Freddie Mac Home Possible reduces income limits

Freddie Mac has announced changes to their Home Possible mortgage program. Freddie Mac’s Home Possible and Fannie Mae’s Home Ready mortgage programs offers competitive pricing with interest rates and reduced private mortgage insurance premiums for home buyers.

Home buyers must meet certain income limits based on the location of the subject home that is being financed. The income restrictions are based on the area median income (AMI).

Effective later next month, Freddie Mac will no longer allow incomes over 80% of the area median income for the Home Possible program.

From Freddie Mac:

We are updating our requirements to state that the Borrower’s qualifying income, converted to an annual basis, must not exceed 80% of the AMI for the location of the Mortgaged Premises. This change will apply to all Home Possible Mortgages, including those secured by properties in low-income census tracts.

This change will sharpen our focus on serving very low- and low-income Borrowers and First-Time Homebuyers. At the same time, the changes will help us better manage to the overall market environment, regulatory requirements and the interest of taxpayers.”

As of the writing of this post, Fannie Mae has not reduced income limits to their Home Ready program which has some areas without income restrictions.

If you are currently preapproved to buy a home using Freddie Mac Home Possible, you should contact your Loan Officer ASAP to make sure that you’re not impacted by this change. It’s possible that you may need to switch to the Fannie Mae Home Ready to keep your preferred pricing.

Freddie Mac Home Possible and Fannie Mae Home Ready are also available for refinancing homes!

If you’re considering buying or refinancing a home located anywhere in Washington state, where I’m licensed, please contact me! I am happy to help you with your mortgage needs.

30 Year Fixed Mortgage Rate nears Two Year Low

Freddie Mac’s headline today from their PMMS (Primary Mortgage Market Survey) announced the mortgage rates are near two year lows.

The low rates are largely due to the ongoing trade wars. Should things simmer down, we could see mortgage rates return to a more “normal” range… in the meantime, savvy home owners are taking advantage of this opportunity to refinance into a lower mortgage rate.

It’s not just home owners who are benefiting from the current low mortgage rates. Home buyers are able to lock in a lower mortgage payment or qualify for a higher loan amount thanks to the the historically low mortgage interest rates.

If you are considering or considering refinancing a home in Renton, Redmond, Ravensdale or anywhere in Washington state, where I am licensed, I am happy to help you! Click here for a no hassle mortgage rate quote for your personal scenario for your Washington home.

It could be time to refi!

Mwordswag_1559588346141ortgage rates for a 30 year fixed conventional mortgage are back to very low levels. This is largely due to current global concerns which may create a opportunity of opportunity for those who may benefit from a refinance.

It may make sense for you to refi if: [Read more…]

How to determine what home price you qualify for

It used to be that people would say that you can qualify to buy a home three times your annual salary…this is actually not really the case. When qualifying to buy a home (i.e. get a mortgage) lenders consider your income, monthly debts and the amount of funds you have for down payment and closing cost. [Read more…]

Honoring our Hometown Heroes

Rhonda_Hometown HeroMortgage Master Service Corporation recently started a program to honor our local heroes. We are now offering a $625 credit towards closing cost for a home purchase or refinance when we provide the mortgage.

Mortgage Master Service Corporation’s Hometown Heroes program is available for:

  • Police Officers
  • Firefighters and EMTs
  • Doctors and Nurses
  • Teachers
  • Military

We thank our heroes for taking care of our community and hope we can take care of you with your mortgage needs.  Please feel free to share this! I’m am honored to help you with any home purchase or refi on homes located in Washington state.

Note: This program cannot be combined with any WSHFC program. Program and pricing subject to change.

 

New Income Limits for WSHFC Down Payment Programs

The Washington State Housing Finance Commission has announced new income limits for some of their mortgage programs.

Here are the new income limits effective May 6, 2019: [Read more…]

Big Changes Coming to Real Estate Excise Tax for Washington State Homes

wordswag_1556818054305The Washington State Senate has passed revisions to excise tax that is paid when real estate is sold or transferred. Instead of having a flat rate, the new tax once signed into law by Governor Inslee, will be graduated. Some will enjoy a lower tax rate while others will pay a significantly higher tax rate. Real estate excise tax is typically a cost paid for by the seller. In San Juan County, the excise tax has been split by both the seller and buyer of real estate. Many would argue that excise tax (as with other cost of selling, such as real estate commission) is often passed onto the buyer as it is factored into the sales price. [Read more…]

Mortgage Rates trending higher

Freddie Mac’s weekly mortgage rate report (PMMS) based on a survey of mortgage interest rates from applications last week show that mortgage rates continued to move higher.

20190425pmms

[Read more…]