Obama Plan.....New Refinancing Program
Posted by
RaleighCaryNCNewHomes
Yesterday I wrote the first of two parts on the Homeowner Affordability & Stability plan that was released by the Obama administration on Wed March 4th. Which contained two major parts they hoped would have an impact on assisting homeowners with troubled mortgage. The first part of the plan which I blogged about yesterday is a modification program that Servicers will offer to borrowers with high debt-to-income ratios or who are at risk of foreclosure. The second part of the plan which I am blogging about today, a refinance program for existing Fannie Mae or Freddie Mac loans.
As I stated yesterday our Executive Vice President at McCue Mortgage, Kim Neilson and others are still assessing the details of the Homeowner Affordability & Stability plan to determine our next steps, but in the mean time we are trying to provide a summary of its major points so that it might help other to better understandable it. So here we go:
The second part of the plan is a refinance program for existing Fannie Mae or Freddie Mac loans. Fannie Mae is offering two different programs:
The Refi Plus Program that requires the servicer of the loan to be the originating lender.
The DU Refi Plus Program (DU is the Automated Underwriting System for Fannie Mae) that allows any lender using DU to originate the loan as long as the existing loan is a Fannie Mae loan.
Freddie Mac requires the servicer of the loan to be the originating lender. Some specifics of the program are:
Existing mortgage must currently be a Fannie or Freddie loan.
Existing loan may not be considered ineligible (must get an Approved/Eligible from DU). Ineligible loans include existing mortgage loans that received a DU Expanded approval (EA).
Maximum LTV for 1-2 unit properties is 105% and require an appraisal.
Maximum LTV for 3-4 unit properties is 80% and also require an appraisal.
No maximum CLTV.
Existing mortgage must be current and have acceptable mortgage payment history. No minimum FICO score is required although borrower must meet bankruptcy and foreclosure requirements. In addition, borrower must demonstrate credit worthiness.
Rate and term refinance only (No Cash Out) - purchase money seconds MAY Not be included.
Loan level price adjustments (points) will apply (determined by credit score on credit report)
MI required (same coverage factor of existing loan) for mortgage loans that had original LTV’s greater than 80%.
DU Refi Plus must receive Approve/Eligible and will not be available until April 4. Income and employment verification is required.
Refi Plus is a manual underwrite and requires verbal verification of employment. Lender must determine that the borrower has a reasonable ability to repay the mortgage based on current information provided by borrower.
There it is in a nut shell. I actually have higher expectations for this part of the plan then I do for the Loan Modification part. This part of the plan stands a chance to actually help those who have good credit and have little to no equity in their property. But I do not see it doing anything for those who are in areas that property values have taken a noticeable hit, and 105% LTV is not going to do anything for them. Also this does offer a second option to FHA which will allow a borrower to go to a 96.5% LTV on a No Cash Out Refi.
While I think that this plan might actually help a few people, but it will be a source of false hope for many more. As I ended my last post, the purpose for providing this information is so that those who read it may have a better understanding of the "Homeowner Affordability & Stability Plan", and help them come to their own conclusion.
While relaxing this morning, out on the Lake.........Fish?
Posted by
RaleighCaryNCNewHomes
What a beautiful morning it is down here at High Rock Lake today. The seagulls are swooning over the Great Pond and have been for weeks now. We are scheduled to have some warm temps here this weekend so I imagine the boat traffic will pick up today. We have been experiencing some Cold Temperatures lately so I wonder does that blast the Global Warming theories! HaHa! Still we don't know who will sign the contract for the Lake and that does have quite alot of homeowners and Lake enthusiast sitting on the edge of their seats.
Sales of homes here on the lake have been steady but there is a "sitting on the fence" mode that we are thinking will pass soon. The home sales will be picking up soon as there are great deals this year like we haven't seen in the past 2 years. The market has been correcting itself in NC as a whole, whether anyone would like to face those facts or not, the facts don't lie. If you don't have to sell right now, I would recommend you don't because I do believe after some of this credit stagnation flushes, you will see prices increase tremendously out here. We are one of the few lakes in NC you can actually build a waterfront homes. Still there are some draw backs to this lake. The main one I have addressed: We need a River Keeper that cares about the eco system and will maintain the Pond at levels that will be condusive to nature and it's wildlife habitats. We believe this will happen soon.
Still, this is one of the most peaceful places on earth. A true hidden treasure. Please join us sometime and see what our Lake has to offer you and your family. Best fishing in the country for Bass.
RaleighCaryNCNewHomes Realty
Heritage Wake Forest Golf Community still Great Value
Posted by
RaleighCaryNCNewHomes
Heritage Wake Forest is Still a Great Value with Wonderful Small Town Setting. The long shadows of sunset blanket the fairways and trees surrounding the 15th, 16th and 17th holes of the award-winning Heritage golf course as you make the turn into the Overlook; coming home just became sweeter. Luxurious, elegant residences grace its low-maintenance home sites (some with water views)! A tastefully designed and situated play area, complete with picnic tables and park benches, will delight all ages. Take the adjoining walking bridge to the clubhouse, home to 1250 Heritage restaurant, where exceptional dining awaits. Neighborhood- Heritage Overlook- Price Range for Neighborhood- 590,000's
"On top of the world..." a pretty nice state of mind; at Heritage Heights, it's an even nicer state of everyday living. With the greenways of our golf course to one side and a panoramic vista of the gently rolling expanse of the greater Heritage community to the other, each custom home stands against a pleasing backdrop. The collection of single-family home designs offered here have been described as casually elegant, already anticipating your family's desire for livability (indoors and outdoors) along with an unmistakable sense of style. Price Range in the $400's
Why Heritage?
Proximity to major roads: I-540 (6 miles), US-1 (1 mile) and NC-401 (2 miles). Stoplights in place at major intersections.
Adjacent to high growth residential areas in Wake Forest, Raleigh and the unincorporated North Wake County.
Adjacent to Wake County Public School Campus (3 schools).
Adjacent to 160 acres public park/greenway complex.
Utilities in place: Town of Wake Forest water and sewer. Town of Wake Forest or EMC electric facilities, high speed telecommunications lines to each lot. Natural gas to each lot.
Pre-developed sites: Balanced grading and clearing complete.
Environmental certainty: Pre-approved, delineated wetlands, Neuse Buffers and Phase I Audits.
Utility Capacity Guarantee: Through town of Wake Forest contract.
Collection-road improvements in place.
Protective covenants in place.
Thanks so much for directing us to the Heritage Wake Forest Community. Everyday we wake up here we are so thankful to be in such a great community. You listened and heard our hearts! Thanks for your Professional assistance in every detail.
See you soon,
Richard & Kathleen
March Happenings in the Triangle
Posted by
RaleighCaryNCNewHomes
| ||
Performing Arts
Festivals
Hometown Discoveries -
Can you still Borrow Money?
Posted by
RaleighCaryNCNewHomes
Credit Scores
1. Credit scores below the ‘excellent’ (at least 720) range will likely result in higher interest rates, more discount points at closing or potentially, denial of the application.
2. Down payment requirements are at a minimum of 25 percent on just about everything, even duplexes. (If you know of a legitimate source for 10 percent down, let us know.)
3. Investment property rates have dropped a little since November and are now in the range of 6.75 - 7.25 percent without adjusting for credit scores and other ‘risk factors’ as determined by the lender.
4. Lenders are also beginning to require points to be paid on some loans rather than offering it as an option to buy down the rate. This is likely an effort to reduce speculative short term strategies.
5. If you have four (4) or more residential mortgages, you cannot get another residential loan (and yes, your primary residence counts). You will have to seek alternative sources of financing such as commercial loan products, seller financing, or private equity.
Commercial Loans
1. Rates seem to be hovering in the 6.25 - 6.5 percent range for your typical loan, amortized over 15 to 20 years with a 5- to 7-year call.
2. Down payment requirements are typically 20.
2. There are no limits on the number of commercial loans a bank can give you. Any limit they impose would generally be at the discretion of the bank.
3. Commercial banks, especially local, privately owned institutions value relationships and continue to show a willingness to be ‘flexible’ relative to residential mortgage lenders. These banks are not boxed in by third-party regulations and can still make loans if the borrower is strong and they value the relationship with the client.
Stimulus going to 10 Cities...Bet you can't guess who!
Posted by
RaleighCaryNCNewHomes
In Pictures: The 10 Most Stimulated States
WASHINGTON, D.C.--When President Barack Obama signed the American Recovery and Reinvestment Act on Tuesday, he let loose a $787 billion tidal wave of money aimed at getting the stalled economy moving again. But not everyone, everywhere will share in it equally.
In terms of raw jobs and raw cash, it's no surprise that California--the biggest state, staggering under one of the nation's worst unemployment rates--is the biggest beneficiary. What is surprising: On a per capita basis, it is smaller states--where unemployment is not as large a problem--that will get the most help, according to White House data released before the signing ceremony.
Of the 10 smallest states (including the District of Columbia), six are estimated to receive the largest per capita job creation. So while California, Texas, New York and Florida, the four biggest states, get the most total jobs, it is some of the smallest states--Wyoming, Washington, D.C., Vermont, North and South Dakota, and Delaware that are getting the biggest boost per citizen.
Several of the biggest recipients on a per-person basis also have the lowest unemployment rates in the nation. Depending on one's perspective, that's either aid for those who don't need it, or it's rightfully not withholding funds from states that have done a good job keeping their economies in order.
The four states in the country with the lowest unemployment rates all make the list--Wyoming, North Dakota, South Dakota and Nebraska. All four states had unemployment of 4% or lower in December, while the national average was 7.2%. Since December, the national average has jumped further to 7.6% and is expected to jump again in February.
The White House estimates are based off assumptions from "The Job Impact of the American Recovery and Reinvestment Plan," written by Christina Romer and Jared Bernstein. Romer was a member of the National Bureau of Economic Research business cycle dating committee, the arbiter of recessions in the U.S., until leaving to chair President Obama's Council of Economic Advisers.
The estimates from the White House combined Romer and Bernstein's analysis of how many jobs were likely to be created in different sectors with data on state economies, such as the industrial composition of each state.
Videos
ries
Sto
The $787 billion stimulus was controversial legislation, obviously, with politicians and economists debating what would be the most effective use of stimulus and whether the administration's job creation claims were realistic. The Congressional Budget Office has questioned whether or not the government is even capable of spending such a large amount of money in two years. Ultimately, nobody knows whether or not the legislation can achieve its goal of creating 3.5 million jobs in two years. Nothing of this scope has ever been attempted before.
What is agreed is that states are hobbled by unemployment and collapsing tax revenues. In December, in California, the Bureau of Labor Statistics estimated that 1.7 million people were unemployed--a rate of 9.3%. But even that is lower than the 9.5% unemployment rate in South Carolina, 10% in Rhode Island and 10.6% in Michigan.
The Democrats (and three Republicans) who supported the legislation now have their futures largely tied to the goals they outlined: 109,000 jobs for Michigan, 396,000 jobs for California, 3.5 million jobs nationwide. At a price tag of $787 billion, they better hope they are right.
High Rock Lake NC has been beautiful lately....
Posted by
RaleighCaryNCNewHomes
The scenes on the Lake have been wonderful lately, and so has the fishing. I see seagulls out there everyday all day long fishing. The Fishermen are out fighting the freezing temps just to make the catch. Real Estate is still selling great on the Lake so call if you are interested for listings.919-559-7584-Direct
JoAnne Mercer
TruliaMap
TruliaSearchbox
Subscribe To New Homes In North Carolina
Posts
All Comments
Photos of North Carolina
