MORTGAGE BLOG!

YES, FHA is back! Yes, PINELLAS FINANCIAL does them! An FHA loan is a mortgage that is insured and guaranteed by the goverment. Rather than the typical private mortgage insurance companies that insure ALL other types of mortgage's.

FHA, (which by the way, stands for Federal Housing Administration), is an excellent alternative to sub-prime financing, which we all know is virtually nonexistent at this point. In the past FHA loans may have not been a viable option due to the characteristics of the loan guidelines. Some of which are listed below;

• Loan limit in Pinellas County $222,300.00
• No Stated income, must be fully documented income
• No investor financing
• FHA appraisals tend to be "stricter" in that they require the roof, paint, siding, flooring, etc..to be in good condition with an adequate amount of usable life left.

NOW THE GOOD NEWS:

• FHA offers conforming interest rates!!!! NOT the higher rates associated with sub-prime loans!
• FHA underwriting is very flexible! Some bad credit and collections are ok. One may consider FHA a sub-prime loan.
• 100% financing very possible! The 3% required down payment can be a gift from anyone willing to sign a gift letter. There are community down payment assistance programs that work great with FHA loans to produce 100% financing!
• Seller can pay up to 6% Closing Costs! So borrowers can literally come to the table with NO MONEY!!!

SOOOO......when you hear "there are no more loans that offer 100% financing to people with marginal credit", you know that it is not true!

Have a great week, call me with your scenario's and we'll see if FHA is a "fit" for them!

Hope everyone is off to a good week and has some fun plans for Halloween!

I thought I would take this opportunity to talk briefly about a small commercial loan that is available. Here's the loan in a nutshell:

• Borrow up to $500,000.00 on a purchase, Refi, equity line
• Easy, one-page application - Stated Income, Stated Assets
• No up front fee's or appraisal fee (and until 12/15/07 NO 1% origination fee!)
• Property values up to $3 million
• Owner-occupied or investor
• All legal entities; individuals, sole proprietors, LLCs and Corporations

THIS LOAN IS IDEAL FOR Self-employed, Small Business Owners and Real Estate Investors.

Call me and we can talk about it! With this kind of loan floating around I may go buy a Flower Shop on the beach!! Ha. Then who would do your loans? Do you guys like Phil? He can do them. See ya next week!

Are You Waiting To See If Real Estate Prices Will Fall Lower Before you Buy? When the Tampa market turned sour in 2005, more than 25% of homes were owned as investment properties. Investors are quick to flee and go into default in a market downturn. This has put a surplus of homes on the market. Naturally, home prices have been dropping ever since and Florida has led the US in foreclosures. The big question then becomes do you gamble and wait to see just how low the market will go or play it safe and take advantage of the market now?

NOW IS THE TIME TO BUY! The Tampa area will burn off its’ excess housing inventory and hit a price floor by the first quarter of 2008. While some sellers may still be able to be negotiated down in asking prices for their homes, the bulk of the decline is done. We should anticipate very slowly increasing prices through 2008. So take advantage of the current “window” of opportunity!  Otherwise, you may find that you waited too long!

CONTACT PINELLAS FINANCIAL FOR A CURRENT INTEREST RATE QUOTE! RATES ARE STILL VERY LOW! All the more reason to move quickly to purchase or refinance!

TODAY'S THE DAY!!! Rate your answer to the following question on a scale of 1-10 (1 being the lowest and 10 being the highest), please feel free to comment on your answer by clicking "Post a comment" in blue font at the bottom of my commentary.

"WHAT IS YOUR LEVEL OF CONFIDENCE IN THE MORTGAGE INDUSTRY????"

Terry's answer.....9. I have been in the mortgage industry long enough to understand the "cleansing" that is taking place. It's natural as the industry is "correcting" itself. This is a good thing. Lenders got carried away with Greed in the last few years. They started "pushing" boundaries of who they would lend money to and how much they would lend. Once they sold the loans on the secondary market, their profit was secure and the ramifications of this irresponsibility was no longer their concern. Funny, how certain truths like; "What goes around, comes around", never fail. Most lenders certainly care now, if they are still in business.

My rating of 9 vs. a perfect 10 reflects my anticipation of those lenders who will still try and capitalize on the misfortune of borrowers and the state of the market. Borrowers who are in dire circumstances and have either lost their homes or are on their way there. The desperation of many home owners and potential borrowers will be prime hunting ground for predatory lenders that will find a way around the current "tightening" mortgage guidelines, (They always do). This will be at the expense of the borrowers, (it always is).

So how do you protect yourself and make a responsible choice in choosing your lender? 3 things:

            1-Work with a lender that has at least 3 years experience. Don't be afraid to ask. ( By the way, I have 8 years exp.)

            2-Work with a "mortgage broker" who has the ability to "shop" your loan for the most favorable terms. Don't be restricted to one bank or lending institutions' rates, guidelines and fee's. (You've heard, "when lenders compete, you win")

            3-ASK FOR REFERALS from ACTUAL CLIENTS OF THE BROKER! Yes, get phone numbers! Chances are most of you go to a doctor, dentist, tax accountant, etc.. that comes highly recommended. With the state of the mortgage industry I would say that stands for your lender as well.

That's it for this week. Looking forward to comments!

Well as I check my email each day, I have come to expect to see the list of Lenders that have ceased doing business. This list is simply too long to cite here. PINELLAS FINANCIAL is blessed to have relationships with major US lenders that are solid and stayed away from the "risky" lending frenzy of the past 5 years. It does seem while this "cleansing" of the market is painful, those of us who have made mortgage lending a true career and were not just riding out the "gold rush", will still be standing.

While the mortgage industry seems to be spiraling downward on a daily basis, we have good news! Rates have been improving after last week's negativity! I would also like to share that our processor/underwriter has been approved to underwrite for two more companies. While we typically have our loans ready to close before expected, we can close them even faster! Sooooo, the glass is half full! Hang in there everyone, when you hit bottom, there is no where to go but up!

Stay tuned to next week as I am asking everyone to respond to the question; What is your level of confidence in the mortgage industry on a scale of 1-10? (1 being the lowest and 10 being the highest) FEEL FREE TO COMMENT ON YOUR ANSWER!