The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date. The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer. The Senate vote was 98 to 0 Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000. Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for…(read more)

A brief recap of the Federal Open Market Committee’s November 4, 2009 statement and what it means for mortgage rates, homeowners, and the economy.

Although this may not be necessary, I am going to over-analyze the FOMC statement and relate it to mortgage rates. Below is the FOMC Statement. I highlighted the adjustments and additions the FOMC made today…. Release Date: November 4, 2009 For immediate release Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to pick up. Conditions in financial markets were roughly unchanged, on balance, over the intermeeting period . Activity in the housing sector has increased over recent months. Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment and staffing, though at a slower…(read more)

The Mortgage Bankers Association today released the Weekly Survey on Mortgage Application Activity for the week ending October 30, 2009. Housing is a key component of economic forecasts, thus real estate surveys and housing data are closely scrutinized by policy makers. The Mortgage Banker's application survey covers over 50% of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. A rising trend of mortgage applications indicates home buying interest is increasing, a positive for the housing industry and economy as a whole. Furthermore, in a low mortgage rate environment, a trend of increased refinance applications implies consumers are seeking out a lower monthly…(read more)

Risk is back on the table. As investors await labor data, a key survey on the services sector, and of course the policy announcement from the central bank’s monetary policy board, equity futures are all looking up. More than two hours ahead of the bell, the S&P 500 looks to open 7 points higher at 1048.70 and Dow futures are up 64 points to 9,836. The main action may not be in equities though. Gold hit a new record high Tuesday at $1,089 per ounce, and this morning gold futures are up further to $1,094.60. Meanwhile, oil futures are back above $80, and yields on the benchmark 10-year Treasury Note are up 1 basis point to 3.48%. Analysts have said the US dollar will rally if the Federal Reserve shows any signs of tightening rates sooner than expected. However, in a morning note HFE’s…(read more)

Have you heard about FHA Jumbo Loans?

In 2008, the economic stimulus package was put into place.  Part of the package was to offer FHA Government Insurance on higher loan limits than in the past.  These larger FHA loans are known as FHA Jumbo Loans aka FHA Jumbo Home Mortgage Loan.

FHA Jumbo Loans can be used to purchase or refinance a home in Bergen County and other high-cost areas in New Jersey.

The maximum loan amount limits are placed by the Government on FHA Home Loans.  These limits vary not only from one State to another, but also from one County to another.  The limits are also dependent upon the number of units (1-4) in the home on which you are seeking financing.

The 2009 maximum FHA mortgage limits go up to $729,750 for a single family home and up to $1,403,400 for multi-family homes.  For the most up-to-date information, please use this link to check the Department of Housing and Urban Development’s web site to determine the FHA Jumbo Limits in your area at https://entp.hud.gov/idapp/html/hicostlook.cfm

FHA Jumbo Mortgages are underwritten with almost the same guidelines as smaller FHA Loans and have very low interest rates.  Using an FHA Jumbo Mortgage you can finance up to 96.5% for a home purchase, 97.5% for a rate/term refinance and 85% for a cash out refinance.

FHA loans offer some tremendous benefits to borrowers.  These include:

• Lower down-payment requirements, (as low as 3.5%)
• Lower credit score requirements,
• Lower interest rates than Conventional Jumbo Products,  (because they are federally insured)
• Lower mortgage insurance rates than Conventional Jumbo Products,
• Same rate for 1-4 unit properties,
• More lenient underwriting guidelines,
• Higher Loan-to-Values – Up to 85% financing cash-out refinances,
• Higher Loan-to-Values – Up to 97.75% financing for a rate and term refinances,
• Higher debt-to-income ratios allowed.

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FREE Home Buying Guide Reveals Insider Tips Other Mortgage Brokers Don’t Want You To Know…
Click Here To Get Your Copy Today!

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Please contact us at 201-943-6800 to schedule your FREE No-Obligation Consultation where we will meet to tailor a program to fit your needs and comfort level for monthly payments and investments.

If you would like to get started now please fill out a Secure Online Application and we will contact you to set up your free consultation and get you into the home of your dreams with the best terms available…regardless of your credit!

I hope you have enjoyed this blog.

Until next time,

Tony
201-943-6800

P.S. Also, make sure you register for our Insider Mortgage Secrets, browse our HomeBuying Resources section and fill-out a free no-obligation secure online application or call our Edgewater, New Jersey office in Bergen County (New Jersey Gold Coast) at 201-943-6800 with any questions you have.

P.P.S. CLICK HERE to check out our FREE Credit Repair Program.

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The last two years have been rough on housing in a chain reaction-kind of way.

First, mortgage guidelines tightened, preventing some homeowners from ditching onerous ARM products. That sparked a foreclosure boom that led to large losses on Wall Street. In turn, it sank the U.S. economy.

Today, as compared to 3 years ago, foreclosures are way up, home values are way down, and mortgage rates are as low as they’ve ever been. It’s wonderful news for home buyers — there’s a plentiful supply of homes and financing is cheap. Home affordability is near all-time highs.

But the market is changing.