Low Rates Again; 30 Year Fixed Rate Loan at a Cost of One Point: 4.125%*

30 Year Fixed Rate Loan at a Cost of One Point: 4.125%*

Rates remain about the same as the economy remains about the same (awful). Note that Citi Mortgage pulled out of the market today, after aggressively buying the market for several weeks. This is a good thing, as they need to recognize that they cannot handle their current volume; their turn-times were getting ridiculous.

We get asked about “credit seasoning” requirements so often that we are once again setting out the below guidelines.
SEASONING FOR CREDIT – DIFFERENT LENDERS have DIFFERENT GUIDELINES
I. CONVENTIONAL
A. Foreclosure: 5 years before a conventional loan will be approved.
B. Short Sale/Short Pay-off – case by case, depending on what the credit report says, and circumstances. Can be as little as one year, especially because sometimes the credit reports are surprisingly lenient.
C. Bankruptcy: 4 Years from discharge is standard, but can be 2 Years with “extenuating circumstances” (not their fault, re-established credit, one-time event)
II. FHA
A. Foreclosure: 3 years before an FHA Loan will be approved.
B. Short Sale/Short Pay-off – same as above (at most lenders) – case by case, depending on what the credit report says, and circumstances. Can be as little as one year, especially because sometimes the credit reports are surprisingly lenient.
C. Bankruptcy: 2 Years from discharge.

*The above rate quote has the following assumptions: $400,000 Loan Amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; APR is approximately 0.20% higher than quoted rate for a $400,000 loan. Estimated closing costs affecting the APR include $4,595 for Origination and Processing Fees, $850 for other Lender Fees; $1,400 for Escrow Fees, and $1,000 for Prepaid Interest.

Call Jay Voorhees or Heejin Kim at (925) 855-4491

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