Things are moving so quickly in the market with the coronavirus being at the forefront, everyone is feeling hardship across the board.
FHA Loans provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. It is one of the largest insurers of mortgages in the world, insuring more than 46 million mortgages since its inception in 1934 and it's the only government agency that operates from its self-generated income.
Self-generated income which means the Mortgage insurance premiums that is collected from borrowers via lenders are used to operate the program.
FICO scores tells the lender what type of credit risk you are and what your interest rate should be to reflect that risk by utilizing a FICO formula.
The most commonalty used :
Equifax Beacon 5.0
Experian/Fair Isaac Risk Model v2
TransUnion FICO Risk Score 04
We’re seeing what’s “good” for rates can be bad for lenders, and what’s “good” for the market can be bad for home buyers. This tug of war has caused servicers to implement drastic measures to keep up; includes raising the minimum FICO. If you have questions or concerns please contact your lender right away.
Deferred Action for Childhood Arrivals (Dreamers)
An American immigration policy that allows some individuals with "unlawful" presence in the United States after being brought to the country as children receive a renewable 2 year period of deferred action from deportation and become eligible for a work permit in the U.S.
The Federal Housing Administration (FHA) is the largest mortgage insurer in the world with an active insurance portfolio of over $1.3 trillion. Each year, FHA helps more than a million homebuyers achieve the dream of sustainable, affordable homeownership of single family homes, while our insurance programs for multifamily properties support the availability of over 300,000 affordable rental units, including those for seniors and people with disabilities. FHA's healthcare insurance programs facilitate access to hospital medical care and assisted living in hundreds of communities across the country.
Leading source of financing for mortgage lenders, providing access to affordable mortgage financing in all markets at all times. Our financing makes sustainable homeownership and workforce rental housing a reality for millions of Americans.
According to the FHA they are not going to be backing mortgages for DACA recipients, however Fannie Mae has stated that it supports (and will support) mortgages for DACA recipients.
“We have a longstanding policy on eligibility for non-U.S. citizen borrowers. Fannie Mae purchases and secures mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to U.S. citizens,” the government-sponsored enterprise said in a lender bulletin posted on Friday.
Fannie Mae said that it is not changing its existing policies. Rather, the purpose of issuing the bulletin was to provide “additional guidance to help lenders determine eligibility for non-U.S. citizen borrowers” in response to customer feedback on the issue.
Conventional rates today fell considerably today but, do you know what does effect the rates to rise and fall as they do?
The most crucial clues offset each other — Return of investment (Treasury Yield) on the government's debt obligation rose while oil prices fell. Shown below are some factors you might want to consider:
Predictions indicate for the year 2018 we should only see less than four rate hikes in 2018. So if your looking to purchase soon contact us today! And keep an eye on the markets!
We're striving to make the applicate process more streamline by offering services that are more automated and user friendly.
Resources: www.themortgagereports.com, www.mortgagedaily.com
On Tuesday, the Federal Housing Finance Agency (FHFA) that the maximum conforming loan limits for mortgage to be obtainedce in 2018. The 2018 maximum conforming loan limit for a one-unit property will be $453,100, an increase from $424,100 in 2017. This allows home buyers to purchase a home without resulting in a Jumbo loan with higher interest rates.
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit the maximum loan limit will be higher than the baseline loan limit. The maximum loan limit in those areas as a multiple of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2017, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $679,650 — or 150 percent of $453,100.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $679,650 for one-unit properties, but loan limits may be higher in some specific locations. (See Below)
Because of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2018 in all but 71 counties or county equivalents in the U.S.
What Is A Mortgage Loan Limit?
A loan limit is the maximum amount a lender will approve under certain guidelines.
There is not just one loan limit, but many. Conventional mortgages adhere to one set of loan limits, and FHA another. VA loans loosely follow conventional guidelines, but, technically, VA loans have no limit. Loan limits are a means of standardizing loans nationwide. That gives lenders and investors more confidence in these loans, which pushes mortgage rates down for consumers.
Now's the time the time to start thinking about your future.
Valley West Mortgage offers low rates
and No Obstacle Pre-Approvals.
Some changes took effect at the top of this month that could have amazing results on your credit score!
We’ve talked about the importance of your credit score in some of our recent posts. Your credit score—more importantly your FICO credit score (which is a combination of your credit scores and credit history)—is assessed to determine your eligibility for lines of credit, personal loans, auto loans, and more importantly, home loans. The higher your FICO score is when you apply for a mortgage, the better your chances are at negotiating mortgage loan terms with your bank or broker.
In a recent review of the three main credit bureaus, Equifax, Experian, and TransUnion, the Consumer Financial Protection Bureau found a number of concerns within the credit reporting processes of the agencies. The main issues that were called to attention included improper quality control procedures as well as incomplete and inadequate investigations when handling disputed accounts from consumers.
Raising your credit score can be challenging. Collections, debts, and student loans often tend to sneak up on us when we least expect it. One late credit card payment could drop your score down 90 or more points, and once your score is down (or damaged) it takes time to repair it again. Because of the difficulty of maintaining good credit, it’s important that the information on your credit report is accurate. Otherwise you could be receiving penalties and dropped points on someone else’s behalf. For far too long consumer credit reports have been erroneous due to insufficient identity information. As a part of the new standards set for the credit bureaus, the government has outlined a list of ways for the credit bureaus to improve on accuracy of information before applying a collection to someone’s credit report. Beginning July 1, 2017 a new and improved list of standards was set for credit bureaus.
Equifax, Experian, and Transunion are due to pay more than $17 million in restitution back to consumers who’ve been victims of false reports. They are also due to pay at least $5 million in fines and penalties to the Federal Government. 12 to 20 million Americans are expected to benefit from the new standards put in place by the Consumer Financial Protection Bureau. Those who will the see the change are most likely consumers who had civil debts and tax liens on their credit report.
Your credit score updates every month. Be sure to be on the lookout for a rise in your score!
When doing your research, always be sure to consult reliable sources. Check out the sources for this article below!