2012 Is Here
Forecasting What May Be Ahead for Home Loan Rates Fairfax, VA - The good news–despite what the Mayan calendar may say–is that the world probably won't be coming to an end in 2012. But like 2011, this coming year may bring some significant challenges here in the US and around the world. Read on to learn more about what could be ahead for home loan rates. First, let's take a minute to recap 2011. While home loan rates finished the year at historically low levels, the housing market did not see a major improvement in the second half of the year as ...
New FHA Flipping Regulations
Fairfax, VA - FHA lenders had reason for cheer and mirth at the end of last week. "In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting FHA Commissioner Carol Galante will extend FHA's temporary waiver of the anti-flipping regulations." With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days, but this rule is waived through December 31, 2012, unless otherwise extended or withdrawn by FHA. "All other terms of the existing Waiver will remain the same. The Waiver contains strict conditions and guidelines ...
FHA Loan Limits
Effective Friday, November 18, FHA has raised loan limits to $729,750. Fairfax, VA - You can check individual counties for limits using this link: FHA Loan Limits Fannie & Freddie's loan limits remain at $625,500! FHA requires 3.5% down with a higher loan limit. Conventional loans, 5% down with a lower loan limit. Does this make sense to you? I guess nothing makes sense these days but we think that Fannie and Freddie may very likely follow FHA. Waiting for the President to sign. The new FHA limits are effective through 2013.
The Scoop on Inflation And Its Impact on Home Loan Rates
Fairfax, VA CPI, PPI, PCE...sounds like a nice bowl of alphabet soup. But did you know that what lies behind these letters impacts not only YOU every single day...it also bears a very heavy influence on the direction of home loan rates? So pull up a chair, grab a spoon, and let's dig in to learn more. First, let's break down what these letters mean. CPI stands for the "Consumer Price Index," and just like it sounds, it is a measure of prices that consumers are paying for goods and services here in the United States. PPI stands for the "Producer Price ...
Preparing to Buy Again after BK, Short Sale or Foreclosure
Fairfax, VA - You will most likely need to wait. Unless you can find a local program that allows a BK, small bank, or credit union that will hold the mortgage on their books.The BK guidelines have become more strict over the past couple of years since the losses started to mount for FHA, VA and Fannie/Freddie. I have posted the guidelines Government programs first followed by the conventional guidelines.2011 FHA Waiting Guidelines Bankruptcy – FHA will allow origination of an FHA insured loan after your bankruptcy has been discharged for two years with a Chapter 7 Bankruptcy. A Chapter 13 bankruptcy must discharged for at least one year ...
What happens to my loan if the government shuts down?
Fairfax, VA - When was the last government shutdown? 1995 was the year. What happened? It was very painful to get through, but no one panicked. And we shouldn't panic this time. I can assure you 1st Commonwealth Bank of Virginia has prepared all of the loans in our pipeline and we preparing for a worst case scenario, so the disruption will be minimal. If a shutdown would occur, these would be the top six areas that can affect us during a government shutdown: FHA Case Numbers: For each FHA loan, we are required to order a FHA case number. This number ...
When the property is an FHA “flip”
Fairfax, VA - When the property in question is an FHA flip. Seller has been on title for less than 90 days. If the sales price is 20% or more above seller’s acquisition cost and the increase in value is due to improvements/renovation to the property: 1. The appraiser is required to verify the repairs or work to the property in order to substantiate the increase in value. 2. The seller must supply a list of improvements made to the property and the appraiser adds the list to the appraisal along with comments to justify the increase. 3. Before and after pictures are welcome. 4. ...
I’ve Got 4 Key Questions about Your Home Loan Situation
Fairfax, VA - The start of summer is nearly here, which means things like baseball, hotdogs, and apple pie are on our minds. But that's not all the arrival of summer means: 2011 is almost halfway over. That makes now the perfect time of year to make sure your home loan is working for you. Here are four questions you should ask yourself about your mortgage...before the temperatures start turning colder again. Question 1: How does my interest rate compare to what's available today? The economic realities of the past few years have taught people some valuable lessons. One of which is: It's ...
Property Devastation – Don’t Let It Mean Financial Devastation
Fairfax, Virginia: Last month, the world watched in horror as another tsunami brought immense devastation, this time to Japan. In light of the tragic earthquake and subsequent tsunami, I wanted to discuss a topic that's important to all homeowners: homeowners insurance. Let's start with some important questions: Do you know what a typical homeowner's insurance policy covers? If you're currently a homeowner, do you know what your policy does, or more importantly, does not cover? Can you afford a higher deductible? A study released by the National Association of Insurance Commissioners pointed out that typical Fairfax Virginia property and liability policies do not cover home damage ...
It’s a Small World After All
Globalization's Impact on Home Loan Rates Fairfax, VA - Today we live in a global economy, an interconnected world where goods and capital move freely at lightning speed across countries. The widely accepted view is that globalization not only benefits all countries across the world but lends itself towards the betterment of the economy as a whole. As we have seen, globalization can also have a negative impact with a domino effect in times of turmoil and unrest. This impact affects the financial markets both in the U.S. and abroad. Flight to Safety When there is political unrest, which was sparked recently in Egypt ...
More FHA Changes Are On The Way!
FHA Refinance Changes Fairfax, Virginia: With Mortgagee Letter 11-11, FHA announces changes to refinance transactions. This ML provides guidance on the changes as well as clarification on existing refinance guides and it will be worthwhile to read this ML in its entirety as a refresher. Here are the 8 things you need to know about these clarifications and changes: 1. Borrower must be current on their mortgage for the month of closing AND the month prior to closing (The payment due the month of closing CAN be included in the payoff). 2. Second liens must be subordinated to the new FHA first in their ...
More FHA Changes Coming Soon!
Annual MIP Increases February 15, 2011Fairfax, Virginia: With Mortgagee Letter 11-10, FHA announces an increase to the Annual Mortgage Insurance Premium on standard FHA loan programs and a change that affects case numbers.Here are the 7 things you need to know about these changes: 1. These changes are effective April 18th, 2011. 2. The Annual Insurance Premium will increase .25% for standard forward mortgages. The Upfront Mortgage Insurance remains at 1.00%. (This increase will cost homebuyers additional money and cause some buyers to not qualify for a mortgage) 3. The Annual Premium is now 1.15% for Loan To Value's (LTVs) GREATER than 95% on 30 year ...
What’s Happening With Rates?
Fairfax, Virginia: Mortgage Rates Return To April 2010 Levels Mortgage rates are surging. Over the last week or two, interest rates on 30-year fixed mortgages have increased roughly a .25 percent. This is according to Freddie Mac's weekly Primary Mortgage Market Survey. It is the largest one week jump in recent history. The national rate for a 30-year fixed rate mortgage now averages 5.05%. Compare this to last November when the average rate was in the low 4 percent range. Rates are headed upward, over the last tw weeks rates have steadily increased.
What Should You Expect in 2011, Part 2
Fairfax, VA - Forecasts for Inflation, the Housing Market, and Home Loan Rates What's ahead for inflation, the housing market, and home loan rates this year? Read on to find out. Inflation One of the major topics that we need to watch in the coming months is inflation. The Fed and the markets keep a close eye on inflation because it impacts so many aspects of the economy, including home loan rates. In fact, inflation is considered the archenemy of home loan rates! Why is this the case? It's because home loan rates are tied to Mortgage Backed Securities, which are a type of ...
2012 Is Here
Forecasting What May Be Ahead for Home Loan Rates Fairfax, VA – The good news–despite what the Mayan calendar may say–is that the world probably won’t be coming to an end in 2012. But like 2011, this coming year may bring some significant challenges here in the US and around the world. Read on to learn more about what could be ahead for home loan rates. First, let’s take a minute... [Read more ...]
New FHA Flipping Regulations
Fairfax, VA – FHA lenders had reason for cheer and mirth at the end of last week. “In an effort to continue stabilizing home values and improve conditions in communities experiencing high foreclosure activity, Acting FHA Commissioner Carol Galante will extend FHA’s temporary waiver of the anti-flipping regulations.” With certain exceptions, FHA regulations prohibit insuring... [Read more ...]
FHA Loan Limits
Effective Friday, November 18, FHA has raised loan limits to $729,750. Fairfax, VA – You can check individual counties for limits using this link: FHA Loan Limits Fannie & Freddie’s loan limits remain at $625,500! FHA requires 3.5% down with a higher loan limit. Conventional loans, 5% down with a lower loan limit. Does this make sense to you? I guess nothing makes sense these days... [Read more ...]
The Scoop on Inflation And Its Impact on Home Loan Rates
Fairfax, VA CPI, PPI, PCE…sounds like a nice bowl of alphabet soup. But did you know that what lies behind these letters impacts not only YOU every single day…it also bears a very heavy influence on the direction of home loan rates? So pull up a chair, grab a spoon, and let’s dig in to learn more. First, let’s break down what these letters mean. CPI stands for the “Consumer... [Read more ...]
Preparing to Buy Again after BK, Short Sale or Foreclosure
Fairfax, VA – You will most likely need to wait. Unless you can find a local program that allows a BK, small bank, or credit union that will hold the mortgage on their books.The BK guidelines have become more strict over the past couple of years since the losses started to mount for FHA, VA and Fannie/Freddie. I have posted the guidelines Government programs first followed by the conventional... [Read more ...]
What happens to my loan if the government shuts down?
Fairfax, VA – When was the last government shutdown? 1995 was the year. What happened? It was very painful to get through, but no one panicked. And we shouldn’t panic this time. I can assure you 1st Commonwealth Bank of Virginia has prepared all of the loans in our pipeline and we preparing for a worst case scenario, so the disruption will be minimal. If a shutdown would occur, these would... [Read more ...]
When the property is an FHA “flip”
Fairfax, VA – When the property in question is an FHA flip. Seller has been on title for less than 90 days. If the sales price is 20% or more above seller’s acquisition cost and the increase in value is due to improvements/renovation to the property: 1. The appraiser is required to verify the repairs or work to the property in order to substantiate the increase in value. 2. The seller... [Read more ...]
I’ve Got 4 Key Questions about Your Home Loan Situation
Fairfax, VA – The start of summer is nearly here, which means things like baseball, hotdogs, and apple pie are on our minds. But that’s not all the arrival of summer means: 2011 is almost halfway over. That makes now the perfect time of year to make sure your home loan is working for you. Here are four questions you should ask yourself about your mortgage…before the temperatures... [Read more ...]
Property Devastation – Don’t Let It Mean Financial Devastation
Fairfax, Virginia: Last month, the world watched in horror as another tsunami brought immense devastation, this time to Japan. In light of the tragic earthquake and subsequent tsunami, I wanted to discuss a topic that’s important to all homeowners: homeowners insurance. Let’s start with some important questions: Do you know what a typical homeowner’s insurance policy covers? If... [Read more ...]
It’s a Small World After All
Globalization’s Impact on Home Loan Rates Fairfax, VA – Today we live in a global economy, an interconnected world where goods and capital move freely at lightning speed across countries. The widely accepted view is that globalization not only benefits all countries across the world but lends itself towards the betterment of the economy as a whole. As we have seen, globalization can also... [Read more ...]
More FHA Changes Are On The Way!
FHA Refinance Changes Fairfax, Virginia: With Mortgagee Letter 11-11, FHA announces changes to refinance transactions. This ML provides guidance on the changes as well as clarification on existing refinance guides and it will be worthwhile to read this ML in its entirety as a refresher. Here are the 8 things you need to know about these clarifications and changes: 1. Borrower must be current on their... [Read more ...]
More FHA Changes Coming Soon!
Annual MIP Increases February 15, 2011Fairfax, Virginia: With Mortgagee Letter 11-10, FHA announces an increase to the Annual Mortgage Insurance Premium on standard FHA loan programs and a change that affects case numbers.Here are the 7 things you need to know about these changes: 1. These changes are effective April 18th, 2011. 2. The Annual Insurance Premium will increase .25% for standard... [Read more ...]
What’s Happening With Rates?
Fairfax, Virginia: Mortgage Rates Return To April 2010 Levels Mortgage rates are surging. Over the last week or two, interest rates on 30-year fixed mortgages have increased roughly a .25 percent. This is according to Freddie Mac’s weekly Primary Mortgage Market Survey. It is the largest one week jump in recent history. The national rate for a 30-year fixed rate mortgage now averages 5.05%. ... [Read more ...]
What Should You Expect in 2011, Part 2
Fairfax, VA – Forecasts for Inflation, the Housing Market, and Home Loan Rates What’s ahead for inflation, the housing market, and home loan rates this year? Read on to find out. Inflation One of the major topics that we need to watch in the coming months is inflation. The Fed and the markets keep a close eye on inflation because it impacts so many aspects of the economy, including home... [Read more ...]
Google Drops Real Estate Listings
Google doesn’t give up on much. But it did with this product. http://www.inman.com/news/2011/01/26/google-drops-real-estate-listings
