Wednesday, October 30, 2013

Fannie Mae Down Payment To Increase

I don't know if you have heard, but Fannie Mae is increasing its down payment from 3% to 5% starting November 15th of this year. 
Now what does all of this mean? Well it means that people that have been struggling to save for a down payment (which is most all First Time Home Buyers) are going to have a harder time to be able to purchase a home. I truly hate to see this program go because FHA is going to be the only option for First Time Buyers with little down and they are going to be stuck with FHA’s PMI for the life of the loan.
Now here is what I have noticed whether intended by Fannie Mae or otherwise……… Fannie Mae is going to push credit borrowers with higher credit scores back to FHA thus improving FHA’s default ratio. Now is this an unspoken objective? Is it Good? Is it Bad? I really don’t know, this will have to be determined. But what I do know is that Good Credit Borrowers are going to be stuck with higher mortgage insurance cost and will have higher payments to purchase a home.

Please let me know what you think of all of this by using the Google + to comment down below. 

Wednesday, October 23, 2013

QM is coming- Rules are Getting Worse

 If you’re not aware, QM rules are heading your way come January 2014. Lenders will have to retain a portion of the loan made if the loan to value is greater than 80%. What this is going to do is force smaller lenders, who don’t have large amounts of liquid cash, to only fund loans where the buyer is putting at least 20% down. Well there was a lot of push back on this from several organizations and associations because this would mean that many minority and low income families financing options would be realty reduced perhaps even eliminated.
Based on the push back this rule sort of got pushed aside. Well now that we are approaching the release of these wonderful new rules it’s not only been revived, but revised as well. Now the brain trusts that control this stuff want 30% down. Can you imagine having most lenders in the country requiring 30% down? Looks like Wells Fargo, Bank of America, Chase and Citi will officially be the only lenders doing loans in the country. Awesome. I guess “too big to fail” means you simply have absolutely ZERO COMPETITION.
You have time to complain though, and who knows… if enough people do complain they might just listen. Click HERE to file your comment. Also,  Please, Please share this video with all of your friends and associates.