A friend was wondering about loans for larger homes...When researching what loans are available for homes above conforming limits (any loans above $417,000 per Fannie Mae requirements), I found the rate and closing costs are higher than for conforming loans, but the money is still available.
Here is the scoop, per one of my favorite lenders, Bernie Zanoni of Briston Capital Mortgage:
There are only a few lenders willing to lend above the conforming limits. So we have higher interest rates and higher closing costs on the now tougher to get jumbo loans. So here it is in a nut shell - 10% down on loan limits up to $650k and the rate is a couple of points higher than conforming loans on a 30 year fixed loan with 5 points up front! The next best loan is a 20% down jumbo loan up to 1 million with rates a couple of points higher than conforming loans with regular closing costs and just 1% origination. (Lower costs for more money down...)
So here is the best way to work with things. For 15% down you can use a 1st mortgage up to 417k and use a 2nd mortgage for the balance. Both of these rates would be on the higher range or normal conforming loans. This combination would have normal closing costs and only 1% origination fee on each of the loans. There is a cap on the max loan amount of the 2nd mortgage (HELOC) of $250k depending on credit.
If you want more details, let me know and I'll put you in touch with Bernie!
Wednesday, May 27, 2009
Wednesday, May 20, 2009
Denver Identified as top city in US for Recovery
Great news for our Denver Metro area from the Today Show's real estate analyst. We're in the trough and on our way out. How fast will vary from neighborhood to neighborhood since a recent increase in the number of bpo (broker price opinions) indicates we still have many distressed homes in the market.
Use First Time Homebuyer Tax Credit for Down Payment
Tax Credit Can Be Used For Down Payment.
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.Other Solutions for Today's MarketDuring his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."The morning session included a panel discussion that was moderated by CNBC's Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation's taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort. "Right now the Federal Reserve is the market," said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. "What will be the effect when the Fed stops buying?" Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
For first time homebuyers we have an unprecedented government gift! This means FHA borrowers will have a zero down loan in effect! Exactly when you'll be able to use it is not clear. Now that the announcement has been made, the institutions and government need to work out the specific way to transfer money at closing from the government to your closing! What we do know is you must close on your new home before 1 Dec 2009!
Feel free to call me for more information and details on how you or someone you know can benefit!
Tax Credit Can Be Used for Down Payment
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 tax credit as a down payment.Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit. The NATIONAL ASSOCIATION OF REALTORS® has been calling for the change. "We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment," Donovan says. His remarks came in an address to several thousand REALTORS® gathered Tuesday morning at "The Real Estate Summit: Advancing the U.S. Economy," at the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, D.C..He says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.Other Solutions for Today's MarketDuring his address at the summit, Donovan went on to say that the Obama administration plans to further stabilize the housing market. "I do think we have some early signs that the market overall is stabilizing," Donovan says. "Since January we've seen both home sales moving up and down around a relatively stable number and we are seeing the first signs that the rapid decline in home prices is starting to abate."The morning session included a panel discussion that was moderated by CNBC's Ron Insana. Panelists examined cutting-edge solutions necessary to promote and preserve homeownership and real estate development, stimulate the economy, and protect the nation's taxpayers. They also shared their ideas on what the role and responsibility of the federal government is in the revitalization effort. "Right now the Federal Reserve is the market," said panelist Jay Brinkman, chief economist for the Mortgage Bankers Association. "What will be the effect when the Fed stops buying?" Brinkman explained that an exit strategy must be planned for the long-term; the federal government cannot continue to support the mortgage markets indefinitely."We are thrilled that so many high-caliber individuals were able to join us today at this important meeting to promote stability in the housing market and the U.S. economy," said NAR President Charles McMillan. "We look forward to an ongoing dialogue and action toward this goal, during our midyear meetings this week and beyond."The real estate summit is part of the 2009 REALTORS® Midyear Legislative Meetings & Trade Expo. During the week ending May 16, more than 8,500 REALTORS® will attend meetings, visit lawmakers and inspire action on Capitol Hill.
Source: NAR
For first time homebuyers we have an unprecedented government gift! This means FHA borrowers will have a zero down loan in effect! Exactly when you'll be able to use it is not clear. Now that the announcement has been made, the institutions and government need to work out the specific way to transfer money at closing from the government to your closing! What we do know is you must close on your new home before 1 Dec 2009!
Feel free to call me for more information and details on how you or someone you know can benefit!
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