NEW! WSHFC now allowing Non-Traditional Credit

The Washington State Housing Finance Commission (WSHFC) is now allowing borrowers without established credit (aka “non-traditional”) to qualify for a mortgage.

Here are some of the requirements:

  • Available with FHA programs only
  • Minimum mid-credit score of 660
  • Not available with manufactured homes
  • Down payment assistance is available

Mortgage Master is proud to offer WSHFC mortgage programs. If we can help you with a home purchase located anywhere in Washington state, please contact me

Stay tuned for more details as they become available.

The Fed Raises Fed Funds Rate by 0.25%

In Janet Yellen’s last meeting as the Fed Chair, the FOMC has increased the Fed Funds rate by 0.25% to 1.50%. From the press release:

“Information received since the Federal Open Market Committee met in November indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Averaging through hurricane-related fluctuations, job gains have been solid, and the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. On a 12-month basis, both overall inflation and inflation for items other than food and energy have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.”

The Fed states it’s likely there will be additional increases to the Funds Rate next year. [Read more…]

Avoid being naughty to your mortgage preapproval

‘Tis the season to spend, spend, spend give. I love this time of year and I admit that it can be hard for me to not splurge a bit. Overspending doesn’t have to be in the form of extra presents under the tree, it could be getting together with family and friends at a restaurant – or even cooking up something extra special at home. There are endless ways to spend your hard earned cash this time of year whether it’s your savings or using a credit card.

If you’re thinking about buying a home, refinancing or are in the mortgage process, it can be quite easy to forget about your credit or savings during the holidays.

Your credit can be easily impacted by ringing up your credit balances. Credit scoring modules favor having less than 30% of the total credit line in use. Your credit scores will be Scrouged if go over 50%, or even worse, go above your credit limit.

It’s also important to keep paying credit cards on time. Miss one payment and your bank or credit card company may decide to reduce your credit limit…which, as I just mentioned, will not only ding you for a late payment, you may also find your scores fall if the lower limit brings the amount you owe over 30 or 50% of your new credit limit. Even worse, other creditors may follow suit and lower their credit limits due to the late on the other account. Talk about a blue Christmas!

New credit (even if there are no payments due for a certain time period) will also negatively impact your credit scores.  And…if you’re in the mortgage process, you may get the opportunity to write a “naughty or nice” letter to the underwriter addressing each inquiry on your credit report and whether you opened new credit.  Credit scores are “reflective” however, it can take some time for scores to recover after too much indulging.

Home owners may have the option of refinancing to eliminate debts and improve their cash-flow depending on their credit scores and how much equity they have available.

Bottom line, it pays to “be good” and not over extend your finances during the holidays. If at all possible, avoid the financial holiday hang-over!

If I can help you with your mortgage needs for homes located anywhere in Washington state, please contact me!

 

 

2018 FHA Loan Limits for Washington State

iStock-000018668640XSmallHUD has just announced FHA loan limits for 2018. Due to the increased value of homes, the FHA base loan amount was increased to $294,515 for single family dwellings. FHA loan limits also match the conforming high balance limits in applicable counties. Not all counties saw an increase in FHA loan limits.

Loan limits for 2018 are in effect with FHA case numbers issued in 2018.

Here is a complete list of FHA loan limits for all counties in Washington. [Read more…]

2018 VA Loan Limits for Washington State

MortgageLoan limits for VA mortgages have been announced and, like last few years, will follow the conforming loan limits.

Technically, VA loans do not have “loan limits” like conforming and FHA mortgages. The “loan limit” that is referred to with a VA loan is highest loan amount a Veteran can borrower without making a down payment.  It’s really a great benefit to those who have served our county.  [Read more…]

2018 Conforming Loan Limits for Washington State

MortgageConforming loan limits are increasing again this year with the “base” loan limit for a single family home raised to $453,100.

Conforming high balance areas for King, Snohomish and Pierce counties have have higher limits for 2018 as well.

San Juan County’s high balance loan limits are unchanged from 2017. [Read more…]

BREAKING NEWS: 2018 Conforming Loan Limits INCREASED including Greater Seattle – King, Pierce and Snohomish Counties

Conforming loan limits for 2018 have been announced.  From FHFA’s News Release:

Earlier today, FHFA published its third quarter 2017 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters.  According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 6.8 percent, on average, between the third quarters of 2016 and 2017.  Therefore, the baseline maximum conforming loan limit in 2018 will increase by the same percentage.  [Read more…]

Freddie Mac’s Weekly Mortgage Survey reveals mortgage rates remain low

Every Thursday morning, Freddie Mac publishes the Prime Mortgage Market Survey, a weekly report based on conventional rates from the previous week. It’s an average and it’s also “old news” as a borrower cannot lock in last week’s rates… they can only lock in what’s available “now”.  Last week’s survey shows that rates are remaining at historically low levels.


With that said, I don’t anticipate that rates will remain at these low levels forever. It will be interesting to see how having a new Fed Chair, assuming President Trump retires Janet Yellen as he’s indicating, will impact the direction of mortgage interest rates.

What we do know is rates are low “now” and that many home owners are appreciating increased equity… so if you’ve been considering refinancing, you may want to get the ball rolling.

I’m happy to help you with your purchase or refi of homes located anywhere in Washington state, where I’m licensed. Click here for a no-hassle mortgage rate quote.