Mortgage Discussion for the Panhandle area

Wow, the great rates are back again for a Christmas showing. Purchase and Refinances with rates around 4.5%. That should be good news for any fence sitters. Rates are very good and we are still closing 100% loans. This along with the tax credit of up to $8,000.00 for "First Time Homebuyers" and the new $6,500.00 tax credit for "Non-First Time Homebuyers" we should have a busy holiday season.

Couple of changes on the horizon to be discussed. First of all, FHA appraisals will come under the Home Value Code of Conduct (HVCC) as of Jan. 1, 2010. This will cause some of the same appraisal issues we see on the conforming side. Not sure what we can do about it just make sure you price your sells correctly. This would mean all appraisals ordered will be ordered through a third party and no one can pick a local or preferred appraiser. Sounds like a good idea until you have a Destin appraiser do an appraisal for a property in Century. Then you will see why we do not like the HVCC regulations.

The second area you need to be aware of is FHA financing and the possibility of more cash needed to close. There is a strong argument at HUD to limit FHA to 95% financing. We opened the year with FHA financing 97.75% and finished this year at 96.5%. Another drop to 95% will mean less people qualify and more money needed for closing. We do not have this change in stone yet nor do we have projected dates but I would look for this change around Spring of 2010 unless the market picks up some steam and delinquency drops on mortgages.

I do not want to be negative in this blog but feel we need to know what is coming so if we have customers on the fence we can let them know. Now is the time to react and make that extra push for the close of 2009 and start of 2010.