Let me start off by mentioning where FHA rates currently are. The Federal Reserve increased short term interest rates on Thursday of last week which caused a knee jerk reaction and interest rates shot up .25% that afternoon. Things have cooled down and we are back down to around 5.00% for a 30yr fixed FHA loan.

There are changes coming to the FHA-insured mortgage industry. These changes are to help build up the FHA’s capital reserves and to do a better job of managing risk. While these changes might adversely effect some households, it’s important to look at your individual circumstances to see if or how you might be impacted.

So what are the changes that are being proposed?

1. Mortgage Insurance Premium
The one-time, up-front mortgage insurance premium that is required on all FHA-insured loans, will increase from 1.75% to 2.25%, resulting in a very modest increase in monthly payments of something less than 0.5% (a little over $4/month on a $150K loan). This is scheduled to go into effect for new FHA loans with case numbers issued on or after April 5, 2010. Since most borrowers roll this one time payment into their loans, this won’t effect the amount of cash buyers will need to raise. FHA wants to raise the annual mortgage insurance premium to a level above the current cap of 0.55%, but this will require Congressional action so there’s no verdict on when that might occur.
2. Down Payments
For borrowers with a credit score of 580 or below, the minimum down payment would be 10%. For borrowers with a score above 620, the current down payment requirement of 3.5% would remain the same. This proposal was expected to be posted in the Federal Register sometime in February. A comments period, likely 60-90 days, would follow with implementation of the changes coming after the comment period. Some experts are predicting that the change could be sometime in the summer.
3. Seller Concessions
Currently, a seller can contribute up to 6% toward closing costs. The new proposed limit would be 3%. Again, this proposal is expected to be posted in the Federal Register in February with the same comment period of 60-90 days, with possible implementation sometime in the summer.

The mortgage industry is dynamic and it’s possible that there may be adjustments made before we see the proposed changes take effect. That’s why it’s important to stick with an FHA loan specialist, like Austin Texas FHA Loans at Urban Austin Mortgage. If you have any questions about how these changes might effect your home purchase please give me a call and let’s talk about your situation.

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

D. Stephen Steakley, Jr.
Austin, Texas Home Loan Expert
512-577-8898 ph

UA website – Austin Texas Home Loans
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Happy Monday my friends,

Let me start by saying how proud I am of Drew Brees and the Saints. What a great display of confidence and will power.

The economic calendar is vacant today – leaving mortgage investors with little more than trading activity in the stock markets from which to take their directional cues for mortgage interest rates. Higher stock prices tend to push mortgage interest rates higher while lower stock prices are usually supportive of steady to perhaps fractionally lower mortgage interest rates. Uncle Sam will be in the credit markets for three successive days beginning tomorrow — looking to borrow a total of $81 billion in the form of 3- and 10-year notes together with a package of 30-year bonds. Same tune, same story, borrow borrow borrow.
The silver lining is that rates are very atractive still and even though the pressure is coming from the end of the FED’s direct purchase program in March, rates today are at all time lows.

Todays Rates:

FHA/VA 30yr- 4.75%

USDA 100% financing- 4.875%

Any and all questions can easily be answered over the phone or via email any time. Start your refi today!

Sincerely,

D. Stephen Steakley, Jr.
Austin, Texas Home Loan Expert
512-577-8898 ph

UA website – Austin Texas Home Loans
Quick Application

Welcome to Austin Texas FHA Loans!

Your home for the best FHA loans in Texas. Best loans, Best terms, Best rates, Best fees, Best service, best speed, Best customer service and Best staff.

If you have found your dream home, let us pre-approve your loan and issue you a pre-approval letter so you can write a contract in 3hours or less!

We have a manual underwrite program that will allow credit scores down to 580.
We have the normal fha programs with 3.5% down.
***We are one of the few lenders around that now have the $100 down HUD foreclosure FHA loan. You read that correctly. $100 down gets you a HUD foreclosed home and the seller can contribute to closing costs making it very inexpensive purchase for the qualified home buyer.

Dont waste time shopping around when time is money. Make your first stop with us and get the lending experience you deserve.

Call or email me with any questions about the above products.

FHA 30yr fixed rates today are about 5.00%.

Lets get your loan rolling!

D. Stephen Steakley, Jr.
Austin, Texas Home Loan Expert
512-577-8898 ph
stephen@urbanam.com
www.austintexasfhaloans.com