1) The Senate approved legislation that would cut in half the down-payment requirement for loans obtained from the Federal Housing Administration. The bill also raises the maximum loan size to $417,000. - change your paradigms! This isn’t your parents FHA loan!
There are millions of your renters out there with 1.5% for a down payment!
2) First time home buyers - add this tool to your browser:
to preview and/or download the Becoming a Successful Homeowner book. Available in English or Spanish.
3) Fannie Mae revised yet another guideline on 12-05-07 (announcement 07-23) regarding sales concessions VS financing concessions. Financing concessions like origination, discount, are acceptable as far as concessions paid by the seller or Realtor because they are normal and customary.
SALES concessions however are NOT normal and customary to the financing transaction and are treated as follows and I quote… “Sales concessions that take the form of non-realty items such as cash, furniture, automobiles, decorator allowances (paint and carpet), moving costs, or other giveaways, pre paid HOA dues are considered sales concessions and the value of such concessions MUST BE DEDUCTED FORM THE SALES PRICE WHEN CALCULATING THE LTV RATIOS”
In plain English = carpet allowances or any such NON typical item needed for the financing of the home will be valued and deducted from the sales price to determine the new loan amount….
Translation =
OLD RULE = 100K home, 5% down = 95K loan
NEW RULE = With a 5K “sales” concession, you deduct 5K from sales price = 100K – 5K = 95K
Buyer gets a 95% loan from 95,000 which means the loan amount now is 90,250.
HOWEVER, you are buying a 100K home so that means more money down.
Payment abatements are no longer eligible to be delivered to Fannie Mae effective immediately! (seller pays for first few months of payments for buyer)
"Striving to be...your lender for life!"
480-619-4411 - office
1910 S Stapley Dr #107
NW corner of Stapley & Baseline
480-540-3596 - cell
480-344-7968 - e-fax
cbohall@submort.com
www.submort.com/
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