12 March 2008 105 views No Comment Print This Post  Email This Post

Conforming Fixed rates have eased this week as the Federal Reserve announced a plan to pump $200 Billion in liquidity to the distressed financial markets. This sent the stock market up and helped lower rates as there are more funds available for the banks to lend.Conforming 30 Year Fixed rates are at 6% with Jumbo 30 Year at 7.125%. There was an increase in the 5, 7 and 10 year fixed arms making the fixed rates again more attractive for the borrower. It had been the opposite in recent weeks.

Regarding the new conforming limits, guidelines have been released by Fannie Mae but we have not yet heard from the banks on how they will be interpreted or priced. I have heard from our reps that we should have something by the end of March.

It looks like the FHA program will become a great way for our borrowers to go, as they require low down payments and their limits will also be up to $729,750. On FHA loans, the 3% down payment can come from a family member (blood relative) as gift money. There is also a program on FHA loans that the seller can contribute the 3% down payment for a buyer. There is a fee for this and it can take a couple months to get approved. If you have a seller that is patient and is willing to contribute, give me a call.

They must have an FHA qualified buyer with a signed contract to start the process.

Call me if you have any questions!
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Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666