Brian Foxworth SC, GA, FL, & TN Mortgage Loans

FHA has announced proposed guideline changes for the near future. Once the release the facts and start dates for any changes, I will update the details then. Here are some of the proposed basics they are looking at right now:

* Current FHA upfront MIP is 1.75% (this is typically financed on top of the loan amount) Change to 2.25%

* Current FHA monthly mortgage insurance premium is .55% Possible change, not disclosed amount yet

* Seller Concessions currently 6% (The basic guideline does not include seller paid closing cost as part of the Concessions, but things like a microwave, blinds, etc.) Change to 3% (We will confirm if the seller paid closing cost and pre-paids will change to 3% also)

* Minimum credit score of 580 (this is FHA's current guideline, but most investors are set at a 620 minimum) FHA is proposing a change for buyers under 580 to get a loan with 10% down payment (Not clear if the 10% can be a gift yet and/or if any investors will drop their current minimum to allow this)

As soon as we know the actual changes and their effective dates, I will let you know. If I can help you or any of your clients now to get them into a home before any such changes are made, just let me know.

You can Apply for FHA and other Mortgage Programs on my secure website at www.BrianFoxworth.com

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UPDATE 1/21/10

Current FHA upfront MIP is 1.75% (this is typically financed on top of the loan amount) Change to 2.25% Upfront MIP on April 5, 2010.

No word yet on the Seller Concessions for Closing Costs Proposed changes.

Get your Mortgage Loan before it becomes More Expensive!!!!!

Historically, December is always slow for me. I have just chalked it up to people don't want to buy a house during Christmas when they are needing to buy presents, going to parties, finishing Thanksgiving leftovers....

However, this year is different. I have received more mortgage applications this month than the last 2 combined. I was talking about this to one of my Realtors who sent me 3 Buyers last night and she said that it was the same for her -suddenly her phone is ringing and clients are wanting to look at houses this month more than previous months.

She said that it is as if people are starting to realize that no matter what the media says -the economy is going to get better and now is the time to take advantage of these low rates!

Is you Housing Market Changing?

For Better?

For Worse?

This morning rates went down to 5.125% for a 30yr fixed Conventional 80%ltv Owner Occupied $160,000 loan with a 740 score (5.354% APR). I was doing my Happy Dance when I saw this until I started contacting my watch list...

I have been contacting everyone on my Watch list who has told me - "When rates drop to below 5.50% let me know so I can refinance or buy!"

What I'm amazed at is how many people have been watching the news about the Treasury's announcement yesterday and think that the rates should be 4.50% or that they want to wait until the rates hit 4.5%.

Folks, the headline says, "WASHINGTON (MarketWatch) - The Treasury Department is contemplating a proposal that would cut mortgage rates for new loans for homes, according to the Wall Street Journal. "

Contemplating means they are thinking about it, mulling it over, wondering if it will work - NOT A DEFINITE DECISION! By no means can we count on this happenening.

But you can count on the rates as they are availlable.

5.125% is the lowest rate we have seen this year -yet people who want to wait for a lower rate might miss the opportunity if rates pop back up and the Treasury decides that the propsal the are contemplating just won't do the trick.

I guess I see it like the Ginger breadhouse my daughter made with my parents over Thanksgiving - they decorated this beautiful gingerbread house that came already made from Walmart -all they had to do was add the candy, frosting and other small pieces that make it fun.

But when it came down to eating the Gingerbread House -it was as hard as a rock because my parents bought one that had sat on a shelf for a while and wasn't suitable for consumption any longer. They wanted to get the best one they could but they did not buy it at the right time - or they did not pick out the best one available to them at that moment.

Mortgage rates are a lot like that Gingerbread house -if you don't take advantage of the rates while they are low and just keep waiting for a possibilty of lower rates in the future -you may have to settle for a rate that is not as edible as the one I have been trying to contact my watch list for.

You mortgage professionals are professionals for a reason - because they try to get you the best terms to save you money on your next purchase or refinance. Instead of listening to the news - listen to the person you know and can speak face to face with.

So what do you want -a rate that might possibly come or a rate that you can lock today?

For those buyers who already reside in Richland County there is Down Payment /Closing Cost Assistance available to you if you Choose to Purchase a home in the unincorprated areas of Richland County.

Here is how it works:

This forgivable loan can be used with any program FHA, VA , Conv, etc...

Applicants:

1. MUST BE Residents of Richland County at the time of application -no exceptions
2. Must be qualified as a HUD low to moderate income household (dependant upon how many people in household)
3. Must attend Program Orientation and pay $100 Application fee offered only ONCE A MONTH - November 18^th, Dec 16^th, Jan 23^rd .. (4^th Tuesday of every month from that point on)
4. Must attend Home Buyer training and Home Maintenance training (times and dates offered given at Orientation meeting so no one can crash the party)
5. Must purchase a home that will pass "rigid" inspection, built after 1978, and be in unincorporated areas of Richland County (not within city limits of Columbia, Irmo, Chapin, or any other city or town in Richland County)

This is what Richland County has to say about it:

GOAL
To provide down payment and/or closing cost assistance to first time home buyers.

MAXIUM LOAN AMOUNT
$5,000

ELIGIBLE APPLICANTS

•· Must be a resident of Richland County

•· Must be qualified as a household of low to moderate income (See HUD income guidelines)

•· Must be employed. If applicant is not employed, he/she must provide income documentation supporting the following:

Disability Benefits
Social Security Benefits
Other Retirement Benefits

ELIGIBLE PROPERTIES
Single family dwellings located in the unincorporated area of Richland County. New and existing homes, town houses, and condominiums are qualified properties if they were built after 1978. (Each property must be able to pass rigid inspection that will guarantee the home is livable, safe and does not require immediate repair.)

PROGRAM REQUIREMENTS

•· Attend Program Orientation

•· $100 Application Fee(Money Order or Cashier's Check) No Personal Checks

•· Attend home buyer training and home maintenance training (information will be provided at the Program Orientation

LOAN DESCRIPTION
The assistance will be provided in a five-year deferred forgivable loan. Approved applicants must live in the purchased property for five years (from the time of closing) for the loan to be forgiven. If the approved applicant does not stay in the home for the five-year period, the assistance must be repaid based on a prorated formula. (20% per year)

Contact me at 803-446-3270 or email at BFoxworth@PalmettoSouth.com for more details. I look forward to helping you finance your new home with $0 down payment out of your pocket.

Election Day is here and the world is on the edge of it's seat to see who will be the next Presdient.

I love this country and I am proud to be able to vote for our next President -however, this post is not about predicting who you think will be President.

It's about what you predict the Economy will do when the next President is announced.

Do you think the Economy will continue to collapse at a steady pace?

Do You think it will Crash and Burn?

Or Do you Predict this Country will be given new life and resuscitated with people no longer being afraid to buy a home now that we know who the next President will be?

I Predict that Americans will be happy to know who the next President is, we will see lower interest rates, people will start buying houses, stop riding the fence, and our Economy will be on it's way back from our near death experience.

What is Your Prediction?