Coming Soon: Freddie Mac’s HomeOne Mortgage Program

Later next month, Freddie Mac will be offering a new program for first time home buyers. This mortgage program offers low down payment options without the income limit or geographic restrictions that Home Possible has.

HomeOne will be available for both purchases and rate-term refinances on single family dwellings. At least one borrower on the application must be a first time home buyer when the transaction is a purchase and home buyer education is required.

Here’s more info:

  • Available for “true conforming” loan amounts only (not high balance loan amounts). This year, 2018, the conforming loan limit is $453,100.
  • Owner occupied/primary residences only.
  • One borrower must be a first time home buyer. A first time home buyer is defined as someone who has not had an ownership interest in a residential property for three years.
  • A displaced homemaker or single parent may be considered a first time home buyer if they only had an ownership interest in a marital residence with a spouse. If they jointly owned a second home or investment property within the last three years, they may not be considered a first time home buyer.
  • Property types allowed include 1-unit single family homes, town-homes and condominiums. Manufactured homes are not allowed for this program.
  • Private mortgage insurance is required for loan to values over 80%. The private mortgage insurance will be at a standard rate vs. a discounted rate as you would find with Home Possible or Home Ready.

HomeOne looks to be a great option for home buyers who are shy on funds for down payment and who have too much income to qualify in the area they want buy their home in. It will be interesting to see how the pricing compares to FHA mortgages out once this program is “live”.  FHA will remain an advantage with higher loan amounts where “high balance” is available (such as the greater Seattle area), when a borrower needs a lower down payment option.

If I can help you with your home purchase or refinance for homes located anywhere in Washington state, where I’m licensed, please contact me!

Possible Relief for Seattle – King County Home Buyers

The Northwest Multiple Listing Service issued a press release indicating that we are finally seeing an increase in new listings being added to the market. The 14,524 new listings that came on during May, in the 23 counties that the NWMLS serves, are the most listings added in one month in 10 years. In King County, there were almost 1000 homes added to the market creating just over one month of inventory – the first time since September of last year. Here’s a link to the NWMLS market snapshot for May 2018. [Read more…]

Fed Increases Funds Rate by 0.25%

As expected, the Fed increased the Funds rate by 0.25% moments ago.  The markets were anticipating this move by the Fed and, as I write this post, I’m not seeing any significant rate changes to mortgage interest rates. The rates were already “baked in the cake”. Had the Fed decided to increase rates beyond 0.25% or not to take action, we would potentially be being seeing a reaction with the bond market which would be reflected in mortgage interest rates. [Read more…]

Common Misconceptions about FHA and Conventional Mortgages

I just received a newsletter from a local real estate agent which had an article about whether buyers should opt for a conventional or FHA loan. I’m pretty certain the real estate agent didn’t write the article, however the author, whoever they are, got a lot of things wrong regarding these two mortgage programs. Many of the items that were wrong are what I think are fairly common misconceptions with these two popular mortgage programs. So I thought this was a grand opportunity to write a post to correct them…I’ll skip the fine hairs 😉 [Read more…]

Mortgage Rates Improved

Freddie Mac’s Prime Mortgage Market Survey released today shows that mortgage rates improved based on average conforming rates last week.

[Read more…]

Qualifying for a mortgage when you pay alimony

Recently Fannie Mae and Freddie Mac updated their guidelines to treat alimony payments the same way that FHA has.

With conforming mortgages (Fannie/Freddie) where there is more than 10 months remaining for alimony payments, Fannie Mae and Freddie Mac will allow the alimony to be deducted from gross income instead of being treated as a monthly debt. This often dramatically improves debt-to-income ratios. [Read more…]

It’s Hard Being a Home Buyer in Seattle – Here are some tips!

CNN recently published an article about a couple’s experience buying a home in Seattle. In a nutshell, their seventh offer was accepted with multiple offers well over the list price and they were able to close quickly without contingencies with a large earnest money deposit.

Home prices and lack of inventory (which I hope is starting to change) have created a highly competitive situation for those who want to buy a home in Seattle. Buying a home just about anywhere in the tri-county area these days is not for the feint of heart. [Read more…]

Rehab Mortgage Loans for Remodeling Your New or Existing Home

Want to build an ADU on your garage? Are you having a hard time finding a home that has your dream kitchen? Whether you are buying or refinancing a home, you may want to consider a “rehab” mortgage. At Mortgage Master Service Corporation, we currently have a couple options available. [Read more…]