From the New York Times headlines today:

Business
U.S. Sets Big Incentives to Head Off Foreclosures
By EDMUND L. ANDREWS
Published: March 5, 2009
The Obama administration began an ambitious effort to help troubled homeowners, offering lenders and borrowers big incentives.

http://www.nytimes.com/2009/03/05/business/05housing.html

Lynette Hensley
Associate Broker
Email

Labels: Economy, housing market, mortgage

I got an email today from an agent at a condominium development in Queen Anne regarding mortgage insurance companies changing their down payment requirements.

Starting on March 9th, mortgage insurance companies will require 10% down on any condo purchases. According to the email some banks have already made the switch to this requirement.

What does this mean to you? If you're a buyer considering a condo purchase in the near future, if you get locked into a contract after March 9th you will have to come up with extra funds in order to get approval for the loan.

Contracts that are locked in and approved for a mortgage insurance certificate by March 9th will be exempt.

So, for those of you who are thinking about buying but don't have 10% down...it's time to stop thinking and start moving. The difference could be tens of thousands of dollars (for a loan of $250,000, that's $12,500 more that you would have to come up with).

Now what's the cause of this? Each county has a market classification. Depending on the level of distress in the markets, the classifications rise in increments of 5%. Those in Classification One only requires 5% down. Whatcom County and King County are currently both in Classification One. Whatcom County will move to Class Two (10% down required) on February 24th.

There is still a way around the 10% down, though. FHA loans, who aren't affected by the MC, are still offering 3.5% down. The development you are considering must be FHA approved, though, so be sure to ask your buyer's agent to check this.

On a happier note, there is now an up-to-$8,000 tax credit available to first time home buyers.

Don't have an agent? Call or email me...I'd be happy to help you find your perfect condo (or home!).

Amy Kizaki
Buyer Specialist
Seattle PowerSearch Team

206.384.7169 direct
amy@seattlepowersearch.com

Labels: Downpayment, Market Classification, mortgage, Mortgage Insurance

Hi all! Hope summer is treating you right and that your gardens are enjoying the rains off and on for the past couple days. Jack DeCook, one of the lenders we work with frequently, just sent me a pretty exciting "newsflash" on his rates on Jumbo loans. I was trying to work out with someone the other day what the ceiling is in King County for a jumbo... it's anything over 562K, I was told. It might be going up to a bit over 600K, but for now that's where we are. Jack sent me the following:


We have found a source of funds that is allowing us to produce a jumbo loan that is 1% to 2% lower in rate than most lenders Jumbo rates. For example we are at 6.25% on a 30 year fixed rate loan today with points of 1.5%. This is hard to beat. I have a buyer purchasing a $975,000- home who was unable to find a rate lower than 7.0% after an extensive search. And this was the exception. Most where in the high 7's.

This is a great opportunity to take advantage of the "sale" prices that we are seeing on the more expensive homes in our area. One of the reasons for the high inventory is that the interest rates on Jumbo loans have been so high. This portfolio program that I have found will enable clients to get a jump on the other buyers in our area. For those that have already purchased they can do refinances too.

Here's Jack's contact info if you want to check into this in more detail...he's great and will take as much time as you need to answer any questions you have!

Jack De Cook
Sr. Home Mortgage Consultant
Wells Fargo Home Mortgage
1616 Cornwall Ave. Suite 101
Bellingham, WA 98225
360-676-4709 Tel
877-434-0403 Toll-free
360-319-7119 Cell
866-494-5694 Fax
jack.decook@wellsfargo.com
Please feel free to call me on my cell phone at any time.
Thanks,
Jack


Posted by
Edy Kizaki
Realtor & Team Leader
www.SeattlePowerSearch.com

Labels: jumbo loans, lenders, mortgage