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Paul Luykx

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Rates up 0.25%+ - Tax credit loans - Rehabs/teardowns - Stated loans

05-31-09
Paul Luykx
Rates are up 0.25%+ So much for my comment of last week about flat trend lines! Read more. /// Rates may be higher now but still very good. Particulary first time home buyers should not delay. /// Refinances that like to wait for the better rate should get fully approved and try a short lock on rate dip and close within the week. /// Minimum Fico for FHA is now 560. /// Stated income loans still available for homes and investments: 70%ltv max. /// Have a good week folks! - Paul
Tax credit loans for closing costs (but why bother)
Short-term loans to enable buyers to use their homebuyer tax credit benefits upfront, but the loans can't cover the 3.5 percent minimum downpayment. Read more. But why bother? It is one more complication and using a seller concession will acomplish the same thing. And once the tax credit comes in, it does not need to be used to repay a loan. Remember, you must CLOSE by December 1 to be eligible for the tax credit. For details go here.
Construction and rehab loans readily available.
We have construction and rehab loans for residential (up to 4-unit properties) - investment and owner occupied. The lending value is based on the purchase price plus cost to complete, plus equity upon completion (in some cases). Presenting a rehab plan is a great way to enhance a rehab/teardown listing - and for buyers to create a dreamhome and significant equity. The timing is right. Call to discuss.

Is a commercial real estate bust inevitable?
Bailout watchdogs have something new to growl about: the lack of financing in the commercial real estate markets. Read more.
Rates up 0.25%+
For the week ending May 28th the 30-year fixed averaged 4.91% with an average 0.7% fees and points, up from last week when it averaged 4.82%, and increased again thereafter. This time last year it averaged 6.08%. "Fixed-rate mortgage rates followed long-term bond yields higher this week as financial markets try to discern the state of the economy," said Frank Nothaft, Freddie Mac vice president and chief economist. "Consumer confidence rose again in May and represented the largest two-month rally since records began in 1967. Freddie Mac rate surveys.
Down Payment Assistance programs on their way back?
Congress is currently considering H.R. 600, bipartisan legislation that would make DPA an allowable gift source for FHA loans. Read more.

Available
- Same day loan decision (no ifs or buts)
- 30-day closes
- Condo (conversion) financing services. Information
- FHA loans down to 560 Fico
- 50-70% LTV stated income loans (600-700 Fico)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab and construction loans
- Jumbo loans at near conforming rates
- Commercial loans
Contact me for excellent service.
_________________________

"Better to remain silent and be thought a fool
than to speak out and remove all doubt"
Abraham Lincoln (1809-1865)
4 Comments
Blog_tag

NO use of tax credit as down pmt - Rates to remain flat? - Fico reqs up for FHA

05-24-09
Paul Luykx
Rates to remain flat? Rates are now controlled by the Fed through Treasury purchases. Judging by the trend lines, it looks like they want to keep rates roughly where they are now (30-yr fixed around 5%). For rate shoppers - the way to get the lowest rate is to get the loan approved, set for funding, and then use a short-term lock on a rate dip and close. (This strategy for refi's only!) /// Predictably, FHA loan criteria are going up again: 640 Fico or get no loan, or a higher rate. (FHA 540 Fico still available). Read more /// Speaking of Fico, we can often accomplish 50-100 score improvements in just 75 days with a credit makeover. /// Make it a good week folks! - Paul
Tax credit NOT eligible for down payment
Federal officials reversed an earlier decision to allow first-time home buyers to use an $8,000 tax credit to borrow the down payment on a home. Read more. For tax credit details go here. (Remember, you must CLOSE by December 1, 2009 - P).
The real estate bubble won't re-inflate
Over time, homes track with inflation and bubbles rarely re-inflate. In fact, some housing markets will break below historic averages. Read more.
Rates basically flat
For the week ending May 21st the 30-year fixed averaged 4.82% with an average 0.7% fee, down from last week when it averaged 4.86%. This time last year it averaged 5.98%. "Long-term fixed-rate mortgage rates have remained below 5% for the past 10 weeks as the U.S. Treasury and Federal Reserve keep rates low through security purchases," said Frank Nothaft, Freddie Mac chief economist. Freddie Mac rate surveys.
More takers for 15-year loans
30-year fixed-rate mortgage has traditionally been the go-to loan for borrowers who want stability and lower payments. Read more.

Available
- We are a direct lender: Same day loan approvals!
- 30-day closes!
- Condo (conversion) financing services. Information
- FHA loans down to 540 Fico
- 50-70% LTV stated income loans (600-700 Fico)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab loans and lines of credit
Contact me for further information or assistance.
_________________________

"The young man knows the rules,
but the old man knows the exceptions"
Oliver Wendell Holmes (1841-1935)
4 Comments
Blog_tag

Use tax credit as down pmt - Fed help for short sales - Same day loan approvals and 30-day closes

05-18-09
Paul Luykx

Using the tax credit as a down payment may shortly be an option. This could potentially be even bigger than the now extinct down payment assistance programs! Read more. /// Same day mortgage approvals (subject to verifications) and 30-day closes are now available to serve you better! /// Note the Dec 1 deadline for the completion date of sales involving the $8K tax credit! /// Make it a good week folks! - Paul

Treasury's offers for loan modifications and short sales (Update)
The U.S. Treasury, seeking to strengthen government anti-foreclosure programs, will provide new incentives for lenders to modify mortgages where home-price declines are most severe or to pursue short sales. Read more. For loan modification assistance go here.

Time limitation alert for tax credit
The $8,000 tax credit is available to first-time buyers (defined as persons who have not owned a home for the last 3 years) who purchase a home before December 1 of this year. Note that the date when the home buyers take occupancy of the house is considered the purchase date, not when the sales contract is signed! Read more

Rates up a bit
For the week ending May 14th the 30-year fixed averaged 4.86% with an average 0.6% fee, up from last week when it averaged 4.84%. This time last year it averaged 6.01%. Freddie Mac rate surveys.

Available
- Same day loan approvals and 30-day closes
- Condo (conversion) financing services. Information
- FHA loans down to 540 Fico
- 50-70% LTV stated income loans (600-700 Fico)
- 95% LTV Fannie Mae condo loans
- Loans for non-residents
- Rehab loans and lines of credit

Contact me for further information or assistance.

_________________________

"Truth has no special time of its own. Its hour is now - always"
Albert Schweizer (1875-1965)
2 Comments
Blog_tag

Loan mods for 2nds - Investment loans - Home Valuation Code of Conduct

05-02-09
Paul Luykx
The lending criteria for residential investment property (1-4 units) have tightened up and rates are relatively high. Prequal of both the borrower and the property is recommended! /// Few lenders are still prepared to advance loans for investments in residential property (1-4 units) in a company name by the way. And those that do - you've guessed it - charge more. I recommend investors weigh the pros and cons (legal and tax implications, cost of borrowing) carefully. Feel free to call if I can help. /// Make it a good week folks!  - Paul
 
Measure to let judges rework mortgages fails in the Senate
A measure to allow bankruptcy judges to rework the mortgages of strapped homeowners failed in the U.S. Senate. Read more
 
Foreclosure Prevention Plan expanded to 2nd mortgages
The Obama administration unveiled an expansion of its $75 billion foreclosure prevention plan yesterday, providing new subsidies to mortgage lenders and investors. Read more  (For loan mod info and help go here - P)
 
High yield, short-term mortgage investment opportunities
- $70K 2nd 60% LTV, 12 month term, 14% rate
  
Home sales can't fall forever
Forbes: March's numbers are bleak, but in time, demographics will trump the collapse. Read more
 
Rates at record lows
For the week ending April 30th the 30-year fixed averaged 4.78% with an average 0.7% fee, down from last week when it averaged 4.80%. This time last year it averaged 6.06%."The housing market may be edging towards a bottom. Existing home sales stayed near its 4-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since Jan 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since Dec 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the NRA, which date back to Jan 1971". Freddie Mac rate surveys.
 
Home Valuation Code of Conduct in short... 

Consumers cannot order an appraisal directly from the appraiser. -

Mortgage brokers cannot be directly involved in selecting an appraiser. - Lenders must order appraisals through an appraisal-management company, or an employee not involved in loan origination. - The rules do not apply to government-insured loans such as FHA or VA loans.
 
New home-appraisal rule stirs opposition 
The rule change, effective today, has been criticized for months by local mortgage brokers and appraisers. Read more

 

 
Contact me for further information or assistance. 
 
_________________________  
   
"Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less"
Marie Curie (1867-1934)

 
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Blog_tag

Short-term, high-yield RE investments - ARM rates high - Loan mods for 2nd liens?

04-26-09
Paul Luykx
"Cash is King" and it's a buyer's market. I have clients with high yield, short-term (2-6 month) projects that are looking for financial partners. If you have cash to invest (or if we can raise $$ with a heloc on your property) this may be a smart high-yield, mortgage-secured, short-term option. Contact me if interested. Make it a good week folks!  - Paul
 
Treasury weighs new mortgage subsidies: sources
Fannie Mae and Freddie Mac, the mortgage finance companies, would administer the new program to resolve problems with second-liens. Read more.  (For loan mod info and help go here - P)
 
Investment opportunities
1. $50K 1st, 25% LTV, 6 month term, 12% rate + profit share.
2. $70K 2nd 60% LTV, 12 month term, 12% rate + profit share.
  
Cities where home prices could fall more
High unemployment and low spending power could lead to further price drops in these 10 cities, according to Forbes. Read more
 
ARM rates relatively high
For the week ending April 23rd the 30-year fixed averaged 4.80% with an average 0.7% fee, down from last week when it averaged 4.82%. This time last year it averaged 6.03%. Freddie Mac rate surveys. "Although long-term rates eased slightly this week, ARM rates remain elevated relative to fixed-rate loans" said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, rates for 1-year ARMs exceeded those for 30-yr fixed over the last 2 weeks; this is the first time this has happened since Freddie Mac began collecting data for ARMs in Jan 1984.

New rules for appraisals
The housing industry is facing new national rules for real estate appraisals, which bans mortgage brokers from ordering valuations and diverts more business to third-party appraisal management companies.

Social networking wins real estate fans
Social networking sites including Twitter, Facebook, LinkedIn, and ActiveRain are the medium for real estate professionals get the word out. Read more

 

Contact me for further information or assistance. 
 
_________________________  
   
"A man may die, nations may rise and fall, but an idea lives on"
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