USDA property eligibility map to change for 2015

USDA loan property eligibility map changing for 2015

The very popular no down payment home loan for rural areas of the country is changing slightly for 2015 throughout the country.

usda-future-eligibility-map“USDA Announcement (posted 12-22-14) indicates President Barack Obama signed the Consolidated and Further Continuing Appropriations Act of 2015 (omnibus spending bill) into law last Tuesday.

While it is long and boring to read, the most important aspect is that USDA loans will implement new property location eligibility maps on February 2nd, 2015. 

The changes will be those already published on the ‘Future Eligible Areas’ maps posted on the USDA eligibility website (USDA Future Eligible Maps), which had be previously announced to go into effect, but had been delayed multiple times.

When checking property eligibility for a USDA loan, be sure to click the future eligibility link, as only applications completed and submitted to the USDA on or before Feb 2nd, 2015 are eligible under the current eligible areas.

Completed applications submitted by your mortgage lender to  USDA after Feb 2nd will be subject to the new ‘Future Eligible Areas’.”

Another reminder about USDA loans is that you can apply with any participating USDA loan lender. You do not need to find or use an actual USDA office. We provide USDA loans in MN, WI, or SD


3% down payment mortgage loans back

Minneapolis, MN:  Fannie Mae and Freddie Mac have recently announced they are bringing back 3% down payment options.ff

Currently, most conventional conforming loans require a minimum down payment of 5%, while FHA Loans still allows for just a 3.50% down payment.

FHA VS CONFORMING CONVENTIONAL Loans

FHA used to be the low down payment champion, but changes to the program made after the housing market meltdown have really taken a lot of steam out of the program.  The two biggest changes being the huge increase in the cost of FHA mortgage insurance, and that with a small down payment, the homeowner would have FHA mortgage insurance for the life of the loan!

If you have good credit, and could come up with a little more down payment, a conforming conventional loan would be much better.

CONFORMING CONVENTIONAL NOT ALWAYS BETTER

There are many differences between the two programs.

FHA loans are more liberal in terms of lower credit scores, and weaker borrower profiles.  It also has a shorter waiting period after major negative events, like a foreclosure or bankruptcy. FHA interest rates are pretty much the same for everyone. But you pay for this with the high cost of mortgage insurance.

Conventional loans are almost always better if you have good credit scores, but can be nearly as costly for those with weaker credit. Conventional mortgage interest rates and mortgage insurance costs both climb significantly as your credit scores go down.

NEW 3% DOWN PAYMENT MORTGAGE GUIDELINES

Understand, Fannie Mae and Freddie Mac DO NOT DO LOANS. They buy loans from lenders after the fact. Therefore lenders can, and very often do, add additional rules and restrictions to the guidelines of what Fannie and Freddie say they will buy.  Always check with your mortgage lender for your specific qualifications:

Fannie Mae Rules:
 ⇒ Effective Date: December 13, 2014
⇒ One person must be a first time homebuyer
⇒ MyCommumity Mortgage Purchase Transactions — must undergo prepurchase housing counseling
⇒ Standard purchase and limited cash out refinances of existing Fannie Mae loans.
⇒ Fixed rate loans only — no adjustable
⇒ No high balance loans
Freddie Mac Rules:

⇒ Effective Date: March 23, 2015.
⇒ Called Home Possible Advantage Program
⇒ Manually underwritten mortgages–660 minimum score purchase/680 refinances with maximum 43% back ratio.
⇒ Owner occupied purchase and no cash out refinances.
⇒ Maximum income limitations for all mortgages.
⇒ Fixed rate loans only — no adjustable


2014 Minnesota Loan Officer of the Year

Minneapolis, MN: Maple Grove, MN based Mortgages Unlimited’s Loan Officer Joe Metzler, out of their St. Paul, MN Office, was awarded 2014 Minnesota Mortgage Association’s Loan Officer of the Year.

MN 2014 Mortgage Loan Officer of the YearHe was presented with the award at the MMA Annual Holiday Event on December 9th, 2014.

This is a huge accomplishment for both Joe, as there are over 100 companies included in the MN Mortgage Association.  Joe Metzler has been a top producing Loan Officer for Mortgages Unlimited since 2000, and has over 20-years industry experience.  Joe has received other awards in recent years in recognition of his outstanding service and dedication to the mortgage industry, including:

  • 2011 – Top 40 Most Influential Mortgage Professions to Watch
  • 2010 – Top 150 Loan Officers in the Nation by Dollar Volume

He is a certified MMS (Minnesota Mortgage Specialist). Less than 1% of Mortgage Loan Officers in Minnesota have completed the requirements to earn this designation. This is just one of many ways that shows Joe’s dedication to his career.  His track record is exceptional by any standard. He believes in doing the job right the first time and providing a service you can depend on.

If you’d like to have Joe as your Loan Officer, he is licensed in MN, WI, and SD. He can be reached at (651) 552-3681, or you can apply oh his web sites www.Joemetzler.comor iMortgageJoe.com

 


Home sales, listings down for November 2014

Home sales, listings down for November 2014

While still touting a housing market recovery, area real estate associations are mindful that the market is still recovering, with the fits and starts that all that entails.

Data for November bear this out, with the area Associations of Realtors reporting November decreases in pending sales, closed sales and new listings.

Pending sales, or the number of signed purchase agreements, fell 7.5 percent in November compared with last year. New listings decreased 12.8 percent. November closed sales ended down 17 percent to 3,213 sales, versus last year’s 3,873 sales.

The median sales price rose 5.1 percent to $205,000, marking 33 consecutive months of year-over-year median price gains. However, this figure was down from an October median of $209,000.

As has been the case in recent years, the year-on-year uptick in prices indicates fewer distressed properties on the market; these properties, foreclosures and short sales, are where the home sells for less than is owed on the mortgage, and typically drag down median prices.

Minnesota mortgage ratesThe Minneapolis, St Paul, Twin Cities housing market is clearly continuing the process of recovery. Sales prices are up, but on fewer overall sales. Fewer distressed sales (foreclosures and short-sales) are certainly a welcome sign for homeowners and Realtors alike.

The Minneapolis Association of Realtors cited increased condo activity for the rise in prices. The median price of new construction condominium sales rose 65.2 percent in November to a new high of $366,242, it said.

Mortgage interest rates continue to hold just slightly above historic lows, making homes very affordable.  You can check current MN, WI, and SD interest rates here.


NEW MN FHA Loan Limits for 2015

HUD has announced their NEW MN FHA Loan Limits for 2015.

Federal Housing Administration (FHA) Announces 2015 Maximum Loan Limits

FHA’s Office of Single Family Housing published Mortgagee Letter 2014-25, which provides FHA’s single family housing loan limits for Title II Forward Mortgages and Home Equity Conversion Mortgages (HECMs), and provides loan limit instructions for streamline refinance transactions without an appraisal.

The loan limits published in this Mortgagee Letter are effective for case numbers assigned on or after January 1, 2015, and remain in effect through December 31, 2015.

Minnesota
Area   
Single Family
Duplex
Tri-Plex
Quad
Metro
$322,000
$412,200
$498,250
$619,250
Out-State
$271,050
$347,000
$419,425
$521,250

The maximum FHA loan limit “ceiling” for most areas remains at the 2014 level of $625,500 for a one-unit property. The minimum FHA loan limit “floor” for all areas remains at the 2014 level of $271,050 for a one-unit property.

There are no jurisdictions with a decrease in loan limits from the 2014 levels. To enable Mortgagees to easily identify areas with loan limit increases, FHA has published a separate list of counties with loan limit increases.
Refer to Mortgagee Letter 2014-25 for complete loan limit information.


US Home prices rise in Oct 2014

U.S. home prices rose at a faster year-over-year pace in October than in September, snapping a seven-month slowdown.

Real estate data provider CoreLogic said Tuesday that prices increased 6.1% in October compared with 12 months earlier. That was up from September’s year over- year increase of 5.6%.

Still, home values are rising more slowly than they were earlier this year, when 12-month gains were averaging nearly double their current pace.

Previous price increases led investors to pull back from the home market, and firsttime buyers have yet to fill the void created by their departure.

Price growth will likely remain mild as a result, Core-Logic said. The firm projects that home values will rise 5.1% over the next 12 months. Roughly half the country’s homes will match or surpass their pre-recession prices by mid-2015, it predicts.