Low Mortgage Rates Are the Story
Posted On: September 7th, 2009 by James Posted In: Mortgage Rates • Portland Real Estate
This last week gave us an amazing run in our bond market. A run that has lowered Conforming rates below 5% for the time being. I’m not sure how much longer this can hold out as the levels we currently find ourselves at are fairly unprecedented. Not to mention we saw the beginning of a bond sell off right before the markets closed for the holiday. I was able to lock in about 6 clients at the very apex of this market swoon.
I’m watching 2 things this week: One is the added bond supply set to hit the market this week. The government will be auctioning off treasury bonds (which is something that happens regularly) and weeks that these auctions take place have pushed rates a bit higher this year. So we’ll see how the market reacts this week. We have an auction every day this week except for Friday, so expect pricing volatility.
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Buying a Flipped Property with FHA
Posted On: September 7th, 2009 by James Posted In: Mortgage Programs • Portland Real Estate
My team just came up against an FHA guideline, that stopped a purchase deal dead in its tracks. It was for a problem that we thought we had clearly addressed with underwriting prior to submission regarding the subject property being “flipped” by the seller. We had a client that wanted to make an offer on a property. But the seller had only actually owned the home for about 4 or 5 weeks, they had bought the property cheaply in a distress situation, and brought some improvements to it very quickly, and put it right back on the market.
We found out, after a LOT of digging that FHA loans will in fact NOT be approved in this scenario. Although there is nothing explicit in the approval guidelines that we could find, we could not find an underwriter who would accept this purchase for our client.
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