Gastonia Mortgage News

Mortgage Lender Update

Wilcox Real Estate Group, Realtor, Real Estate Agent, and Broker

Thank you Chris Reshetar for the Infomation. If you are not Qualified and are searching for a new home. I always highly recommend using Chris Reshetar with HomeTown Lenders. He’s the best around! Get Qualified Here.

https://teamreshetar.htlenders.com/

American Financial Resources Down Payment GRANT
  • 2 to 3.5% in assistance as a GRANT on FHA loans for those who qualify
  • Assistance is forgiven and does not need to be paid back
  • 6 month wait period after closing before this loan is eligible for refinance
  • Applicants can qualify with any ONE of these factors: Income at or below 140% of median level OR Current or retired first responder, police officer, firefighter, public safety, paramedic, EMT, nurse, doctor, phlebotomist, health ambassador, Red Cross worker (or similar), civil servant, military personnel OR First-Time Homebuyer with minimum score of 620 and debt ratio of 48.9% or below.
  • Manufactured homes ARE eligible
Chenoa Rate Advantage is also a fairly new program.  Here are the details if you are not familiar:
  • 3.5% in Re-payable Down Payment Assistance on FHA
  • Assistance is recorded as a second mortgage
  • Income must be at or below 130% of median income for county (about $98,540) – NOT  household income
  • Minimum score of 640 per HomeTown Lenders
  • Primary Residence only
  • No manufactured housing, but modular homes can qualify
  • Max sales price $343,793, with max loan amount $331,760
  • Seller must perform repairs per FHA guidelines
  • Lead-based paint test required on homes built before 1978
Always educating, always innovating…Send me your buyers!
Today’s Rates:
 National Mtg Rate Averages
 
Today
30 Year Fixed Purchase
3.05%
15 Year Fixed Purchase
2.70%
5/1 ARM Purchase
3.32%
*Keep in mind that we do a WIDE variety of programs
 
NC Home Advantage Program Rate
  Today
FHA with 3% assistance
3.875%
97% Conventional with 3% assistance
(80% AMI & under)
4.00%
97% Conventional with 3% assistance
(over 80% AMI)
4.375%
$8,000 Down Payment Assistance
4.125%

 

 

 

Big Thanks to Chris Reshetar of HomeTown Lenders for providing the Great Updates on the Mortgage Industry

April 17th, 2020

With a lot of other lenders pulling back on the products that they offer due to the uncertainty in the market, I wanted to send an update on products that I can still help your buyers with:
  • FHA – minimum score of 620, max debt ratio of 50%
  • VA – minimum score of 620
  • USDA – minimum score of 620
  • Conventional – minimum score of 620
  • Down Payment Assistance Programs – still closing NC/SC Housing Products, House Charlotte
  • Reverse Mortgages
  • Manufactured and Modular Homes
I have had several referrals this week from other lenders who can’t close some of these loans right now.  For instance, I received a client who started with Movement Mortgage, but Movement no longer closes Down Payment Assistance.  I received another client this week from Angel Oak Mortgage who also needed a Down Payment Assistance option.  
The bottom line is that if you have buyers that are having trouble finding the product they need right now, chances are good that I can still help them.
Always educating, always innovating…Send me your referrals!
Today’s Rates:
 National Mtg Rate Averages
 
Today
30 Year Fixed Purchase
3.38%
15 Year Fixed Purchase
3.18%
5/1 ARM Purchase
4.08%
*Keep in mind that we do VA, USDA, 203K,
Down Payment Assistance, CP, Jumbo,
Conv’l Rehab and others. 
 
NC Home Advantage Program Rate
  Today
FHA with 3% assistance
4.00%
97% Conventional with 3% assistance
(80% AMI & under)
4.00%
97% Conventional with 3% assistance
(over 80% AMI)
4.50%
$8,000 Down Payment Assistance
4.375%
Have a great weekend!  Please let me know how I can help.
Thanks,
Chris
Christopher Reshetar                                                        
Mortgage Consultant/Branch Manager
HomeTown Lenders
3440 Toringdon Way, Suite 203
Charlotte NC 28277
Cell:  704-277-4463
Fax:  704-973-9373
NMLS# 117266  Lic#I-149097

April 7th, 2020

Dear Realtor Partners and Business Friends,
 
There is a lot happening in the world of lending, and I want to make sure you are informed! With COVID-19, the secondary market (Wall Street) is quite frankly all over the place, as I am sure you have seen on the news. Here is how the current market is affecting local lenders:
 
  1. Rates are down!!!  This is great news for buyers (if you can actually show them a home!) and good for current homeowners who may want to Refinance. Rates are fluctuating dramatically from day-to-day. Refinance or purchase, your borrower can apply online at www.themortgagegenius.com
 
  1. FHA Premium Changes!!!  Essentially, when the market is in crisis, it’s going to eliminate all possible risks. Therefore, we are seeing premium or profit that was previously available for LOW CREDIT SCORE BUYERS is going away. Essentially, it’s costing points to get loans with lower scores and in some cases, it’s impossible to offer that option to a typical buyer.  How can you help?  Buyers between 600-640 may have to pay extra points in order to be eligible for a loan. Negotiate seller paid closing costs. FHA still allows up to 6% from the seller!!!
 
  1. Some Lenders have Increased SCORES on FHA!!!  My realtor friends have shared that several lenders have moved the minimum scores for an FHA loan up to 640-680. This is no surprise. This is how the market is minimizing risk. Some lenders are also overlaying new requirements, such as additional reserves after closing. NOTE:  FHA has NOT increased their credit score requirements.  Each lender has their own tolerance for risk and has different investors they sell to who also have their own tolerance for risk. When all of this shakes out, the investors will come back and subsequently, scores will come down. 
 
~RESCUE OPPORTUNITY:  We are still doing loans down to 600 as of now so if you have buyers who are affected by the score changes. Please call me if you need help.
 
  1. Some lenders have STOPPED doing Down Payment Assistance.  Word on the street is that some lenders (such as Movement Mortgage) have put a temporary hold on doing Down Payment Assistance. Again, this is a temporary adjustment to the current market conditions. Just know that if a buyer is doing a DPA Program, it may take longer than you experienced in the past.
 
~RESCUE OPPORTUNITY:  We are still doing NC Housing & other Down Payment Assistance Programs. Please call me if you need help.
 
  1. Appraisals are taking longer.  There are various factors affecting appraisals taking longer. We find there is a smaller pool of Appraisers because some simply refuse to work under the COVID-19 environment we’re in. Additionally, there are many Americans in the middle of a refinance and purchases are still happening, as well. There’s simply a whole lot of volume for this limited pool of appraisers. Be advised that you should allow for an extended Due Diligence period OR just advise your clients to spend a little extra to RUSH the appraisal.  NOTE: Should the seller refuse to open their home to an appraiser, Fannie Mae and Freddie Mac are allowing appraisals to go through without an interior inspection. Just an FYI, in case.
 
  1. Verification of Employment changes.  In most cases, lenders are now required to verify employment for all borrowers two days before closing/settlement to ensure employment is still in place. While this is not a big adjustment, in some cases, employers are slow to respond with their HR workforce working remotely. This could lead to a delay in closing. How can you help?  Let your borrowers know to call their HR Managers in advance of the lender to help ensure the verification is completed in a timely manner.
 
  1. Alternative Products may be on HOLD.  In recent years, we have seen a surge of investors offering “Bank Statement” or “One Day Out of Foreclosure” Programs, called NON-Qualified Mortgage (QM).  Again, with the restriction of risk in the marketplace, many of these options may no longer be available. Local lenders may also put a hold on “Jumbo” loans as these can be considered risky in a time of market crisis. 
 
  1.  Points get you great savings!!!  If mortgages were in the fashion business, then paying points would be way in style. With the current market conditions, investors want to reward borrowers who pay points. WHY?  If you decide to purchase a home today, and your hypothetical rate was 3.75% but rates drop to 3.25% next month, that investor who holds/services your loan could potentially lose your loan to a refinance with another lender! That could mean thousands of dollars in lost profit and the market doesn’t want early payoffs.  How can you help?  Let your buyers know to ask about point buy downs. Sellers are more willing to help pay closing costs and points may still be potentially deducted on taxes (consult your CPA!). Just don’t be alarmed when you see these points being paid at closing as it’s the fashionable thing to do!
 
  1. Extended Contracts could affect closing dates and loan locks.  In North Carolina where I work, the Real Estate Commission has already come up with an addendum to the contract that allows the contract to essentially be effective 15 days beyond any “Stay at Home Orders.” This is GREAT for those that want to buy and sell. Buyer’s just need to be aware that the lender would need to know this information, ideally before the interest rate lock is submitted. Delays could mean a lock expires or it may be best to just not lock in the interest rate. At minimum, it’s a good conversation with your buyer.
 
  1. Closing Day Dilemmas with Stay at Home Orders!!  We are blessed to still be in an industry that is still considered ESSENTIAL during COVID-19. However, many realtors are not even allowed to show home, but they can still sell them. Make sense of that? But, buyers, sellers, and those that are refinancing still need to sign all the critical loan documents to consummate the transaction. In some cases, law offices & title companies have closed their offices and are working from home. I have heard buyers doing “drive up closings” in their cars. Some are “doing mail away closings,” but they still must be in front of a notary. While these are dilemmas we are navigating, it’s good for you to know that Fannie Mae/Freddie Mac (Conventional Loans) have just loosened their guidelines, now allowing the “Signing Agent” for title company or attorney’s office to sign on behalf of the borrower(s) with a Power of Attorney. Of course, it needs to meet their standards, and these buyers need to prepare the Power of Attorney in advance of their closing, but these changes are helping to keep business rolling forward!
 
While this list may not include every impact COVID-19 is having on our industry, I hope you have found the information to be helpful. Please forward this email on to your realtor friends who are not on my market update
Always educating and always innovating…send me your referrals!
Today’s Rates:
 National Mtg Rate Averages
 
Today
30 Year Fixed Purchase
3.42%
15 Year Fixed Purchase
3.45%
5/1 ARM Purchase
4.29%
*Keep in mind that we do VA, USDA, 203K,
Down Payment Assistance, CP, Jumbo,
Conv’l Rehab and others. 
 
NC Home Advantage Program Rate
  Today
FHA with 3% assistance
3.5%
97% Conventional with 3% assistance
(80% AMI & under)
4.00%
97% Conventional with 3% assistance
(over 80% AMI)
4.25%
$8,000 Down Payment Assistance
4.375%
 
Let me know how me and my team can help!
Thanks,
Chris
Christopher Reshetar                                                            
Mortgage Consultant/Branch Manager
HomeTown Lenders
3440 Toringdon Way, Suite 203
Charlotte NC 28277
Cell:  704-277-4463
Fax:  704-973-9373
NMLS# 117266  Lic#I-149097

 

April 5th, 2020

There is a lot happening in the world of lending, and I want to make sure you are informed! With COVID-19, the secondary market (Wall Street) is quite frankly all over the place, as I am sure you have seen on the news. Here is how the current market is affecting local lenders:

Rates are down!!!  This is great news for buyers (if you can actually show them a home!) and good for current homeowners who may want to Refinance. Rates are fluctuating dramatically from day-to-day. Refinance or purchase, your borrower can apply online at www.themortgagegenius.com

  1. FHA Premium Changes!!!  Essentially, when the market is in crisis, it’s going to eliminate all possible risks. Therefore, we are seeing premium or profit that was previously available for LOW CREDIT SCORE BUYERS is going away. Essentially, it’s costing points to get loans with lower scores and in some cases, it’s impossible to offer that option to a typical buyer.  How can you help?  Buyers between 600-640 may have to pay extra points in order to be eligible for a loan. Negotiate seller paid closing costs. FHA still allows up to 6% from the seller!!!
  1. Some Lenders have Increased SCORES on FHA!!!  My realtor friends have shared that several lenders have moved the minimum scores for an FHA loan up to 640-680. This is no surprise. This is how the market is minimizing risk. Some lenders are also overlaying new requirements, such as additional reserves after closing. NOTE:  FHA has NOT increased their credit score requirements.  Each lender has their own tolerance for risk and has different investors they sell to who also have their own tolerance for risk. When all of this shakes out, the investors will come back and subsequently, scores will come down. 

~RESCUE OPPORTUNITY:  We are still doing loans down to 600 as of now so if you have buyers who are affected by the score changes. Please call me if you need help.

  1. Some lenders have STOPPED doing Down Payment Assistance.  Word on the street is that some lenders (such as Movement Mortgage) have put a temporary hold on doing Down Payment Assistance. Again, this is a temporary adjustment to the current market conditions. Just know that if a buyer is doing a DPA Program, it may take longer than you experienced in the past.

~RESCUE OPPORTUNITY:  We are still doing NC Housing & other Down Payment Assistance Programs. Please call me if you need help.

  1. Appraisals are taking longer.  There are various factors affecting appraisals taking longer. We find there is a smaller pool of Appraisers because some simply refuse to work under the COVID-19 environment we’re in. Additionally, there are many American’s in the middle of a Refinance and Purchases are still happening, as well. There’s simply a whole lot of volume for this limited pool of Appraisers. Be advised that you should allow for an extended Due Diligence period OR just advise your clients to spend a little extra to RUSH the appraisal.  NOTE: Should the seller refuse to open their home to an appraiser, Fannie Mae and Freddie Mac are allowing appraisals to go through without an interior inspection. Just an FYI, in case.
  1. Verification of Employment changes.  In most cases, lenders are now required to verify employment for all borrowers two days before closing/settlement to ensure employment is still in place. While this is not a big adjustment, in some cases, employers are slow to respond with their HR workforce working remotely. This could lead to a delay in closing. How can you help?  Let your borrowers know to call their HR Managers in advance of the lender to help ensure the verification is completed in a timely manner.
  1. Alternative Products may be on HOLD.  In recent years, we have seen a surge of investors offering “Bank Statement” or “One Day Out of Foreclosure” Programs, called NON-Qualified Mortgage (QM).  Again, with the restriction of risk in the marketplace, many of these options may no longer be available. Local lenders may also put a hold on “Jumbo” loans as these can be considered risky in a time of market crisis. 
  1.  Points get you great savings!!!  If mortgages were in the fashion business, then paying points would be way in style. With the current market conditions, investors want to reward borrowers who pay points. WHY?  If you decide to purchase a home today, and your hypothetical rate was 3.75% but rates drop to 3.25% next month, that investor who holds/services your loan could potentially lose your loan to a refinance with another lender! That could mean thousands of dollars in lost profit and the market doesn’t want early payoffs.  How can you help?  Let your buyers know to ask about point buy downs. Sellers are more willing to help pay closing costs and points may still be potentially deducted on taxes (consult your CPA!). Just don’t be alarmed when you see these points being paid at closing as it’s the fashionable thing to do!
  1. Extended Contracts could affect closing dates and loan locks.  In North Carolina where I work, the Real Estate Commission has already come up with an addendum to the contract that allows the contract to essentially be effective 15 days beyond any “Stay at Home Orders.” This is GREAT for those that want to buy and sell. Buyers just need to be aware that the lender would need to know this information, ideally before the interest rate lock is submitted. Delays could mean a lock expires or it may be best to just not lock in the interest rate. At a minimum, it’s a good conversation with your buyer.
  1. Closing Day Dilemmas with Stay at Home Orders!!  We are blessed to still be in an industry that is still considered ESSENTIAL during COVID-19. However, many realtors are not even allowed to show home, but they can still sell them. Make sense of that? But, buyers, sellers, and those that are refinancing still need to sign all the critical loan documents to consummate the transaction. In some cases, law offices & title companies have closed their offices and are working from home. I have heard buyers doing “drive-up closings” in their cars. Some are “doing mail away closings,” but they still must be in front of a notary. While these are dilemmas we are navigating, it’s good for you to know that Fannie Mae/Freddie Mac (Conventional Loans) have just loosened their guidelines, now allowing the “Signing Agent” for the title company or attorney’s office to sign on behalf of the borrower(s) with a Power of Attorney. Of course, it needs to meet their standards, and these buyers need to prepare the Power of Attorney in advance of their closing, but these changes are helping to keep business rolling forward!

While this list may not include every impact COVID-19 is having on our industry, I hope you have found the information to be helpful. Please forward this email on to your realtor friends who are not on my market update

Let me know how me and my team can help!

Thanks.

Chris

 

March 7th, 2020 Mortgage Update

The Go-To Gaston Guy Mortgage Rate Update Compliment of Chris Reshetar, of HomeTown Lenders!

Today’s Rates:
 National Mtg Rate Averages
 
Today
30 Year Fixed Purchase
3.45%
15 Year Fixed Purchase
3.13%
5/1 ARM Purchase
3.30%
*Keep in mind that we do VA, USDA, 203K,
Down Payment Assistance, CP, Jumbo,
Conv’l Rehab and others. 
 
Today’s NC Home Advantage Program Rate
FHA with 3% assistance
4.25%
FHA with 5% assistance
4.75%
97% Conventional with 3% assistance
(80% AMI & under)
4.25%
97% Conventional with 3% assistance
(over 80% AMI)
4.5%
$8,000 Down Payment Assistance
3.875%

Christopher Reshetar (Host of Reshair Radio)

Christopher Reshetar                                      

Mortgage Consultant/Branch Manager
HomeTown Lenders
3440 Toringdon Way, Suite 203
Charlotte NC 28277
Cell:  704-277-4463
Fax:  704-973-9373
NMLS# 117266  Lic#I-149097