Freddie Mac has modified some of its long-standing underwriting policies that should help reduce the paperwork burden for lenders in qualifying prospective borrowers, in their Guide Bulletin 2015-20, dated December 2, 2015. Outlined below is a summary of each of these changes: Borrower Funds/Reserves – if a borrower’s combined value of assets derived from stocks, bonds, mutual funds, US Government…
Let’s not go jumping to any conclusions here, but San Francisco Federal Credit Union just announced a zero down payment loan for home purchases that will go as high as $2 million. Yup, you read it right, no down to $2 million! It’s a 5/5 year adjustable rate with a present start rate at 4% plus a 1 point origination…
Some experts believe that a slight rate hike may actually increase lending by loosening credit standards (Rate Hike). They believe the higher rates will entice lenders to make it a little easier for people to get mortgages. Is that because the higher rates may restrict some at the lower end of the scale from affording a home? So, in turn,…
Recently, it was reported that many consumers still believe they need at least 20% down to buy a home. Although that may be true, a recent Freddie Mac survey finds that most renters do not have savings for this down payment as their top priority. In fact, it’s not one of their top 3 goals (Renters). The Freddie survey found…
With all the talk about programs and efforts to increase homeownership among minorities and low to moderate income households, comes just another example of Congress speaking out of both sides its mouth. Just recently the House overwhelmingly defeated a bill that would have extended a 10 basis point increase of the Fannie/Freddie guaranty fees (g-fees) to be used to fund…
Quicken Loans, the nation’s third largest mortgage lender, has leapfrogged the competition. While many lenders are still working to offer consumers an online application, Quicken’s new Rocket Mortgage offers not just the online app but online loan options, selection and loan approval (Rocket Mortgage). Everything, from soup to nuts, on the front end. No mention of an eClosing…yet. This is…
