Lora Coscia

We guess that time will tell soon as it appears the Federal tax credits for eligible buyers and sellers will come to a close as of next week, April 30, 2010, the last day to be under contract to purchase and be eligible to apply for the tax credit. Even those who are lucky enough to get under contract must close by June 30, 2010. So for all those buyers and sellers who've been a bit hesitate better step it up this week or miss out on a nice credit!

Lenders are very busy (and very grateful for that!) and you may indeed need more than a 30 day lock during this time so even though you may get better pricing for 30 day locks a longer lock will protect the interest rate you obtained. Getting an extension on your original lock will be easy enough but it usually isn't free. Your extension could cost anywhere from .125% of your loan amount to 1.0%, depending on where the rates have gone since your lock. If they've stayed fairly close to your original amount it will be a lower cost but if the rates have increased considerably, it will be more costly. This is an expense that can be avoided, so at least ask about a longer rate when discussing your options with your loan officer.

We're keeping our fingers crossed for all our sakes! Be safe out there!

ALL FHA BUYERS! You MUST have your lender pull an FHA case number by this FRIDAY, APRIL 2, 2010 in order to avoid the higher up front mortgage insurance premium. It's increasing from 1.75% to 2.25% which is added on top of the mortgage therefore increasing the monthly payment. It won't be outrageous but still an increase nonetheless.

FEDERAL TAX CREDIT - Don't forget about the deadlines for this credit. Your buyers and/or sellers if they qualify, must be in a ratified contract no later than April 30, 2010 and close no later than June 30, 2010 in order to qualify for this credit. We've heard no talk at this point of any further extention time.

That's all for now folks! HAPPY SPRING!

This won't be as important to Realtors as much as it will for customers who need to refinance for whatever reason.

Effective November 1, 2009 HUD will enforce some new rules for FHA Streamline refinance loans. We're going to have a BIG meeting next Wednesday and I'll post more information afterwards but here are some of the highlights so far.

If subordinate financing is remaining in place, the maximum combined loan-to-value ratio is 125 percent.

For streamline refinance transactions WITHOUT an appraisal, the CLTV is based on the original appraised value of the property.

For streamline refinance transactions WITH an appraisal, the CLTV is based on the new appraised value.

Currently customers who have suffered a significant decrease in value can refi the 1st using and FHA loan and keep the second mortgage or HELOC in place with no consideration to the combined loan to value.

STREAMLINES WITHOUT AN APPRAISAL, WILL NOT BE ABLE TO ADD IN CLOSING COSTS; & EVEN WITH AN APPRAISAL, CANNOT ADD IN DISC PTS

Currently there is no need to obtain and appraisal for a streamline rate/term refinance. Some other factors must be met such as no late payment in the past 12 months, etc.

Keep in mind that should you need an appraisal and the value is not within the guidelines of maximum loan to value, you may have just wasted $425-$500 for an appraisal plus any other additional fees incurred in the process.

I'll post more details in about a week. I can't wait to see what else the "powers that be" can do to put us all in the poorhouse!

Have a great weekend! Lora

If you want to take advantage of the $8000 Federal Tax Credit you MUST CLOSE BY NOVEMBER 30, 2009!!!

There are still plenty of nice homes for sale! Take advantage of the negotiability in dealing with the seller, whether it be the current owners or the bank with a short sale or foreclosure.

Take advantage of the long weekend and call us to get pre-qualified to buy now! We'll be available so why wait any longer, DO IT NOW! We only need income information and credit information to determine your buying power. It's easy and painless!

Realtors want you to be pre-approved or pre-qualified prior to showing you a home. It's in YOUR best interest as well. You only want to look at homes you are able to purchase, not ones you can't afford. You set yourself up for disappointment by doing that. Save you and your realtor time and gas!

SPECIAL RATE for purchases only over $200K - 4.875% with 1 Origination Point FHA/CONV Fixed 30 year

FHA has the 3/1 ARM available at 3.875% with 1 Origination point too if needed.

VA buyers can get 100% financing and ask the seller to pay all closing costs!!!!

Make this a holiday weekend to remember!

FHA is now offering ARMS again!

Yes indeed! You heard right! Buyers now have the option to use either the 3/1 ARM or the 5/1 ARM when purchasing a new home which enables them to qualify for more house since they will qualify at the 1st year note rate.

Today's rate (5/2/09) is:

3.75% with 1 Origination point for a 54 day lock. Caps 1/1/5 Margin 2.0

THe 5/1 ARM is slightly higher of course but it has Caps of 2/2/6 which clearly makes the 3 year arm a much more attractive choice. Since the 3/1 ARM has the 1% per year cap in 2 years the rate at worst would be 5.75%. THe cap for the life of the loan would be maxed out at 8.75% but if the circumstances of the buyer would fit this type of situation the ARM might be a great alternative for them.

VA is also offering a ARM but we must call into marketing for quotes on these.