Welcome back 0-Down (almost)! First Cal introduced its 99.5% down loan to the market 2 weeks ago, with flexible guidelines that many clients will fit into. It will be structured into 2 loans, FHA being the first mortgage and a 2nd mortgage for 3% of the sales price. The remaining ½% can even be gifted by a family member. Below, the highlights:
·
Minimum
580 FICO score (with Automated Underwriting System Approval)
·
DO
NOT have to be a first time home buyer
·
Income
restricted to roughly $66,000 annually
·
We
underwrite and fund both loans IN-HOUSE!
(very few lenders in Southern Nevada offer this product…and if they do,
even fewer offer IN-HOUSE…meaning underwriting and funding in First Cal’s name)
Financial Markets
After peaking
to 16,500 in late January, the Dow Jones suffered a steady 2 week sell-off,
losing nearly 1,000 pts, a little over 6%, before investors steadily bought
back into stocks. The Dow closed at,
16,154, up 600 points after bottoming out in the beginning of February. The sell-off in stocks resulted from a
general macro consensus that U.S. stocks were simply over-valued, and not
specifically to certain economic data or world event. The Fannie Mae 3.5 MBS (Mortgage Backed
Security) moved proportionally with the stock market. The price of the instrument gained roughly
150 basis points during the stock market sell-off and lost 60 basis points
during the recent rally, with 30 yr fixed mortgage rates to the consumer
hovering in the mid 4’s.
Southern Nevada Real Estate Related Data
Luxury home sales have kept up with median home price appreciation
in Southern Nevada, according to the below article in the RJ, the luxury home
market is up 30% from this time last year…and much of the credit can be
attributed to California law makers.
Recent tax laws and state tax increases in California have pushed
wealthy business owners to purchase luxury homes in Southern Nevada and claim
it as their primary residence.
Relaxation of Jumbo financing has had a hand in the luxury home market
recovery as well. A jumbo 30 yr fixed
mortgage rate hovers in the mid-to upper 4’s in many instances. The spread between conventional pricing and
jumbo pricing has become thin and in certain instances jumbo pricing is
actually BETTER than conventional pricing.
http://www.reviewjournal.com/business/business-press/new-california-taxes-boost-nevada-luxury-home-sales
