bouldersuperior foreclosures: Boulder/Superior RE Trends: Loans Pt 3 - 12/04/08 07:29 PM
Loan Considerations for Buy and Hold Investors
  
  
As far as investment loans, little or no money down loans are impossible.  However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment.  Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower's debt-to-income ratio). Thus, we have clients leveraging themselves … (0 comments)

bouldersuperior foreclosures: Boulder/Superior Short Term Loans - 12/04/08 07:27 PM
Loan Considerations for Fix & Flip / Short-Term Investors
 
 
Securing conventional financing on a fix & flip or short-term loan is not recommended.  Most conventional lenders sell off their mortgages to investors on the secondary market.  If the loan is paid off early (before six payments are made), the investor has not recovered their initial investment.  The investor will attempt to recover their loss from the lender, who will ultimately come after the loan originator.  The loan originator would then be obligated to pay back any premium paid out by the lender.  If such activity becomes habitual with the … (0 comments)

bouldersuperior foreclosures: Boulder/Superior RE Trends: Loans Pt 2 - 12/04/08 07:26 PM
Loan Considerations for Jumbo Mortgages
 
For the Greater Metro Denver area, any loan amount greater than $417,000 is considered a jumbo loan.  Fannie Mae and Freddie Mac assign different thresholds for various regions across the country.  For instance, $417,000 is not considered a jumbo loan in a high cost city like San Francisco, yet there will still be higher rates for going above $417K. 
 
Due to the size of jumbo loans, they are considered greater risk for lenders, resulting in higher rates.  Rates have fluctuated greatly over the past few years on jumbos.  As of today, a 30 year … (0 comments)

bouldersuperior foreclosures: Boulder/Superior Market Analysis: Loans - 12/04/08 07:24 PM
Loan Considerations for Loan Amounts Between $200K - $417K
 
With all the doom and gloom publications that are mostly exaggerated, many potential borrowers believe that home mortgage lending options have dried up.  While underwriters and investors are scrutinizing files more closely, attractive rates and terms still exist for owner occupied purchasers seeking a conforming loan limit (under $417,000).  FHA and VA can still lend up to 100% LTV and conventional permits up to 97% LTV.  There are certain guidelines to meet when going to these high LTVs, but they are not impossible to surmount.
 
Every home buyer should first … (0 comments)

bouldersuperior foreclosures: Boulder/Superior Market Trends Update - 12/04/08 07:22 PM
FHA First-Time Buyer Tax Credit
  
In an effort to boost the sagging real estate market and overall economy, first-time home buyers are being offered a limited time tax credit when purchasing a primary residence. 
The highlights of the tax credit are:
·   The tax credit is available for first-time home buyers only.
·   The maximum credit amount is $7,500.
·   The credit is available for homes purchased on or after April 9, 2008 and beforeJuly 1, 2009.
·   Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
·   … (0 comments)

bouldersuperior foreclosures: Understanding and Improving Credit Scores - 12/04/08 07:21 PM
Loan considerations for a first time buyer
  
Lending guidelines are changing on a daily basis for every type of loan: conventional, FHA, VA & commercial.  Nevertheless, there are still very attractive first-time home buyer options available.   If you are or will be a first-time buyer, it is critical to speak with a loan officer before looking at homes.  It is a crushing feeling to view a home, picture making it your own and then find out that you cannot qualify to purchase it.  A loan officer will pull credit, analyze debt-to-income ratios, review assets and income and determine what you … (0 comments)

bouldersuperior foreclosures: Boulder/Superior RE Trends: Credit and Interest - 12/04/08 07:20 PM
How can you improve your FICO score?
To improve one's credit score, it's critical to understand the factors influencing a credit score.  The factors that contribute to a FICO score and the weighted percentages for each are as follows:
35% - timeliness of payments 30% - the ratio of used debt to allowable debt for consumer credit 15% - length of credit history (the more credit history and showing proof of consistent timely payment, the better the score) 10% - types of credit used  10% - recent credit inquiries and recent new credit The greatest driver behind a score is making … (0 comments)

bouldersuperior foreclosures: Boulder/Superior Market Trends and Credit Scores - 12/04/08 07:19 PM
How does your FICO score impact your interest rate on your loan?
  
Low credit scores are deemed greater risk for lenders since the likelihood for defaulting on the loan increases.  As such, lower FICO scores translate into higher interest rates.  Mortgage lenders will group credit scores in a range, usually in 20 or 40 point increments, with interest rates progressively getting better for each higher interval.  For example, a borrower with a middle credit score between 660 - 680 will have a higher interest rate (presuming all other variables being equal) compared to one with a 680 - 700 score.  … (0 comments)

bouldersuperior foreclosures: Boulder/Superior FICO Imformation - 12/04/08 07:17 PM
What is a FICO score?
FICO stands for Fair Isaac Corporation, a company that created the most used credit scoring model in the United States.  An individual's credit score is calculated through a statistical algorithm and is used as a factor in determining the likelihood of a borrower defaulting on a loan.  FICO scores are generally used for obtaining mortgages, car loans or consumer credit.  The scores are provided from the three major credit reporting agencies: Equifax, Experian and Transunion.  Typically, there is a variance amongst the scores since each agency has a slightly different scoring formula.  FICO scores range from … (0 comments)

bouldersuperior foreclosures: Boulder/Superior RE Trends - 12/04/08 07:15 PM
There are some signs of strengthening in our Denver market.  The metro area's inventory of available resale housing decreased 20% to 23,120 units in October from October 2007.  Some of this reduced inventory is attributed to homeowners taking their properties off the market in frustration because their property is not selling, but lower inventory implies a strengthening market.  Remember, the Denver area had housing inventory of 31,989 units in July 2006. Home sales rose 14% to 4,265 in September compared to the same month last year.  This is due almost entirely to the lower-end of the market (under $180K) selling like … (0 comments)

 

Bob Blanke

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