Buying real estate? Last chance for Fannie Mae Convention 97 (3% down loan)

Friday, November 15, 2013

Fannie Mae conventional 97, which allowed a very low 3% downpayment is going away today and the new downpayment required will be 5%.

The 3% downpayment could have come as a gift, from a blood or by-marriage relative, and should be the case with the new 5% requirement.  The guidelines are less-restrictive than an FHA loan; rates are usually better than FHA and mortgage insurance is less.  If you are sitting on the fence and planning on qualifying for the conventional 97, you may want to call you lender today and submit your application to underwriting. The downpayment requirement goes up November 16th.

This conventional 97 loan was backed by the government and offered via Fannie Mae only.

Call Dean with your questions about low downpayment loan options for purchasing real estate in steamboat Springs, Colorado.

Dean Laird
Colorado Group Realty
970-846-8284

VA loans make a comeback in the Steamboat Springs real estate market

Thursday, October 20, 2011

Some mortgage lenders and brokers in the Steamboat Springs real estate market are seeing a resurgence of VA loans Here are a few helpful tips: VA provides up to 100% financing on the purchase of a primary residence There is no monthly mortgage insurance! There is an upfront funding fee that varies from 1.25% to 3% depending on service, down payment and prior use of the VA product. This fee can be financed into the loan. A 41% debt ratio is required A certificate of eligibility or form DD214 is helpful for the borrower to bring in when they come in to get pre-qualified.

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Pieces Fall Together in the Steamboat Springs Real Estate Market; Seller Financing Option using a Wrap.

Sunday, October 9, 2011

Colorado Group Realty brokers worked together to complete a “remarkable” and “extraordinary” deal involving multiple properties, owners and buyers at the end of September in the Steamboat real estate market. With one deal dependent on the other, four homes involving five homeowners were bought and sold in a three-day period at the end of September! It’s especially noteworthy given today’s real estate market and lending climate. From Steamboat Today

From price negotiations, home inspections, appraisals and financing, everything had to happen smoothly for the deals to close.

However, offers relying on a contingencies being met don’t always work out as smoothly as in the above transactions. As an example, an owner has an offer contingent on the buyer selling and closing their home in order to purchase, but it doesn’t work out as planned and the buyer doesn’t see an offer by the contingency deadline - is there another option? If the home buyer has some equity in their home and an acceptable down payment to cover the seller’s closing costs, the seller could consider owner-financing the real estate purchase without paying off their existing mortgage using what is called a wrap-around mortgage, or “wrap” for short. When the home buyer eventually sells, they pay the seller, effectively allowing a much longer time for the buyer to sell their home. The seller takes enough down to cover closing costs and cover any risk of the buyer walking while the buyer makes payments to the seller who in-turn pays the existing mortgage. Of course, terms all have to make sense to both parties. Also, there are legal matters to consider, summarized in this article. For example,

if the seller owes on an FHA-insured (post March 1, 1988) or a VA-insured (post December 15, 1989) note and deed of trust, wrapping either of those types of loans is considered improper - possibly even fraudulent - by HUD, and is not recommended.

Since I’m not a real estate lawyer, please see the above article for more ideas about this type of transaction. I’ll help you find the home and Oliver can help us with the details of the “wrap”. Call me or contact me for a list of homes where the seller is willing to finance or trade. Colorado Group Realty, Broker/Owner 970-846-8284

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FHA Fails to Extend FHA Loan Limits in High Cost Areas

Friday, September 30, 2011

Congress has failed to extend the FHA and GSE mortgage loan limits. On Oct. 1, those limits will decline in 669 counties in 42 states. The new limits will be equal to 115% of local area median home price (from 125%). The high cost cap will fall from $729,750 to $625,500. NAR will continue to work with Congress to attempt to restore the higher limits as quickly as possible. In Routt County, which includes the Steamboat Springs Real Estate market, the loan limits will fall from $675,000 to $625,500.

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Long term mortgage interest rates are NOT based on the 10 year note

Sunday, August 21, 2011

Do you know what long term mortgage interest rates are based on? The only correct answer is Mortgage Backed Securities or Mortgage Bonds. They are NOT based on the 10-year Treasury Note, the stock market, or the prime rate. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. Be sure that you are working with a lender who is tracking the correct index. Interest rates are still at historic lows (50 year low)!! It may be time to look at your refinance.

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More good news for Steamboat home and condo buyers (maybe)

Wednesday, August 11, 2010

With mortgage rates at historic lows and current high inventory, it’s a Steamboat buyer’s market, at least for now. Reports Bloomber News:

Officials directed the New York Fed’s trading desk to reinvest what economists estimate will be $15 billion to $20 billion a month in maturing agency and mortgage-backed securities back into U.S. Treasuries. The purchases will help keep Treasury yields and mortgage costs low and prevent the level of monetary stimulus from shrinking further.

So when is the turn in Steamboat? This is great news, but we still need Fannie Mae to loosen up their belt for condo lending. If a buyer has 20% down payment for a Steamboat condo, the condo is 40%-50% under the prices of 2007 and the inventory for development land remains low in comparison to many other resort areas, then the low risk should be attractive to a lender. Unfortunately, the rule-makers don’t analyze our niche market and thus we are waiting for the days of relaxed condo lending rules. When this happens and the buyer qualifies for a loan that is marketable, we should see a surge of sales. Until then, bring more cash. The FED stopped investing in Mortgage backed securities (MBS) back in April and sales declined. The FED are now investing again, so I anticipate new confidence and sales to pick up. This may not be the turn or the bottom, but if you combine this good news with relaxed lending rules, then that may just be the sign of a turn. Meanwhile, it’s a Steamboat Springs Buyer’s market - and cash is king. Call me about Steamboat Springs foreclosure real estate and current market conditions. 877-678-0884 direct or 970-846-8284 Cell.

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Lending available for Steamboat condos but you have to play by the rules.

Saturday, August 7, 2010

A mortgage company that is in the process of bankruptcy can’t find a buyer for the condo they foreclosed on, because lenders don’t want to give Mr. buyer a loani! True story! Buyer has excellent credit, 20% down and looking to purchase real estate at 50% discount off of previous sales (should be low risk) The reason Mr. Lender can’t finance the property is because while searching for vacation property on the web, the property in question shows up from the search. Vacation property = investment property in their eyes most of the time. You may be legitimately purchasing the property for a 2nd home in Steamboat, with no intentions of renting; however, the banks are calling it an investment condo and its tough to get financed. TARP to the rescue does not apply here; but…wait! “Another important goal of TARP is to encourage banks to resume lending again at levels seen before the crisis.” http://en.wikipedia. … lief_Program#Purpose Don’t get discouraged; there maybe a solution as long as you have 25% down, investor concentration ideally isn’t over 30% or was that 10% (this changes depending on who you talk to), and you don’t have more than 4 mortgages already. Its not so easy though. The HOA (Home Owner Association) can’t be in the red, one owner can’t own more than 10% of the inventory and so on… Financing condos in Steamboat is common, but it’s best if n we do some homework before venturing out to look for deals. There are several condo complexes that should finance conventionally, because they fit the lender rules. 3 examples are Walton Creek Condos (2 bedroom plus huge loft for 3rd bedroom, views of the ski resort http://www.steamboat … on_Creek_2_bed-loft/), The Timbers (Colorado lodge with views of Catamounthttp://www.steamboat … _Timbers_2_bed-loft/) or most townhomes such as Columbine - (3 bed, 3 full baths, 2 lofts, views of the valley and Rolling Stone Golf Course, 2043 sqft now just $399,000http://www.steamboat … _3_bed_plus_2_lofts/). Call Dean Laird 877-678-0884 direct or 970-846-8284 for more ideas for financing or any additional information on condos and homes in Steamboat Springs.

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