FHA lending criteria have become stricter, and the trend will continue I think. The divergence between FHA and Fannie/Freddie is still significant. and F/F are not likely to lower their standards! /// And now the surging demand for FHA loans is putting the program at risk. US watchdog warning. /// Make it a good week folks. Call me if I can help - Paul   125%+ refinances? The Obama administration is considering allowing Fannie Mae and Freddie Mac to refinance loans with current loan-to-value ratios of 125%, or higher. Read more   FHA 203(k) rehab loans 203(k) loans are the perfect for home renovations, handyman specials, and improvement of foreclosed property. The lending value can be as high as 110% of total cost. Summary 10 cities most likely to bounce back quickly Forbes magazine has... 06/19/2009

Rates are headed for 6.00%. In just 2 1/2 weeks much of the Fed's work to drive rates lower has unraveled. 5 reasons they might retreat - and why they might not. /// The homebuyer tax credit may be expanded in a number of ways. Let's also hope the Nov 30 deadline gets extented (See below) /// You can now publish my newsletter on your website with ann RSS feed. Go here to do it. /// Make it a good week folks! - Paul   Congress weighs tax credit expansion Legislation introduced in Congress Wednesday would expand the First Time Home Buyer Tax Credit to any purchaser and increase the maximum available to $15K. Read more.   Sources of FHA down payments Did you know that a family member can take out a loan to gift the down payment, or that the home buyer is allowed to take out a fully collat... 06/13/2009

Rates are at a 25-week high. They increased again by 0.25% approx on Friday, peaking at just under 6.00% (no points) ///  Reminder that FHA loans with 560+ Fico and stated loans to max 70%LTV are still available /// Make it a good week folks! - Paul   Opportunity: multi-family development and condo conversions Multi-family development and condo conversions are low-hanging fruit as the market recovers. High density housing, just beginning to gain steam before the housing downturn hit, is poised to be one of a handful of straws that stirs the soup, according to many housing industry experts. Read more. Note that I offer financing and expertise for aquisition, construction/rehab, and sales. The 3 phases are connected and structuring the financing right is critical. The warrantability issu... 06/06/2009

Sometimes it PAYS To Do Things Differently... Memorial Day Weekend was quite busy for me. I spent all of Friday working with buyer clients, most of Saturday doing the same and Sunday (the day before the actual holiday) I decided to hold an open house at one of my listings, located at 57 South Shore Drive in South Amboy in Lighthouse Bay.   Oh sure, there was nothing more tempting than the thought of joining my friends and family who were basking in the sun at the beach, sipping on a cool drink, with the sounds of waves splashing in the background. Some might call me crazy....actually a few agents in my office did call me crazy...lolol...but I know without a doubt, sacrificing a vacation in a far off land was the right thing to do for my sellers and my business. :) You see, the community... 05/26/2009

Rates to remain flat? Rates are now controlled by the Fed through Treasury purchases. Judging by the trend lines, it looks like they want to keep rates roughly where they are now (30-yr fixed around 5%). For rate shoppers - the way to get the lowest rate is to get the loan approved, set for funding, and then use a short-term lock on a rate dip and close. (This strategy for refi's only!) /// Predictably, FHA loan criteria are going up again: 640 Fico or get no loan, or a higher rate. (FHA 540 Fico still available). Read more /// Speaking of Fico, we can often accomplish 50-100 score improvements in just 75 days with a credit makeover. /// Make it a good week folks! - Paul Tax credit NOT eligible for down payment Federal officials reversed an earlier decision to allow first-time home buy... 05/24/2009

Using the tax credit as a down payment may shortly be an option. This could potentially be even bigger than the now extinct down payment assistance programs! Read more. /// Same day mortgage approvals (subject to verifications) and 30-day closes are now available to serve you better! /// Note the Dec 1 deadline for the completion date of sales involving the $8K tax credit! /// Make it a good week folks! - PaulTreasury's offers for loan modifications and short sales (Update)The U.S. Treasury, seeking to strengthen government anti-foreclosure programs, will provide new incentives for lenders to modify mortgages where home-price declines are most severe or to pursue short sales. Read more. For loan modification assistance go here.Time limitation alert for tax creditThe $8,000 tax credit is... 05/17/2009

The lending criteria for residential investment property (1-4 units) have tightened up and rates are relatively high. Prequal of both the borrower and the property is recommended! /// Few lenders are still prepared to advance loans for investments in residential property (1-4 units) in a company name by the way. And those that do - you've guessed it - charge more. I recommend investors weigh the pros and cons (legal and tax implications, cost of borrowing) carefully. Feel free to call if I can help. /// Make it a good week folks!  - Paul   Measure to let judges rework mortgages fails in the Senate A measure to allow bankruptcy judges to rework the mortgages of strapped homeowners failed in the U.S. Senate. Read more   Foreclosure Prevention Plan expanded to 2nd mortgages The Obama admi... 05/01/2009

"Cash is King" and it's a buyer's market. I have clients with high yield, short-term (2-6 month) projects that are looking for financial partners. If you have cash to invest (or if we can raise $$ with a heloc on your property) this may be a smart high-yield, mortgage-secured, short-term option. Contact me if interested. Make it a good week folks!  - Paul   Treasury weighs new mortgage subsidies: sources Fannie Mae and Freddie Mac, the mortgage finance companies, would administer the new program to resolve problems with second-liens. Read more.  (For loan mod info and help go here - P)   Investment opportunities 1. $50K 1st, 25% LTV, 6 month term, 12% rate + profit share. 2. $70K 2nd 60% LTV, 12 month term, 12% rate + profit share.    Cities where home prices could fall more High unemp... 04/26/2009

I hate to bring it to you, but the cost of borrowing has gone up. I am referring to add-ons (read about it), and credit scores. Just a reminder that Prospect Mortgage is a direct Fannie, Freddie, FHA lender: Great pricing and quick approvals (30-day closes anyone?). Make it a good week folks!  - Paul   75-day credit makeovers For scores below 660 I recommend 75 day credit makeovers for 50-100 score improvements. The cost is reasonable and it comes with a guarantee. All the more reason to start the process of getting buyers "mortgage ready" as early as possible!.    New reverse mortgage limits give seniors lifeline Some good news arrived recently, especially for older homeowners who continue to make mortgage payments on their primary residence. The economic stimulus bill signed into law... 04/19/2009

This week I joined Prospect Mortgage, the nation's largest independent direct lender. What this means: More options than any single source, faster turnarounds, excellent pricing, and niche mortgage programs. Loan modification service is unchanged. My commitment to excellence and ridiculous work ethic also unchanged :)  I look forward to serving you even better! - Paul    About Prospect Mortgage As the nation's largest independent direct lender, Prospect has greater control over your transaction and is able to quickly approve and close loans in-house. In fact, we are able to fund loans that other lenders may deny. Prospect is a privately-held national mortgage banking firm licensed in all 50 states. We are backed by Sterling Partners, a multi-billion dollar equity investment group, with... 04/11/2009

The big news this week was the 1 Trillion mortgage investment by the Feds, resulting in a drastic reduction in mortgage rates, in turn resulting in another wave of refinances, and even purchase money applications! - Paul   Making Home Affordable Progam website The Obama administration has a new Making Home Affordable Program to help troubled homeowners reduce monthly payments by refinancing or modifying their current loans. Both programs are aimed at homes occupied by their owners, not investment properties or vacation homes. On March 19, the government launched a website to guide homeowners through the process. Please contact me for questions or service.   Understanding the MHAP refinancing plan The refinancing program is for an 4-5 million homeowners who are current in their monthly ... 03/24/2009

Until last summer commercial loan modification was not an unfamiliar concept and residential modifications were virtually unheard of. Now the need for commercial modifications is increasing. Contact me if you have a situation to evaluate. // Rates are down to just over 5% for 30-yr fixed. //  Reminder: Freddie and Fannie's tougher credit score and down payment rules go into effect April 1st! - Have a good week folks - Paul   More mortgages eligible for refinancing Fannie Mae and Freddie Mac have published the rules governing their upcoming mass refinancing campaigns, and they're more favorable for borrowers than indicated at first by the White House and Treasury, especially for owners of second homes and small investment properties. Read more   Moody's Economy: "Right time to buy" An i... 03/15/2009

The Obama plan now called the "Making Home Affordable Program" (MHAP) is good. Details. It has been said that it cuts the Gordian Knot. While it covers only a limited number of scenarios it establishes well-defined criteria for refinances for properties under water (to 105% for now), and loan modifications. //  Most FHA lenders are raising the minimum credit score to 620. I can still do them with a minimum 540 for now. Have a good week! - Paul   Report: Obama mortgage plan has some issues The Obama administration's new mortgage modification plan is a positive step forward but questions remain about how the government will enforce new standards and what agency officials plan to do about problematic second mortgages, according to a congressional oversight panel report on Friday. Read mor... 03/08/2009

The Homeowner Affordability and Stability Plan (HASP) is by and large good news. The devil is often in the details with newly announced initatives, and I will keep you posted as more specifics become known. March 4 is the date when most initiatives launch. The plan will help many, but not all - and lenders are incented to help, but they don't have to. Read more   HASP highlights Refi's up to 105% LTV Government subsidized loan modifications to 150% LTV Uniform guidance for loan modifications Bankruptcy judges can modify loans    HASP information Executive Summary (Dept of Treasury)  Read Fact sheet (Dept of Treasury)  Read Q&A for borrowers not in default  Read Q&A for borrowers in default  Read Not all modifications fit under HASP Modification eligibility under the plan is (or will be)... 02/22/2009

Rates are up, and from my point of view high volumes have a lot to do with it. Lenders raise their rates (or not lower them) because they have too much business. Some mainstream lenders have turn times of up to a month, and even longer. No kidding. // Loan mod terms are much better now, and may soon become more predictable. A formula is being developed. We'll see. Read more. Have a good week folks. - Paul   Analysis: Loan mods much better, and tough to get The terms are now so much better than last year. Different reasons for this: Rates are lower, lenders realizing it is a critical for loss mitigation, and the anticipation of a number of events: a foreclosure moratorium, fed funds for loan mods, cram-downs, and others. All have compelled lenders to be more forthcoming.  And they are a... 02/07/2009

We Are Now Buying Houses in North New Jersey! We Buy Houses Fast - Any Price, Any Condition, Any Area! Click Here to Complete Our Seller Questionnaire! This may be a bit obvious, but shelter has always been the basic necessity of every human being on earth and undeniably an integral part of our lives throughout our history. Shelter can come in many forms - anything from a simple hut made of nothing but bamboos and banana leaves to a luxurious mansion that can host more people than the Jacob Javits Center. Whatever shape or form it may take, there can come a point in our lives when this shelter can turn into an asset or a liability. It can be stressful when houses become a liability, and depending on the situation, it can even bring about unwanted conflict. Homes can become a liability ... 01/20/2009

Rates keep coming down (and lenders are swamped), DPAs may be coming back, the terms of loan modifications keep getting better. More loan options for investment (to 90% ltv) are starting to appear, at somewhat better rates. And it looks like the Obama administration is poised to introduce new initiatives quickly that will assist property and mortgage markets. All positives... Have a good week folks! - Paul    Slow economy and gvt actions continue to lower rates For the week ending Wednesday Jan 8 the 30-year fixed averaged 4.96% with an average 0.7% fee, down from last week when it averaged 5.01%. Rate survey. Last year at this time, the 30-year fixed averaged 5.69%. - "So far, both the U.S. Treasury Department and the Federal Reserve have added over $100 billion in liquidity to the mo... 01/18/2009

The current real estate and financial crisis is unprecedented. The onslaught of daily news reports is overwhelming and confusing, and people are looking for solutions to protect their assets and prevent foreclosure... It is my hope that with this new weekly publication I can provide meaningful information for the benefit my current and prospective clients. At your service .... Paul   What are the foreclosure prevention options? Loan modification is the most common option, but every alternative needs to be considered to determine the client-preferred solution(s). We also need to weigh this against the lender-preferred solutions to develop the right negotiating strategy. (See right margin and also "The Proven Plan").   How long does long does the process take? Usually 30-60 days. Sometime... 01/11/2009

It appears that the stimulus plan set to be proposed by President-elect Barack Obama will include the long-contested "cram-down" proposal, which allows bankruptcy courts to modify the terms of a mortgage loan. The most common criticism is that this will raise the cost of borrowing for everybody because lenders need to charge risk premiums. (See below). As real estate pros we should welcome the initiative because it will contribute to the emergence of loan modfication standards. Right now it's a zoo. Having said that, I think that some of the deals we can get for loan loan mods may not be available in the future. - Paul    Long term rates down for 10th week in a row For the week ending Wednesday Jan 8 the 30-year fixed averaged 5.01% with an average 0.6% fee, down from last week when it ... 01/09/2009

  Good news, good news, and good news. Rates are at a 37-year low, buyers are starting to re-appear in California (isn't that where everything starts?), and the terms of loan modifications are getting better all the time. A sign of good things to come in 2009? //  A small follow up on USA loans below. Yes, zero down folks - Paul   Analysis: When to go for a no closing cost refi You may not get the best rate, but for the cost of an appraisal you can refi as often as you like as rates come down! Refi cost are typically 1-2% of the loan amount, depending on the size of the loan. Do the math for your situation...  30-year fixed fall to at least a 37-year low For the week ending Thursday Dec 18 the 30-year fixed averaged 5.19% with an average 0.7% fee, down from last week when it averaged 5.... 12/19/2008