HERE"S THE LATEST INFO FOR YOU

As I mentioned last month, there have been numerous changes in the mortgage industry. People were finding it more difficult than ever before to get approved.

A big thank you goes out to both Fannie Mae and Freddie Mac for their changes in some of their programs to make it easier for people to qualify. These changes on these particular programs  eliminated the need for a down payment, and even have allowed gifts from family members to take care of their closing costs and/or down payments. They've removed the income caps to allow larger homes to be bought.

These programs are one of the very few that will allow 100% financing down to a 580 credit score. As you know, there is virtually no one that will go down that low on the credit score.

As I mentioned last month, all good things must come to an end.

The latest change is on the amount allowed on seller concessions. On the 100% program, you were allowed to have the sellers contribute up to 6%. Starting December 1^st, 2007, these programs are reducing the concessions down to 3%.

For example if you buy a home for 130,000, the allowable under 6% would be 7800.00 This would be enough to not only pay your closing, but the excess would be available to pay towards your homeowners insurance, your flood insurance, pre paid interest, taxes, etc.

Under the new rule, the allowable would only be $3900. This may mean that not only may this not be enough for closing, but also the pre-paids.

To take advantage of the higher allowable concessions, you need to register and lock your home loan with me before November 30^th, and CLOSE on or before December 30^th, 2007.