There is a JUMBO loan option for our Veterans and it is truly amazing.
The standard VA loan program offers 100% financing up to $417,000. However, a Veteran can go above $417,000 with a down payment!
I recently pre-qualified a veteran for a purchase price of $584,000 with a rate of 3.875%! SunTrust gave the client back $7,300 as a lender credit to reduce closing costs, WOW.
Sandra S. Madison
Senior Mortgage Loan Originator
NMLS # 43902
(434) 566-2420 direct line
www.suntrustmortgage.com/smadison
Mortgage Rates:
Weaker than expected economic data and increased concerns about Europe helped mortgage rates improve this week. Investors knew that US economic growth was slower than originally expected in the first half of the year due to European troubles, the Japan earthquakes and rising gas prices, but Friday’s report of Gross Domestic Product (GDP) was a shocker. Second quarter GDP increased by 1.3% which was well below the consensus expectation 1.8%. The add to the shock, the first quarter GDP was revised downward to just 0.4% from the originally announced 1.9%. Fortunately, the consensus outlook is for faster economic growth during the second half of the year.
Sandra S. Madison
Senior Mortgage Loan Originator
NMLS # 43902 & MLO-7436VA
(434) 566-2420 direct line
www.suntrustmortgage.com/smadison
SunTrust is committed to assist in providing homeownership for individuals in all segments of our community. The SunTrust Portfolio Affordable Housing program was developed to address the home financing needs in certain low-to-moderate income areas and the needs of low-to-moderate income individuals and families. The program is for owner-occupied properties only and has liberal income limits for properties located in a middle-to-upper income census tracks but does not have income limits for properties located in a low-to-moderate income census track. Much of our local market qualifies for the program. Below are some highlights of the program.
1. Single family detached, townhomes and warrantable condos
2. Borrower cannot own other real estate at the time of closing, however they can sell a current home the same day or prior to closing.
3. 97% Maximum LTV.
4. Seller contributions allowed: 6% with LTV =/<90%, 4% with LTV >90%.
5. Down payment can come from gifts, grants, 401K loans, unsecured loans or seller contributions.
6. Borrower must have a minimum of $500.00 of their own money into the transaction.
7. Generally a minimum 620 credit score is required.
8. The loan is not subject to mortgage insurance.
Sandra S. Madison
Senior Mortgage Loan Originator
NMLS # 43902
(434) 566-2420 direct line
www.suntrustmortgage.com/smadison
Mortgage Rates:
With few economic reports released during the week, news of progress in talks to provide aid to trouble European countries and our own debates to increase the U.S. debt ceiling had the most influence on rates. As the perceived risk of default in Europe decreased, investor retreated from the safety of U.S. bonds which pushed rates slightly higher. The proposed deficit reduction in our own debt ceiling was favorable to mortgage rates helping to balance the reversal of investor’s interest in U.S. bonds
European Union officials released a significant plan for providing aid to EU countries with debt problems. Thursday’s announcement of a new aid package for Greece and an overhaul of the region’s rescue fund reduced investors concerns that the debt problem will spread. In particular, the European Financial Stability Facility (EFSF) will have the ability to make loans to European nations at lower rates than the nations could get on their own, easing the threat of default. Investor reaction was to reverse some of the flight to quality and return to riskier assets.
What about our own debt ceiling? With mortgage rates remaining low as well as Treasury yields, it is apparent that investors believe the debt ceiling will be raised. The major concern is how far lawmakers will go in addressing the budget deficit. Simply lifting the debt ceiling without addressing the deficit in a major way would likely disappoint investors and be bad for mortgage rates. A serious movement to bring the deficit under control now, not years down the road, would likely bring Treasury yields and mortgage interest rates even lower. The debates continue with the heat rising, but folks this one is important!
Sandra S. Madison
Senior Mortgage Loan Originator
NMLS # 43902
(434) 566-2420 direct line
www.suntrustmortgage.com/smadison
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