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

(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!

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

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

Lee County still has money available for the down payment assistance program.

Below are the current income limits:

Household Size                 Max Gross Annual Income

 

1 person:                                             $31,550

2 people:                                             $36,050

3 people:                                             $40,550

4 people:                                             $45,050

5 people:                                             $48,700

6 people:                                             $52,300

7 people:                                             $55,900

8 people:                                             $59,500

There is finally proof that mortgage guidelines are loosening.

The average credit score for new borrowers being approved for a mortgage has decreased to 724. This is a 21 point decrease from one year ago according to Ellie Mae.

 

Last week mortgage rates continued their slight increase. The GDP number was revised downward to 2.4% which indicated the economy is still growing slowly which is as expected. There wasn’t much economic news released last week. This week should see more updates as it is the beginning of a new month. See current information at the Wall Street Journal Market Data page.

Last week mortgage rates moved up slightly again. The Fed released their meeting minutes which revealed that the economy is still growing slowly which is as expected. Existing Home Sales and Housing Start data revealed that the housing sector is slowing down but prices are still on the rise. Look for rates to remain fairly stagnant with slight moves each way depending on the reported data. See current information at the Wall Street Journal Market Data page.

Private Mortgage Insurance (PMI) is insurance for the lender that is required on Fannie Mae or Freddie Mac loans when the borrower has a down payment less than 20% of the purchase price.

It is also required on all FHA loans even if the borrower does have 20% for a down payment.

Many people have the impression that PMI protects the borrower but that is not true. PMI is charged either monthly or in advance as security for the lender and is one of the best reasons to have a 20% down payment.

 

Below is a list of easy things an individual can do to build credit or increase their credit score.

• Get 2 credit cards
• Increase your limit on existing credit cards
• Keep your credit cards open
• Pay down cards with high balances
• Use your card and pay it off monthly
• Secure an installment loan (mortgage, auto, personal, etc.)
• Pay off old charge-offs
• Dispute wrong reporting (Do this before applying for a loan)

For a more detailed explanation on how to build your credit, visit this link to MSN Money.