Once, a thousand years ago, there were new loan programs coming out every day or two.  Now there are only a few left, and no innovation coming from the private loan markets, because it is the Fed that is doing all the dictating.
But they are doing some dictating.  Yesterday HUD said it is writing rules for making the $8000 tax credit, currently available to first-time homebuyers, usable as down payment or closing costs.  This has been on-again, off-again, but HUD apparently means business this time.

We’ve finally got good requirements for the DU Refi Plus program, also driven by the Feds, that allows people with good credit to refinance their houses up to 105% without changing the terms of the original loan (other than the interest rate).  That means that if you bought with an 80/20 loan, and your current 1st mortgage is not more than 105% of the value of your house, and you can get your second mortgage company to subordinate (tricky, but not impossible), you can probably pull off a refinance and chop your rate, without adding mortgage insurance.  There are no CLTV caps here. Even if the total of your two loans is 140% of the value of your house, as long as the 1st fits into the 105% window, we can take a shot at it.

And for those in tight financial straits, maybe missed a payment or two, there are loan modifications possible that can reduce your interest rate substantially.  If you’ve been hearing about loans being modified to 2% – that’s what this is.  And it is not smoke and mirrors.  There really are such programs.

Bottom line, folks, is that there are a lot of options out there for those that are looking at financing their homes, whether purchase or consolidation, or what have you.  We’re answering lots of questions about this stuff every day, so if you get voicemail, just shoot me an email or leave me a message, and keep trying.

Oh, and rates are flat after a bad-but-not-terrible-day yesterday.  Housing numbers actually improved, if you strip out multi-family.


3 Responses to “NEW LOAN PROGRAMS!! REALLY!”

  • chrisjones says:

    Paul Valenzuela wrote:
    > This is not sarcastic or cynical (OK maybe a little cynical) but a serious question. When do I need to hold back on a few payments to qualify for my chance at the 2% government teat?

    CJ Responds: You need to do a bit more than that. There needs to be a few things – missing a payment here and there, paying late in the month, an adjustable rate (a critical factor), or a significant life event (job loss, divorce, what have you) for you to qualify.

    This deal is driven by, but not precisely authored by, the Feds. These are private contractual arrangements that lenders are making, although they are “incentivized” by Uncle Sam. Mostly with pressure, not with money, although there is a little bit of that, too.

  • Tyler says:

    There is obviously a lot to know about foreclosure. I think you made some good points in Features also.

  • Donny Loeza says:

    Admiring the commitment you put into your blog and detailed information you provide. It’s nice to come across a blog every once in a while that isn’t the same old rehashed material. Excellent read! I’ve saved your site and I’m including your RSS feeds to my Google account.

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