Homepath- Program a must have in your arsenal!
Market rate have been heading up for the past 5-6 business days in the opposite direction to what most people were expecting for it to stay low or stable. Just this month the Federal reserve announced the 2nd Round of buying of additional $600 Billion in treasuries until June 2011, to boost growth and keep interest rates low. One big change i noticed compared to the 2009 treasury buying, was the focus now is on short term maturing treasuries 10 year notes and below; where before it was on long term maturing 10year and higher. You see as Federal Reserve buys these treasures each month they will artificially bid up the prices and treasury yield (rate) moves directly opposite to its price. So as price go up Yield should come down and Mortgage rates mostly tracking treasuries should of have produced lower Mortgage rates. But if the Fed wont be using the Billions to buy Long term treasuries then the Long term rates like the 30year Fixed will be pushed higher. See the link below for the announcement
Now to the Homepath Program – A must have in your arsenal!
I just helped a client of mine to buy a investment condominium for his portfolio at discounted cash value and was able to use the Homepath loan to purchase it. When searching for condos on the MLS you may have noticed “Cash Only” and these days the biggest reason for that is current homeowners are not paying their HOA fees on time. If the percentage of delinquent or non-paying homeowners are 15% or higher then the banks will not give out Conventional or FHA loans and the only option will be “Cash purchase”. This issue makes the value of the condo complex go down due to lack of financing and buyers are able to buy at a big discount $81,600, compared to other complexes next door average $110,000-120,000. Eventually finance-ability will come back to the complex when most of the higher priced purchased owner recycle out of the community and complex stabilizes and delinquencies goes lower then 15%. When that happens finance-ability will come back to the building and prices will go up to the neighborhood prices regardless of what the RE market is doing. There is a hidden profit on these properties that i have discovered during my research and i invite you to take advantage of it and share with your buyers!
Homepath loans allow you to finance in condo/townhome complexes and buy at cash value. You must look at properties with Homepath financing offered , and only the ones that are Fannie Mae REO qualify for this loan. Requirements as follows:
– Verify property eligibility at www.Homepath.com
– No appraisal required
– Purchase loan Owner occupied SFR/condo 95% LTV
– Investments to 85% LTV
– Mortgage insurance required
– 1-4 units, condo
– Minimum 660 credit score
And as additional incentive Fannie Mae is offering buyers up to 3.5% in closing cost assistance and a added $1,500 bonus for selling agents on HomePath properties through December 31, 2010.
For more information please call me at 310 654-3010