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Once a very popular product, they have pretty much become non-existing. Once people could go to 100% with 80/20’s and or use their seconds to payoff debt, make home improvements, etc. Now a days, it is very rare to find a bank that will offer a second. The remaining ones that do offer seconds will only go to 80-85 CLTV (Combined-loan-to-value). The will all require full documentation and most likely order an appraisal. They also qualify the borrower on the full drawn amount of the HELOC. What that means is if you request a HELOC for 100k, they use the current rate based on 100k, (even if you only plan on initially taking out less than 100k) to qualify for the payment, to see if you qualify for the loan. Most HELOC’s have an early termination fee. That… Read Full Post

 

How many times have we all heard that? Personally I agree, I wish all of these experts with books, DVDs and infomercials will be more realistic and not over-promise to sell their products. As an experience mortgage broker, sometimes I hear things that make want to pull my hair out!! We are in a very tough market, with tougher guidelines, higher emphasize on credit scores, documentation needed for income and assets and sizeable down payments. I would love for these “experts” to tell me where the people buying their products can receive financing with low credit scores? I would love for them to show what banks are offering “no money down” loans on investment products? I would love for them to show what banks are letting individuals buy investment… Read Full Post

The jumbo FHA loan limits are back! With the Obama plan, FHA has increased their loan limits up to $729,750 in high cost areas. The rates are higher if your loan amount goes over 417k, but rates are still very low. FHA requires Private Mortgage Insurance and they base that on the loan-to-value.

-If your loan-to-value is over 95%, the PMI factor is .55
-If your loan-to-value is under 95% the PMI factor is .50 

FHA always charges an upfront PMI fee and that will be also vary based on loan-to-value and credit scores.

Go here to find the loan limits for FHA, Fannie and Freddie, and reverse mortgages, and do the following;

-Click on, 08 & 09, HUD site
-Once there, enter your state.
-And then enter your county.
-Under “Limit Type”, you can pick any…

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