Loan limits for FHA financing are going down Jan. 1st 2009.  Our current loan limits allow for mortgages of $303,750 but that will be lowered to $271,050.  All loans using the current loan limits must have FINAL APPROVAL BY 12/31/2008.

The minimum down payment also changes at the same time.  The new guideline calls for the borrower to have a minimum 3.5% down payment.  This can still come from gift funds from family, but down payment assistance programs are no longer allowed.

Myers Park Mortgage is a HUD approved lender.  If you would like a Hassle Free pre-qualification call Olan Carder at 980-721-7478.

Myers Park Mortgage is still offering 100% fianancing in the Charlotte Market.  Many have discontinued all 100% financing products and most lenders are only offering 95% financing now.  Although the market has changed, there are still 100% financing options available to well-qualified buyers.The 100% options we offer are for fixed rate loans.  These loans have no pre-payment penalties and no hidden costs.  We can provide you an accurate Good Faith Estimate of all settlement costs free of charge!  Call Olan Carder today at 980-721-7478 if you are interested in learning more about 100% financing options for homes in the Charlotte Metro Area.  

#1.  YES, YES, YES!  Mortgage brokers, mortgage bankers and local banks are still making loans everyday for the purchase of homes.  ONLY the following scenarios have gotten very restrictive: 

· Investment Properties

· Buying a new house before selling your current house

· Credit Scores below 580

If you don’t fall into one of the categories above, the chances are good that you will qualify for a mortgage with little to no money down with a very low fixed rate!

#2.  RATES ARE LOW!  The Fannie and Freddie Bail-Out has created a very low interest rate window for homebuyers in today’s market!  Because mortgage rates for most loans are driven by the sell of bonds guaranteed by Fannie and Freddie, the government take-over of these huge corporations is good for rates!  They are backed by the U.S. Government now which makes their bonds almost zero risk… this has driven fixed rates lower!

Current 30 Year fixed rates are as low as 5.875%!!

This is NOT a rate quote and getting a accurate one is more important than ever…

#3.  DEMAND A VALID RATE QUOTE!  In order to quote an accurate interest in today’s ever changing mortgage world, a lender needs to know Property Type, Loan Size, Credit Score, Loan Purpose and Loan to Value Ratio.  Without this information the rate you have been quoted is probably wrong!  To obtain a complimentary rate quote and pre-approval call today!

If you want to buy a home in Charlotte, NC, and you don’t want to put a lot of money down, you need to apply for a FHA loan now.  You can get pre-approved and shop for a home and as long as your lender requests your FHA assigned case-number before the end of the year you can still put only 3% into the deal.

The new rule is 3.5% down, but the impact will actually be 1.25%… let me explain.

Current FHA rules state that a homebuyer must put 3% into the transaction, but does not require 3% down.  The buyer can pay .75% in closing costs and 2.25% in down payment.  Why is this important?  Let’s look at an example:

$125,000 Purchase Price

                                             Current FHA                                          NEW FHA
Down Payment:                      $2812.00                                           $4,375.00
Closing Costs:                          $937.50                                              $937.50
Total Out of Pocket:             $3749.00                                          $5,312

That’s a difference of $1,563.00 assuming the seller pays the rest of the closing costs.  That is a big difference!!  If you want to buy a home, move on it now.  Don’t wait until the end of the year because it might just cost you more money!

The loss of PMI for investors mean that going forward buying an investment property will require a 20% minimum down payment.  90% financing was still available but without the mortgage insurance the loan doesn’t exist.

Mortgage rates worsened again today.  I think there are many buyers out there that think rates are dropping and they should wait… NOT TRUE.  Rates have been getting worse for over a week now, and show no signs of turning around.  I am puzzled at what is driving the bond market right now other than investors don’t want to touch anything with the word “mortgage” in it.

Normally a “flight to quality” would mean investors sell their stocks and buy bonds.  Right now investors don’t have any more confidence in mortgage bonds than they do in stocks.  I think it’s a little nuts because with Uncle Sam backing Fannie and Freddie, mortgage bonds offered by those two are almost risk free.