Refinance with improved HARP Program in Arizona and California

Posted on November 14, 2011 by

Many homeowners in Arizona and California will find out if they will be able to refinance their “upside down” homes tomorrow.  The Initial “HARP”  Home Affordable Refinance Program was rolled out in 2009.  It was designed to help refinance “underwater” homeowners that owe more than their homes are worth.  Since the program had very little success due to its restrictions, the federal goverment has rallied around making some revisions to the HARP program to help more homeowners take advantage of our historically low interest  rates.

What are the proposed changes?

Eliminate the max loan to value restrictions of 125% that prevented “underwater” homeowners from being able to refinance.

Reduction in fees for borrowers who choose to refinance into shorter term mortgages.

Prevent second mortgages from stalling the process.

Allow automated appraisals to eliminate appraisal fees.

Who’s Eligible?  

Borrowers that have mortgage loans backed by Fannie Mae and Freddie Mac in 2009 and earlier.

Homeowners that have not had more than one missed payment in the last 12 months.

Borrowers that have a mortgage loan in which the loan to value is greater than 80% .

Homeowners can check to see if their loan is backed by Fannie Mae or Freddie Mac by checking online

Expected Changes?

The final announcement should be rolled out by FHFA(Federal Housing Finance Agency) on Nov 15th, 2011 and the implementation of the HARP revisions will depend on the lenders who offer HARP refinances.  For more information regarding the details of the proposed changes, please contact The Veracity Team 602-606-7639 or simply fill in this form and we will update as the changes happen.









		
	    

	
	    

		
		Posted in Mortgage Rates, Mortgage Trends		
				|
				
		Tagged , , , , , , 		
			|
	    	    1 Comment
	

	

	
    	

	    
	Are your buyers using a USDA Rural Housing Loan? Act fast!



	            

Posted on August 4, 2011 by 
        


		    

		
October 1st, 2011.  Remember this date.  On this date, one of the key features of a USDA Rural Housing home loan will change.  You see, currently a USDA loan carries no monthly mortgage insurance.  Much like a VA loan, the USDA loan has an up front fee, called a guarantee fee, and no monthly mortgage insurance.  This feature has kept monthly payments at a minimum.


On October 1st, this changes.  USDA is going to add a new requirement of monthly mortgage insurance.  What this will do is adjust the monthly payment up a little.  Normally not that big of a deal, but what if your client is one of those borrowers that is stretched on their debt ratios?  This could make the difference of approval or not.  


Now, this is not a “sky is falling” situation.  The details are that the upfront Guarantee Fee is going to drop to 2% and the monthly mortgage insurance factor is going to be 0.30%.  This is significantly lower than an FHA loan.  Couple that with the fact that you can still get into a USDA loan for no money… You still have a winner.


This is a call to action.  A sense of urgency.  A caution to agents and buyers that could be negatively affected by this change.  That’s it.  All is still positive.


The Veracity Team is your mortgage partner.  If you would like to discuss this, or anything else, further… Just contact us.  We’re here for you.


		
	    

	
	    

		
		Posted in Mortgage Trends, USDA		
			|
	    	    Leave a comment
	

	

	
    	

	    
	100% Financing for USDA loans in Arizona and California



	            

Posted on August 4, 2011 by 
        


		    

		
Unless you’re a qualified veteran, the days of 100% financing in Arizona and California are pretty much unheard of.  However, there is this little kept secret called USDA Rural Housing program that allows 100% financing.


What does this mean for me? Simple, it means that if you are looking for a new home in the USDA Rural designated areas, then you can get into a home with as little as ZERO dollars. Yeah, really.


Well, what about closing costs for the loan? Yeah, another cool feature of USDA. In this market, it is very customary for the Seller of the property to pay a portion, if not all, of the Buyer’s (yours) closing costs and pre-paid finance charges. This amount has restrictions depending on the home loan type, but USDA is the most liberal. In fact, they don’t even have a maximum amount that the Seller can pay on your behalf. So, this makes it even more attractive! Now you can realistically purchase a home with absolutely no money down. PLUS, have the seller pay all of your closing costs. Not bad, huh? So let’s say that you’ve saved a bunch of money to purchase a home. Or, you’ve been given a gift to help with the purchase of the home. Can you think of anything else to spend that money on, since you no longer need it for the purchase? No, not a boat. I’m talking about things like landscaping, home furnishings, etc.. Believe me, Home Depot and Lowes turn into the “$100 store” for new homeowners. That means that you can’t walk into those stores without walking out at least $100 lighter in the wallet.


Another cool feature of the USDA Rural Housing loan program is no Private Mortgage Insurance. Typically when you buy a property with less than 20% down, you have to pay some sort of mortgage insurance to protect the lender against your potential default on the home loan. This is included in the monthly payment, but let’s face it; you’re paying an insurance premium that protects someone else. Not for you. By not having monthly mortgage insurance, your home loan payment is less. Allowing you to purchase more home, or just have a lower payment than you would by utilizing a different home loan type.


But wait, there’s more. In addition to the liberal down payment allowances (or lack of), seller contributions, etc; USDA is also liberal for people with lower credit ratings than what some of the other financing types want to see. This allows a person with a 620 FICO score and higher to get into a home loan, with all of the above features, and not get hit hard with a higher interest rate. In fact, USDA interest rates are quite comparative to FHA and Conventional financing types.


Wow, these are great features? What’s the catch?


Yes, these are great features. In addition to standard Underwriting restrictions, there are two restrictions to consider with a USDA Rural Housing loan.


Geography – This means that this financing type is only good in USDA Rural Housing Designated areas. That means that if you want to be in a high-rise in downtown Phoenix, LA, San Diego, etc… you’re not going to be able to do it. However, there are many Rural designated areas that you wouldn’t even consider to be “rural”. This is a good thing for you. Please feel free to check Property Eligibility or Area Eligibility to see if the areas you’re interested in, will allow USDA financing.


Income Limitations – USDA has a mission to help moderate income families obtain homeownership. That said, there is a income restriction of 115% of the area median income in whatever area you may be shopping. So, for more information about those specific restrictions, just reach out to us by phone, email, or fill out our contact form.


So, how do you feel now? Excited? Yeah, we are too. Again, for more information or deeper discussion about how a USDA Rural Housing loan can help you, contact The Veracity Team. We’d love to help you.


		
	    

	
	    

		
		Posted in Mortgage Trends, USDA		
			|
	    	    Leave a comment
	

	

	
    	

	    
	Academy Mortgage: #1 Independent Lender in the United States? You Better Believe It!



	            

Posted on August 31, 2010 by 
        


		    

		
So, I’m sipping coffee this morning and an email pops up.  It’s from my big wig boss, whom I’ve not had the pleasure of meeting in person yet.  It says that the results are in.  Academy Mortgage is now in the #1 position of independent lenders in the United States.


I knew we were good, but I didn’t know just how good and just how strong our position is on a national level.  See, in Arizona, we’re consistently in the top 5 lenders.  In FHA originations, we’re #2 in Maricopa County.  This is just below Wells and just above BofA.  Yes, those are the boys we’re competing with.  Not the other independent and comparative sized lenders.  Those guys have their rankings, and they are lower than ours.  Not to say they aren’t good lenders.  Some of them are great and I have a huge respect for.  They just aren’t as good as us.  Ego?  Maybe.  Mostly not though.  We’re just a solid company with a solid reputation of getting things done… fast.  If you want to see how fast we really are, just check out our Ten Day Close Guarantee.  


This wasn’t supposed to turn into a rant about how awesome we are, so I’ll cut to the chase.  Here’s a verbatim copy of the press release that was issued about our rankings.


Academy_Press_Release 


Please feel free to contact us if you would like to discuss this further.


		
	    

	
	    

		
		Posted in Uncategorized		
			|
	    	    4 Comments
	

	

	
    	

	    
	TenDayClose.com and Academy Mortgage: Why we made the move.



	            

Posted on June 19, 2010 by 
        


		    

		
Recently our team made a move over to, what I would consider, our chief competitors.  The old saying goes, “if you can’t beat ‘em, join ‘em”.  …and we did.


Academy Mortgage is home to Ten Day Close, and is the #3 mortgage company in Maricopa County, behind Bank of America and Wells Fargo.


Academy Mortgage has a reputation for being a reliable, get loans done, partner to Realtors.  Clients trust us to deliver what we say we will deliver.


Recently Shane Hollenback was interviewed about Academy Mortgage and their Ten Day Close program that is creating a lot of buzz in the local real estate space.  The interviewer (Dean Ouellette) did such a good job, we want to share it.




Please feel free to leave a comment.  If you are a Realtor that is interested in aligning your business with Academy Mortgage, please get in touch with us.  If you are a borrower that is in need of a mortgage partner that you can rely on, please contact us.  We would love to help you and earn your business.


		
	    

	
	    

		
		Posted in Mortgage Trends		
				|
				
		Tagged , , , 		
			|
	    	    1 Comment
	

	

	
    	

	    
	Interest Rate Lock or Float: Protect your Arizona Mortgage



	            

Posted on March 7, 2010 by 
        


		    

		
The million dollar question:  When is the best time to lock my interest rate?  The obvious answer:  When home loan rates are at their lowest.  The problem is that loan officers don’t really have a crystal ball.  With that being said, some home loan professionals utilize financial market  indicators that can help them advise home buyers on whether to lock or float their interest rate.  These lock periods vary from lender to lender, but I would venture to guess that the most commonly used lock period is a 30 day lock.  Depending on your mortgage professional, mortgage company and their underwriting process,  a 30 day lock period should be more than enough time to fund your loan before your lock expires.


The time period that your interest rate is not “Locked”, is known as a “Float”.  Historically, floating a rate lock was a normal function in the home loan process.  Interest Rates were steady, and the float feature could have meant the possibility for a better interest rates.  These days, that’s not the case.  Mortgage rates are as active as some of the scariest roller coasters, and volatility is the best descriptor of the mortgage markets.  Rates go up and down daily, and sometimes hourly.  It’s not unusual to see lenders reprice interest rates for the  better, or for the worse, a couple times a day.  Unfortunately, mid-day reprices are more often for the worse.  Everybody wants the lowest rate possible, right? Of course we do!  If a borrower floats too long for a better interest rate, they could end up getting burned!


Much like the stock market; when you lock in your interest rate, and rates go up, you’re already locked and protected.  However, what happens if you lock in and the market improves before your closing?  Well, generally speaking, your locked in at that rate.  Borrowers can often times feel like they got the short end of the stick.


So how do you get the best of both worlds?  The simple answer is a Float Down Feature.  How this program works, is that a borrower pays a small up-front fee at the time of locking their interest rate.  The borrower is now locked in against any rising interest rates.  But, if mortgage rates were to actually drop during the lock period, the borrower gets the option to “float down” to the current lower rate.  This Float Down Feature has been dubbed the next biggest no-brainer in mortgage history.  Oh yeah, the best part is that the small up-front fee usually gets refunded back to the borrower at closing.


So, how can you as a borrower make sure that you are getting the best interest rate?  Simply ask your lender if they have a float down policy.  If your lender doesn’t know what that means, simply ask them what happens if rates go down after you lock?  If they tell you, “you’re locked” and that’s it… find another lender.


For more information on using the Float Down Feature as a tool for your locking strategy, please contact a member of The Veracity Team


		
	    

	
	    

		
		Posted in Mortgage Rates, Uncategorized		
				|
				
		Tagged , , , , , , , , , , , , , , , 		
			|
	    	    8 Comments
	

	

	
    	

	    
	What’s Ahead For Mortgage Rates This Week : February 22, 2010



	            

Posted on February 22, 2010 by 
        


		    

		
Mortgage markets had a terrible, holiday-shortened week last week as Wall Street responded to worse-than-expected inflation data and action from the Federal Reserve.  Mortgage bonds sold off with force, causing mortgage rates to rise for the second week in a row.


Last week was a bad week to float a mortgage, to say the least. Rates rose by the largest margin in any week since late-2009.


The two biggest stories from last week both came from the Federal Reserve.  The first was the release of the FOMC January meeting minutes which showed more confidence in the U.S. economy than Wall Street expected, and the second was the Fed’s surprise announcement to raise the nation’s Discount Rate to 0.75%. Both sparked risk-taking on Wall Street and bonds sold-off as a result. 


Now, the Fed Funds Rate won’t climb anytime soon and neither will Prime Rate, but the Fed has sent a clear message to the markets — The Era of Loose Monetary Policy is over.


This week, there’s a lot of economic data set for release.


    

  • Tuesday : Case-Shiller Home Price Index, Consumer Confidence 
    • 

  • Wednesday : New Home Sales 
    • 

  • Thursday : FHFA Home Price Index, Initial Jobless Claims 
    • 

  • Friday : Existing Home Sales, Personal Consumption Expenditures
    • 



With markets already on edge, any better-than-expected results should be bad for mortgage rates.


After last week’s performance, conforming mortgage rates have now unwound most their January gains.  If you’re waiting for the right time to lock, it may have been 2 weeks ago. Consider locking in this week to protect against any further deterioration in price.


		
	    

	
	    

		
		Posted in Mortgage Rates		
				|
				
		Tagged , , , , , , , , , 		
			|
	    	    2 Comments
	

	

	
    	

	    
	HomePath, Welcome Home. Buy a House with Low Down, No PMI, No Appraisal? Yes!



	            

Posted on February 9, 2010 by 
        


		    

		
The headlines about this product are pretty sexy, aren’t they?  The Fannie Mae HomePath loan is one of the most aggressive financing options we’ve seen in quite a while.  This program is for purchasers of Fannie May owned properties and can be taken advantage of with primary residence, second home, and investor purchases.


I want to take a minute and go over some of the features, and then get into some details about them.  Think, “sizzle” first.  Then we’ll talk “meat and potatoes”.


Sizzle:


    

  • As little as 3% down
    • 

  • No mortgage insurance
    • 

  • No appraisal required
    • 

  • Owner Occupants AND Investors
    • 



Meat and Potatoes:


To keep this article from becoming too lengthy, I’m just going to go over these points as they pertain to a primary residence purchase.  If you want to discuss this in more detail, feel free to contact one of our Veracity Team members.


As Little as 3% Down


There are two Fannie Mae “products”, if you will, that down payment requirements will fall into.  Standard and Flex.  The standard minimum down payment requirement is going to be 5%.  The Flex feature will allow 3%.  The Flex program has two caveats.  Slightly higher credit score requirements and a slight adjustment to the interest rate pricing.


No Mortgage Insurance


This is one of the most attractive pieces of this program.  Low down payment AND no mortgage insurance?  Well, that is exactly right.  This, of course, is good for the buyer, but it increases the risk to Fannie Mae.  A higher loan to value without the safety net of private mortgage insurance will mean a greater risk to financial loss if the buyer were to default on the new mortgage.  Because of this, there is a slightly higher premium on interest rates for this product.  It is only nominal, but helps alleviate some of that new risk.


No Appraisal Required


This can be spun a couple of different ways.  The first positive is that it means less money for closing costs.  No appraisal means not having to pay for an appraisal.  A question that does come up often though is, “am I paying too much, if we don’t really have an appraisal to compare too?”.  That is a fair question, and one that you may want to lean on the advice of your Realtor.  Also, even though an appraisal isn’t required, you can still order one on your own.  This would have to be on your own, out of your own pocket, and without any assistance from the lender.


I think the “fair deal” rule will apply here, more often than not.  If you are looking at a Fannie Mae home, and plan on utilizing the HomePath program, it is tough to compare to another property as a comparable (unless it’s another HomePath property).  If the sales price, financing terms, etc., are acceptable to the buyer; and the Realtor has a favorable opinion of value, then it is likely a fair deal.


Owner Occupied and Investors Welcome


This product really sets itself apart from many other financing options in that it is 2nd home and investor friendly.  There are a few more pricing considerations, down payment requirements, and credit score criteria with these types of transactions, so please feel free to contact a member of The Veracity Team to go over specifics.


That covers the major components of the Fannie Mae HomePath loan.  Because of the many moving parts of this transaction, it is highly recommended that a prospective borrower go through the prequalification process to insure that they can get an accurate rate and cost quote.  The process is simple and easy.


		
	    

	
	    

		
		Posted in Fannie Mae HomePath		
				|
				
		Tagged , , , , , , , , , , , , , , , , , , , , , , 		
			|
	    	    1 Comment
	

	

	
    	

	    
	It’s Getting Harder to Get Approved for a Home Loan



	            

Posted on February 9, 2010 by 
        


		    

		
The economy’s improving but lending standards are not. Nationally, banks are  making mortgage approvals harder to come by.


Underwriting guidelines are tightening.


The data comes from the Federal Reserve’s quarterly survey to its member  banks.  The Fed asks senior bank loan officers around the country to report on  “prime” residential mortgage guidelines over the most recent 3 months and  whether they’ve tightened.


For the period October-December 2009:


    

  • Roughly 1 in 4 banks said guidelines tightened
    • 

  • Roughly 3 in 4 banks said guidelines were “basically unchanged”
    • 



Just 2 of 53 banks said its guidelines had loosened.


Combine the Fed’s survey with recent underwriting updates from  and generally tougher  standards for conventional loans and it’s clear that  lenders are much more cautious about their loans than they were, say, in  2007.


Today’s home buyers and would-be refinancers face a bevy of new borrowing  hurdles including:


    

  • Higher minimum FICO scores
    • 

  • Larger downpayment requirements for purchases
    • 

  • Larger equity positions for refinances
    • 

  • Lower debt-to-income ratios
    • 



So, if you’re on the fence about whether now is a good time to buy a home, or  make that refi, consider acting sooner rather than later.  It doesn’t  necessarily matter that mortgage rates are low, or that there’s an up-to-$8,000  home purchase tax credit for households that qualify.  With each passing  quarter, fewer and fewer applicants are eligible to take advantage.


If you would like to discuss your options, contact The Veracity Team and we can go over how these changes, and future changes, may affect you.


		
	    

	
	    

		
		Posted in mortgage guidelines		
				|
				
		Tagged , , , , , , , , 		
			|
	    	    Leave a comment
	

	

	
    	

	    
	What’s Ahead For Mortgage Rates This Week : February 8, 2010



	            

Posted on February 8, 2010 by 
        


		    

		
Mortgage markets improved last week on domestic jobs data and international banking concerns. The news triggered buying in the bond market and, as a result, conventional, FHA and VA mortgage rates improved for the 4th consecutive week.


Mortgage rates are now at a 6-week low but probably shouldn’t be.  It underscores just how important global events can be to U.S. mortgage markets.


For example, corporate earnings continue to improve and key elements of the economy are strengthening.  Even the Federal Reserve acknowledges this.  In most circumstances, that would be a boon for the stock markets and bond markets would suffer, including mortgage bonds.


Last week, that wasn’t the case.


Early in the week, as (1) China tightened its monetary policy, (2) Greece did little to quell lingering default fears, and (3) Spain raised its deficit forecasts, global investors sought to reduce their collective risk exposure. For safety of principal, many sold some of their more aggressive positions and moved the cash proceeds into the U.S. bond market — which includes mortgage bonds.


On Wall Street, this type of trading pattern is called a “flight-to-quality”.  Because mortgage bonds are backed by U.S. government entities, the debt is considered to be ultra-safe.  Last week’s extra demand for bonds helped to push prices up and mortgage rates down.


And that was before Friday’s weak jobs report. Although the Unemployment Rate fell to 9.7%, the government reported a net loss of 98,000 jobs last month and this, too, helped mortgage rates tick lower.


This week, we’ll hope for momentum to continue.


There’s very little domestic news to move rates this week so keep an eye on the global market for similar stories like what we saw last week.  Or, if you’re not sure what to look for, just give us a call (Click Above Right Icon) or send us a message and we’ll be happy to watch the markets and mortgage rates for you.


		
	    

	
	    

		
		Posted in Economy, Financial Markets, Mortgage Rates		
				|
				
		Tagged , , , , , , , , , 		
			|
	    	    Leave a comment