New Stimulus Size loans FHA or Fannie?

Well, The new Stimulus Package loan limits are here, and we have had a couple weeks to see how the banks would digest the new loan limits. For instance, the new loan limit in Los Angeles, CA is $729,750, while the limit for San Diego, CA is $697,500. The Seattle area in Washington, including King, Pierce & Snohomish Counties are now capped at $567,500.

So what is the difference between the larger FHA loans and Fannie Mae's new Jumbo offerings.

Well for starters, FHA only requires 3% down payment vs Fannie Mae's 5% minimum. There is another advantage to using FHA when the property is in a "declining market" such as most of California, Florida, or Michigan. In the Declining Market, Fannie Mae requires another 5% down for a total of 10% down payment required. Regardless of credit score. This is the minimum.

FHA guidelines are far more predictable than Fannie Mae's are right now due to problems for Banks to sell loans in the secondary market. These problems have resulted in constant changes in qualification guidelines & parameters for Fannie Mae loans. Meanwhile, FHA loans remain true to form, since they are guaranteed by HUD, paid for by the Mortgage Insurance on each loan, these have not had to change as dramatically to keep up with the secondary marketability and the all mighty bank liquidity requirements. (IE, bad loans on the banks books hurt liquidity since they can't sell them for what they paid for them or their original value).




Stay Tuned for more FHA updates in the days to come.

The ARM quiz

Do you know when your mortgage is going to adjust?

Do you know what your new payment will be?

Do you know what your options are?

If you do not know the answer to all three questions above, or are uncomfortable with the answers, Please don't hesitate to give us a call at 866-900-2342, x106 or visit us online at www.vandykfunding.com . We are here to help.

Sincerely,

Brian Skaar
Mortgage Banker
VanDyk Mortgage

Jumbo Help

The Secondary Market for non-conforming mortgages has become very Volatile. This means all loans over $417,000 (excellent, good or poor credit alike) or with rough credit history have become more expensive overnight. Excellent credit Jumbo mortgages jumped from 6.5% to over 8% in the span of 2 days this month. Now that is Volatile. To quote Cramer from Mad Money, "Rich People like me can't get a loan" . Well that isn't quite the whole truth, he just doesn't know the right people. He should call us.

If you have a Jumbo Adjustable Rate Mortgage or ARM, it is imperative that you act now to get that converted into another loan product, as we do not know what the future holds, both for rates and will you qualify to refinance.

Many folks had refinanced into Pay-Option, Neg-Am or Option ARM loans in the past couple years thinking their rate was actually 1% (not even the Fed lends money that cheaply) and have found their interest rate accrual much higher than they thought, their loan balances climbing upwards with every "minimum payment" (Negative amortization), and many are dangerously close to their trigger point.

What is a trigger point? When your loan balance grows to a predetermined level, your minimim payment option, and your Interest Only options disappear, leaving you with Principal & Interest Option for your monthly payment. This is a huge payment increase that few can afford. If you don't understand or are concerned about your loan, please don't hesitate to contact us. (contact info below and in the profile).

If you want the best available options to refinance your mortgage, you must choose a Loan professional, one that is truly savvy with this market. A loan pro that knows what investor is offering that same Excellent Credit Jumbo Fixed loan at 1% below the rest of the market. (we know this) But more importantly, the Loan Pro who can get your loan done before things change again.

We are students of the Mortgage Market, The Investors that lend mortgage money, and our clients needs & wants. Summary, we are here to cover you, so call us, we can get it done. We bank loans, and we also broker. We are like a Quick Strike Tactical Mortgage Operation. We can get your loan done before things change.

Do you know when your mortgage is going to adjust?

Do you know what your payment is going to adjust to?

Do you know what your options are?

If you do not know the answer to all three questions above, or are uncomfortable with the answers, Please give us a call at 866-900-2342, x106 or apply online at www.vandykfunding.com . We are here to help.
Thanks, Brian Skaar