5/23 – RATES HOLD STEADY ; NEW WAYS TO PROVE INCOME

MORTGAGE RATES HOLD STEADY:  For the first week in 4 weeks, rates have not improved.  The bond market finished with no change on the week.  30 year fixed par rates are still available at 7 month lows.  30 year fixed par rates are at 4.5% paying around a half a point.  You can go down to 4.375% by paying a little over a point, and 4.625% is 0 points. 

FHA rates are great right now.  For most customers I can do a 0 cost loan for less than 4.5%!!

LOTS OF ASSETS ; BUT NO PROOF OF INCOME:  I talk to frustrated borrowers almost every week who have a lot of assets but prove little to no income.  There is now a way to help these borrowers.

An example of this borrower would be one who has 1 million in the bank that they live off of, but do not currently hold a job.  We can now help these borrowers by having them set up a monthly withdrawal every month for the next 3 years from their asset accounts.

Here is how it works:  Customer calls the representative from their account.  They set up a certain amount of money to be deposited to them every month (I would tell you the amount needed to qualify for the loan).  I must get a letter from the account rep saying they have set up a monthly withdrawal for 3 years with such and such amount.  I would then need a most recent statement from this account showing there is enough in the account for it to last for 3 years.

It is that easy, and we can now use this monthly installment as qualifying income – call me if you would like to see if I can make this work for your scenario.

REPUBLICANS INTRODUCING NEW FHA LEGISLATION:  Republicans are about to introduce new legislation to change FHA guidelines.  The changes would include:

95% max loan to values (currently 96.5%)

Lower FHA loan limits in most counties

The biggest problem with our economy continues to be the housing market.  We need homes to continue selling so we can eventually get past the foreclosure and short sale mess.  The 3.5% down payment program allows many home owners to purchase a new home without having to have a significant down payment.  By taking this away, we would be hampering the very industry we need to strive.

I think eventually this could be a good idea, just not right now.  To learn more about FHA loans – visit my page on WHAT YOU NEED TO KNOW ABOUT FHA LOANS: https://mortgagenewsandrates.com/what-you-need-to-know-fha-loans/

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