My New Blog

In the past the gov't has come up with programs to help struggling home owners.  All of them have had glitches so that only about 2% end up getting the help.  HARP 2 will hopefully change that record.  HARP 2 guidelines call for unlimited "Loan to Value", so no equity is required. If you have a 2nd loan, you can't combine it in the refinance, but if the 2nd lender is willing to subordinate, you may still be eligible.  The program is set up for loans owned by Fannie Mae or Freddie Mac (they may not be your loan servicer) and the original loan closed before June 2009.

If you know anyone who has wanted to take advantage of the today's low rates. but hasn't been able to because they don't have equity, let them know that HARP 2 is out & will be generally available by the middle of March. No equity required. Contact me to check eligibility and get started. Get going soon, so you don't miss out.

Randy

Regulations continue to change. I'm working on a conforming jumbo loan right now, great borrower and well qualified.  Even though I was able to get an "approved - eligible" with a 52% debt to income ratio on this loan, lender guidelines are capping the DTI at 45%.  This is a recent change that wasn't annouced.

There is still loan money to be had, guidelines are making it difficult to obtain for even prime borrowers.  Make sure you are able to document everything. Don't throw anything away that could help you with the loan process.

Randy

What a wild market we are experiencing.  Rates seem to change several times each day.  I think we have gone past the bottom of the market and we're at a new lower limit, with a rates ranging from 5.0% to 5.50%.

FHA is the current hot loan, requiring only 3.5% down payment and easier qualification.  All lenders are concerned about risk. So, if you have a good credit score, you'll get a better rate.  Don't be discouraged if you have some credit issues.  FHA allows for some minor derogatory accounts and there may be a way for you to improve your scores.  I know some "tricks of the trade".

Conventional loans are becoming more difficult to obtain unless you have at least 10% for a down payment.  I believe that we may soon see 20% down as the requirement because mortgage insurance companies may stop insuring loans.

Home prices are still low, making it a great time to buy. 

Good luck in your efforts to finance your purchase or refinance.  Money is still available.

Randy