Some major modifications to CHFA's programs occurred in the last few weeks that will make it easier for folks with little or no money to put down on a home to be able to buy a house in Colorado. I got this summary from Mark Afman at Universal Lending:
CHFA has basically one program now for both first time and non first time buyers.
The CHFA 2nd for down payment assistance will have the same rate as the 1st mortgage with monthly payments.
The CHFA 2nd is 3% of the 1st mortgage amount.
Buyer is required to put $1000 in to the transaction.
The income limits are now higher for example a 2 person household can make up to $82,500
Minimum fico score of 580
Rates will be more competitive usually around 1/2% higher than the market.
Add this to the TAX CREDIT available to first time buyers And you have a great reason to buy today!
Put 23 years of experience to work for you or your friends! Serving metro Denver, Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
Showing posts with label Real Estate Loans. Show all posts
Showing posts with label Real Estate Loans. Show all posts
Monday, March 02, 2009
Wednesday, December 03, 2008
Where to get the LOAN? FHA is the BIG DOG now!
I got this from long term friend Mark Afman...it is worth reading and/or visiting Mark's website.
FHA recently published their Fiscal Year 2008 Audit and based on this report the answer is very encouraging. Recently there have been two questions that many have wanted answers to. 1) Can FHA continue to handle the increase in volume? and 2) Will FHA be the next candidate for a bailout? From looking at this audit report the answers are yes to the volume and no to the bailout.
FHA has been called on to shoulder more of the responsibility for stabilizing the US Housing market. Because of this, many have been concerned that FHA will suffer the same fate as many conventional sources of loans. That is to say that FHA will be losing more then they are gaining. This audit appears to say otherwise. The audit gives an indication that FHA will be financially sound for at least the next 7 or 8 years. Now that is not to say that FHA has not been affected by the national housing downturn. But as on organization it is holding its own better then Fannie or Freddie. The audit actually shows an improvement in the overall loan characteristics over FY 2007. This could be due to the fact that many FHA lenders (Universal Lending included) have tightened their guidelines to originate a better quality loan. Another aspect is that FHA loans are being used more and more by buyers with good credit. In this report it shows that the number of buyers with credit scores over 680 using an FHA loan increased from 17% to 35% and a decrease in buyers with a credit score below 580 from 27% to 5% over that same period.
Another factor in the positive nature of this report is the improvement in the Loan-To-Value of their portfolio. Since 2005 the high LTV's (loans over 97% LTV) have been reduced from 55 to 39% and the lower LTV's (loans below 95% LTV) have increased from 20% to 34%.
So to answer the 2 questions above 1) Can FHA continue to handle the increase in volume? Over the last 15 months FHA has showed that it can handle its volume increase which is now running at 4 times the 2007 levels. Despite receiving minimal additional resources, there are two reasons why FHA can handle the volume. First, as you know, FHA approved lenders can perform all of the loan processing, underwriting, closing and insuring functions without any HUD review. Secondly, FHA?s technology, despite being 25 years old, remains resilient and fundamentally sound. With the additional resources being provided, there is now minimal concern that FHA will not be able to provide mortgage insurance certificates (MICs) in a timely manner (barring some unforeseen circumstance) even if FHA business doubled or tripled from current levels. Quite frankly, the biggest concern regarding FHA?s technology is that future changes, made with the intent of improving performance, may have the unintended consequence of impairing FHA?s performance.
2) Will FHA be the next candidate for a bailout? There was widespread concern that FHA became the ?dumping ground? for subprime loans when that market collapsed in 2007. Many press reports have been written questioning FHA?s financial strength. The FY 2008 Actuarial Review provides a current analysis of the status of the FHA program and rebuts the concern that there is a systemic problem in the program.
Now if you read the report at http://www.hud.gov/offices/hsg/comp/rpts/actr/2008actr.cfm you will see that the overall net worth of FHA is down and this is mostly due to the drop in home prices. In addition you may have read articles such as one in Business Week that are expressing concerns about the overall financial soundness of FHA. But this report shows that FHA is still in the black and is expected to remain so for many years to come. There is much more to this report and I will be happy to send you more information about it if you would like to contact me through www.markafman.com.
Pete Doty provides 23 years of experience which can go to work for you or your friends, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
FHA recently published their Fiscal Year 2008 Audit and based on this report the answer is very encouraging. Recently there have been two questions that many have wanted answers to. 1) Can FHA continue to handle the increase in volume? and 2) Will FHA be the next candidate for a bailout? From looking at this audit report the answers are yes to the volume and no to the bailout.
FHA has been called on to shoulder more of the responsibility for stabilizing the US Housing market. Because of this, many have been concerned that FHA will suffer the same fate as many conventional sources of loans. That is to say that FHA will be losing more then they are gaining. This audit appears to say otherwise. The audit gives an indication that FHA will be financially sound for at least the next 7 or 8 years. Now that is not to say that FHA has not been affected by the national housing downturn. But as on organization it is holding its own better then Fannie or Freddie. The audit actually shows an improvement in the overall loan characteristics over FY 2007. This could be due to the fact that many FHA lenders (Universal Lending included) have tightened their guidelines to originate a better quality loan. Another aspect is that FHA loans are being used more and more by buyers with good credit. In this report it shows that the number of buyers with credit scores over 680 using an FHA loan increased from 17% to 35% and a decrease in buyers with a credit score below 580 from 27% to 5% over that same period.
Another factor in the positive nature of this report is the improvement in the Loan-To-Value of their portfolio. Since 2005 the high LTV's (loans over 97% LTV) have been reduced from 55 to 39% and the lower LTV's (loans below 95% LTV) have increased from 20% to 34%.
So to answer the 2 questions above 1) Can FHA continue to handle the increase in volume? Over the last 15 months FHA has showed that it can handle its volume increase which is now running at 4 times the 2007 levels. Despite receiving minimal additional resources, there are two reasons why FHA can handle the volume. First, as you know, FHA approved lenders can perform all of the loan processing, underwriting, closing and insuring functions without any HUD review. Secondly, FHA?s technology, despite being 25 years old, remains resilient and fundamentally sound. With the additional resources being provided, there is now minimal concern that FHA will not be able to provide mortgage insurance certificates (MICs) in a timely manner (barring some unforeseen circumstance) even if FHA business doubled or tripled from current levels. Quite frankly, the biggest concern regarding FHA?s technology is that future changes, made with the intent of improving performance, may have the unintended consequence of impairing FHA?s performance.
2) Will FHA be the next candidate for a bailout? There was widespread concern that FHA became the ?dumping ground? for subprime loans when that market collapsed in 2007. Many press reports have been written questioning FHA?s financial strength. The FY 2008 Actuarial Review provides a current analysis of the status of the FHA program and rebuts the concern that there is a systemic problem in the program.
Now if you read the report at http://www.hud.gov/offices/hsg/comp/rpts/actr/2008actr.cfm you will see that the overall net worth of FHA is down and this is mostly due to the drop in home prices. In addition you may have read articles such as one in Business Week that are expressing concerns about the overall financial soundness of FHA. But this report shows that FHA is still in the black and is expected to remain so for many years to come. There is much more to this report and I will be happy to send you more information about it if you would like to contact me through www.markafman.com.
Pete Doty provides 23 years of experience which can go to work for you or your friends, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
Wednesday, April 16, 2008
Denver real estate DATA! AN ANOMALY APPEARS!
BACK to Basics Real Estate
Yesterday I posted a note about something I had not done in quite a while. I wanted to see what was happening in my clients lives that bought homes in 2004...so I did some mini market evaluations on 15 homes. What I found really surprised me.
Most of the neighborhoods had more properties under contract or pending sale (30 day data) than they had recent sales (6 months of data). Say what? More houses had gone under contract in the last 30 days than had sold in the last 6 months! WOW!
Next, most neighborhoods had more properties under contract than ACTIVE listings, those that are currently for sale. That indicates the inventory is being absorbed. Another WOW!
Well those are great numbers, but not really quantitative. So yesterday I looked at the MLS data for March 2008 for NEW single family listings coming on the market compared with last year (5377 in 2008 versus 6426 in 2007) indicating that inventory is shrinking.
As a matter of fact looking back a few years in March of 2003 it was 6820, 2004: 6948; 2005: 6649; and in 2006: 6936. That really makes the 5377 in March 2008 look like an anomaly.
And lets take it another direction...what it is like out in the market, seeing homes for sale. They are not, as a whole ready. They need to be staged, or cleaned or painted, or priced to their current condition.
I am extremely excited about the Denver Real Estate market.
So, if this kind analysis could be valuable to you or your friends, put my years of experience to work for you! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
Yesterday I posted a note about something I had not done in quite a while. I wanted to see what was happening in my clients lives that bought homes in 2004...so I did some mini market evaluations on 15 homes. What I found really surprised me.
Most of the neighborhoods had more properties under contract or pending sale (30 day data) than they had recent sales (6 months of data). Say what? More houses had gone under contract in the last 30 days than had sold in the last 6 months! WOW!
Next, most neighborhoods had more properties under contract than ACTIVE listings, those that are currently for sale. That indicates the inventory is being absorbed. Another WOW!
Well those are great numbers, but not really quantitative. So yesterday I looked at the MLS data for March 2008 for NEW single family listings coming on the market compared with last year (5377 in 2008 versus 6426 in 2007) indicating that inventory is shrinking.
As a matter of fact looking back a few years in March of 2003 it was 6820, 2004: 6948; 2005: 6649; and in 2006: 6936. That really makes the 5377 in March 2008 look like an anomaly.
And lets take it another direction...what it is like out in the market, seeing homes for sale. They are not, as a whole ready. They need to be staged, or cleaned or painted, or priced to their current condition.
I am extremely excited about the Denver Real Estate market.
So, if this kind analysis could be valuable to you or your friends, put my years of experience to work for you! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
Thursday, March 27, 2008
JUMBO VA Loans up to $1,000,000 a viable alternative
This from an OLD friend and an excellent mortgage loan officer Mark St. Onge:
Yes, that’s right: you can now do a VA loan up to $1,000,000! Here’s how it works: 100% financing is available up to the old limit of $417,000 (excluding the VA funding fee). The difference between the purchase price and $417K requires 25% down. On a million dollar home that would equate a down payment of 14.75% but there’s no add-on to the rate! This is the only jumbo financing available that still offers conforming rates. The funding fee of 2.15% for eligible first time regular military veterans cannot be financed when the loan amount exceeds $417K but the funding fee can be negotiated to be paid by the seller within VA’s liberal seller allowance limit of 6% of the purchase price. When you’re talking to a buyer in that price range, don’t forget to ask if they’re VA eligible!
Mark's contact information can be found at http://www.denverrelocation.com/lenders.html
So, if this kind of service could be valuable to you or your friends, put my 22 years of experience to work for you, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
Yes, that’s right: you can now do a VA loan up to $1,000,000! Here’s how it works: 100% financing is available up to the old limit of $417,000 (excluding the VA funding fee). The difference between the purchase price and $417K requires 25% down. On a million dollar home that would equate a down payment of 14.75% but there’s no add-on to the rate! This is the only jumbo financing available that still offers conforming rates. The funding fee of 2.15% for eligible first time regular military veterans cannot be financed when the loan amount exceeds $417K but the funding fee can be negotiated to be paid by the seller within VA’s liberal seller allowance limit of 6% of the purchase price. When you’re talking to a buyer in that price range, don’t forget to ask if they’re VA eligible!
Mark's contact information can be found at http://www.denverrelocation.com/lenders.html
So, if this kind of service could be valuable to you or your friends, put my 22 years of experience to work for you, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at www.DenverRelocation.com. Drop me a note to pete@Denverrelocation.com
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