Congress & HUD to the rescue - New loan limits released

HUD has finalized the new 2008 loan limits for FHA, FNMA & FHLMC backed loans. The new limits increase the max loans for FHA from just over $368K up to $729,750. Although the highest amounts are for high cost metropolitan areas such as Los Angeles, New York, & San Francisco, Every county in America benefits from an increase in the FHA loan limit from $200K to a new minimum limit of $271,050. This helps to increase the number of US households that can qualify to purchase and refinance their homes.

You can find the new limits for your area here: 2008 Loan Limits .

FNMA & FHLMC, AKA Fannie Mae & Freddie Mac, are both GSE's or Government Sponsored Enterprises that purchase loans made by Mortgage Banks that meet their criteria. The new loan limits for Fannie & Freddie rose from $417K up to $729,750 as well in many areas, depending on Geographic area based on housing prices. Many areas did experience a significant increase in this amount, even if it didn't go to the max ceiling. For instance, Seattle homes can now qualify up to $569,500, and San Diego homes now qualify up to $697,500.

No Point, No fee options are available. Call for details.

Call us to find out if the new loan limits can help with your financial plans.
Our toll free number is 866-900-2342.

You may also apply online to get your home loan quote at http://www.vandykfunding.com/ , simply click on the Loan Application button at the top of the page.

Government Help for Homeowners is finally here

Help for US homeowners came this week in the form of Increased Loan limits for Fannie Mae (FNMA), Freddie Mac (FHLMC), and Ginnie Mae (Government loans such as FHA, VA, & FHA Secure). This week the United States Congress, Senate and our President, G.W. Bush all came to an agreement on an economic stimulus bill that includes a very important set of provisions for Homeowners. It increases the loan limits for the above entities from a cap of $417,000 for Fannie & Freddie and $362K for FHA to as much as $729,750 in high cost areas such as Coastal California, parts of Florida, New York, and select markets. Overall, it is likely to help hundreds of thousands of homeowners attain affordable, secure financing for their homes during the next year. The increases are temporary (until December 31, 2008) for some of the programs, so those looking to refinance should contact us very soon to get started. We anticipate that this will not only result in lower rates for many loans formerly considered "Jumbo", but will increase the ability to get qualified as these loan programs allow financing up to 97% of a homes appraised value without large penalties or rate increases.

This is welcome relief for thousands of Adjustable Rate Mortgage holders who are worried about rate resets and would like to lock into a more secure 30 year fixed rate mortgage. VanDyk Mortgage is ready to meet the increased demand with our streamlined, simple process for application & documentation handling. Consumers can apply direct at http://www.vandykfunding.com/, then go to the secure "loan application" button at the top of the page. Our processes are largely paperless, which will reduce the timelines for your loan approval and closing.

VanDyk Mortgage is a privately owned Mortgage Banker offering loans accross much of the nation. We have been in business over 21 years, offering FHA, VA, and Conventional financing direct. We are considered experts at FHA loans due to our large volume with HUD. We also have achieved "Full Eagle" FHA Direct Endorsement from HUD, an accomplishment that we are very proud of.

Please visit us online at http://www.vandykfunding.com/ or give us a call at 866-900-2342 to ask us any questions you may have about your loan, the mortgage market, or just to say hello.

The "No Cost Loan" from Countrywide

We have all seen Countrywide in the news for the past few months for a variety of reasons, most not good. One that I would like to speak about today is their heavy advertising of the "No Cost Loan". They have been under fire from both state regulators and the media for pushing these. Many innocent borrowers are swept into this loan thinking it is the cheapest way to get a loan. The borrower feels (and Countrywide says) that because of their huge size, Countrywide can offer no fee, no point, or no cost loans with no whammies. NOT TRUE! The Borrower will always pay for the fees somehow, either in closing or in the form of a higher interest rate. Every Lender, Broker, or Bank will incur fees to write a mortgage loan. Most of these fees are third party fees paid to outside companies. The points are part of the "cost of Money" or in laymans terms, your rate will always be effected by how many points you pay up front (regardless of whether included in the loan or paid out of pocket).

How do they do it? They increase your interest rate. Yes. Is that bad? Many times it is, but not necessarily. You may end up paying tens of thousands of extra interest. KNOW YOUR OPTIONS. One Size does not fit all.

Why do they do it? Higher rate loans are more lucrative for Countrywide to sell in the secondary Mortgage Paper Market. Period. They get more bang for their buck.

The No Cost, No Fee, No Point loan is a great loan for some people. It is not for everyone, and just like many loan programs, it isn't for every situation. You have to consider the benefits of a no cost loan with a higher rate vs a lower rate loan with some fees. More often than not, it pays to go with option 2, paying some fees, and getting a lower rate. It doesn't make sense if you do not plan on having the loan for atleast 24 months, you won't recoup the fees with your monthly interest/payment savings. If you have a smaller loan (under $175K), you should take a very close look at the options, as your recoup period may be longer.

A great compromise is to look at many fee/point/rate options to measure the best overall fit for your situation. The best way to find the optimal fit for your loan is to work with a professional you can truly trust and rely on for sound financial advice. One who will review the options with you, show you the differences between the choices and guide you to the lowest overall cost. Hire a Professional, get professional results.

If you would like to review your options with us, please feel free to contact us on the web at www.vandykfunding.com or toll free 866-900-2342.