Lund Team Journal - Market Updates & Education

Your FHA Loan Update Checklist!

WHAT YOU NEED TO KNOW ABOUT UPCOMING CHANGES TO FHA LOANS

As you may know, unless Congress extends the expiration deadline, Federal Housing Administration (FHA) loan limits set in 2008 will drop significantly beginning October 1. Congress raised the loan limit amount in response to the housing crisis to help spur the homebuying market. FHA loans offer borrowers very competitive rates and terms, and they only require a 3.5% down payment. Allowable debt ratios are higher than the typical debt-ratio limits imposed for conventional loans, and there are no income limit qualifications, so more people can qualify for them.

If the loan limit drops on October 1, many California homebuyers will face higher down payments, higher mortgage rates and…

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Mortgage Rates Fall To Record Lows; Refinance Boom

Average 30 year fixed mortgage rates have fallen to historic lows; 4.41%.  Many Lund Team clients have reported securing fixed rate loans even lower lower (4.1%-4.25%) depending on their individual situation. 

There is much discussion about the future of low mortggae rates.  Many economists argue that we should expect an extended period of low mortgage rates as the economy contracts during a recession.  

Our local mortgage contacts report heavy volumn in #'s of property refinances. 

The 15-year fixed-rate rose 5 basis points to 3.63 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, was 4.94 percent, up 5 basis points from last week.

The 5/1 ARM fell 3 basis points to 3.12 percent. With a…

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New Government Program: 3% Grant!

We were recently informed from one of our lending partners that there is a new government program that can provide up to a 3% grant that can be used for downpayment and/or closing costs.  The grant does not have to be repaid!

The Grant made possible through the Program can be used towards the homebuyer’s down payment and/or closing costs on a 30-year fixed-rate fully amortized FHA, VA or USDA Mortgage Loan.

The Program is available for purchases of both new and existing homes and is NOT limited to first-time homebuyers.

If you have questions, The Lund Team is here to help! 

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3.5% Credit Back To Homebuyers

Special Fannie Mae HomePath Buyer Incentive Offer

There's great news from Fannie Mae: Buyers may be eligible to receive up to 3.5% in closing cost assistance through October 31, 2011 as part of the HomePath buyer incentive.

To be eligible for this incentive, the following qualifications must be met:

1. Buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible.
2. The initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
3. The sale must close on or before October 31, 2011. No exceptions will be made to this deadline.
4. Only buyers purchasing a HomePath…

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Loan Limit Change: San Diego County

Loan Balance Update:

As a reminder to our buyers and sellers, the higher conforming loan balance amounts are set to shift down from $697,500 in San Diego to a possible $550,000.  The amounts are not set yet by the Federal Housing Administration.  The governmental stimulus package is set to expire in September, and without intervention from Congress, lenders will start putting deadlines on applications taken with these high loan amounts. Several lenders have already set a July 15th deadline on new applications for high balance loans to ensure closing by the deadline.

Barring government policy change, those wanting to borrow over the new government limit will have to pay a higher rate on the remaining balance. This is due to the increased risk…

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Fannie Mae and Freddie Mac May Merge

There is still in its infancy, but having government support would most likely support an era of low mortgage rates.  See and read below:

Bill proposes merger of Fannie and Freddie

Rep. Gary G. Miller (CA-42) and Rep. Carolyn McCarthy (NY-04) are expected to introduce a bill tomorrow to merge Fannie Mae and Freddie Mac, and restructure the company into a government-held corporation.

The legislation will propose that the merged company purchase mortgages and sell them to investors as securities that are government-backed. The new company wouldn't operate for profit-making purposes and wouldn't have shareholders.

Under the proposal, a five-member board would govern the corporation, and it would be regulated by the Federal Housing Finance…

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Citigroup offers $12,000 to Short Sale This Year

The Lund Team is one of the few brokers with the experience (and patience) to work and close short-sales in this tough marketplace.  We received updated information that Citigroup is offering incentives for homeowners to short-sale this year.  

--------- News Release

Citigroup's mortgage servicing branch CitiMortgage is offering an average of $12,000 to borrowers who complete a short sale this year. By comparison, the mortgage servicer was offering $1,500 payments on average in 2009, and $3,000-$5,000 payments in 2010.

"Incentives will be offered to customers experiencing financial hardship who need funds to…

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Foreclosure Myths Debunked.

Foreclosure myths, debunked

Although there are a number of programs available to help homeowners who have defaulted on their mortgages keep their home, the large amount of misinformation tends to result in troubled homeowners failing to contact their lender until it is too late.

Making sense of the story

• Some homeowners believe, incorrectly, that contacting their lender early in the process will draw attention to their situation and result in a quicker foreclosure.  In reality, contacting the lender or servicer is an important first step, and the sooner, the better.  Contacting the lender provides the homeowner with an opportunity to explain their situation and the steps necessary to deal with it.
  
  
• It is a common misconception that…

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Three Most Common Mistakes With Real Estate Trusts

We at the Lund Team had the pleasure of sitting down with Brenda and discussing the newest trends in trusts and real estate. After coffee, we asked Brenda if she would like to contribute to our blog.  Below are the top three mistakes she sees people make in regards to real estate trusts.  Enjoy!

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These are the most common mistakes I see in my practice every day. There are many myths and misconceptions out there about estate planning and real estate. This article is designed to help you recognize and avoid the most common mistakes families make in the passage of their real estate to the next generation and help your family save thousands of dollars in unnecessary taxes and probate fees.

Mistake #1: Not Understanding How Your Assets…

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