About Tampa's Ballast Point

Are Lower Interest Rates Just Around The Corner?

There is a lot of chatter in my circles that suggest we may be entering a period where mortgage rates fall enough again to spur another run on refinances. The trend has been something taking shape over the last 6 weeks but the excitement came among a couple of pricing improvement's made by lenders yesterday. The last time we were able to offer rates as low as 3.25% for a fixed Rate Loan (05/27/2011) was back in the summer of 2009 when a surge of refinance applications over whelmed the industry due to employee shortages. This time people in the know are noticing a behind the scenes hiring drive by many of the big Banks and Lenders. This suggest they might be ready to lax rates enough to make affordability even more attractive to home owners and home buyers this summer.

Some are saying rates for short term fixed mortgages such as the 5 and 10 year notes may fall into the 2.750-2.99% range and a Government (USDA,VA,FHA) 15 or 20 Year Fixed Rate Loan could be in the 3.250-3.500% range. This remains to be seen but it would be a really good thing for the over all economy if that were to happen.

The key is to control the origination's so as not to overwhelm the people who are processing files for these lenders. That is the thing that keeps lenders from lowering rates suddenly to increase volumes. So it would appear a hiring run of service personal and the lack of cut backs in the loan originator area along with the recent slowly downward movement in pricing could be the signal that they ready to slowly drop those even lower.

No Money Down Rural Housing USDA Loans in Ballast Point Florida are back and fully funded. The new sub-prime loans of today are the government backed or sponsored loans. The FHA Loan is one we are all familiar with but how many of you know about the USDA Rural Housing Loan.

Here's how it works

100% financing on homes located in certain geographical area's with borrower's who are in certain income ranges.

That's it!

Use this link to see if the property qualifies by falling into one of the designated geographical area's

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Remember when income qualifying to use the income of the ENTIRE family.

Seller can pay up to 6% of buyers closing cost

The 3.5% Guarantee Fee is included (Financed) in with the loan amount

100% of borrowers cash to close can come from a gift.

Must have a minimum credit score of 640.

USDA Loans are Assumable

No Manufatured Homes

For a list of Income limits by Region go to:

http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html

Hi I'm a Realtor and I've never written an offer using the FHA 203(K) Loan

Once you receive the written Pre-Approval from the lender and your buyer has located a property make the offer with a provision in the sales contract that "The buyer has applied for Section 203(K) Financing and "The contract is contingent upon loan approval and the buyers acceptance of the additional required improvements as determined by HUD or the lender.

The expense of the Preliminary Feasibility Analysis is charged to the buyers of the property in advance of the loan closing but is refunded back to them at the time of the loan closing.

Should the buyer back out upon the results of the Feasibility Analysis; the fee is NOT refundable.

Search here for a local Certified 203(K) Contractor to do your Preliminary Feasibility Analysis.

It is important to remember that HUD may require additional repairs that the borrower did not plan on doing.The additional repairs must be completed in oder to secure any loan.

No Money Down Rural Housing USDA Loans in Hillsborough County Florida are back and fully funded. The new sub-prime loans of today are the government backed or sponsored loans. The FHA Loan is one we are all familiar with but how many of you know about the USDA Rural Housing Loan.

Here's how it works

100% financing on homes located in certain geographical area's with borrower's who are in certain income ranges.

That's it!

Use this link to see if the property qualifies by falling into one of the designated geographical area's

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Remember when income qualifying to use the income of the ENTIRE family.

Seller can pay up to 6% of buyers closing cost

The 3.5% Guarantee Fee is included (Financed) in with the loan amount

100% of borrowers cash to close can come from a gift.

Must have a minimum credit score of 640.

USDA Loans are Assumable

No Manufatured Homes

For a list of Income limits by Region go to:

http://www.rurdev.usda.gov/HSF-Guar_Income_Limits.html

Preliminary Feasibility Analysis for an FHA 203k Loan

First of all the Buyer decides to have a Consultant prepare a Work Order. After of which an FHA Plan Reviewer can review the proposal to ensure it is properly prepared.

or

The buyer has a Certified 203(K) Consultant prepare the work order proposal and then the buyer selects a contractor to do the renovations under the terms and conditions outlined by the Consultant.

I recommend you hire a Certified 203(K) Consultant.

The purpose of the Preliminary Feasibility Analysis is:

1. To determine the extent of the rehabilitation work required;

2. Get a rough cost estimate of the work; and

3. Determine the market value of the property after completion.

The buyer does not want to spend money on plans and repair specifications only to find out the house did not APPRAISE for the purchase price causing complications in the loan Approval.

A priliminary examination can often be done by the home buyer and their Real Estate Professional via a Marketability Analysis.

This is often done prior to hiring a 203k Consultant to prepare a report. The most important element in my opinion is the availability of additional sales comps in the area once the work is complete.

That concludes the use of the Preliminary Feasibility Analysis for an FHA 203k Loan.

What is determined in a feasibility analysis?

When a property is located, the homebuyer and real estate professional (agent, broker or 203k consultant) should determine:

• How much rehab work will be required
• How much will the rehab and repairs cost
• How much will the property be worth, once the planned rehab work is completed. (It is important to know early in the process whether or not the value of the property will be greater than the cost of the improvements.)

After the preliminary feasibility analysis is completed, a sales contract will be executed. Then, the homebuyer will choose an FHA-approved lender. How much does a 203k Consultant cost?