Student loan payments, even if deferred, are still counted in the debt ratio for mortgage qualifying. Previously, FNMA required 1% of the balance as a qualifying payment monthly.
FNMA will now allow the payment reported on the credit report to be used in qualifying. If the payment is 0 or not reported on the credit report, then lenders are required to use 1% of the balance or a fully amortized payment. This will make qualifying easier for may consumers.
Chris & Shannan today announced they have adopted the latest technology that allows them to do 3D 360 Virtual Tours of Homes. These specialized tours immerse the buyer into the property giving them the unique ability to take either self guided or automated tours of a home. This technology is the best way to showcase a home because of the high quality scans and the ability to add tags to special items in the home. Less than .002% of the real estate agents in the US have adopted this technology!
Paying off revolving accounts each month does not necessarily help your credit score. Keeping your balances at any one time under 30% of the limits will likely increase your score since it is when your credit card provider reports the balance that is one of the keys for credit scoring.
Studies also show that keeping a very small balance on revolving accounts, 1%-2% of the limit, will maximize the revolving component of your credit score. If your limit is $5,000, try to keep a balance of $50-$100 on your account to help improve your credit score over time.
Interest rates play an important role in real estate.
For buyers, the interest rates often determine how much house a buyer can buy. When a lender prequalifies someone to buy a home they are looking at ratios between income and current expenses. Those ratios determine how much of a payment someone is allowed in purchasing a home. As interest rates go up the payments go up, and the amount of home (maximum purchase price) someone can afford.
For sellers, as interest rates go up it makes homes less affordable and fewer buyers available as potential purchasers. This can have an adverse effect on home values.
Yesterday, the Wall Street Journal reported that after review of the minutes of the most recent meeting that it appeared that policy makers could raise rates ‘fairly soon’ and could adopt a more aggressive rate increases this year than was currently expected.
Chairwomen Janet Yellen is scheduled to speak on March 3rd and may send a clearer message on rate increases. Right now investors are saying there is about a 22% chance rates will increase when the Fed meets on March 14-15.
The 10% Down Payment Assistance program known as P2P Program has ended
As you may already know the wonderful P2P program that offered 10% DPA has now ended because all of the funds allocated to Tucson have been exhausted. Many of our customers in our Tucson market had taken advantage of this great program and they are now proud homeowners. The statewide P2P program is still running and if you have borrowers in area’s outside of Tucson, there may be funds available for them. Please consult with us for more details. There are rumors that the Tucson P2P program may receive an additional allocation of funds carved-out from the statewide funds, and if that is the case, we will be sure to promptly let you know!
4% Down Payment Assistance
Please keep in mind, the 4% DPA called Pima/Tucson Homebuyers Solutions program is still available for your customers and it is a great solution for many homebuyers. This program offers alot of flexibility in many ways and is beneficial for many borrowers, even if they have a co-signer. For a list of lenders…just ask!
UPDATE ON WISH
FHR has access to WISH funds that expire soon!
The Purchase Contract must be executed by March 31, 2017
Shortly after the new administration took office, HUD announced that the reduction in monthly MIP payments for FHA home loans that had been announced recently is being rescinded.
The monthly MIP cost is currently .85% annually for minimum down payment FHA loans and was scheduled to be reduced to .60% today. The difference in monthly payments to a consumer on a $250,000 loan amount is about $52 per month. In addition, FHA still charges an upfront premium of 1.75% of the loan amount that is financed into the loan.