Feds’ Emergency Action

If you’re thinking about locking rates on a mortgage refinance, then pay attention to the 30yr fixed mortgage rate this week and next week. It might drop all the way to 5.25%.

“The central bank, in an extraordinarily rare weekend move, took the bold action Sunday in an attempt to calm the markets. It also approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent, effective immediately.” -Seattle Times & Cnn.

FHA loan limits for Seattle metro

NEW FHA LOAN LIMITS = HIGHER ALLOWABLE SALES PRICES!!

• Single Family/Condo max. Sales price $585,000 in Sea/Bell/Everett metro areas.
• Fourplex purchases allowed with FHA financing up $1.1m sales price.

FHA BENEFITS:

• Up to 6% Third party contributions allowed
• Non-Occupant Co-borrowers allowed
• All of down payment can be a gift or other approved source of funds
• Seller Funded down payment assistance (DPA) allowed
• Borrowers in Chapter 13 Bankruptcy allowed; 12 months satisfactory payment history & court approval required

FHA CHANGES:

• HUD uses the same appraisal form as Fannie Mae!!
• Upfront Mortgage Insurance required on condos.
• Admin & courier fees can now be paid by borrower

FHA TARGET AUDIENCE:

• Borrowers who want minimum cash investment in property
• Who have limited down payment funds of their own
• Who need a Non-Occupant Co-borrower to qualify
• Who have minimal or no traditional credit references