Nevada Real Estate >> Las Vegas Real Estate Specialist: John Le Francois NMLS #333903 (All Western Mortgage Broker # 14210)

www.lasvegasmtg.com report: FHA Loan Limits will be drastically cut back for Clark County, Nevada (Las Vegas, Henderson, North Las Vegas, Boulder City) starting October 1, 2011. Currently FHA loan limits for Clark County, Nevada is $400,000.00, but this will be reduced to $271,050.00, a reduction of $128,950.00!

In previous changes with FHA Mortgage Insurance or loan limits the rule has been if the property was assigned a FHA case number prior to the FHA rule change date then it would fall under the old guidelines.

What does this all mean? Qualified home buyers that are seeking a FHA loan to purchase a home over the $271,050.00 loan limit set for October 1, 2011 will need to enter under contract and have the FHA Case Number  assigned to the property prior to the change date.

Many currently qualified FHA home buyers that are wanting to purchase higher priced home after October 1, 2011 will be required to have 20% down or a 720 or higher credit score for PMI to be able to have less down payment because FHA will not be available for there home loan option.

Currently FHA 30 year rates are a .5% better pricing then a conventional 30 year loans due all of the pricing hits that Conventional loans have. Read my blog regarding "The untold Truth about Par Rate" to see all of the factors that drives conventional loan rates up.

If you are a potential buyer in this market price range time is running out for you to use the FHA loan option. What would you want to do? Only need 3.5% down or have to pay 20% down and have higher interest rates? Call Me Now at 702-271-2659 to see what your options are now and what they will be after October 1, 2011.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Republicans target increasing FHA Down Payment Part 2

by John Le Francois

www.lasvegasmtg.com Report: Republicans target increasing FHA Down Payment was the main discussion held yesterday in the Republican led House Financial Services Committee. The Draft Legislation "FHA Rural Regulatory Improvement Act of 2011" Chairman Spencer Bachus (R) "This hearing is necessary to insure that government home loan programs do not expose taxpayers to significant losses."

In a previous article "Republican Politicians want FHA to Increase Down Payment" I wrote prior to the House Financial Service Committee hearing briefly outlined the increase from 3.5% to 5% for a FHA down Payment. It appears from testimony from the hearing there would a more restrictions being imposed with the new legislation if the proposal gets out of the Committee.

Micheal Berman Chairman of the Mortgage Banker Association and Ron Phillips President of National Realtors Association are strongly opposed to any increases in the required FHA down payment. Both Micheal Berman and Ron Phillips sited statistics that FHA default are considerably less then conventional loan defaults. What is more important then the amount of down payment is having strong underwriting requirements, which FHA does have.

The Cato Institute a Conservative Think Tank, disagrees and has provided a list of proposed changes that the House Financial Service Committee has eagerly endorsed.

• Immediately increase to 5% Cash Down Payments on the part of the borrower.
• Require FHA to only allow reasonable debt to income levels. (What that is has not been determined at time of this writing.)
• Restrict borrowers eligibility to a credit history above a 600 FICO score.
• Require pre purchase counseling for borrowers with FICO scores between 600 to 680.
• Require a 10% down for all borrowers with a credit scores lower then 680.
• Require income limits on borrowers eligibility to FHA loans to not exceed 115% of the Median Income for the Area. 

Are these proposal going to make FHA immune to defaults? No! Will requiring 10% down for borrowers with a a credit score less the 680 protect the FHA loan Program? No! Will not allowing a borrowers ability to use a FHA loan program based on Income exceeding the median income limit strengthen the FHA loan program? No! 

The good news is you would be more likely to put the fires of hell out with a squirt gun then this bill ever passing the Senate!

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Republican Politician want FHA To Increase Down Payment

by John Le Francois

www.lasvegasmtg.com Report: Republican Politicians want FHA To Increase Down Payment from the current 3.5% to 5% and are proposing this through discussion on Wednesday Housing Financial Services Committee hearing led by Judy Biggert (R-Ill.) Last year Congress tried to increase the FHA Down Payment required, but it was removed from the bill when the President Obama threatened to veto the bill if left in.

The Republican led proposed increase to the down payment is based on the argument that FHA would not be in jeopardy of Government assistance if the borrower were required to have more skin in the game with a higher down payment. FHA has had two increases in the Upfront Mortgage Premium and the annual premium in the last year to increase the required reserves that Congress has mandated to cover mortgage defaults.

Last year Congress mandated these changes to UFMIP and MIP to secure solvency of FHA without government assistance. Borrowers with FICO score less the 580 would need to put 10% down before they could get a FHA approval.

Most of the FHA defaults were the result from the Down Payment Assistance program that was approved by Congress back in 2000 and was eliminated in 2008 when it became apparent that over 60% of these types of loans were in default in the first two years. Current FHA defaults are the results of high unemployment across the nation and would be the same regardless of the percentage of down payment required.

 What is a fact is that current statistics show that Fannie Mae and Freddie Mac have an average default rate of 17% while FHA defaults are at 6.2% and VA that does not require any down payment is less then 2% in defaults.

Given VA has the lowest default rates of any mortgage loan program and does not require a down payment then logic would show that down payment is not the only determining factor for defaults.

What we do know is that the increase in down payment from 3.5% to 5% for a FHA loan would eliminate first time home buyers of at least 300,000 in the first year alone.

We know that this proposal would never come to the floor as a bill without bipartisan approval, but with banks feeling the pressure with 40% of all loans being underwritten with FHA loans, do not be surprised the banking lobby can get that bipartisan support needed to get the bill to the floor of Congress.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: $400 Billion Adjustable Rate Mortgages to reset.

by John Le Francois

Linda Sterns a Journalist for Rueters this weekend reported that $400 Billion, that's Right $400 Billion in Adjustable rate Mortgages will be starting to reset. In 2006 at the height of home purchases the adjustable rate mortgage was the loan of choice and the most widely used ARMS were the two, three and five year ARM. In the last five years since the housing bubble started we have seen over 5 million homes foreclosed on across the United States. The next round may start when the five year ARMS start to adjust.

In the next 13 months we will see over $20 Billion in loans adjust every month. While some of these resets would be a positive for the borrower seeing an average of $300 to $500 per month decrease at current rates some will not due to the specific ARM they hold. Borrowers that had 5 Year ARMS that were Interest Only payments will se an increase in their mortgage payment.

With 1 in 25 homes are under water across the nation and in Las Vegas that number is down to 1 out of 2 homes are upside down there is little chance of converting to fixed rate at the current low interest rates. Could we see a next wave of foreclosures with the adjustment of the 5 year ARM? Could we see more strategic defaults coming due to the ARMS resets? Only time will tell.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Scam to Defraud Las Vegas Home Buyers

By John Le Francois

www.lasvegasmtg.com Report: Scam to Defraud Las Vegas Home Buyers with an ominous letter they receive in the mail that looks and reads like a government letter from the recording office. It includes a payment coupon for $87.00 and states if you do not return within the required date (see the calender on the letter) there will be additional charge of $35.00 will be required before processing.

What do you get for the $87.00? You get a copy of the recorded Grant Deed that was recorded on your current property you purchased and a property profile. 

 At the end of the letter it discloses that Record Retrieval is not affiliated with the county, state or with any government agency and the offer is not being made for an agency of the government. In even smaller print it states you can obtain the Grant Deed from your county recorders where your property is located in for up to $87.00. What they don't state is you can go online and search by name, address or APN and print your own Grant Deed for FREE!

Please note that the bottom of the footer states that Record Retrieval operates in accordance to both Business and Profession Code 17533.6 & Civil Code 1716. In reality it does not comply to the letter of the law and I have provided the link to that specific California Business Law and Civil Code. The only reason they include this is to give validity to the solicitation of the letter. The Record Retrieval return mailing adress is located in Reno and is a UPS Store and the original letter shows a bulk presort stamp from Corona, Ca.  Please inform your buyers that there is no reason to pay the $87.00 for this service from Record Retrieval.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Las Vegas Home Facts No One Is Talking About

By John Le Francois

www.lasvegasmtg.com Report: Las Vegas Home Facts No One Is Talking About. What are the facts that are being lost in the world of doom in gloom on the Las Vegas, Nevada housing landscape? It is the fact that 2010 "Existing Home Median Prices" are at the same level as the 1996 "Existing Median Home Price". 

In 1996 the gap between "New Home Median Prices" and "Existing Home Prices" was only $7,000.00. In 2003 the gap between "New Home Median Prices" and "Existing Home Prices" increased to $37,000.00 and in 2006 at the peak of home sales in Las Vegas, Nevada the gap was $43,000.00.

In 2010 the "New Home Median Prices" are at the same level they were in 2003, but the gap in 2010 between "New Home Median Prices" and "Existing Home Prices" increased to $88,000.00.

What does this all mean? Are New Home Median Prices to high, or is the Existing Home Median Prices to Low?

It is my opinion that Existing Median Home Prices are to low and the gap will return back closer to the 2006 level.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Preserving Calico Basin, Nevada

by John Le Francois

www.lasvegasmtg.com Report: Preserving Calico Basin, Nevada a sanctuary for Las Vegans for hiking, rock climbers and nature enthusiast may be in jeopardy with Nevada budget crisis. Our current deficits will create a hardship for state legislature to fund state parks when they are seeking 1 billion dollar cut from the school district.

The Calico Basin area has been a sanctuary for mankind going back over 5,000 years with petroglyphs as the only testament that they were here. A natural springs makes it rich in diversity for flora and fuana. Only about 30 minute drive from the strip this should be a day trip for those tourist that do not think there is anything else but the strip.  Other recommended places to visit along the way are Red Rock Canyon, Mountain Spring State Park, Bonnie Springs Old West Amusement and Petting Zoo and the little town Blue Diamond.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: The New Standard for Mortgages QRM Part 2

By John Le Francois

Last week I wrote an article regarding the new proposal for QRM "The Qualified Residential Mortgage" proposal that is supposed to eliminate the risks of Toxic Mortgages held by banks by setting standards on what constitutes a risk free Mortgage. To read the previous article click here. 

Last week testimony at House Capital Markets Sub Committee that the proposed QRM guidelines are so  restricitve that the unintentional result would be to put millions of qualified homeowners out of the housing markets and it would stall any hopes of stabilizing the housing recovery.

Industry leaders from the National Association of Realtors, Mortgage Bankers, Consumer Advocacy Groups, Mortgage Insurance Companies, Center for Responsible Lending, and the Congressionall Black Caucus Group were outspoken in their opposition to the proposed changes.   

If the proposed changes were to take effect it is estimated that millions of homeowners would have to wait 15 years to save up the required 20% down payment on a medium priced home. The new rules for refinancing would eliminate 25 million people from refinancing their loans.

CoreLogic testified that data analysis from 2002 to 2008 of loans that defaulted would marginally changed the default rate by raising the down payment requirements in 5% increments. The increase in down payment only decreased the potential for default by .2% to .3%, but would eliminate 7% to 15% of  borrowers eligible for a home loan.

It is ironic that the very Dodd-Frank risk retention proposal was set out to protect the tax payer from bailing out the banks from selling Sub Prime Loans is now allowing the Banks to set the standard for the Qualified Residential Mortgage. Once again Congress has seen fit to allow the FOX to guard the Hen House.

If you are not fortunate enough to have 20% down and you still want to buy a home then the banks are very happy to sell you a Sub Prime Loan Product with a higher interest rate.  It is estimated that the Sub Prime loan interest rate would be .75% to 3% higher then the QRM rate. 

 Rep. Jeb Hensarling, R-Texas, said of the testimony, "Any time you get the mortgage bankers, the mortgage insurers, the Center for Responsible Lending and Congressional Black Caucus to agree on something, maybe this committee should pay a little bit of attention."

Lets hope the House Sub Committe Members will listen!

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: The new standard for Mortgages QRM

by John Le Francois

www.lasvegasmtg.com Report: The new standard for Mortgages QRM. What does QRM stand for? It stands for Qualified Residential Mortgage, and it  is the product of the banks, Housing and Urban Development, and Securities and Housing regulators release of recommended changes to reduce the risk of toxic loans. This panel was created by the legislation Financial Reform Act in 2010 by Congress to create low risk loans. The legislation gave broad powers to the group and only expressed concerns about negative amortization and balloon payments and were silent on the minimum down payment requirements. Why are these changes even being considered under the Financial Reform Act of 2010? Congress with this new legislation would require All banks to set aside reserves of 5% of total outstanding loans that are considered high risks. With the required 5% reserves of all outstanding loans Congress has set up the mechanism for banks to pass this higher cost on to the consumer. You only have until June 10, 2011 to voice your opinion on the proposed changes and passage of the proposal would not be enacted until 2012. 

So what is in the QRM that is so dramatic that it will undermine any hope of the housing recovery?

1. The requirement that only borrowers with 20% down will get the preferred interest rates.
2. Debt to income ratios can only be 28/36 with no exceptions.
3. Can not have any 60 day late payments reported on the credit report in the last 24 months or you would be ineligible for a home loan.
4. If borrowers want to refinance their home loan to lower interest rates or terms would require the home to have 25% equity.
5. If borrowers are trying to get cash out the property would need to have 30% equity.

Under the new proposed Legislation, borrowers that could not fit within the QRM guidelines would then be placed into a high risk category and higher interest rates. It is unsure at this time what the higher rates would be for the higher risk pool, but industry insiders believe that it could be from .75% to 3% higher interest rates above the QRM rates.

It is noted here that currently the legislation if enacted would exempt Fannie Mae and Freddie Mac from these guidelines as long as they are still under conservatorship. FHA and VA loans will also be exempt from these strict guide lines, but in this political climate there is nothing guaranteed.

So who are the winners and the losers if this legislation goes into effect?

Winners: Once again it is the big banks. While Congress is making the banks require a higher margins of reserves for mortgage loans the banks have set the table with a stacked deck to pass those costs on to the consumers with sub prime rates and with the Governments approval!

Losers: Consumers, Housing Industry, Realtors, Mortgage Brokers, and Loan Officers. Anyone looking to buy a home.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: New Lender guidelines! Say it ain't so!

by John Le Francois

www.lasvegasmtg.com Report: New Lender guidelines! Say it ain't so! Recently I experienced a new rule that has slowed down the loan process for some very qualified buyers and is not even disclosed  as a lender overlay. The delay is over any borrower that has a dispute on their credit report. A dispute with the borrower and the creditor no matter if the account is open or closed, balance or 0.00 balance, has to be removed before the lender will give the borrower approval for a home loan.

The delay is caused by the lender not allowing the dispute being removed with a supplemental credit report but has to be remove at the credit bureau level and the request has to be from the borrowers. With Credit Bureaus having 30 days to respond to any consumer complaints this will increase the delays of closing if the credit report is not scrubbed previously before borrower makes an offer. Within the last week, 4 of our bank lines have now required the disputes to be removed prior to loan approval. 

We do not know if this is a new Fannie Mae guideline or if this is a lender specific rule, but as one lender goes so goes the rest. What we do know is that with the proliferation of Credit Repair companies the chalenges the creditor repair companies write to the Credit Bureaus are being challenged using Dispute Letters. In most cases these Dispute lettters remain on the Credit report showing customer disputes the creditor report. This does not resolve or provide answers on why the original complaint was filed.  

When Underwriters see Dispute on the borrowers credit report this creates red flags that borrowers has not demonstrated the ability to pay on credit obligations. Now, it will be required to have the dispute removed as soon as it is discovered prior to loan being submitted to the lender. 

In the Mortgage business the "Only thing that remains constant is change!"

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: FHA Annual Mortgage Insurance Increase

by John Le Francois

www.lasvegasmtg.com Report: FHA Annual Mortgage Insurance Increase will be enacted on 04/18/2011 and will increase from .90 (current rate) to 1.15%. In 2010 Congress provide FHA the ability to raise the annual monthly premium from .55% to 1.25% of the loan amount. This was to cover the required mandate that there be a 2% reserves of all existing FHA home loans to cover any losses due to Foreclosures or Short Sales. This will be the third increase in less then 12 months and it may reach the maximum allowed fee set by Congress by the end of the year.

The main reason for the increase requirement is due to the ever increasing role the FHA loan has in the Mortgage Industry. With tightening of quidelines for Fannie Mae and Freddie Mac, larger down payments requirements, higher FICO scores and lower DTI restrictions these types of loans are becoming more costly for the owner/occupied home buyers. In 2005 FHA home Loans only represented 5% of all home loans and now in 2011 it is 30% of all transactions. 

Fannie Mae and Freddie Mac have received Billions of Dollars in government bailouts to keep them from failing, there is no life line being offered to HUD for the FHA program. Many opponents of the HUD FHA loan program are portraying FHA loans as the next sub-prime loans because of the low down payment requirements. Sub-prime loans that were offered by Fannie Mae and Freddie Mac before the Mortgage Meltdown are running at 24% default rate VS. 5% FHA default rate.  

In a recent interview by Larry Kudlow and Suze Orman pitching her new book "The Money Class" she states"anyone purchasing a new home with 3.5% down FHA Loan is making the worst economic mistake they could ever make." Suze is a proponent of saving up and putting 20% down on a new house. I know  a lot of people that put 20% down or more on a home in Las Vegas, and they are still underwater and have had their home foreclosed on or short sold their home just the same!

The reality is that the amount of down payment does not insure the risks of defaults anymore, There are 5 key elements that Desktop Underwriting will use to evaluate the risk of each borrower for a FHA Loan.

1. Credit History (Score)

2. Employment/Income History

3. Available Liquid Assets

4. Property type.

5. Debt to Income

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Major Banks approve FHA Short refinances! Oh Really?

by John Le Francois

www.lasvegasmtg.com Report: Major Banks approve FHA Short refinances! Oh Really? This was the the big news from the banking industry giants, Bank of America, Citi, Wells Fargo, GMAC, JP Morgan Chase and 24 other banks that they are NOW on board to use the FHA Short Refinance Loan Program.

The timing of this announcement is extremely suspect since the House of Representatives are giving the Big Banks a get out of jail pass again with the vote to repeal funding for the FHA Short Refinance Loan Program. Without the government funding of the program no FHA Short Refinance Loan Program will be available for the Big Banks to offer borrowers as an alternative way out of the foreclosure and short sale options they have available now.

The FHA Short Refinance Loan Program was available starting in September 2010 with $8 billion in government funding to help home owners get out from underwater home that had high interest rate loans but could not refinance due to the values of their homes. Since the BIG Banks had to decrease the principle by at least 10% or to market value none of the BIG Banks would even consider this as an alternative to foreclosure. It has been reported that only 44 loan since the FHA Short Refinance Loan Program inception has been completed.   

So what has happened in the last six months that has changed the BIG Banks minds? It is easy to say you support a program that does not exist. If only those "rascally" politicians had notde-funded the FHA Short Refinance Loan Program before the Big Banks had a chance to embrace it! "Oh well, we tried, but our hands are tied now." This will be the Big Banks new marketing campaign to show they are trying to do the right thing. The Big Banks will try to use this repeal of the FHA Short Refinance Loan Program as why they need less government intervention in the banking industry. 

With all the negative publicity about the Big Banks with Foreclosures, Robo Signing, Predatory Lending Practices. Loan Modifications, faulty trust deeds it is no wonder that someone is trying to use the FHA Short Refinance Loan Program as a way to spit shine the image. Who know who will buy it? 

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: How did we get to the new Mortgage Compensation for L. O.'s?

by John Le Francois

www.lasvegasmtg.com Report: There is a lot of discussions about the New Mortgage Compensations for Loan Officers that will be enacted starting 04/01/2011. Many lenders have been providing different interpretation on the rules and how it will be enacted with continual webinars addressing these changes. Some Loan Officers are abandoning the ship and looking for other forms of work for fear of a loss of income. We will see who is left standing after 04/01/2011 and are still willing to work in this industry.

The real question is how did we get here in the first place. What information that was provided to the Federal Reserve Board and Ben Bernake was used to put the blame solely at the feet of Mortgage Brokers and its Loan Officers. Why was the whole debacle of the mortgage meltdown blame placed with Mortgage Broker Loan Officers and not with the Banks or its officers that provided these loan programs to the brokers? Its called selective data that supports your view and special interests "the banks" that are to large to fail!

The answer to this question was provided by Frank Garay and Brian Stevens from Think Big Work Small.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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Las Vegas FHA Home  Loans for 530 to 619 FICO Score

by John Le francois

www.lasvegasmtg.com Report: Many borrowers in this economic downturn are experiencing derogatory credit reports that require special lending options that alllows them to still purchase a Las Vegas FHA Home Loans with 530 FICO Scores or higher.

All Western Mortgage now has Investors that will provide Mortgages to Credit Challanged Borrowers. There are strict guidelines for these type of FHA  Home Loans in Las Vegas, Nevada.

580 to 619 FICO Scores  

1. 3.5% down payment for FICO Scores with no Scores or >=580 
2. No open or active trade lines will need three alternative trade lines. Car Insurance, Utilities, Cell phone for example.
3. Debt to income ratios cannot exceed 31/43.
4. Verifiable housing payments - no exceptions. Institutional Verification or 12 months cancelled checks.
5. No gift funds.
6. Non Ocupant Co - Borrowers not allowed.

530 to 580 FICO Scores  

1. 10% down payment for FICO Scores with  >=530 to 580 
2. No open or active trade lines will need three alternative trade lines. Car Insurance, Utilities, Cell phone.
3. Debt to income ratios cannot exceed 31/43.
4. Verifiable housing payments - no exceptions. Institutional Verification or 12 months cancelled checks.
5. No gift funds.
6. Non Ocupant Co - Borrowers not allowed.

To get more information complete the secured online application right now!. 

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: The Untold Truth About Par Rate

By John Le Francois

www.lasvegasmtg.com Report: The Untold Truth About Par Rate is different for each individual borrower! Investopedia.com defines Mortgage Par Rate as: An interest rate used as the reference point for which a Mortgage Lender will neither pay a rebate ( Yield Spread Premium or Negative Points ) or require discount points for a Mortgage.

With the definition from Investopedia.com we have as the basis that a Par Rate would be a zero YSP and a zero cost to the borrower. In today's market a Par Rate is as unique to each borrower as their finger prints are unique to every other person in the world. Why is this even remotely possible? I'm glad you asked.

Every Investor has a different risk tolerance that is reflected in their rates they post each day. The higher the risk the higher the rate. I will only be using one of my primary lenders for this article and their Pricing Adjustment. Risks are the overlays the lender have defined by these factors:

• FICO Score

Conventional loans have 7 different Adjustment hits for determining par rate.

FHA and VA have 5 different Adjustment hits for determining par rate.

• Loan Amount

Conventional Loans can have as many as 6 Adjustment hits for loan amount.

FHA and VA loans can have as many as 4 Adjustment hits for loan amount.

• State Location

Conventional, FHA, and VA loans have 1 Adjustment hit for State Location.

• Building Type, SFR, Condo, Duplex and Fourplex.

Conventional Loans can have 4 Adjustment hits for building type.

• Loan Type

FHA and Conventional Loans do not have any Adjustment hits for Loan Type.

VA has 1 Adjustment for Loan Type.

• Occupancy Type

FHA and VA do not have any Adjustment for Owner Occupied. 

Conventional Loans for Owner Occupied and 2nd homes do not have any Adjustment hits.

Conventional Loans have two Adjustment hits for Investors and LTV. 

• Loan to Value

FHA and VA Loans do not have Adjustment hits for LTV.

Conventional Loans can have 4 Adjustment hits for LTV that are also tied to FICO Scores and Occupancy Type.

As you can see there are so many variables that can determine what Par Rate would be based on specifics to each borrower and co-borrower that no two borrowers would have exactly the same rate. The last factor is the volatility of rate changes that can and do occur on a daily basis. Locking the rate in the morning could have a different result in the afternoon.   

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: FHA Loans will be costing more starting April 18, 2011

by John Le Francois

www.lasvegasmtg.com Report: FHA Loans will be costing more starting April 18, 2011 in Las Vegas, Nevada. FHA Mortgagee Letter 2011-10 dated February 14, 2011 details the new Annual Premium for Mortgage Insurance. Effective with all new FHA case numbers issued after April 18, 2011 the Annual Premium will go up based on the following criteria.

The purpose of the new changes is based on the legislative mandate 202 of the National Housing Act to make FHA financially sound and to insure the FHA loan program is available to to future borrowers.  

The chart below shows the before costs and the new cost based on terms and LTV. 

Example of a FHA Loan with the before and after Annual Premium Insurance costs on a typical FHA home Loan in Las Vegas.

To put this in to perspective a FHA and DU 8.2 guidelines state the total housing expenses can not exceed 47% of income. If the Borrower was approved at the maximum 47% Housing Ratio prior to April 18, 2011 the borrowers purchasing power would now decrease by $4,500.00. Coupled with higher interest rates that are certain to be coming in the near future borrowers can not afford to be sitting on the fence anymore. The choice is yours but the clock is ticking down on what you can qualify for on purchasing a house with the increase of FHA Annual Mortgage Insurance Increase!

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Life after Bankruptcy, Foreclosure, or Short Sale in Las Vegas.

By John Le Francois

www.lasvegasmtg.comReport: In May 21, 2010 I reported about the new rules were being implemented by Fannie Mae that created large barriers for borrowers that recently had a Bankruptcy, Short Sale or Foreclosures from getting a home loan. 

With Las Vegas, Nevada being #1 in Foreclosures and Short Sales for several years and #14 for unemployment for Metropolitan Areas in the country it was no wonder that Bankruptcy filings are almost double of the national average. In 2010 Las Vegas, Nevada had 15,000 Bankruptcy fillings per 1 million residents while the national average was only 6,600 filings per 1 million residents. With so many Foreclosures, Short Sales and Bankruptcy filed 30 to 40% of the Las Vegas, Nevada population would be excluded from buying a home for several years. Until now! 

All Western Mortgage now has a portfolio lender that is using common sense underwriting to determine the borrowers ability to repay the loan obligation for borrowers with Bankruptcy, Foreclosures and Short Sales over one year old.

A Portfolio Lenderis a lender that does not follow Fannie Mae guidelines as they service their own loans and do not sell on the secondary market. With so many borrowers that would benefit from this program while housing prices are still low was the reason this Portfolio Lender is in Las Vegas to fill this niche market.  

Las Vegas Home Loans for clients that have had a Bankruptcy Short Sale or Foreclosure within one year.

Portfolio Lender
 

• Bankruptcy 7 and 13 discharged over 1 year.
• Foreclosure over 1 year old.
• Short Sale over 1 year old.

This program is common sense Underwriting without harsh rates. Requires documentation of the hardship and must demonstrate that credit has been restored.

Not FICO score driven or hits for the borrowers that qualify.

Eligible Hardships

1. Death or illness in family.
2. Loss of Job.
3. Loss of income.
4. Divorce.

Ineligible Hardship

1. Strategic Defaults.
2. Arm resets are not a hardship.

Terms

1. 20% down payment.
2. Loan Limits $417,000.00.
3. Debt to Income ratio 45% (no exceptions).
4. 30 year loan.
5. Must open savings account if approved ($110.00).
   
   
   

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Las Vegas Portfolio Lending for High-Rise Condo Financing

By John Le Francois

www.lasvegasmtg.com Report: Las Vegas Portfolio Lending for High-Rise Condo Financing is now available for High-Rise Condos and Condo/tels at All Western Mortgage in Las Vegas, NV.

A Portfolio Lender is a lender that Underwrites their own loans based on the lenders guidelines and not Fannie Mae guidelines or overlays. A Portfolio Lender then will service the loan and will not sell on the secondary market that is so common in toady's market.

The Portfolio Lenders have created Niche Markets that service clients that big banks cannot market too.  

One of the Niche Markets is Financing High Rise Condos and Condo/tels.

All Western Mortgages have two Portfolio Lenders with unique and competing Niche Programs. 

First Portfolio Lender:

Will finance Owner Occupied and 2nd Homes Condo and Condo/tels with the following guidelines. Maximum LTV for a Condo/tel is 70% and 80% for High Rise Condo. Minimum FICO Score is 720 and DTI is 40%. Must show 12 months non retirement reserves for loan amounts up to $1,000,000 and 24 months non retirement reserves for loan amounts over $1,000,000.00.

Second Portfolio Lender:

High-Rise Condos up to $2,000,000.00 loan amount with 20% down and Debt to Income to 45% and a minimum FICO Score of 720. High-Rise Condos that have been serviced by the Portfolio Lender are Turnberry and Panorama for example. Owner Occupied and 2nd homes are two occupancy types that are approved with the Portfolio Lender. With strong assets it is possible to get 80/10 financing. This unheard off in today's market!

Second Niche Product:

This Portfolio Lender has a loan program that provides financing with very competitive rates for borrowers with recent Bankruptcy, Short Sale or Foreclosure even within one year. This loan Program will be discussed in another post.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: Las Vegas High-rise Condo Financing now available

By John Le Francois

www.lasvegasmtg.com Report: Las Vegas High-rise Condo Financing now available. Everyone that has been in Real Estate for any length of time knows that trying to get financing for a Condo in Las Vegas, NV. is next to impossible. Getting a High-Rise Condo would take an act of Congress and would be inclined to be a futile effort. 

At All Western Mortgage we now have several new programs that are available to clients to buy owner occupied and 2nd home Condos and High-Rise units.

Fannie Mae owned Condo and High Rise Condo properties that are eligible for HomePath Financing can be purchased without a Condo Certification. Fannie Mae Condo and High-rise Condos Properties can be found at www.homepath.com and if the properties have the HomePath Financing logo on the listing they would be able to purchase as Owner Occupied or as a 2nd Home.

Currently there are 359 Condos listed on the Fannie Mae HomePath.com website with 327 under contract and 32 active listings 3 of those are high-rise priced from $80,000 to $200,000.

HomePath Financing:

Owner Occupied:

 5% down and No Mortgage Insurance with Minimum FICO score needed is 640 and maximum Debt to Income is 45%.

2nd Home:

10% down and No Mortgage Insurance with a Minimum FICO Score needed is 720 and Maximum Debt to Income Ratio is 45%.

The other option that is available to All Western Mortgage are two new Portfolio Lenders. Portfolio Lenders do not follow Fannie Mae Guidelines but do common sense underwriting and service the loans they write. In the next article I will discuss the guidelines for these two portfolio lenders.

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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www.lasvegasmtg.com Report: December 2010 Single Family Residence sold in Las Vegas, NV.

Here is a list of Single Family Residences that were sold in the month of December 2010 in Las Vegas, NV. The list is broken down by zip code, the lowest price, maximum price and the average price per Sq./FT and the number of homes closed.

There are a number of zip code in Las Vegas, North Las Vegas, and Henderson areas that are far more  active then other areas with investors and first time home buyers as well as move up buyers. With bargain basement prices and rates that are expecting to go up soon now is time to buy!

Knowing where demand is and the going price will help you make an educated offer on that home of your dreams.  

                                                                                                          

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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