Friday, July 24, 2009

Interest Rates, FHA, USDA

Another great week for interest rates. We have seen a sharp increase in purchase applications this week in the 200K to 525K range. Many of these clients are anxious to get somethign going and close before the $8,000 tax credit expires. Applications for USDA loans are sharply on the rise as well. We have not seen many of those loans in a long time as the income limits and purchase prices for DARE county did not work with that program. However, the income limits have been raised and the prices have dropped and we are seeing many new clients that can qualify for this program. USDA offers 100% financing without mortgage insurance for a primary residence. 585 credit scores or higher are required and debt-to-income ratios cannot exceed 41%. This is a harder program to qualify for as the debt-to-income ratio guidelines is fairly strict (41% vs. FHA or Conventional can go to 55%.) But for those clients that can qualify for this loan, it is an amazing program for them. Clients who cannot qualify for this program normally can qualify for FHA loans with 3.5% down. Have a great weekend!

Shane Cook
MetLife Home Loans
Senior Mortgage Specialist
Office (800) 256-7887, ext. 222
Fax (866) 669-5871

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