Government Shutdown

We are getting tons of questions about the government shutdown and how it will impact loans currently in process.  Allen Tate Mortgage (thanks Tina Shields!) is giving us current info as it comes in.  For now, if your loan is FHA, VA, or conventional, you should be processed as planned.  The big upset is with a USDA loan -- USDA is a big part of the shutdown, and those WILL NOT CLOSE until everyone is back in session.  So, for now, USDA borrowers have a closing date that is "unknown".  Yuck, but so it goes with big government...

The Rates they are A-Rising...

Ok Folks... 30 yr conventional rates are now at 4.25. That is excellent, I know, but 2 weeks ago they were below 4%! So, they are rising, and the higher they go, the less house you get for the money. It is important to hone in and decide on the home you want NOW. Call me today to get started!

Weekend Rates

Conventional 5.00%
5/1 ARM 3.750%
FHA 5.00%
VA 5.00%
USDA 5.00%
NCHFA 4.750%
Investment 5.750%

As always, call, text, email, or tweet for more info!
336-714-9444
336-244-4269
amanda.shore@allentate.com
@amandashore

A Double Whammy

Everyone knows that the tax credit "under contract by" date is April 30, but a lot of folks don't realize that coming soon, FHA funding fees will increase. So many people rely on FHA loans for their home purchases, and when that upfront fee increases, more cash will be required to close. You can get MORE house NOW for the same amount you will be able to get LESS house for LATER. If you are on the fence, jump off and call today!

Today's Rates from Allen Tate Mortgage

Rates are still wonderful with both conventional and FHA below 5%! Forecasts predict they will be going up soon, though, so you better act fast. Call or email me for more info, and please see below:

Conventional 4.875%
5/1 ARM 3.750%
FHA 4.875%
VA 5.00%
USDA 5.00%
NCHFA 4.750%
Investment 5.625%


For mortgage help, contact me or Jennifer Tuttle with Allen Tate Mortgage at jennifer.tuttle@allentate.com. Phone calls do not obligate you to use our services.

Do Not Wait!

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loan guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5, the cost of required up-front mortgage insurance for loan guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7000 down payment, the up-front mortgage insurance will increase by $965. Up front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal, but overall, the increase is still borne by the borrower both upfront and monthly.

Later this Spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6000 for a home purchase of $200,000.

Information courtesy of Jennifer Tuttle with Allen Tate Mortgage

New FHA Guidelines!!!!

This is taken from an email alert sent out by Jennifer Tuttle with Allen Tate Mortgage:

FHA now insures about 30% of all new loans and is nearing the limits of loans they can make based on their capital ratio. In an effort to fix this problem, FHA is going to raise their upfront mortgage insurance premium fees from 1.75% to 2.25%.

This will bring more money into FHA thus meeting their Capital Ratio requirements to continue to lend. They also want to limit the high loan to value financing to borrowers with a 580 credit score; a score under 580 will now require at least a 10% down payment. All of the investors that Allen Tate works with will not purchase a FHA loan with a score below 620 so that change will not affect us. From my conversations with other loan officers in other companies, I don't know of an investor that will go below 620 at this time.

The bottom line... FHA loans, which have been the saving grace for so many folks, are now becoming stricter in their guidelines. This may affect your "borrow-ability"! All the more reason to find a home BEFORE April, when these guidelines take effect. If you have more questions or would like a copy of the new mortgagee letter from FHA, please contact me at Amanda.Shore@allentate.com!!