Mortgage Rules Changing Almost Daily!

Several changes have happened in the last 5 days that you should really be aware of. Some good, some bad. Please be sure to read all 3, as they may impact deals you currently have in the pipeline.

1) As of 3/1/08, there are no Mortgage Insurance Companies that offer MI in the Denver area at less than a 97% Loan To Value. The scary thing here is, your client could have an approval (automated via Fannie Mae, or full approval through an underwriter) that is NO GOOD, because it is dependant upon Mortgage Insurance that is no longer available.

Mortgages with $0 - $1,000 down are still available through 4 sources:
A: A CHFA approved lender. (we're aproved). Colorado loans the downpayment money to the borrower. Income restricted.
B: Denver Bond Program (we're approved). Downpayment is given to the borrower. Income restricted.
C: B-Paper. Note that the rates will be significantly higher.
D: The old downpayment assistance programs, IE Nehemiah. Remember, your client will pay more for the house than needed.

Otherwise, your best bet is FHA with a 3% gift from a family member.

2) As of today, FHA has INCREASED(!) loan limits to $406,250. Woo Hoo!

3) Fannie Mae and Freddie Mac are changing their pricing criteria on credit scores. Previously, for full doc loans, a 640 FICO score was as good at a 719, and a 720 score got a borrower $500 in fees reduced on a typical loan. Now, at each 20 pt increment, your client loses money. So, at 720+ borrowers get the same rates as today. At 640, they could be as much as 0.625% worse (!). So.... YOUR CLIENT NEEDS TO TALK TO A LENDER AS SOON IN THE PROCESS AS POSSIBLE, because with an extra two weeks to work, a good lender could save them thousands. This does not impact FHA.

The nutshell: FHA and CHFA are now much more attractive than it was for anyone with a credit score below 720 and / or a downpayment below 20%. Have them talk to your preferred lender early, to be sure they are best served.

Thanks,



Matt.



Matthew M. Lee

Sr. Mortgage Planner



The FIRST Team: Financing Integrity, Resourcefulness, Service, and Trust.



Cherry Creek Mortgage Co.
7400 E. Arapahoe Rd. Suite 303
Centennial, CO 80112
Office: 303.270.9600
Fax: 303.843.9203
Website: http://www.coloradofirstmortgage.com/ <http://www.coloradofirstmortgage.com/>
Email: mlee@ccmc-net.com <mailto:mlee@ccmc-net.com>



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