.5 percent downpayment. Borrowers with nontraditional credit histories may still be eligible for financing.
BUYERS INTEREST RATES ARE AT AN ALL TIME RECORD LOW!
SELLERS ARE MOTIVATED !
LOOK AT TODAY'S INCREDIBLE INTEREST RATES
Confirming Loans 30 year fixed 4.000%
30 Years fixed KHC 3.375%
20 Years fixed 3.875%
15 Years fixed 3.375%
For these rates you will need a 740 or higher credit score
Government Loans 30 year fixed
FHA - 3.750%
FHA/KHC- 3.375%
RHS - 3.750%
RHS/KHC - 3.375%
VA - 3.750%
FHA rates with scores down to 600, RHS rates 620, KHC loans have income limits. Downpayment assistance programs are still available some up to $6,000.
Rates are subject to change daily.
The Federal Reserve surprised the market last week indicating that short-term rates were likely to stay at their current low levels until the end of 2014. This is good news if you can do a ten or fifteen year mortgage. The national Association of Home Builders Market Index rose from 14 in September to 25 in January, a 4-year high. Both new and existing homes are now very affordable, with prices at post-recession lows. Yet the home price decline since the end of the recession in mid-2009 has been a modest 3-7%.
SELLERS READY TO SELL YOUR HOUSE?
Here are some G-R-E-A-T tips for getting your house ready!
1) Refresh the exterior, plump up the landscaping with mulch or lava rock
2) Paint the front door, clean finger prints off of storm door, add a new door mat
3) Weed your flower bed, plant seasonal plants like Mums, Tulips or Roses for the selling season
4) Remove any piles of debris, wood, any type of yard clutter
5) Sweep and weed the street curb along your property, they don't call it "Curb Appeal" for nothing....
6) Fix anything that is broken on the exterior, gutters, roof, mailboxes, window screens, vinyl siding, walkways, if a potential buyer can see things broken on the exterior they may not even come inside to see the interior.
7) On the interior of your home reduce any type of clutter, children's toys, shoes, remove old magazines, tools, supplies, any type of unused items
8) Clean, Clean, Clean make it sparkle, mirrors, windows, eliminate household odors, especially pets... I know you love Fido & Kitty Cat... but if I can smell it, I can't sell it!Absolutely Number One Complaintby buyers is "pet odor". Take your pets out of the house, or crate them during showings. If you smoke... open windows, put out air fresheners or potpourri, air the house out. Smell your closets, do they smell like old socks or old shoes?
9) If it is broken... anything please fix it. The home inspector will probably find it and then it will become a "bone of contention" which may cause you to lose the deal. Roofs are really big issues, have a roofer look at your house to tell you the condition of your roof.
10) Be honest about everything with regard to your house, even if it is less than perfect. If you have been honest with regard to any issue then the buyer knows where they stand and can make an informed decision with regard to purchase. Never ever hide a material defect. If you had termites and had the problem repaired show your treatment and repairs. If you are dishonest... the home inspector will probably find the issue, and then you may lose the deal, because the buyer will feel that you have acted without integrity. Honesty is always the best way to conduct business.
11) Don't worry about a less than perfect home "PRICE" is the ultimate decision maker for a qualified buyer. Pricing your home to sale within the first 30 days is the most important thing you can do to sell or market your home. Price your home too high and it will become "shop worn". Ever heard the statement "Well why hasn't this house sold?" It has been on the market a long time.... What's wrong with this house? ( too high for the current real estate market, no appraisal to validate asking price, or number of repairs out way the value of the house, outdated carpet or appliances... commonly known as functional obsolescence). When selling your home, you need an honest evaluation on what to correct for making a quick sell. Never shoot the messenger, it is critical to get an honest opinion on the areas that will cause problems in selling your property.
FORECLOSURES & SHORT SALES
WE LIST AND SELL PRE-FORECLOSURES AND BANK OWNED FORECLOSURED PROPERTIES
Missed your payments? Unable to continue to make your payments?
THEN GET OUT OF THATMORTGAGE WITH A SHORT SALE!
ABSOLUTELY DO NOT ABANDON YOUR HOME...
Even if you are behind on your mortgage until the entire legal process has been played out. You can stay in your house until your right to possession has ended. The factors that determine that are:
1) Type of foreclosure; judicial or non-judicial;
2) Whether you have mortgage or a deed of trust;
3) State statutes regarding sheriff or trustee sale and receivership w/possession time frames.
Your lender may allow you to market your property with a real estate broker at a reduced price called a "short sale". Each situation is different, only your lender can determine if your hardship merits a short sale. In the context of a short sale, hardship is not necessarily defined. Some areas that lenders have accepted as a hardship for short sales are the death of a spouse or child, divorce or separation, loss of income, loss of job, or loss of business or business failure, illness, medical bills, excessive debt, may merit the lender's approval for a short sale. You must be able to document any of these claims in writng to the lender; and your lender will require you to agree you will not receive any proceeds from the sale of your property. You will be required to attend the closing and you will be required to sign off on all the documents of the sale.
Only the lender can determine the acceptable "short sale" factors. Be sure to answer any summons, any oral or written correspondence the lender provides. Communication and cooperation is the key to a successful short sale with any lender.
Please call me if you have missed any mortgage payments on any type of property. I am experienced with lenders, confidential, and I am nationally certified for short sales. Please call 859-624-5566 if you wish a personal consultation with regard to a possible short sale.
(We highly recommend you consult a real estate attorney and CPA to see what is the best plan of action for you)
