You have a little over a month to meet the closing deadline of 11/30 for the potential $8,000 tax credit. Don't wait till the last minute, as lenders and closing agents are going to be swamped and you might miss it by a day.
This is an excellent program for 1st-time buyers, but programs like Rural Development loans, with zero down payment, are already backed up and taking considerably longer to get approved.
If the loan has to close by 11/30 and you take weekends and Thanksgiving out of the number of days, you may be already pushing the envelope here.
Don't wait - talk to a knowledgeable lender today if you want to make sure your loan is closed by 11/30. If you close 12/1 you're too late - there are no expceptions here.
Call me if you have any questions, 608-779-1519.
Jolyn
Tuesday, September 29, 2009
Thursday, September 24, 2009
HOW DOES INFLATION AFFECT INTEREST RATES?
To give you an easy way to remember how inflation affect interest rates:
INTEREST RATES ARE THE BOAT THAT FLOATS ON THE SEA OF INFLATION.
What this means is if inflation figures go up, interest rates will go up with them. Another general rule of thumb: If the stock market is doing well, mortgage rates will do worse. What happens is when investors are putting their money into the stock market, they are pulling it out of the bond market, which drives rates. When they want a safer haven for their investments if the stock market is not doing well, they pull it out of stocks and put it in the bond market, which makes rates get better. This isn't always the case, but it's a safe indicator.
All I'm hearing out there is the buzz that inflation is looming, and rates are going to go up. That, in combination with the fact that there's JUST enough time to buy and get in on the possible $8,000 tax credit if you close on a purchase before 12/1 makes it a good itme to buy. Rates are low, you might qualify for the $8,000 and there's a nice supply of homes on the market.
Call me if you have any questions!
INTEREST RATES ARE THE BOAT THAT FLOATS ON THE SEA OF INFLATION.
What this means is if inflation figures go up, interest rates will go up with them. Another general rule of thumb: If the stock market is doing well, mortgage rates will do worse. What happens is when investors are putting their money into the stock market, they are pulling it out of the bond market, which drives rates. When they want a safer haven for their investments if the stock market is not doing well, they pull it out of stocks and put it in the bond market, which makes rates get better. This isn't always the case, but it's a safe indicator.
All I'm hearing out there is the buzz that inflation is looming, and rates are going to go up. That, in combination with the fact that there's JUST enough time to buy and get in on the possible $8,000 tax credit if you close on a purchase before 12/1 makes it a good itme to buy. Rates are low, you might qualify for the $8,000 and there's a nice supply of homes on the market.
Call me if you have any questions!
Monday, September 21, 2009
Home sellers should plan to attend closings
Did you know that for Guaranteed Rural Housing loans, Federal VA and FHA loans,a seller MUST sign some closing documents? Having your sellers attend closing just makes things a little easier, as most of the time these days, closing papers arent done much before the day of closing. If you've got a loan closing soon, make sure the sellers plan on coming to the closing. If not, make sure you have plenty of time to get the closing papers completed and the signatures ahead of time.
With these loan programs, there are NO EXCEPTIONS to this rule.
With these loan programs, there are NO EXCEPTIONS to this rule.
Friday, September 18, 2009
I WAS SO SUPRISED - THANK YOU!
Last night (Thursday 9/17) I attended the La Crosse Area Realtor Assocation meeting to support Steve Lillestrand of Meyer Assocates as he was installed as the new president of the associaton. How suprised was I to find that I received the "POSITIVE ENERGY" award. How cool is that!!! Thank you to everyone.
It's a beautiful award too! I uploaded a photo of myself with award looking like a dork.
Thank you all - it means a lot to me!
Jolyn
Thursday, September 17, 2009
FHA appraiser checklist
With all the changes in the mortgage industry and guidelines getting tougher and tougher FHA loans are one of the last loans out there for many buyers who don't have the required 680 credit score or 20% down. It's a 30 year fixed rate, very competitive loan that requires only 3 1/2% down, and all the down payment can be a gift.
Appraisers are required to comment on a lot more details of a home than your regular 30 year fixed. It makes sense if you think about it. You've got a person putting minimal down. This usually means they don't have excess cash lying around if the roof is going to be needing replacement soon. So to avoid a borrower incurring high home repairs right after purchase, they want the home to meet certain requirements.
I've got a copy of the check-list FHA appraisers use when they inspect a home. If you are wondering if a home you're listing will have problems, check out the list. If you're working on getting a listing, explain to the sellers the importance of FHA loans in selling their home and what repairs would need to be done for the property to meet FHA minimum property standards.
If we're all proactive, you'll sell more homes, loans will go smoother, and more people can make their dream of home ownership a reality.
Shoot me an e-mail and I'll forward this appraiser checklist to you.
Let's work together to sell more homes!
Appraisers are required to comment on a lot more details of a home than your regular 30 year fixed. It makes sense if you think about it. You've got a person putting minimal down. This usually means they don't have excess cash lying around if the roof is going to be needing replacement soon. So to avoid a borrower incurring high home repairs right after purchase, they want the home to meet certain requirements.
I've got a copy of the check-list FHA appraisers use when they inspect a home. If you are wondering if a home you're listing will have problems, check out the list. If you're working on getting a listing, explain to the sellers the importance of FHA loans in selling their home and what repairs would need to be done for the property to meet FHA minimum property standards.
If we're all proactive, you'll sell more homes, loans will go smoother, and more people can make their dream of home ownership a reality.
Shoot me an e-mail and I'll forward this appraiser checklist to you.
Let's work together to sell more homes!
Tuesday, September 15, 2009
FLOOD MAP TIP OF THE DAY!
I found a pretty cool link today while trying to research whether a property is in the flood plain or not. Cut and paste this into your browser.
http://wi-lacrosse2.civicplus.com/index.aspx?NID=1088
you can pull up a map index that will give you an idea of what panel to go back and open, or you can click on FEMA MAP SERVICE and type in the address.
All lenders have to use an independent flood determination company to give us the final determination as to whether or not a property requires flood insurance, but this will give you a heads-up on your listings or if you're on the buyer-end of it, you can let your buyers know they will need to figure flood insurance into their monthly payment.
It's amazing what you can find out there if you know where to look!
http://wi-lacrosse2.civicplus.com/index.aspx?NID=1088
you can pull up a map index that will give you an idea of what panel to go back and open, or you can click on FEMA MAP SERVICE and type in the address.
All lenders have to use an independent flood determination company to give us the final determination as to whether or not a property requires flood insurance, but this will give you a heads-up on your listings or if you're on the buyer-end of it, you can let your buyers know they will need to figure flood insurance into their monthly payment.
It's amazing what you can find out there if you know where to look!
Thursday, September 10, 2009
POSSIBLE PROBLEM-TYPE PROPERTIES
Did you know you may have some trouble selling a certain type property these days?
Loans that are long-term fixed, lowest rates, least down are CONVENTIONAL LOANS that, even though they may be serviced by local lenders, are SOLD on secondary market. If you've ever heard the term Fannie Mae, Freddie Mac, Gennie Mae, these are where the bulk of the funds come from for today's mortgages. When lenders do a 30 year fixed rate loan, they use their own money to do the loan, then the loan is sold and they are reimbursed their funds so they can do more loans. The buyer may continue to make their loan payments to that lender, even though the loan is sold, or they could be paying someone else. A lender sells the loan, but can choose to retain the "servicing" or the handling of the loan payments. Loans can be sold at any time during their term.
In-house loans are loans where the lender uses their own funds and does not sell them. You will not get a 30 year fixed. Most likely, it will be a 1-3 year adjustable rate (ARM) or loan with a balloon payment that is due in 1-3 years. They will not tie up their funds for 30 years. It's not good banking business.
To get these long term, fixed rate, low rate mortgages they need to meet the requirements of secondary market, or as I like to say, borrowers have to JUMP THROUGH THE HOOPS. Believe me, there are a lot of hoops these days. Secondary market, to simplify, only wants cookie-cutter homes that will sell easily and fast if they need to foreclose on them. The hoops are their way to ensuring the chances of getting that loan back minimal.
Because of the continual tightening of mortgage guidelines, properties that may be difficult to get the secondary market loans on these days are:
1) Investment property - 1-4 unit non-owner occupied income/rental properties need 25% down, a high credit score, and unless the borrower has had a 2 year history of being a landlord, they probably won't let them use any rental income to help qualify them for the loan. Most people need that rental income to qualify.
2) Unique properties - Secondary market doesn't like unique properties. If it's unique they may have trouble selling it if they foreclose on the property. Also, to be acceptable on secondary market, there needs to be 2-3 comparable sales that have sold in 30-90 days. Unique properties are an appraiser's nightmare and hard to appraise. Unique properties are Dome houses, earth homes, log homes, 1 bedrooms, multiple out buildings, holding tanks, 2 homes on one lot.
3) Manufactured homes - Loans for manufactured are VERY DIFFICULT these days. Borrowers are most likely going to need a substantial down payment, and won't be able to get a fixed, long-term loan. Don't get manufactured confused with MODULAR. Modular are not as tough. Make sure you let your lender or Realtor know upfront you are selling or buying a manufactured so you avoid problems. Make sure you know the obstacles involved with manufactured homes.
4) Acreage - We're back to minimum acreage again. Years ago, no one liked loans with excessive acreage (more than say 5-12 acres). Over time, as long as there were comparable sales, 40 acres was OK. Not any more. The land value can't exceed 30% off the total value. You may need to plan on splitting off the house and 5-10 acres and buying the excess acreage separately.
If you have a unique property you're tyring to sell, give me a call and I'll walk you through some possible options.
Have a great day.
Loans that are long-term fixed, lowest rates, least down are CONVENTIONAL LOANS that, even though they may be serviced by local lenders, are SOLD on secondary market. If you've ever heard the term Fannie Mae, Freddie Mac, Gennie Mae, these are where the bulk of the funds come from for today's mortgages. When lenders do a 30 year fixed rate loan, they use their own money to do the loan, then the loan is sold and they are reimbursed their funds so they can do more loans. The buyer may continue to make their loan payments to that lender, even though the loan is sold, or they could be paying someone else. A lender sells the loan, but can choose to retain the "servicing" or the handling of the loan payments. Loans can be sold at any time during their term.
In-house loans are loans where the lender uses their own funds and does not sell them. You will not get a 30 year fixed. Most likely, it will be a 1-3 year adjustable rate (ARM) or loan with a balloon payment that is due in 1-3 years. They will not tie up their funds for 30 years. It's not good banking business.
To get these long term, fixed rate, low rate mortgages they need to meet the requirements of secondary market, or as I like to say, borrowers have to JUMP THROUGH THE HOOPS. Believe me, there are a lot of hoops these days. Secondary market, to simplify, only wants cookie-cutter homes that will sell easily and fast if they need to foreclose on them. The hoops are their way to ensuring the chances of getting that loan back minimal.
Because of the continual tightening of mortgage guidelines, properties that may be difficult to get the secondary market loans on these days are:
1) Investment property - 1-4 unit non-owner occupied income/rental properties need 25% down, a high credit score, and unless the borrower has had a 2 year history of being a landlord, they probably won't let them use any rental income to help qualify them for the loan. Most people need that rental income to qualify.
2) Unique properties - Secondary market doesn't like unique properties. If it's unique they may have trouble selling it if they foreclose on the property. Also, to be acceptable on secondary market, there needs to be 2-3 comparable sales that have sold in 30-90 days. Unique properties are an appraiser's nightmare and hard to appraise. Unique properties are Dome houses, earth homes, log homes, 1 bedrooms, multiple out buildings, holding tanks, 2 homes on one lot.
3) Manufactured homes - Loans for manufactured are VERY DIFFICULT these days. Borrowers are most likely going to need a substantial down payment, and won't be able to get a fixed, long-term loan. Don't get manufactured confused with MODULAR. Modular are not as tough. Make sure you let your lender or Realtor know upfront you are selling or buying a manufactured so you avoid problems. Make sure you know the obstacles involved with manufactured homes.
4) Acreage - We're back to minimum acreage again. Years ago, no one liked loans with excessive acreage (more than say 5-12 acres). Over time, as long as there were comparable sales, 40 acres was OK. Not any more. The land value can't exceed 30% off the total value. You may need to plan on splitting off the house and 5-10 acres and buying the excess acreage separately.
If you have a unique property you're tyring to sell, give me a call and I'll walk you through some possible options.
Have a great day.
Do you know someone selling a home?
Good morning –
After my BNI (Business Network International) meeting this morning, I thought I’d give you something to think about. I usually ask people to refer buyers to me because what I do is help people get a home loan. I think I can be of as much, if not more, help to sellers. Chances are I won’t benefit directly from this contact, but it can help make their home sell faster, help Realtors and potential buyers, and it’s good Karma for me. (Did you hear about the dog named Karma – it always comes back to bite you)
If you have someone you know who is thinking about selling their home, have them give me a call. I can help them understand the current mortgage industry, and some of the hurdles buyers have to jump over these days. It may help them understand what can make their home more saleable than others on the market.
I can explain to them….
> 75% of the buyers can only manage the minimum down payment or don’t have the required 680 credit score, which leaves FHA loans as a very viable option. There’s a good chance someone looking at their home will be an FHA buyer these days. FHA doesn’t mean a borrower is a looser. You can have perfect credit and have a credit score under 680. Young buyers who don’t have a long credit history have this problem as part of the credit score is based on how much credit they have and how old the credit accounts are. A longer credit history means a better score. And let’s face it – it’s hard to save 5-20% down these days.
> What property minimum standards there are with FHA loans
> How offering incentives like paying closing costs for the buyer may help a buyer get a loan and be able to purchase their home vs. the competition
> What can they do to get their home ready to sell so they avoid problems like peeling paint when they get offers.
> Does their well and septic meet the distance requirements that FHA has.
> How fast can they expect to close once they get an offer accepted.
> How reliable is an "approval letter" these days.
I would like to help them be pro-active and sell their home faster, whether I benefit or not. Just having them call makes it worth my while!
Forward on my blog, or have them contact me. I'm here to help.
Office: 608-779-1519 Cell: 608-498-1959 e-mail: joelfke@umc123.com
Have a great day!
Jolyn - your Motgage Expert from Universal Mortgage
After my BNI (Business Network International) meeting this morning, I thought I’d give you something to think about. I usually ask people to refer buyers to me because what I do is help people get a home loan. I think I can be of as much, if not more, help to sellers. Chances are I won’t benefit directly from this contact, but it can help make their home sell faster, help Realtors and potential buyers, and it’s good Karma for me. (Did you hear about the dog named Karma – it always comes back to bite you)
If you have someone you know who is thinking about selling their home, have them give me a call. I can help them understand the current mortgage industry, and some of the hurdles buyers have to jump over these days. It may help them understand what can make their home more saleable than others on the market.
I can explain to them….
> 75% of the buyers can only manage the minimum down payment or don’t have the required 680 credit score, which leaves FHA loans as a very viable option. There’s a good chance someone looking at their home will be an FHA buyer these days. FHA doesn’t mean a borrower is a looser. You can have perfect credit and have a credit score under 680. Young buyers who don’t have a long credit history have this problem as part of the credit score is based on how much credit they have and how old the credit accounts are. A longer credit history means a better score. And let’s face it – it’s hard to save 5-20% down these days.
> What property minimum standards there are with FHA loans
> How offering incentives like paying closing costs for the buyer may help a buyer get a loan and be able to purchase their home vs. the competition
> What can they do to get their home ready to sell so they avoid problems like peeling paint when they get offers.
> Does their well and septic meet the distance requirements that FHA has.
> How fast can they expect to close once they get an offer accepted.
> How reliable is an "approval letter" these days.
I would like to help them be pro-active and sell their home faster, whether I benefit or not. Just having them call makes it worth my while!
Forward on my blog, or have them contact me. I'm here to help.
Office: 608-779-1519 Cell: 608-498-1959 e-mail: joelfke@umc123.com
Have a great day!
Jolyn - your Motgage Expert from Universal Mortgage
Tuesday, September 1, 2009
when you get an offer on your listing, call me right away
Hey beloved Realtors! When you get an offer on one of your listings, find out what kind of loan the buyer is trying to get call me and I'll give you some things to check on to make sure you won't run into last-minute issues that could delay your closing.
If it's an FHA loan, there's lots of guidelines the property has to conform to. Better to know them upfront and if you can meet the guidelines right away. I can share my 23 years of FHA lending experience with you that most lenders don't have. A lot of lenders are getting on the FHA band-wagon now, but don't know what to watch out for when doing these loans.
With the ever-tightening lending guidelines, about 75% of the buyers are shut-out of getting a 30 year fixed CONVENTIONAL loan. You can't get a loan with a credit score under 680 unless you have 20% down. How many home buyers do you know that have 20% down these days - not many! You can have a credit score as low as 620 and have access to FHA loans. You can have a very low score and possibly get a Rural Housing (GRH) loan. These are great fixed-rate loans that most buyers qualify for. There is NO INCOME LIMITS for FHA loans so anyone can get an FHA loan as long as they have at least a 620 credit score. But....with FHA, there are certain requirements for properties, and when most of the buyers out there are using FHA, we need to know if your listings are suitable for FHA financing.
Call me - even though I may not be doing the loan for the buyer, I can help you make sure your closing goes smooth. We all hate last minute problems!
Talk to you soon!
Jolyn Oelfke - Mortgage Expert
Universal Mortgage
608-779-1519
If it's an FHA loan, there's lots of guidelines the property has to conform to. Better to know them upfront and if you can meet the guidelines right away. I can share my 23 years of FHA lending experience with you that most lenders don't have. A lot of lenders are getting on the FHA band-wagon now, but don't know what to watch out for when doing these loans.
With the ever-tightening lending guidelines, about 75% of the buyers are shut-out of getting a 30 year fixed CONVENTIONAL loan. You can't get a loan with a credit score under 680 unless you have 20% down. How many home buyers do you know that have 20% down these days - not many! You can have a credit score as low as 620 and have access to FHA loans. You can have a very low score and possibly get a Rural Housing (GRH) loan. These are great fixed-rate loans that most buyers qualify for. There is NO INCOME LIMITS for FHA loans so anyone can get an FHA loan as long as they have at least a 620 credit score. But....with FHA, there are certain requirements for properties, and when most of the buyers out there are using FHA, we need to know if your listings are suitable for FHA financing.
Call me - even though I may not be doing the loan for the buyer, I can help you make sure your closing goes smooth. We all hate last minute problems!
Talk to you soon!
Jolyn Oelfke - Mortgage Expert
Universal Mortgage
608-779-1519
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