“World's Most Complete Neighborpedia”
Sponsor a Community — What is Localism? | Register or Sign In
Explore:   What's happening in your neck of the woods?
Home Paul Luykx

Paul Luykx

Blog_tag

New FHA condo rules - Tax credit extension? - Min down pmt to 5%?

10-10-09
Paul Luykx
There are new FHA condo rules. Just like with the new Fannie rules you will be disappointed if you think it will make things easier. Details. // Speaking of FHA, it looks like the minimum down payment may go to 5%. // Rates eased yet further this week. // Basically 2 weeks left for sales that need to close by Nov 30th to take advantage of the tax credit! // Make it good week folks! - Paul

What is credit repair?
Credit repair seeks to permanently remove derogatory items that will otherwise depress credit scores on a long-term basis. In essence it involves delivering proof of inaccuracy OR requesting creditors to deliver the proof of accuracy. If they cannot deliver, or will not (happens a lot), the items in questions will likely be removed. The whole process can deliver drastic score improvements and while conceptually simple - the devil is in the details. Contact me to make your clients "mortgage ready" !
New FHA condo rules
- Spot approvals eliminated
- No more than 30% of units can be financed with FHA loans
- 50% pre-sale requirement for new projects
- At least 50% of units must be owner occupied
- Read more

Long-term rates easing further
The 30-yr fixed is down from 4.94% to 4.87% with 0.7% fees and points this week. This time last year the 30-yr fixed rate was 5.94%. Freddie Mac rate surveys
Home Buyer Tax Credit extension likely
Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said. Read more. (Don't count on the same terms, if and when. Last year's "tax credit" was nothing more than an interest free loan - P)
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
Contact me for excellent service.

____________________________________

"When you have a dream, you've got to grab it and never let go"
Carol Burnett
1 Comment
Blog_tag

New Fannie condo rules - Fico fixes - Rates down

10-09-09
Paul Luykx
There are new Fannie condo rules. If you think it will make things easier you will be disappointed. Details. FHA is also introducing new rules. More on those next week. /// Rates are still edging downwards. /// Time will soon be running out for November closes (tax credit)!! /// Make it good week folks! - Paul

Credit score fixes - the basics
1. Credit repair - a long-term fix to permanently increase scores (75 days)
2. Rescoring - a quick fix to qualify for a loan or better rate (5 days)
Either fix (or a combination) can deliver increases over 100 points. For further information, please contact me.
Avoid stipulating mortgage and closing dates
I recommend not defining mortgage and closing dates upfront to avoid a self-created time crunch. You could define the time frame as "x days following receipt of the signed, accepted purchase contract" or something like that.

Long-term rates remain low, increasing affordability
"The 30-yr fixed is down from 5.04% to 4.94% with 0.7% fees and points this week. Freddie Mac rate surveys
Manhatten market stabilizing
Though Manhattan home prices continued to fall this past summer, a surge in sales activity coupled with a decline in the number of properties on the block show the market could be turning a corner. Read more.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
____________________________________
"A billion here, a billion there,
and pretty soon you're talking about real money."
Everett Dirksen (1896-1969)
2 Comments
Blog_tag

An end to low rates? - Home sales slide in August - Credit habits - Rates flat

09-26-09
Paul Luykx
The Fed is now buying up to 80% of ALL mortgage backed securities.
The Fed started buying billions of MBS in January to support the housing market, and says it will phase out the program over the next 6 months. This could lead to drastic rate increases. Read more. /// Lenders are upping Fico standards. Credit scores are increasingly more important. They determine IF you get credit and at what RATE. /// Make it good week folks! - Paul

Good credit habits - the basics
1. Pay your bills, on time :))
2. Keep credit card balances below 50% of the limit.
3. Don't apply for credit excessively. Frequent inquiries can reduce score.
4. Don't close accounts unless you feel you need to. Reduces credit history.
For more credit score information go here.
Unemployed homeowners may get assistance
Potential financial assistance in the form of grants and loans is being discussed by the Obama administration and major lenders for unemployed home owners. Read more

Long-term rates remain low, increasing affordability
"The 30-yr fixed remained unchanged this week at 5.04% with 0.6% fees and points. See Freddie Mac rate surveys
Commercial prices continue to drop
From June to July, commercial prices fell 5.1% according to Moody's/REAL Commercial Property Price Indices. Read more.
Existing home sales slide unexpectedly in August
The NAR said sales of existing homes fell 2.7% in August. Compared to 12 months ago that pace is up 3.4%, but analysts were expecting a 2.1% boost this month due to low mortgage rates and the soon-expiring tax credit for first-time homeowners. Read more.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
____________________________________

"Wisdom begins in wonder"
Socrates (469-399 BC)
1 Comment
Blog_tag

FHA Fico still at 620, but... - HB Tax Credit gridlock on the horizon - Rates down again

09-20-09
Paul Luykx
The industry standard for FHA loans remains at 620 - for now. It appeared for a little while the standard would be raised to 640, 660 even. (Regardless, I do have FHA and other solutions for scores as low as 500). /// You can still count on FHA standards increasing however. /// 203(k) loans remain the single best (and virtually only) option for rehab/renos. New alternatives are expected soon. Stay tuned. /// There is gridlock on the horizon due to the homebuyer tax credit which requires sales to close by the end of Nov. 30th. Get your mortgages fully pre-approved to minimize the chances of delays! /// Make it good week folks! - Paul
Federal incentives coming for short sales, deeds-in-lieu/default
The mortgage servicing industry in coming weeks will see details of an incentive program aimed to prevent foreclosures by encouraging servicers to pursue short sales and deeds-in-lieu of foreclosure. Read more
Homebuilder confidence up
Low mortgage rates are aiding new home construction. Housing starts for single family homes have increased consecutively over the five past months ending in July, although starts eased slightly in August. Moreover, homebuilder confidence improved for the third straight month in September, with all four regions showing positive gains, according the National Association of Home Builder’s Housing Market Index

Long-term rates down for 3rd consecutive week
"Interest rates for fixed-rate mortgages eased for the third consecutive week and remained at 3-month lows," said Frank Nothaft, Freddie Mac vice president and chief economist. "Interest rates for 30-year fixed-rate mortgages have averaged just above 5% through mid-September, which is roughly 1% below last year’s average and suggests that 2009 may reach a record annual low since the Freddie Mac rate surveys started in 1971.
Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
____________________________________

"What is not started today is never finished tomorrow"
Johann Wolfgang von Goethe (1749-1832)
1 Comment
Blog_tag

Current reno/rehab/construction loan options

08-23-09
Paul Luykx
Construction/renovation loan options are limited at the moment. Below is a synopsis of the current landscape. Meanwhile rates are back to May levels, purchase volume is up, affordability is up, and prices are still declining - Sounds like the basics for a good market are here. Make it a good week folks! - Paul
The most popular reno/rehab loan is the FHA option 203(k), available for owners and purchasers. Basically, as long as the foundation remains in place (you can still expand the footprint of the house), it is owner-occupied property, and the applicants qualify for an FHA loan, it's a go. Prospect Mortgage is an active 203(k) lender.
Outright construction loans are tougher to get approved on conventional terms. Fannie/Freddy are not buying them at the moment, and portfolio loans cost more, so it can be expensive. Yet in many cases it involves the acquisition of distressed property so the additional expense is offset by profit. If it involves owner-occupied property I will also arrange the permanent loan up front, so the borrowers are sure they can refi when the property is finished and not get stuck in a high interest loan!
Homepath mortgages are an option, but only for Fannie Mae owned property. Prospect Mortgage is an approved lender under the program. Fannie cooperates with realtors. Great deals and currently the best financing options for investors! Check the details here.
Developer financing is available for financially strong and experienced borrowers. Loan- and cost-to-values, structure, and cost of borrowing span a wide range.
Personal credit scores are valuable: Higher scores means more options and better pricing. Above 700 is a good thing. Below 660 I often recommend credit make-overs.

Available
- Direct lender for FHA, Fannie, Freddy, VA, USDA, Jumbo, and other loans
- Same day loan decision (pre-approvals)
- 30-day closes (45-days for FHA)
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico needed)
- 90% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property loans
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
____________________________________

"First say to yourself what you would be, then do what you have to do"
Epictetus (AD 55 - AD 135)
2 Comments