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Changes Coming to FHA Loans

February 2, 2010 at 1:50 pm · Filed under First Time Home Buyers, For Home Buyers, Mortgage

If you are on the fence about whether to buy a home or not the new FHA changes that will be implemented this spring/summer may help you make up your mind.

If you have already decided to buy a home with a FHA loan now is the time to purchase before these changes go into effect. Remember you must be under contract by April 30th and settle by June 30th to also take advantage of the tax credit.

As banks have clamped down on mortgage lending, the FHA program has emerged as one of the few ways people can buy a home. A few years ago only 10% of home buyers utilized FHA insured financing, today that number is 40%. Unfortunately out of a total of 5.8 million loans ($750 billion) that are insured by the FHA more than half a million of the loans are seriously delinquent and heading toward foreclosure. In November the agency said its cash reserves had tumbled to .53% of its insurance guarantees, well below the 2% ratio mandated by Congress and the 3% ratio it had last fall. The fund covers losses on the mortgages the agency insures.

The new standards are meant to shore up the agency’s finances. However the agency also wants to make sure that the new rules don’t disrupt the housing market and don’t hurt FHA’s ability to assist the underserved.

We think that the new standards are not unduly restrictive and the FHA is doing its best to protect the taxpayer and do the least harm to the credit supply.

These are the main changes that will affect FHA buyers.

** Upfront mortgage insurance premium (UFMIP) will increase to 2.25% up from 1.75%. Contrary to reports, FHA will continue to allow the financing of the UFMIP.

** Borrowers with credit score below 580 will need at least 10% down.

** Minimum down payment will remain 3.5% for all other borrowers.

** Seller concessions to the buyer (money that seller credits to buyer for closing costs) will be reduced to 3% from 6%.

Technorati: fha loans, philly home buying, changes to fha loans, 1st time home buyers

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Philly Mortgage Rate Update: January 5th 2010

January 6, 2010 at 10:12 am · Filed under For Home Buyers, Mortgage

NEW YEAR, NEW RATES!

Todays Mortgage Rates:

30 Yr Fixed – 5% (.5 point) / 5.125% (0 points)

15 Yr Fixed – 4.25% (1 point) / 4.5% (0 points)

5 yr ARM – 3.875% (1 point) / 4.25% (0 points)

7 yr ARM – 4.375% (1 point) / 5% (0 points)

FHA 30 Yr Fixed – 4.875% (1 point) / 5% (0 points)

FHA 5Yr ARM – 4.25% (1 point) / 4.75% (0 points)

Investment – 5.375% (1 point) / 5.5% (0 points) – at least 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

Mortgage Bonds are jumping higher this morning as they break free and continue to attempt a “get-away” from the sharp downward trending channel they’ve been trading within since late November. Stocks rallied sharply higher yesterday, with the Dow and S&P 500 both reaching their highest closing levels in more than fifteen months- but so far this morning, Stocks are taking a bit of a breather, which is benefitting Bonds.

And here is an interesting talking point- history shows that since 1973, a big gain on the first trading day of January has been a positive sign that Stocks will show positive gains for the rest of the year. Unfortunately, the market is still fragile, which means any negative surprises could take the wind out of the sails quickly and make it touch for stocks to eke out significant gains for the year overall.

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

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Philly Mortgage Rate Update: November 30th 2009

November 30, 2009 at 6:35 pm · Filed under For Home Buyers, Mortgage

LET’S GIVE THANKS FOR GREAT RATES! Could they get any better? 15 Yr Fixed is the lowest since Freddie Mac began tracking rates in 1991.

Todays Mortgage Rates:

30 Yr Fixed – 4.5% (1 point) / 5.75% (0 points)

15 Yr Fixed – 4.125% (1 point) / 4.25% (0 points)

5 yr ARM – 3.625% (1 point) / 4% (0 points)

7 yr ARM – 4% (1 point) / 4.375% (0 points)

FHA 30 Yr Fixed – 4.5% (.25 point) / 4.75% (0 points)

FHA 5 yr ARM– 4.% (1 point) / 4.375% (0 points)

Investment – 5% (1 point) / 5.25% (0 points) – at least 25% down payment required

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

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Philly Mortgage Rate Update: November 3rd 2009

November 3, 2009 at 10:54 pm · Filed under For Home Buyers, Mortgage

Todays Mortgage Rates:

30 Yr Fixed – 4.875% (1 point) / 5.125% (0 points)

15 Yr Fixed – 4.25% (1 point) / 4.5% (0 points)

5 yr ARM – 3.5% (1 point) / 3.75% (0 points)

7 yr ARM – 3.875% (1 point) / 4.25% (0 points)

FHA – 4.875% (1 point) / 5% (0 points)

Investment – 5.125% (1 point) / 5.375% (0 points) – at least 25% down payment required

This week brings us new employment numbers…and a chance to see if the labor market is showing signs of recovery. The employment news begins Wednesday with the ADP National Employment Report. Sandwiched between that report and Friday’s Jobs Report, is the Initial Jobless Claims report on Thursday.

The big news comes on Friday, when the all-important Jobs Report will be released. Last month’s report underscored the struggling labor market, as the Labor Department reported 263,000 jobs lost in September and an increase in the unemployment rate to 9.8%. The report due out this week is expected to show 166,000 jobs lost in October, which would be significantly better than the previous month if it happens. However, the Unemployment Rate is expected to continue its climb to 9.9%.

In addition to employment news, we’ll also see the ISM Index on Monday. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector.

Finally, the Federal Open Market Committee (FOMC) holds its two-day meeting this week, with an announcement of the Fed Rate Decision and Policy Statement due on Wednesday at 2:15 p.m. (ET).

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

APPLY FOR A MORTGAGE ONLINE

Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

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Hurry! $8,000 Reasons to Buy Your First Home Now before the November 30, 2009 deadline.

October 10, 2009 at 8:55 pm · Filed under First Time Home Buyers, For Home Sellers, Mortgage

Because approvals, residential inspections, and other steps in the buying process typically take about 30 days, buyers hoping to take advantage of the incentive will need to have a contract by the end of October at the very latest. The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.

There is no repayment obligation required on this credit for qualified principal residences purchased from January 1, 2009 through November 30, 2009. To be exempt from repayment, the home buyer must stay in the home for at least three years. In addition to being a first time home buyer, there are maximum income restrictions.

Home Buyer Tax Credit in a Nutshell:

**The tax credit is for first-time home buyers only

**The tax credit does not have to be repaid

**The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000

**The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009

**Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

And if $8,000 dollars isn’t a big enough incentive mortgage rates remain historically low:

Rates as of Monday, October 5:

30 Yr Fixed – 4.625% (1 point)/ 4.875% (0 points)
15 Yr Fixed – 4.125% (1 point)/ 4.375% (0 points)
5 yr ARM- 3.875% (1 point)/ 3.625% (0 points)
7 yr ARM- 4% ( 1 point)/ 4.375% (0 points)
FHA – 4.75% (1 point)/ 5% (0 points)
Investment – 5.125% (1 point) / 5.5% (0 points) – 25% down payment required

Potentially Related Posts: Philadelphia First Time Home Buyers: Federal Tax Credit Final Cut

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT

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posted by janice SEARCH the Philadelphia MLS. No Registration Required!