Archive for June, 2013

MHFA has taken great strides in expanding their product offerings to help lessen the burden first time buyers carry, especially if available cash is tight

June 28th, 2013
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This past week Minnesota Housing Finance Agency provided another boost to first time homebuyers in Minnesota by increasing the amount available through their deferred payment loan product. The new maximum limit for qualified borrowers climbs to $4,500. With rising interest rates and rising home prices, this was needed and very timely.

MHFA has taken great strides in expanding their product offerings to help lessen the burden first time buyers carry, especially if available cash is tight. Last week, MHFA added the new Mortgage Credit Certificate or MCC for short, to their product line. This week they announced an increase in the down payment loan program. These enhancements offer more ways of providing affordable and sustainable products to our first time buyer clients. Here are all the current categories at a glance:

Start Up – The first time borrower loan used in conjunction with FHA, VA, RD or Conventional loan options. This program, for the qualified candidate, also provides access to down payment and closing costs assistance (DPA) through a monthly payment plan, a deferred payment loan or Home Help Loan. Read the rest of this entry »

Achieving this first-time buyer status has its benefits!

June 21st, 2013
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I would like to introduce you to a new product offering from Minnesota Housing Finance Agency – the Mortgage Credit Certificate or MCC for short. This program provides a federal tax credit for first-time home buyers. The program is not a mortgage product, but a supplement to the first-time buyer to help reduce their federal tax burden; and offers yet another way to provide affordable and sustainable programs to our first time buyer clients.

The Mortgage Credit Certificate provides a useful tool to help first-time buyers achieve their home ownership dream and provide a tax break all at the same time. The guidelines for entrance to the program include:

· The borrowers must meet the first-time buyer criteria spelled out by the program. For example, no prior home ownership for three years, income that meets the household test with acceptable debt to income ratios, and credit score to meet the requirements for the underlying mortgage product.

· The property purchased does not exceed the maximum acquisition limits spelled out by MHFA guidelines and is a single family residence as defined by the guidelines. Please note, new construction is allowed!

· The borrowers must have a minimum $1,000 or 1% of the purchase price of the home to invest. Read the rest of this entry »

Fairway Independent Mortgage now has approximately 1500 employees spread out over 40+ states and I think about a third of them converged on Madison last week as did Randy and I.

June 14th, 2013
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Every year, in June, our company rolls out the red carpet in Madison Wisconsin, to all employees and the investors and vendors that makeup the team that allows us, as a company, to excel. This year was over the top. Fairway Independent Mortgage now has approximately 1500 employees spread out over 40+ states and I think about a third of them converged on Madison last week as did Randy and I.

Big takeaway…. The pace of change will not slow this year!

There are 7 new rules promulgated by the Consumer Financial Protection Bureau that will be implemented no later than January of 2014. Lenders across the country are gearing up for the changes. The one with the most potential to affect consumers and the real estate industry is the implementation of the QM(Qualified Mortgage) rule. This rule will, in part, define the ‘ability to repay’ or underwriting standards by which lenders qualify prospective borrowers. Two aspects of it seem to be creating the most concern.

The first is that the maximum debt to income ratio deemed to be in the consumer’s best interest is 43%. There are some caveats in the language of the rule that say that as long as the automated underwriting engines of such government sponsored enterprises as Fanniemae and Freddiemac, approve the loan, there will still be a safe habor for loans with higher ratios. What is not known is whether or not the engines will be tightened down from their current position which allows higher ratios. Read the rest of this entry »

President’s Award for the Kate Wilson Team!

June 7th, 2013
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This week, Kate and Randy had the honor of accepting the President’s Award on behalf of the Kate Wilson Team at Fairway’s Annual Meeting in Madison. We want to thank each and every one of you for helping us achieve this outstanding recognition! We wouldn’t be where we are, doing the business we do, without you!

Kate and Randy will be returning to the office Monday with the scoop on important upcoming regulatory changes. Stay tuned for updates on new information coming down the pike!

In the meantime, check out the rates and remember – play it safe and lock in. Rates are still at 60 year lows, but the market is extremely volatile. -Barb Crea