Real Estate Information

As we head into 2009 interest rates remain spectacular.  Lending rules changed dramatically throughout 2008 so here is a quick snapshot of the basic rules of lending as of today.  VA loans still allow 100% financing up to a loan amount of 417k.  USDA/Rural still allows 100% financing in designated geographical areas.  FHA loans now require a minimum 3.5% down payment and the maximum loan amount is $271,050.  Conventional loans require a 5% down payment with a maximum loan amount of 417k (some other lenders are requiring 10% down for conventional).  Every loan now requires documented income and assets (No more Stated Income at any fico score or any down payment %).  Investor loans now require a minimum 20% down and Investor rates are much higher at any fico score and any down payment.  FHA loans still allow for credit scores as low as 580. 

As of 1/1/2009 based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Doc Income Verification, paying one “point.”  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 5% (Requires PMI)
80% 30 year Fixed = 5%
95% 15 Year Fixed = 4.75% (Requires PMI)
80% 15 Year Fixed = 4.75%
97% FHA 30 Year Fixed = 5% (Requires MI)
100% VA 30 Year Fixed = 5% (No PMI required)
100% USDA 30 Year Fixed = 5.5% (No PMI required)
70% 5 Yr ARM up to $850k = 5.125%
75% 30 Year Fixed up to $750k =5.8%
203k Rehab Financing Available (Primary Residence)
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
E-Fax: 602.889.2258
ryan@hsmove.com

Low Rates, Low Rates, Low Rates.  That would be the theme in the lending industry these days.  How low you might ask?  It depends on when you ask the question.  Every morning between roughly  8am and 9am Arizona time, every lender in the industry publishes their 3 to 6 page rate sheet based on current market conditions.  In the “old days” (in the lending industry that means about a year and a half ago) rates sheets were fairly stable and slow moving from day to day and even week to week.  In the last couple of months it is not uncommon for lenders to change their rate sheets two and three times per day due to swings in  market conditions.  The other big change to the look and feel of all rate sheets within the industry seems to be shift in the “power of paying a point.”  It used to be pretty universal that paying a point only lowered a borrower’s interest rate by about .25% to .375%.  Right now, the industry standard seems to have moved to paying a point lowering the borrowers rate by .5% or more.  The other big change is that a 15 Year Fixed used to be 1% lower in rate than a 30 Year Fixed but now there is almost no difference.  Below is a snapshot of this morning’s rates based on paying one point.  I wish you and your family a Safe and Merry Christmas and Holiday Season!

As of 12/19/2008 based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Doc Income Verification, paying one “point.”  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 4.875% (Requires PMI)
80% 30 year Fixed = 4.875%
95% 15 Year Fixed = 4.75% (Requires PMI)
80% 15 Year Fixed = 4.75%
97% FHA 30 Year Fixed = 5% (Requires MI)
100% VA 30 Year Fixed = 5% (No PMI required)
100% USDA 30 Year Fixed = 5.5% (No PMI required)
70% 5 Yr ARM up to $850k = 5.25%
75% 30 Year Fixed up to $750k =6.05%
203k Rehab Financing Available (Primary Residence)
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Interest Rates dropped even more this week and are at the best levels in recent history.  Check them out below and feel free to call or email with purchase or refinance questions or scenarios.  Also keep in mind that FHA is making two major changes on January 1, 2009.  The minimum FHA down payment goes from 3% to 3.5%.  Borrowers can be “grandfathered in” and are  allowed to do the 3% down payment as long as the FHA case # is established in 2008.  But, the upcoming changes in maximum loan amount are based on close dates.  Any FHA loan between $271,050 and $346,250 must close by December 31 per the FHA announcement made last week.

As of 12/12/2008 based on a 200k Primary Residence Purchase (or a no cash out refinance), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 5.25% (Requires PMI)
80% 30 year Fixed = 5.25%
Pay 1 point for a 30 Year Fixed = 4.75%
95% 15 Year Fixed = 5% (Requires PMI)
80% 15 Year Fixed = 5%
97% FHA 30 Year Fixed = 5.5% (Requires MI)
99% FHA 30 Year Fixed = 7.5% (Requires MI)
100% VA 30 Year Fixed = 5.5% (No PMI required)
100% USDA 30 Year Fixed = 5.75% (No PMI required)
70% 5 Yr ARM up to $850k = 5.625%
75% 30 Year Fixed up to $750k =6.55%
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Interest Rates have dropped over a half of a percentage point in the past week and a half.  A borrower can pay no points and get a 30 Year Fixed Rate Mortgage at 5.5%!!!!!!!  The Treasury and Federal Reserve announced that they will buy hundreds of Billions of dollars in Fannie/Freddie Mortgage Bonds.  This move increases the demand for Mortgage Bonds.  Lenders then lower interest rates to produce more Mortgages to satisfy this increased demand.  It’s an incredible time to get a low interest rate on a great priced home in our market.  I would also be more than happy to do your refinance!

As of 12/5/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 5.5% (Requires PMI)
80% 30 year Fixed = 5.5%
95% 15 Year Fixed = 5.125% (Requires PMI)
80% 15 Year Fixed = 5.125%
97% FHA 30 Year Fixed = 5.625% (Requires MI)
99% FHA 30 Year Fixed = 7.5% (Requires MI)
100% VA 30 Year Fixed = 5.625% (No PMI required)
100% USDA 30 Year Fixed = 5.625% (No PMI required)
70% 5 Yr ARM up to $850k = 5.625%
75% 30 Year Fixed up to $750k =6.35%
Commercial Financing also available

For more information contact,

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

 

Interest Rates are down from last Friday.  Did you know that Smart Financial Mortgage has access to an FHA Down Payment Assistance Loan Program which allows buyers to only need a down payment of just over 1%?  Buyers do not need to be first time homebuyers but they cannot own any other real estate and must make less than $73,830/year.  The buyer needs the income/credit to qualify for an FHA loan and this program can only be used for a Primary Residence purchase.  The rates and closing costs are higher than a standard FHA loan but the lower down payment requirement might be worth the tradeoff to many buyers.  Feel free to call or email for more details on this program.

As of 11/20/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 6% (Requires PMI)
80% 30 year Fixed = 6%
95% 15 Year Fixed = 5.625% (Requires PMI)
80% 15 Year Fixed = 5.625%
97% FHA 30 Year Fixed = 6.25% (Requires MI)
99% FHA 30 Year Fixed = 7.5% (Requires MI)
100% VA 30 Year Fixed = 6.25% (No PMI required)
100% USDA 30 Year Fixed = 6.5% (No PMI required)
80% 5 Yr ARM up to $600k = 5.75%
75% 5 Yr ARM up to $1.5M =5.75%
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Interest Rates have dropped since last Friday.  Keep in mind that several loan programs will change on January 1, 2009.  The FHA minimum down payment goes from 3% to 3.5%.  The FHA maximum loan amount goes from $346,250 down to around $318,550.  Once a buyer has a purchase contract we can establish an FHA case number which is the date used for cutoffs.  Also, the USDA “Rural” Housing Program will eliminate some of the areas that are currently still eligible for 100% financing.  Right now Buckeye, Maricopa (the city), and parts of Anthem and Queen Creek are all still eligible for 100% financing on this program. 

As of 11/7/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 6.25% (Requires PMI)
80% 30 year Fixed = 6.25%
95% 15 Year Fixed = 5.75% (Requires PMI)
80% 15 Year Fixed = 5.75%
97% FHA 30 Year Fixed = 6.375% (Requires MI)
100% VA 30 Year Fixed = 6.375% (No PMI required)
75% Stated Income 30 Year Fixed = 7.5%
80% 5 Yr ARM up to $600k = 5.75%
75% 5 Yr ARM up to $1.5M =5.75%
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Interest Rates have increased since last Friday.  Smart Financial Mortgage now offers the FHA 203k Streamline Loan Program.  This program allows a buyer to finance up to $35,000 worth of repairs and upgrades into their loan amount.  Eligible improvements include Roofs, HVAC, Plumbing, Electrical, Flooring, Painting, Appliances, Windows, Doors and Kitchen Cabinets just to name a few.  Normal FHA qualifications apply and this program may only be used to purchase a primary residence.  Many times sellers will drastically reduce their listing price if they think the buyer will not be able to obtain a loan due to the condition of the property.  This program can enable a buyer to get a “cash buyer price” while still obtaining financing to buy and fix up the property.

As of 10/31/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals.

95% 30 Year Fixed = 6.5% (Requires PMI)
80% 30 year Fixed = 6.5%
95% 15 Year Fixed = 6.25% (Requires PMI)
80% 15 Year Fixed = 6.25%
97% FHA 30 Year Fixed = 7% (Requires MI)
100% VA 30 Year Fixed = 7% (No PMI required)
75% Stated Income 30 Year Fixed = 7.5%
80% 5 Yr ARM up to $600k = 5.75%
75% 5 Yr ARM up to $1.5M =5.75%
Commercial Financing also available

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Interest Rates are unchanged from last Friday once again.  FHA loans continue to be very popular since they allow the lowest minimum down payment (other than VA which is 100%).  There are two changes on the horizon for FHA loans.  Effective January 1, the minimum required down payment goes up from 3% to 3.5%.  Also, the FHA maximum loan limits will change.  There has not been an official announcement but rumors are that our maximum loan limit in Maricopa County will be lowered from $346,250 down to $318,550.  FHA bases their maximum loan limits on the Median Sales Price which has been dropping.

As of 10/3/2008 based on a 200k Primary Residence Purchase (or a no cash out refi), 720+ Credit, Full Doc Income Verification, paying no discount points and no origination fee.  Please note, this information is intended for Real Estate Professionals and is not a solicitation to consumers.

95% 30 Year Fixed = 6.25% (Requires PMI)
80% 30 year Fixed = 6.25%
95% 15 Year Fixed = 5.875% (Requires PMI)
80% 15 Year Fixed = 5.875%
97% FHA 30 Year Fixed = 6.5% (Requires MI)
100% VA 30 Year Fixed = 6.5% (No PMI required)
75% Stated Income 30 Year Fixed = 7.5%
80% 5 Yr ARM up to $600k = 5.875%
75% 5 Yr ARM up to $1.5M =6%

For more information contact:

Ryan Halldorson
Smart Financial Mortgage
Senior Mortgage Consultant
1715 W Northern Ave. #101
Phoenix, AZ 85021
Phone: 602.793.7204
Fax: 602.889.2258
ryan@hsmove.com

Hardship does not discriminate. ANYONE can find themselves in a situation where they need a short sale. Even Ed McMahon, the former announces on the Today show. Click here to read the full article.

Good piece on the basics of a Short Sale, and the importance of working with an experienced Realtor.

Top three tips for Sellers:

1. Call your bank to explore your options.
2. Contact a Realtor who has experience with Short Sales.
3. Seek legal counsel to understand your rights under the settlement. To this we would add - seek tax and credit counsel as well.

Top tip for Buyer:

1. Contact a Realtor who has experience with Short Sales.

 Click here to view the full Episode.