FHA - Mortgage Insurance Premium Update...

Implementation of the new plan is delayed until October 1st.

After announcing last week that it was lowering upfront insurance premiums
from 2.25% to 1.0% on Sept. 7, the Federal Housing Administration said it’s pushing back implementation until October.
“Based on industry feedback and our desire to have this change implemented successfully in the marketplace, FHA will make the premium fee changes on all new case numbers effective October 4, 2010,” said Vicki Bott, Deputy Assistant Secretary for the Housing and Urban Development.

For details on the upcoming changes, see our earlier post, "Congress has passed H.R. 5981 – FHA Mortgage Insurance Changes…" Posted on August 5th, 2010

Rates Remain low, For Now...

If you have not looked into refinancing yet, WHY? Historic low rates continue to last longer than anyone has expected...

Rates are now the lowest that they have been in more than 40 years!. While there are many complicated factors that go into determining rates, a change in any one of those factors could happen at any time. In particular, what is happening in the European markets has been a major factor in the most recent rate drop. That could change at any time and rates would start to rise. If you currently pay more than 4.675% on your existing mortgage, whether it is FHA or Conventional, you should not delay talking to our professional staff here at Valley West Mortgage! Once rates do start to rise, it is not likely to be a slow and controlled increase. Waiting for rates to drop further is a big risk to take since that is not very likely at this point.

Home buyers should not waste any time either! Even if you don't have a particular property selected yet, you should be getting your credit approval done now. Especially if you are looking at REO or Forclosure properties. The bank owned homes will require a credit approval with any offer that your Realtor submits for consideration. Since the process takes more time than it used to, there is no reason to wait.

Our Mortgage Professionals are ready to help you to acheive your goal of Home Ownership right now. Las Vegas home buying opportunities are fantastic combined with the current drop in rates, it does not make sense to wait. If you want to take advantage of refinance rates, a general rule of thumb would be, if you can lower your montly payment on the Principal and Intrest portion by $100 per month or more, you should be taking action.

Either way, Purchase or Refinance, we are ready to help! Call us right away at (702) 696-9900 or toll free at (888) 931-0007.

If you are considering Strategic Default - Don't!

Lenders are starting to crack down on "Strategic Defaults".

Fannie Mae has announced stiffer penalties to consider if you decide to walk away from a mortgage that you can afford to pay. Starting in the fall, Fannie Mae will disqualify borrowers for a period of seven years if they choose to default on their mortgage even though they have the ability to pay. Fannie Mae also plans to take such borrowers to court to recover loan losses resulting from this type of default.

There is a bill working it's way through Congress that would also prevent you from getting an FHA insured mortgage if you have previously "walked away" from a mortgage. Since it makes sense that you would be viewed by Lenders as a higher risk after taking this action, I think we can expect this bill to pass. We have blogged before about the possibilities of a Short-pay Refi or a Short sale so if you are considering Strategic Default it is time to review other avenues. USA Today has a more in depth article on Strategic Default which will fill you in on the upcoming changes. Click here to read the USA Today article.

House Extends Closing Date for Homebuyer Tax Credit!

Homebuyer Tax Credit Update Effective 6/30/2010 - Waiting for the Bill to be signed!

The U.S. House of Representatives has voted to extend the Home buyer Tax Credit.

The National Association of Realtors said that over 180,000 people would lose their Tax Credit if the extension didn't come through, now we have confirmation that the House of Representatives has extended this closing date to September 30th.

According to the National Association of Realtors what tipped the balance was the people who followed the rules and were still going to be caught without the Home Buyer Tax Credit due to the June 30th closing date. These transactions included some 75,000 short sales, or homes being purchased for less than the existing debt on them.

Dust off those April contracts that could not close by the June 30th deadline! All that remains for the Bill to extend the deadline for closing to September 30th, is one signature!

(from earlier post on 06/16/2010)

If you haven't been informed yet, the Homebuyer Tax Credit has almost ended with less than a month left for First Time Home Buyers and Current Homeowners to close their deals and qualify for the Tax Credit. While this opportunity was a great chance to get hefty Tax Credit from the government ($8,000 for First Time Home Buyers and $6,500 for Home Owners buying and moving into another home), it may be a problem for those who applied near the end of April and are still trying close their loans. Right now, those Tax Credits were set to expire for any loans that had not been closed and funded by June 30th of 2010. You had to have a signed Purchase Contract in place by April 30th. As a result, some Purchases are starting to fall apart because they are "In Contract" before April 30th but they are not able to close by the end of this month.

Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."

There is talk of Harry Reid possibly having a proposal which will allow those who have already signed sales contracts, to close and fund by September 30th as an amendment to a Bill already in Congress that would extend jobless benefits for the unemployed through the end of November.

The National Association of Realtors has been pushing very hard for an extension out of an awareness of the difficulty Mortgage Brokers are having with the current deadline of June 30th. Since the entire process of getting a Mortgage now takes a bit longer than it used to, Mortgage and Real Estate Professionals view an extension of the Tax Credit Program as essential.

First-time buyers are eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home can qualify for a credit of up to $6,500.

Alan Greenspan, Former Federal Reserve Chairman on Rates...

Last week, Greenspan wrote an Op-Ed for the Wall Street Journal in which he warns of an inevitable rise in interest rates.

Here is a link to the WSJ's online excerpt for non-subscribers. The second paragraph should be more than enough to tell you that rates will rise and not only that, they MUST rise. To read the entire piece, take advantage of the subscriber link at the end of the excerpt.

So what does this mean to those who want to want to buy or refinance a home?

Rates are not likely to go any lower and home prices are still low. All indicators are pointing to taking action now or missing out! If you are currently in an ARM Loan, you need to refinance now into a fixed rate mortgage. If you are buying and you have been waiting for better rates or better prices, it's time to make a decision!

To get started now, give our professional staff at Valley West Mortgage a call at (888) 931-0007.

Should you Refinance your FHA Mortgage now?

A simple way to know if Refinancing is worthwhile...

The first question to ask yourself is, "How much money can I save each month?" A good general rule of thumb is if you can reduce your payment by $100 or more each month, it is time to look into refinancing. If your current Interest Rate on your FHA Mortgage is 5.50% or higher, you should be calling us right now, before Interest Rates start to rise again!

This is especially true if you currently have an Adjustable Rate Mortgage. You should refinance into a 30 or 15 year fixed loan while rates are still low and before your current FHA ARM Loan starts to adjust! Chances are that you will be able to save money and take away the worry of rising payments!

Refinancing your current FHA Mortgage is an easier process than it is for many Conventional (non-Government) loans. Call our Mortgage Professionals at Valley West Mortgage today and we can help you determine if you should begin the application process. 1-(888) 931-0007

Possible Extension to Homebuyer Tax Credit... Or Not?

Rumors of a Possible Extension of the Homebuyer Tax Credit now appear to be short lived! This Tax Credit may be back on hold as of 06/25/2010. When we know more, we'll post it right away!

(from earlier post on 06/16/2010) If you haven't been informed yet, the Homebuyer Tax Credit has almost ended with less than a month left for First Time Home Buyers and Current Homeowners to close their deals and qualify for the Tax Credit. While this opportunity was a great chance to get hefty Tax Credit from the government ($8,000 for First Time Home Buyers and $6,500 for Home Owners buying and moving into another home), it may be a problem for those who applied near the end of April and are still trying close their loans. Right now, those Tax Credits were set to expire for any loans that had not been closed and funded by June 30th of 2010. You had to have a signed Purchase Contract in place by April 30th. As a result, some Purchases are starting to fall apart because they are "In Contract" before April 30th but they are not able to close by the end of this month.

Many mortgage lenders have been experiencing hard times closing deals that suddenly appeared in April, and many Mortgage Brokers know "some deals just won't close before June 30th."

First-time buyers were eligible for a tax credit of up to $8,000. Current Homeowners who bought and moved into another home could qualify for a credit of up to $6,500, that may last until September 30th. When we hear of any confirmation on such a proposal, we will be sure to let you know!

Short Sales on the Rise

The Definition:

A short sale is an "arrangement" between the current owner of a home and the bank that holds the Mortgage on the home. This arrangement allows the homeowner to sell the home and accept an offer for less than the total amount owed to pay off the Mortgage. This is particularly useful if you are "upside down" on your current Mortgage. If you are in this unfortunate position as are many families in Las Vegas and across the Nation, and your Mortgage is owned by Fannie Mae, then you should contact Valley West Mortgage and let our Mortgage Professionals help you decide if this tool is for you!

You may be able to keep your Home!

Before you decide to do a Short Sale, let us help you to qualify for a Short Refinance. The principle is the same as for a Short Sale, but you get to keep your Home by Refinancing your existing loan down to the Current Market Value. In some cases that we have seen, this has saved Hundreds of Thousands of Dollars off of the amount now owed on the Mortgage while cutting the Monthly Payment in half! You owe it to your family to at least try! If you don't ask, they can't say yes. Give us a call today, you have everything to gain and nothing to lose by trying!

Check to see if your loan is owned by Fannie Mae: Fannie Mae Loan Look Up

Check to see if your loan is owned by Freddie Mac: Freddie Mac Loan Look Up

Some of the Latest Changes

On June 1st of this year, Fannie Mae announced changes and improvements to their Loan Modification Processes. Guidelines were changed which simplified the Short Sale process a little more in favor of distressed homeowners. If you had been turned down by your Fannie Mae Servicer prior to June 1st for a Short Sale Agreement, you should try again under the revised guidelines. One of the changes provides incentive for Realtors to want to help you sell your home. The commission limit that had been placed on Realtor Commissions has been removed and replaced with allowing for "usual and customary" commission fees. Since having a competent Realtor with experience in Short Sales is essential, this change will encourage those professionals back to the marketplace. Another really big improvement is that the Deficiency (the difference between the amount owed and what the bank collects at the short sale) must be Fully Released by your Loan Servicer! They cannot make further attempt to collect the Deficiency from you after the sale is complete. Even if your mortgage is not owned by Fannie Mae you should stay informed on this subject because most other Lenders starting with Freddie Mac will adopt similar guidelines!

Are you having problems which prevent you from paying your mortgage?

Give us a call to find out how we can help you refinance or sell your house for less than you owe.

Give Us a Call: 1-888-931-0007
Las Vegas Residents Call: 1-702-696-9900

Las Vegas Real Estate This Week

While we have said before, that Mortgage Interest Rates are expected to rise in the not to distant future, Rates actually dropped slightly in response to economic news. Typically, when the Stock Market drops, money moves out of Stocks and into the Bond Market. As the Bond market rises, Mortgage Rates tend to go lower. This is helpful information to determine the best time to lock your rate. It is important to have your Credit and Income approved first. In that way, you are ready to lock your rate when these rare opportunities occur.

Remember, other factors also affect both Rates and Home Prices. If you are waiting to possibly save an eighth or quarter of a percent on the rate but home prices are climbing due to supply & demand, you could end up saving on your interest rate but paying more for the home you want to buy. It is important to keep in touch with your Mortgage Professional at Valley West Mortgage. We watch all of these indicators so you don't have to!

New Quality Control Measures from Fannie Mae

In May our big Brother or "Sister", the largest purchaser of home loans, announced a new requirement prior to the funding of a Mortgage. Posted on Mortgage News Daily, May 10th. Fannie Mae introduced a quality control measure which is for the purpose of the safekeeping of the investors against the future home buyer assuming more debt than they can manage and as a preventative measure to prevent possible future defaults.

This quality control measure makes the lender re-verify the borrower's credit history by obtaining a new in-file credit report for loans which are to be underwritten manually and through the underwriting process.

Note: The credit report must be a source other than the original credit reporting agency.

When a lender has this information it allows them to find out if you've tried to take another loan out on the same property, which isn't favorable by any means.

How should you proceed?

Simple, If you are in the housing market it is very necessary not to apply for additional consumer credit without consulting with your mortgage professional first.