NO use of tax credit as down pmt - Rates to remain flat? - Fico reqs up for FHA

Rates to remain flat? Rates are now controlled by the Fed through Treasury purchases. Judging by the trend lines, it looks like they want to keep rates roughly where they are now (30-yr fixed around 5%). For rate shoppers - the way to get the lowest rate is to get the loan approved, set for funding, and then use a short-term lock on a rate dip and close. (This strategy for refi's only!) /// Predictably, FHA loan criteria are going up again: 640 Fico or get no loan, or a higher rate. (FHA 540 Fico still available). Read more /// Speaking of Fico, we can often accomplish 50-100 score improvements in just 75 days with a credit makeover. /// Make it a good week folks! - Paul

Tax credit NOT eligible for down payment
Federal officials reversed an earlier decision to allow first-time home buyers to use an $8,000 tax credit to borrow the down payment on a home. Read more. For tax credit details go here. (Remember, you must CLOSE by December 1, 2009 - P).

The real estate bubble won't re-inflate
Over time, homes track with inflation and bubbles rarely re-inflate. In fact, some housing markets will break below historic averages. Read more.

Rates basically flat
For the week ending May 21st the 30-year fixed averaged 4.82% with an average 0.7% fee, down from last week when it averaged 4.86%. This time last year it averaged 5.98%. "Long-term fixed-rate mortgage rates have remained below 5% for the past 10 weeks as the U.S. Treasury and Federal Reserve keep rates low through security purchases," said Frank Nothaft, Freddie Mac chief economist. Freddie Mac rate surveys.

More takers for 15-year loans
30-year fixed-rate mortgage has traditionally been the go-to loan for borrowers who want stability and lower payments. Read more.

Available
- We are a direct lender: Same day loan approvals!
- 30-day closes!
- Condo (conversion) financing services. Information

- FHA loans down to 540 Fico

- 50-70% LTV stated income loans (600-700 Fico)

- 95% LTV Fannie Mae condo loans

- Loans for non-residents

- Rehab loans and lines of credit

Contact me for further information or assistance.

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"The young man knows the rules,
but the old man knows the exceptions"
Oliver Wendell Holmes (1841-1935)

Posted Sunday May 24