If you’ve never purchased a home before, your intuition may tell you the best place to start is your local bank. However, what seems like an obvious choice may put you in a bad situation for the next 30 years. Passed on July 30, 2008, the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act …
Category: Banks and Lending
Congress Raises Limits on FHA Loans
WASHINGTON—U.S. lawmakers moved Thursday to increase the maximum size of loans that can be guaranteed by the Federal Housing Administration. Congress passed a broad spending bill that included a provision to restore to $729,750 the maximum size of mortgage that can be backed by the FHA, giving some borrowers the option of putting less money …
Good News for Military Vets
Effective October 1, 2011, the costs associated with getting a VA mortgage are going DOWN! An overview: VA mortgages are bundled, securitized and sold in the secondary market with the backing of the Federal Government. In order to insure these mortgages, the government charges a type of insurance premium, called a VA Funding Fee, which …
U.S. May Back Refinance Plan for Mortgages
The Obama administration is considering further actions to strengthen the housing market, but the bar is high: plans must help a broad swath of homeowners, stimulate the economy and cost next to nothing. One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to …
U.S. Shadow Inventory Months-to-Clear Estimate Down
In the second quarter of 2011, Standard & Poor’s Rating Services’ estimate of the months to clear the supply of distressed homes on the market in the U.S. fell for the first time since mid-2009. The current estimate is 47 months, a five-month decline from our first-quarter estimate and the largest quarter-to-quarter drop since mid-2008. …
Low Interest Rates vs. Economy Jitters [VIDEO]
Historically low interest rates combined with incredible deals on real estate have created the perfect time to buy a home. “If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.” -John …
Assets and Your Mortgage Application
When lenders evaluate mortgage borrowers, we look at four things: income (the ability to repay), credit (the willingness to repay), collateral (appraised value and property condition) and assets (cash in the deal and cash reserves after closing, mostly). Of the “four legs of the table”, assets are the least discussed, and yet may be the …
Are Banks Ready to Lend Again?
Major U.S. banks appear to be finally opening the lending spigot. Second-quarter earnings reports due this month are likely to reveal a slight reversal of the long-term shrinkage in bank loan books, one of several positive signs for investors, bank analysts said. …”Banks are beginning to lend again and that’s a good sign,” said Timothy …