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>



This Blog is dedicated to Parker Colorado Real Estate and Parker Colorado Homes, Elizabeth Colorado homes and land, Franktown Colorado homes, Castle Rock real estate, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

Coming Soon next to Quincy Lake!

Here is an example of the "sale" prices you can get right now. Arapahoe County has this home valued at 122,500 in 2007. After running solds in the neighborhood, I'm recommending to the bank that it is listed at 99,900. This is going to be a good deal to some lucky buyer!

This Blog is dedicated to Parker Colorado Real Estate and Parker Colorado Homes, Elizabeth Colorado homes and land, Franktown Colorado homes, Castle Rock real estate, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

Houses are on Sale!

So this home started out at 412,900, and is now at 350K, representing a 63K drop in price. It would easily comp out in the 390K range. All it needs is some landscaping and appliances. A buyer could put all of 7K into this home and get instant equity. It need nothing else.

So this home is now $899, which is a $100,000 price reduction from its original list price. It has never been lived in, as the builder was foreclosed on. It is priced signifigantly less than every other house in Timber Canyon, a high-end residential neighborhood in Castle Rock. On a $/SF basis, it is the lowest in this subdivision.

These are just two examples of the deals you can get out there right now. Nobody knows how long this historic "sale" will last, but if I were in the position to buy, I'd be jumping on the opportunity. Remember the old saying "Buy low, sell high?" To make money in the stock market you buy when the mood is gloomy and you sell when things are rocking. In real estate its no different. Nobody will ever be able to pick a top or bottom of a real estate cycle, but buyers have an unprecedented opportunity right now to build some solid future equity.

This Blog is dedicated to Parker Colorado Real Estate and Parker Colorado Homes, Elizabeth Colorado homes and land, Franktown Colorado homes, Castle Rock real estate, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

The Deals out There are Incredible!

Buyers are truly missing huge opportunites...

Just surveying the active listings out there, and stumbling across a ton of bank owned properties, it is truly amazing the deals that are out there RIGHT NOW. There are a bunch of high end luxury homes that are a steal as an example. I saw a couple that had dropped over 200K. I have a home in Timber Canyon that has dropped 100K. I had a 7000 SF home with a pool that dropped over 145K until finally another Realtor has it under contract. She is guaranteed to make at least 100K in equity instantly when the market turns around (and it will). You KNOW when there are great deals out there when REALTORS START TO BUY THEM UP.

I'm telling you, if you are on the fence at all, you would truly be foolish to wait any longer for prices to drop more. You have no guarantee that will ever happen. My bet is that we ARE AT THE LOW POINT RIGHT NOW.

This Blog is dedicated to Parker Colorado Real Estate and Parker Colorado Homes, Elizabeth Colorado homes and land, Franktown Colorado homes, Castle Rock real estate, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

If You Area Buyer on the Sideline...

So the Fed just cut the Fed Funds rate by 75 basis points. That will in turn mean lower interest rates...eventually. Also watch the stock market, because the lower it goes the better it is for bonds, and the better it is for interest rates! But if the stock market climbs back then GAME OVER.

What you should be doing right now is have a clear line of communication with a lender! That might mean talking to them every day. That might mean that you might want to make a call on locking in an interest rate soon. Keep watching it closely. DO NOT sit and sit and wait and wait and keep thinking rates will keep going lower. You can try to time the low and look like a genius, but you will never know when it is there either, so good luck.

If you are buying at all this year, or even refinancing, timing is truly everything. In the blink of an eye interest rates could jump back up to 7% like they were as recently as last July.

The difference with a 200K loan at 5% vs. 7% is $270 per month. It can add up to a lot of savings!

When it feels right lock it in!

For more real estate insights, go to http://www.coloradodreamhomes.net/