Mortgage Discussion for the Panhandle area

Wow, it has been hot. I am not speaking of the weather either. Interest rates and business have been so good lately I have not completed my Blog in a long time. Let me catch you up on what is happening mortgage wise.

USDA is finally being funded and we should have our automated underwriting back soon. The funding fee has been increased from 2% to 3.5% but at 100% we will take what we can get. This is very good news as the manual underwrites for USDA have dampened our ability to close the less than perfect deals but the new underwriting system will get us back to normal.

FHA is in the news with some new provisions being considered in congress. Most we could agree will be good for the industry like simple new underwriting guidelines making FHA loans easy to understand. Congress is also considering raising the down payment guidelines for credit score less than 620 to 5% score less than 580 to 10%. This sounds like a good idea but no one is funding the lower credit scores any longer so I am not sure what impact this will have. The last consideration of the FHA product is one we all need to get involved in. The congress is considering lowering the seller paid closing cost on FHA loans from 6% to 3% of purchase price. This is something we should all be against. Over a nationwide aspect this is not a fair change. As most everyone is aware Florida has some taxes paid on purchases that cause the closing cost to be inflated over many other states. Our taxes potently raise closing cost in out state 1.25% over a state like Alabama. This amount would mean in Alabama the 3% could cover all closing cost for a buyer but in a state like Florida where the taxes on a purchase are higher the buyer could be faced with paying $1,250.00 more on the same $100,000.00 purchase. If you agree with me go to http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480b1a605 where HUD is taking comments on the proposed regulation changes. Get involved now.

The last positive of this Blog is the LOW RATES. We have hovered around 4.5% for some time now with no true sign that will increase soon. This is a true Historic low and all your borrowers need to stop fence sitting and get a home today.

Please call with any questions for to pre-qualify your borrowers.