RECORD LOW INTEREST RATES
 

Local lenders are reporting record low interest rates. 
Rates for 30 year fixed FHA loans are as low as 4.75%
Rates for 30 year fixed Conventional loans are as low as 5%

With rates this low, home buyers can purchase more home for less or purchase the same value of home with a lower monthly mortgage payment. 

A lot of good buys have just gotten better! 
Contact us if you'd like to receive a list of our "GOOD BUYS".

Everyone is aware that late payments affect your credit score, but exactly how much was unclear.  Recently, Fair Issac, which developed FICO scores, revealed some estimates of point score declines with respect to mortgage delinquency issues such as late payments, foreclosure, or bankruptcy.
 
Fair Issac created two hypothetical consumers, one who starts with an average score of 680 and the other with a very good score of 780.  FICO scores range from 300 to 850.  Here are average credit score point reductions:
 
30 days late:      40 – 110 points
90 days late:      70 – 135 points
Foreclosure
Short Sale
Deed –in-lieu:     85 – 160 points
Bankruptcy:        130 – 240 points
 
Five main factors that affect a credit score:  Payment history (35%), Amounts Owed (30%), Length of Credit History ( 15%), New Credit (10%), and Types of Credit Used (10%).
 
 
      

     Beth Wardlaw
     Broker, CRS, GRI, e-Pro
     WARDLAW Real Estate Team    
     Keller Williams Realty Southern Indiana
     Cell:   502.807.2384  
     Fax:   502.554.9585
 
     WardlawRealEstateTeam.com
     Got the "BUG" to Move?
 

Changes in FHA financing were announced on January 20th
Since the number of borrowers using FHA financing has drastically increased in the last year changes are being made to help protect the agency and make sure funds are still available without getting assistance from the federal government.

     Upfront Premium increased
           The Mortgage Insurance Premium (MIP) will be increased from 1.75% to 2.5%

     Decrease in Seller Assistance
           Sellers can only pay a maximum of 3% towards buyer closing costs, down from 6%

     Increased downpayment for under 580 credit score
           Most lenders will not lend for borrowers with under 620 credit score, but FHA will lend to those with under 580 providing the           borrowers put a minimum of 10% down

     The 90 day "flipping" rule
            Homes will not have to be held for 90 days before they can be sold

FHA is an important component in the market.  Over 30% of all loans between September 2008 and September 2009 were FHA.  FHA works for first time homebuyers, buyers with not a lot of down payment, and buyers with less than perfect credit.