Finance Options in Santa Fe
MORTGAGE RATES CONTINUE TO DECLINE: As of July 16, the 30-year fixed rate has dropped to 4.375%, the lowest rate since 1960. On a $300,000 loan, every .125% drop in rate saves the borrower $31.25/month. In the last month, rates have dropped .625%. A 5/1 ARM will cost 3.375%. If there ever was a time…..
FIRST TIME HOMEBUYERS TAX CREDIT IS STILL AROUND: Members of the uniformed services, members of the Foreign Service and employees of the intelligence communityhave an extra year to buy a principal residence in the U.S. and qualify for the credit. It applies to any individual who serves on qualified official extended duty service outside of the United States for at least 90 days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
FANNIE MAE LOAN QUALITY INITIATIVE AND HOW IT AFFECTS YOU: In February, Fannie Mae announced an initiative to reduce fraud in the mortgage system. You can read about all of it at; https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/ll1003.pdf but the bottom line is borrower beware.
Prior to closing, lenders will not be pulling a new credit report. A material change in score or outstanding debt may put a loan in jeopardy and you may not know this until a day or two before closing. There are pricing hits for scores at different levels, for example, below 720. Should a borrower’s score drop below 720, it may delay closing for repricing and redisclosure. Should undisclosed debt appear on the credit report with a high Debt to Income loan, it could kill the loan completely. Please make your clients aware and tell them not to change their credit in any way during the course of the loan process.
As a part of the Initiative, loan officers are responsible for listing all participants in the transaction, including buyer, sellers, agents on both sides, title officers, and appraisers. These names are put through a search on a HUD website that will identify if any person has been involved in a fraudulent transaction. Should a party be identified by this system, it may serve to cancel the transaction as it renders the loan as unsalable to Fannie Mae. This could happen just before the loan is expected to close. There’s really nothing that you can do to avoid this, but please be aware.
These two things are a part of a whole slew of compliance issues that happen behind the scenes in loan underwriting but serve to slow down the process and create uncertainty. Be aware!
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andrew hoffman,mortgagepartners/santa fe
505.629.4161, andrew@mortgagepartners-santafe.com
For more information on Santa Fe properties, contact Anthony Atwell, tony@santafeone.com, 505-670-2177. Serving You Santa Fe Lifestyle and Santa Fe Real Estate 20 years. |
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