Living In Tucson Blog

Total applications for FHA insured mortgages are down 30% through March in 2011. Most FHA buyers choose the minimum down payment of 3.5% of the sales price for a purchase transaction. Effective Monday, April 18th, changes to FHA loans were implemented. One big change is a higher monthly mortgage insurance premium. Borrowers will now be paying 25 basis points more each month. This is the second increase in the past six month. The new premium is 1.15% up from .90%. For example, the new premium for a $150,000 mortgage is $1725 annually charged in monthly premiums of $143.75. The previous premium was $1350 or $112.50 per month which is an increase of $31.25 per month! There were no changes to the  1% premium up front premium that is financed in the mortgage. The government insures FHA mortgages with these premiums. The higher premiums are squeezing some buyers out of the housing market. Borrowers with a 720 credit score (In Arizona) can still obtain a conventional mortgage with a 5% down payment and private mortgage insurance.

PHH Home Loans and Coldwell Banker Home Loans has announced new minimum credit scores guidelines for FHA loans. Applications are now being accepted with credit scores as low as 500 with a 10% down payment, assets of at least two monthly house payments verified in addition to the 10% down payment and debt ratios of 31% of the gross income for the house payment and 36% for all debt including the new house payment. The minimum credit score for a 3.5% down payment, is now 600 (down from 620). These terms can vary lender to lender. Other mortgage banks use 580, 620 or 640 for their minimum scores.

What’s next? Congress has passed a bill to eliminate FHA! I doubt that it will ever become law. It is more likely that Fannie Mae and Freddie Mac will be spun off from the government. Personally, I think these proposed changes will devastate a very shaky housing market. FHA loans already account for a major percentage of all home loans. Spinning of Fannie and Freddie would result in much tighter underwriting guidelines including 20 to 25% minimum down payments. You can expect FHA to raise the minimum down payment to 5%.

I’m David Wolsky and I can answer any questions you may have regarding various loan programs available at PHH Home Loans and Coldwell Banker Home Loans. The email address is david@davidwolsky.com or call (520) 275-2536.

Throughout the month of February, PHH Home Loans and Coldwell Banker Home Loans is offering a $350 discount for registering a new purchase or refinance mortgage. This applies to all loan programs. There is also an additional discount for active military and returning vets. Remember the first time homebuyer credit last year? Well, it’s still in effect if you are a returning veteran after being deployed overseas. You must be under contract through April 30th, 2011 and close by June 30th, 2011 to be eligible.

David Wolsky can be reached at 520-275-2536 or email at david@davidwolsky.com.

Rates are trending higher. Don’t miss the train. If you have not refinanced yet, this may be a great opportunity to do so. We are offering a $350 discount for closing costs in February whether you are purchasing or refinancing!

Call me at 520-275-2536 or email David Wolsky @david@davidwolsky.com for details on how PHH Home Loans can save you money every month on your next mortgage! Licensed in Arizona. NMLS#182108.

If you are in the market for a new house this spring, check out www.homepath.com. Home Path are Fannie Mae REO properties all over the country. The deal just got better. Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae owned home between January 28 and April 30, 2010. The credit can be used towards closing costs, the purchase of new Whirlpool appliances by Fannie Mae or a mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%. Combine that with a $8000 tax credit for first time buyers or a $6500 for qualifying repeat buyers who have owned a home for five out of the last eight years.

There is also special financing available for Fannie Mae owned homes. The benefits include:

• Low down payments (3% for owner occupied and 10% for investment properties)
• Qualify with less than perfect credit
• Down payment (at least 3%) can be funded by your own saving, a gift or a qualified grant
• No mortgage insurance
• No appraisal fees

PHH Home Loans and Coldwell Banker Home Loans is an authorized Fannie Mae HomePath lender. Call David Wolsky at 520-275-2536 for more details! You can apply online on my website: http://davidwolsky.coldwellbankerhomeloans.com/

I have joined Coldwell Banker Home Loans as a Mortgage Advisor last week! We are also known as PHH Home Loans. After completing a week of training at our Mt. Laurel, New Jersey headquarters, I was incredibly impressed by the depth of my training. It was great meeting the people who will be integral to my team, committed to always giving my clients the ultimate value in a timely fashion. Our mission statement is to treat customers like family.

Who are we?? Well, we are the fourth largest mortgage lender in the country! We are publicly traded under the ticker symbol of PHH. We are the largest “private label” mortgage company in the United States. We are the mortgage affiliate for Coldwell Banker, ERA and Century 21 real estate companies as well as the mortgage company for Merrill Lynch and Charles Schwab brokerage houses. Coldwell Banker Home Loans (PHH Home Loans) is a very stable company, thanks to a conservative and sensible approach to mortgage financing. For example, we did not offer sub-prime loans or option ARMs which helped to fuel the current financial woes. We are the only Top Ten mortgage company that is not associated with a traditional bank. I am excited about this opportunity to work with Coldwell Banker as well as the added value I can offer to my loyal clients who have worked with me and referred business to me over this past 15 years of my career as a mortgage consultant.

You can reach me, David Wolsky by calling 520.977.3300 or emailing david@davidwolsky.com. We are licensed in all 50 states.