Credit Timelines

Mike Head Shot10/15/2019- I hope you had a great weekend and I hope everyone comes to work today!  Friday we had 7 of the 80 + people appear in the office and yesterday was a “holiday” and we had 8 people here!  Yes, I was here both days as I never look for an excuse to not work!

So in the past 12 months property values have increased at a much smaller pace than the 8 prior years.  Some areas are down slightly, some are up slightly and others remain about the same.  The decrease in interest rates has started to push property values higher, and that will likely continue with the affordability being better than it was a year ago.  We are also seeing a higher number of Notice of Defaults than we have in the past 8 years.  It is not a crazy amount, but there are more than in the past.  This is normal and there is no reason to panic, but it is important that you know the facts if you sit down with someone who wants to let their house go vs. short sell their home.  Here are the waiting periods from the major agencies and yes there are other Sub-prime options, but the rates are generally 2% + higher!

  • If you want to get an FHA Loan after a Chapter 7 Bankruptcy then you must wait 2 years.  If you file a Chapter 13 Bankruptcy then you can get an FHA loan after 12 months of successful payments.  If you have a foreclosure or Short sale then you must wait 3 years to get an FHA Loan.
  • If you want to get a VA Loan after a Chapter 7 Bankruptcy then you must wait 2 years.  If you file a Chapter 13 Bankruptcy then you can get a VA loan after 12 months of successful payments.  If you have a foreclosure or Short sale then you must wait 2 years to get a VA Loan.
  • If you want to get a Conventional Loan after a Chapter 7 Bankruptcy then you must wait 4 years.  If you file a Chapter 13 Bankruptcy then you can get a loan 2 years after completion.  If you have a foreclosure then you must wait 7 years (5 years on exception) or Short sale then you must wait 4 years to get a Conventional Loan.
  • Jumbo loans and Home Equity Lines of Credit usually follow conventional guidelines.

Interest rates jumped a bit on Thursday and Friday last week!  The market was closed yesterday and it seems that rates are trending about .250% from our lowest lows a month ago!  Below is a range of where we stand at this time:

Interest rates are still in the 3.5% (3.62% APR)  – 4.00% (4.00% APR) range for conventional loans.
FHA and VA Rates are in the 3.25% (FHA APR 4.578 / VA 3.35% APR)  -3.50% range (FHA APR 4.683 / VA 3.42% APR)
Jumbo Loans are in the 3.75-4.250% range (APR 3.796-4.309)

Why Ranges?  Because they are changing and points can be purchased to lower rates.  Plus every deals seems to price differently depending on the time of day!

I will be in the office for most of the rest of the week.  We have this thing called an Oktoberfest on Thursday and you are invited if you are a licensed Real Estate Agent!  My cell # is 661-714-6258 and my office line is  661-260-2970.  Have a great week and I will be back in touch soon!