In this blog:

Rates ease just a little.
Bad News about Boise?
FHA relaxes FICO.
BofA hoses more people.
VA clients who are active.
IHA FHA 203K loan.

Rates ease just a little

Well rates have been trading in a pretty narrow band for the last 2 weeks, which as meant not much movement up or down, well at least until the last 2 days.

Rates have eased just a little on fears of what is happening in the Middle East, specifically in Egypt. Causing people to flee the stock market and hide their money in Bonds and Commodities.

Rates have been kept kind of high today, although a couple of my lenders did improve, but I think that Monday we should see some good rates, better than we have had in the last few weeks.

Overall, we have been blessed that rates have not risen much if any in the last 2-3 weeks, with all the pretty good economic news that has come out. I suspect that rates will continue to trade in this band and stay stable until spring, when economic news should be even better and causing some concern about inflation.

Boise Bad News???

Recent stories about Boise and the Treasure Valley have indicated it is looking for another 7% decrease in home prices. And although I do feel we will decline 5-8%, the news isn't all that bad.

Based on current MLS data there is 4722 active listing in the IMLS and 1066 pending. WHAT... I think this is pretty good news, that means 18% of listings are pending! Of these 2172 are distressed properties and 649 of those are pending, or 23% of all distress properties are pending. I am thinking this is pretty good news. And assuming that all of these will come off the market, not too shabby.

FHA relaxes FICO.

Yes, lenders are relaxing FICO requirement, all the way down to 580. Now that is a score which a client really has to have some good compensating factors to get, but I did get a 600 FICO score client approved today!!!! See Subprime is making a COMEBACK! Well they still have to qualify, be employed, and bring in 3.5% for a down payment, can we say GIFT? How about a 1st Time Home Buyer's Grant of $8,000?????

The Evil Empire Strikes Back!

Yes, Bank of America is at it again, trying to get your money. They recently announced that instead of the industry standard of a 15 day grace period to make your payment, remember mortgage payment is due on the 1st but can make it before the 15th with out any penalty. Well B of A is now taking that down to 9 days, removing 1 whole paycheck from a client to make their mortgage payment. Sure you can still make it, but with a LATE FEE!!!

VA clients

Here is your Marketing Phone call for the week. Go through your old client and find out which homes you did that had a VA loan. Then find out which ones are on active duty, Which means the hole Idaho National Guard 116th, then ask them what their interest rate. Base on the "service member relief act of 2006" any active duty Military Member, serving overseas, can get their interest rate reduce to 6.0%, Period, No Questions asked! Now it is temporary, until they come back. But it would make a GREAT phone call and a way to keep in touch.

Here is the article which I found, referencing this, (another one of the evil empires hosing Veterans!) Link Here!


IHA FHA 203K Loan!

You asked to fit, and NOW you have it. A rehab loan for all those short sales and Foreclosures that need some work.

FHA 203K loan allow a client to get up to $35000 or 10% of the purchase price for items which the previous owners may have removed or didn't take care of, like:

-New Appliances, including refrigerators
-New Carpet
-New Paint
-New Fixtures
-Mold removal
-How about a NEW DECK or PATIO (sorry no hot tub)

So let me put it simple:

Have a client who wants to buy a home but, the carpets are trashed and they took all the appliances and fixtures.

Client has a 620 or higher FICO score. (yes we can go down to 580, but really).

DONE! 3.5% down and the home is theirs!

Client has a 700 or higher FICO, use the 3.5% Good Reward Down Payment, and they come in with practically ZIP.