Portfolio loans represent powerful financing options. Because they are held in house they do not need to conform to Fannie Mae, Freddie Mac, or government (HUD, USDA) criteria many common limitations do not apply. See below. /// Rates were up a bit this week. Rate summary below. /// FHA refinances without appraisal, and no closing cost options. See below. - Paul
Portfolio loans
The pricing of portfolio loans is reasonable and also heavily Fico dependent. Here are some of the unique features of portfolio loans.
- Fixed rate, ARMs, HELOCs, Jumbos
- Up to 90% LTV without mortgage insurance
- Up to $900K loan amount. (No conforming limits)
- No minimum reserves required up to $900K
- Up to 50% debt to income ratio
- Primary wage earner credit score used to qualify
- 24 hour pre-approvals
- “To be determined” applications with 45 day lock
- HVCC does not apply. I order the appraisal (most cases)
- No condo questionnaires.
- 40% investor concentration on condos
- HELOCs to 85% with credit card and checkbook
- First position HELOCs
- No rate adjustments on cashout
- Foreclosures and short sales allowed
- Rural properties and acreage
- Manufactured home loans to $200,000-80% LTV max
- Refinancing of construction loans to permanent
Rate facts for the week ending Sep 9, 2010 Details
30-yr fixed was 4.35% with an average 0.7% points, up from 4.32% last week. Last year at this time, the rate averaged 5.07%.
15-yr fixed was 3.83% percent with an average 0.6% points (all-time low), unchanged from last week. A year ago the rate averaged 4.50%
5-yr ARM averaged 3.56% with an average 0.6% points, up from last week when it averaged 3.54%. A year ago, the rate averaged 4.51%
1-yr ARM averaged 3.46% with an average 0.7% points, down from last week when it averaged 3.50%. A year ago, the 1-year ARM averaged 4.64%
Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.
FHA refinances
FYI - FHA refinances do not require income qualification. Also no appraisal needed, and no closing cost option (slightly higher rate) is available.
I can be reached at 800-405-0676 (direct), or email.
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"The world can only be grasped by action, not by contemplation"
Jacob Bronowski (1908-1974)
