Fannie Mae Survey Reveals Consumers Unaware of Requirements to Qualify for Mortgage

Bob Vaughan

A recent survey performed by Fannie Mae on a significant number of consumers revealed there is large gap in consumer knowledge when it comes to qualifying for a mortgage loan. Of the consumers interviewed, 40% did not know the minimum down payment required to qualify for a loan, 54% did not know the minimum credit score required and 59% didn’t know the maximum back-end debt to income ratio. “There is a significant lack of understanding about minimum mortgage qualification criteria not only among consumers in general but, more importantly, among renters who plan to purchase a home within the next five years” according to Fannie Mae. It is extremely important to know the guidelines and requirements when looking to get financing, or are working towards improving your situation for financing in the future. If you don’t know the correct guidelines today, how can you know how to prepare for the future? Call us today so we can answer any questions you may have about the mortgage loan process and help you get on the right track.

Market Recovery Double-Edged Sword

Andy Davis

Most real estate and mortgage professionals realize that the housing recovery has been extremely good since the low in 2012.

In November the Fannie Mae Home Purchase Sentiment Index indicated that consumers aren’t as optimistic about housing prospects for the future.

Fannie Mae concludes that the decrease in the sentiment index was mainly due to two things; Expected decrease in supply and  affordability.

With current interest rates near an all-time low affordability is still high, but higher interest rates could derail consumer sentiment.

Condo Financing Gaining Popularity

Andy Davis

You may have heard that it is extremely difficult to get approved for a home loan to buy or refinance a condominium. That was the case for several years after the housing market crashed, but lenders finally have loosened the rules on condo financing. Borrowers seeking to get a condo loan these days will find more lenders to choose from and more condominiums that are eligible for financing. Mortgage giants Fannie Mae and Freddie Mac have eased some of the requirements on loans for condos, and a growing number of lenders offer loans that go outside the box of the condo rules in conventional financing, says industry experts.

You’ll still need good credit and stable income to qualify for a condo loan — just as you would with a loan to buy a house. But you are less likely to face restrictions relating to the property itself. When approving a condo loan, the lender wants to make sure the building is financially stable. Because the financial stability of a condo project depends on the owners paying their bills, lenders tend to view condo loans as a riskier investment than a house. Lenders are more flexible when analyzing condominiums’ financial stability.

Late in 2014, Fannie issued new guidelines to lenders allowing them to issue loans in developments where up to 15 percent of the owners were 60 days past due on monthly payments. The threshold had been 30 days. Another change made it easier to finance condos in new developments. Still, many condo buildings don’t meet Fannie and Freddie’s requirements; however, there are several options that have now become available for portfolio lending, as well.

Source: BankRate.com 

Vacation Home Sales Up in 2014

Andy Davis

Vacation home sales jumped to a record 1.13 million last year which is the highest rate since 2003

This is a 57% increase from 2013

As vacation home purchases soared, investment purchases dropped for the fourth straight year

Market share of investment sales dropped to 19% of the market from 20% in 2013

It Is Getting Easier to Purchase a Home

Andy Davis

Good news for prospective home buyers. Purchasing a home is getting easier. The following are some of the reasons why:

– New disclosure requirements are more clear

– Creative loan products are coming back to the market

– Lender buybacks are decreasing

– FHA Mortgage Insurance has decreased

– Interest rates are still low

Specialty Loan Products

Andy Davis

 

D&V Home Mortgage is excited to introduce our Lot Loan Program and our Foreign National Mortgage Program.

Call today for mortgage rates and terms for these great new products!

Open House Flyers

Andy Davis

Fort Myers Mortgage Company

Every Realtor would rather make 6% than 3%.

Call or email for a custom open house flyer today and start getting both sides on your listings!

Custom flyers for FHA, VA, Conventional, and Jumbo Loans.

D&V Home Mortgage Loan Product Update

Andy Davis

97% Primary – 620 (First Time Homebuyer)

97% Primary – 620 (My Community Mortgage)

95% Primary – 620 Score

90% Second Homes – 620 Score

85% Investment – 720 Score

50% DTI max all programs

High LTV Condos to Same LTV’s as above!

Limited Review Condos (70%LTV SH, 75% LTV Pri Res)

Investment Cash-Out to 75%

Up to 10 Financed Properties

Delayed Financing Exception

Conforming Flips

  Call or email today with conventional, VA, FHA, or Jumbo Scenarios!Fort Myers Mortgage Company

Homeownership Rate At 20-Year Low

Andy Davis

 

Fort Myers Mortgage Company

The homeownership rate in America hit a 20-year low, dropping to 64% in the fourth quarter of 2014. This was 1.2 percentage points (+/-0.4) lower than the fourth quarter 2013 rate (65.2%) and 0.4 percentage points (+/-0.4) lower than the rate last quarter (64.4%). The rental vacancy rate of 7% was 1.2 percentage points (+/-0.4) lower than the rate in the fourth quarter 2013 and 0.4 percentage points (+/-0.3) lower than the rate last quarter. The homeowner vacancy rate of 1.9% was 0.2 percentage points (+/-0.2) lower than the rate in the fourth quarter 2013 and 0.1 percentage point higher (+/-0.1)* than the rate last quarter. The homeownership rate of 64% was 1.2 percentage points (+/-0.4) lower than the fourth quarter 2013 rate (65.2%) and 0.4 percentage points (+/-0.4) lower than the rate last quarter (64.4%). Paul Diggle, property economist for Capital Economics said that the decade-long decline in the share of the population who own their home may now be drawing to an end. “Yet the long decline in the homeownership rate may finally be drawing to a close,” he says. “After all, mortgage delinquency and foreclosure rates have fallen back to long-run norms, credit conditions are showing signs of loosening and wage growth may soon accelerate, helping young households to make the leap into homeownership. Source: HousingWire

Good News for Suburban Real Estate

Andy Davis

Millennials deep down may be suburbanites after all. In recent years, economists and demographers have argued that members of Generation Y will have a longer love for city living in smaller living quarter than their predecessors. But a newly released survey by the National Association of Home Builders discounts that, suggesting that what millennials really want is a single-family home outside of the urban center – just like other generations. The survey of more than 1,500 people (born since 1977) found that 66 percent of millennials want to live in the suburbs; 24 percent want to live in rural areas; and only 10 percent prefer to live in a city center. “While you are more likely to attract this generation than other generations to buy a condo or a house downtown, that is a relative term,” says Rose Quint, NAHB’s assistant vice president of survey research. “The majority of them will still want to buy the house out there in the suburbs.” One of their main draws to suburbia? They “want to live in more space than they have now,” Quint says. Eighty-one percent said they want three or more bedrooms in their home. “The preference for the suburbs suggests that future demand will be in the form of single-family homes rather than condominiums more prevalent in cities,” David Berson, chief economist with Nationwide Insurance Co., told The Wall Street Journal. “That’s also good news for future suburban single-family sellers, many of whom are baby boomers.” Source: The Wall Street Journal

My Community Mortgage

Andy Davis

(MCM) – My Community Mortgage – FNMA Product

 

D&V Home Mortgage has announced the release of an amazing product to help homebuyers get into homes at incredible rates including reduced MI! Say good bye to FHA if your borrower meets the income requirements!

Check this out!

Score’s down to 620

DTI – 50%

LTV’s are 95% on a Fixed and 90% on adjustable

Your borrower or borrowers combined income must be below the median income for the area per FNMA to qualify….Link below to look them up.

https://www.fanniemae.com/s/components/amilookup/61d695d4-b7a7-4fe1-90c2-7dff2fd1ccd4?state

List of relevant median incomes for counties targeted with this email

Pinellas, Hillsborough, Pasco – $57,400

Sarasota – $57,300

Collier – $62,900

Lee – $58,000

Pricing HUGE benefit!

New Jumbo Program Available

Andy Davis

D&V Home Mortgage now offers non-QM Jumbo Loans

  • DTI up to 49%Fort Myers Mortgage Company
  • Loan amounts up to $1.5 million
  • 740 + FICO Score
  • Primary and Secondary Homes
  • 30 Year Fixed
  • Up to 75% LTV