11 April 2008 98 views No Comment Print This Post  Email This Post

Mortgage rates have eased (especially the 5 and 7 year fixed) over last week. More lenders are introducing their agency programs.

30 Year Fixed Conforming (Under $417,000) : 5.75%
30 Year Fixed Agency (Between $417,000 and $729,750) : 6.25%
30 Year Fixed Jumbo (Over $729,750) : 7.0%

Remember that FHA is now the way to go if your buyer has low down payment as it requires only 3% down.

Below are some FHA highlights that can help you with new buyers:

1) Seller can contribute 6% of the Purchase Price to Cover Closing Costs (both non-recurring and recurring).
2) The 3% Down Payment can be gift money from a “blood” relative or can be contributed by the seller.

ZERO DOWN IF BOTH THE ABOVE CAN HAPPEN!

3) No reserves required (Yes, the buyer can have no money).
4) FICO minimum is 620.
5) Must Provide Full Documentation of Income (43% Debt to Income).
6) Allows for use of a Non-Occupant Co-Borrower Income to Qualify.
7) Parents can buy a “Kiddie Condo” for a Child in College to Live In vs Paying for a Dorm.

Please call me if you would like a special FHA flyer for your listing or your buyers.

NOTE: For any one who attended my FHA Class this week, I need to correct an answer I gave you. If a seller has an FHA loan, he must pay the entire month’s interest no matter what day of the month the sale funds.

Let me know if you have any more questions!
Download Today’s Current Rate Sheet

Susan Van Wagenen
Terra Mortgage
Phone: 714-323-5559
Fax: 714-242-9666