Weekly Market Update from Waterstone Mortgage
I hope you had a successful August and have a pipeline full of first time buyers ready to take advantage before the $8,000 tax credit expires. We are just 76 days away from the expiration of the tax credit. While there is talk of extending the credit, and possibly increasing it and expanding it to cover all buyers, we can’t rely on Congress keep us busy. Keep pounding the pavement for first time buyers, they are out there. Post about the tax credit on Facebook, Twitter, your blog, and your website; get the news out and in front of as many people as possible.
Jumbo Loans Are Coming Back Strong
One of the hardest hit areas during the mortgage meltdown was the Jumbo mortgage market. Over the last few months, interest rates on Jumbo’s have come down considerably. While Jumbo fixed rates are still a little higher than they should be, Jumbo 5/1 and 7/1 ARM’s are as cheap as ever. Today you can get a Jumbo 5/1 ARM in the range of 4.25%. Get the word out as high end properties are selling at incredible premiums and financing is available.
Having Trouble Getting Financing For Condos?
Condo financing is another area that has been hit hard by the mortgage meltdown. High HOA delinquency rates are making it very difficult to get financing in these projects. If more than 15% of the unit owners are past due on their HOA dues, it is almost impossible to get a mortgage in the project.
We just created a portfolio bank product to handle these types of loans and have closed two in the last two weeks. Call me if you need help and have been turned down by other sources, we have a solution for your buyers.
FHA Short Sales
We have heard a few agents talk about an issue with getting seller paid closing costs for short sales where the existing mortgage on the property is an FHA mortgage. While FHA loans were less than 5% of the market until 2008, and FHA short sales are not very common, it is important to know that the cap on seller concessions for FHA short sales is 1% of the sales price.
Credit Scores
Credit scores are the #1 factor in getting a loan approved and securing a low interest rate. Here is a great article about the credit scoring model to pass along to your clients.
http://online.wsj.com/article/SB10001424052970204348804574400700026852702.html
Market Update
Interest rates have improved some over last week. Conventional and FHA rates are in the 5.125% range. 5/1 ARM rates have dropped considerably in recent weeks, into the low 4’s, and can be a good alternative for someone looking to own a home for 4-6 years.
September’s Seminar
Topic: Polybutylene Plumbing and Chinese Drywall
Speakers: Brad Clark of Florida Insurance Specialists and Jim Murphy of HomePro Inspections
Date: Thursday, September 24th
Time: 9:00 Registration, 9:30 – 10:30 speaker
Location: Winter Park Civic Center
To RSVP, e-mail mpischke@waterstonemortgage.com
2010 Business Plan Seminar
Mark your calendar for Tuesday, December 1st! We will be hosting our very popular Business Plan seminar, and this year we have an incredible lineup of speakers and topics ready to help you write a business plan to make 2010 your best year ever in Real Estate. In the two years since I created this seminar, the reviews have been fantastic. It has been so popular that I have been invited to present it to Realtors in Boise, Idaho and Milwaukee, Wisconsin later this year. I also have been invited so speak in front of 1,500 fellow mortgage professionals as one of the keynote speakers at the Mortgage Revolution Conference in Atlanta in January.
Have a great week!
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