So a couple of months ago I mentioned that we will have FHA Spot approvals October 15th! Well, guess what? We have FHA Spot approvals! YAY!!! What does that mean for you and your clients? We all know that it was difficulty top impossible to get an FHA Condo project approved and when we tried we usually failed. Well now we can approve borrowers for FHA Financing under certain terms. This will be much like the regular condo approvals with a couple of exceptions. We will have to check the concentration of FHA Loans in the project and that is the # 1 issue! So if we have more than 10% of the buyers with an FHA loan then we will not be able to do FHA financing unless the whole project is approved! Below are some of the other key points:
- Condo project must have at least 5 units
- FHA Concentration with less than 10 units is a maximum of two FHA loans – Over 10 units – 10% concentration is allowed!
- Project must be putting 10% into its reserve account every month!
- Must have 50% Owner occupied Units – This is a big one!!!!
- No Litigation! Another big one!!!
- No more than 15% of the units in arrears.
So why would you do an FHA loan vs. a 3% down conventional loan? Well because the buyer with a 580-700 credit score will have a much lower payment with an FHA Loan than a conventional loan.
Interest rates are a tad higher today than they were on Tuesday as the 10 year bond yields have increased from 1.51% – 1.76% in the past two weeks! When I say rates are still great, I mean it as we are still about 1.250% below where we were a year ago!
- 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!
So we have Oktoberfest tonight and I am very excited about that! I will be in the office bright and early tomorrow because I have to head out to Florida in the AM! here is the good news – My cell will be on while I am gone and I will be back on Tuesday. So my cell # is 661-714-6258, but you can also reach my highly skilled team at the office at 661-260-2970 or on their cell phones. Dwayne Okpaise (18 years) c = 818-378-0400 / Kris Kehl (17 years) c – 661-644-2008 / Whitney Sengthao (10 years) 661-803-9448 / Anna Higgins (5 years+) 661-495-8878 / David Bogosian (5 years+) 661-312-0225 / Irma Arteaga (10+) 818-674-2041 / Amy Atkins (30+/- years) 661-904-8011. They all tell me they work nights and weekend and I have no issues allowing you to test them. I should be pretty available while I am in Florida when I am not golfing. I hope to see you tonight and I hope to hear from you over the weekend!