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Paul Luykx

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New beginnings - 203(k) - Rates

08-16-09
Paul Luykx
It is time to create new financial beginnings. Roughly 25% of mortgages are underwater, real estate markets may have bottomed, and loan modification possibilities will soon dwindle. For those negatively affected, and who have not already done so, this is might just be the time to make definitive plans for a new financial beginning. Status quo (doing nothing) is not a plan, and will not accomplish this. You can create a new financial beginning by "liquidating and rebuilding" (short sale, foreclosure, bankruptcy), OR "rebuilding" (loan modification, debt settlement, tax resolution, credit repair). I cannot help with liquidation, but I do offer low cost solutions for rebuilding. For further information go here. Make it good week folks! - Paul
 
5 changes to mortgage loans under new Fannie/Freddie rules
Many home buyers are seeking to take advantage of lower home prices, lower interest rates and possibly the federal first-time home buyer tax credit (which expires Nov 30, 2009). But before launching into a mortgage loan, buyers should be aware of how mortgage borrowing has changed. Read
 
203(k) Rehab/Renovation loans
Prospect is on of the few lenders offering 203(k) loans. Qualifications are no different. The process is a little longer, but that's about it. See slideshow.
 
Rates up a bit, and may be trending higher
For the week ending August 13th the 30-year fixed averaged 5.29% with an average 0.7% fees and points, up from last week when it averaged 5.22%. Bond yields keep rising, and it is making me nervous. Freddie Mac rate surveys. 

New beginnings: Loan modification 
Loan modification opportunities are dwindling, and those that wish to pursue it should not delay. The process is now simplified, and cheaper. More info
 
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. 
 
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"If you want to double your success rate, double your failure rate"
Thomas Edison (1847-1931)
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Concessions re-visited - Prequal vs Pre-Approval - Rates may climb

08-09-09
Paul Luykx
Seller concessions are not used enough. All too often people are tight for money at time of close, PMI could have been avoided, or buyers could have benefited from the use of lower payments by way of a (2/1) buydown. More below. // Market alerts seem to point to higher rates. Consider locking now. Again, more below. // The loan modifications scene is a mess. Lenders are not responsive to the point of not living up to their agreements with the Treasury, Go here if you want to read up on it, and here if you are looking for loan modification assistance. // Make it good week folks! - Paul
Why use a seller concession?
There are many more reasons than the obvious to use an SC:
* Reduce the cash required (that was the obvious one :))
* Lower LTV to avoid PMI, or get a better rate
* Qualify at a lower rate, bought down with the SC
* Reduce monthly payments (temporarily) with a SC bought down rate
What's the benefit of a seller concession?
Buyer happy, seller happy, realtor happy - and nobody loses. The essence of an SC is that the seller gets nothing less and the buyer gets to finance the "closing costs". (Note the quotation marks. There is much more than closing costs that can be included). To run scenarios with my Seller Concession Calculator. To read up on SCs go here.

Why NOT use a seller concession?
Here is one: Irrational pushback. Just bringing it up can be risky business. I have witnessed the mere mention of an SC scuttle more than a few deals. Fact is that SCs are allowed with virtually every mainstream mortgage program. It does not mean that the buyer is not qualified, nor does it mean that the seller is selling too cheap. I welcome any feedback on this. Read more

Rates up a bit, and may be trending higher
For the week ending July 6th the 30-year fixed averaged 5.22% with an average 0.6% fees and points, down from last week when it averaged 5.25%. Bond yields keep rising, and it is making me nervous. Freddie Mac rate surveys.

Mortgage bond yields rise to 2 months high; Rates may climb
August 6 (Bloomberg) -- Yields on Fannie Mae and Freddie Mac mortgage securities held near the highest in almost two months, signaling that interest rates on new-home loans will climb and hurt the U.S. housing market. Read more

Pre-qualifications versus pre-approvals - What's the difference?
I was asked this after I wrote last week that pre-approvals are what is needed now. Big difference, here it is: For a PA we complete the entire application in detail and run formal a formal pre-approval through Underwriting. I also review the property, and if there is anything that gives rise to concern, I dig deeper.
If the applicant's qualifying income is in doubt I will get supporting docs and review those also. A lot more upfront work, but well worth it! Better safe than sorry! Contact me if you have clients that need to be pre-approved.
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.
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"Everything you can imagine is real"
Pablo Picasso (1881-1973)
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Prequals not enough - Home prices rise - Condo certifications

08-01-09
Paul Luykx
Prequals are not enough. Prequals serve their purpose, namely to confirm approximate mortgage loan qualification - Probably ok as a first step. To support an actual offer to purchase, I now recommend full (property specific) pre-approvals - to eliminate ever possible upfront doubt. There are too many uncertainties in today's mortgage market! Better to play if as safe as possible. // Good news on the pricing front: Home prices rose across the country in June. // Make it a good week folks! - Paul
U.S. home prices see first rise in 3 years
Home prices in major U.S. cities registered the first monthly gain in nearly three years, according to a new report that provided fresh evidence that the severe U.S. housing downturn could be easing. News and charts.

Rates up a bit
For the week ending July 30th the 30-year fixed averaged 5.25% with an average 0.7% fees and points, up from last week when it averaged 5.20%. "Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed those yields," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the Federal Reserve reported in its July 29th regional review that residential real estate markets in most of its districts remained weak, but many reported signs of improvement. In addition, it noted that entry-level homes continued to perform relatively well in part due to the first-time homebuyer tax credit. Freddie Mac rate surveys.

Condo listing or purchase? - Get a certification right away!

As we are all painfully aware of how condo financing can be a real curse. Read more. Don't wait till the end to see if the condo qualifies for financing!
I recommend certifying any condo upon listing OR contemplated purchase offer with the use of this certification form. Send it to me for review by our dedicated condo team. Prospect is a direct lender and, we stand behind our condo certifications!

Congress unlikely to consider tax credit until October
The health reform efforts in both the House and Senate will completely dominate the agenda in both tax-writing committees until the end of September. Accordingly, their leaders have announced that they will not take up expiring provisions, including the first-time homebuyer tax credit, until they have disposed of the health reform legislation. Thus, extension and possible expansion of the $8000 tax credit are unlikely to be considered until October.
5 best places for youthful retirees
Younger retirees are settling in cities that offer fun and cost-effective living. Find out which cities made the list.
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)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
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"I am not embarrassed to tell you that I believe in miracles"
Corazon Aquino (Jan 25, 1933 – Aug 1, 2009)
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Blog_tag

Constr/rehab loans - Commercial mtg problems - Loans for <600 Fico

07-26-09
Paul Luykx
Construction and rehab loans are available for virtually all scenarios. Planning is important: Underwriting criteria, loan structure, and pricing vary. Call me early on. //  Conventional and FHA loans are still available at less than 600 Fico. // The new appraisal code continues to create havoc. // Despite this week's increase, rates are trending down. Make it a good week! - Paul
 
Trading on home prices
With two new vehicles from MacroMarkets, you can invest in the outlook on housing prices whether they go up or down. Read

Rates up a bit
For the week ending July 23rd the 30-year fixed averaged 5.20% with an average 0.7% fees and points, up from last week when it averaged 6.63%. Freddie Mac rate surveys. 

Get ready for banking's next headache

Regional banks can no longer ignore the elephant in the room -- their exposure to the commercial real estate bust. Read

Commercial mortgage delinquency up 585%
Business Journal Delinquencies on commercial mortgage backed securities soared $10 billion in June, hitting a 12-month high. Read
 
Top 10 places to start over
If you're looking for a place to get a fresh start on life, you should consider moving to one of these places. Read
 
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)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property
- Reverse mortgages
- Commercial loans 
 
Contact me for excellent service. 
 
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"All the problems of the world could be settled easily
if men were only willing to think."

Thomas J. Watson, former President of IBM (1874-1956)

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Blog_tag

(New) problems and opportunities

07-18-09
Paul Luykx
I don't like delivering bad news, and I know you don't like receiving it (I get unsubscribes). At the same time I want to tell you what I see: There are some serious (additional) problems right now, directly affecting real estate. It looks to me like it's going to get a lot worse worse before it gets better. Yet, when doors close, others open - there are resulting opportunities as well (See below). Here are some of the reasons/symptoms:
- 1.5 million homes in foreclosure
- Appraisal chaos due to new ordering rules and short sales
- High, and still increasing unemployment. Mortgage aid for unemployed

- Collapsing commercial market. Commercial paper falls most ever

- Slow implementation by lenders of loan modification iniatives. Articles
- Lack of ability or willingness to lend. What to do with the Fed
- The Case-Shiller index continues to point towards further declining markets.

What this means in practical terms

- Appraised values as much as 30-40%(!) low, especially for refi's

- Restrictive lending environment, and tightening up more

- Construction loans virtually unavailable (unless hard money)

- Hard money lenders are raising lending criteria and pricing

- Conventional financing maximum is 90%ltv

- PMI requires 680 Fico

- Higher lending standards and erratic pricing for commercial loans

Good news, opportunities

- Investments with good cash on cash returns available

- Affordable price levels - especially for first time home buyers

- First Time Homebuyer tax credit (must close by Nov 30th!)

- Rehab homes (foreclosures) can be bought with 203(k) loans
- FHA loans, including FHA rehab loans (203k), readily available
- Fannie Mae REO opps with Prospect Mortgage Homepath (rehab) loans
- Higher Fico's get lower rates
- Rates are not likely to increase (I think)

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)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Non-warrantable property
- Reverse mortgages
- Commercial loans
Contact me for excellent service.
____________________________________

"To accomplish great things, we must not only act, but also dream;
not only plan, but also believe."
Anatole France (1844-1924)
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