USDA Home Loans - 100% Financing

Fannie Mae Loan Limits 2017

Opportunities are Short Lived

On Wednesday, September 21, 2016 “The Fed” met to discuss interest rates once again. As you know, there has been talk about raising interest rates since the economy outlook is reportedly doing a little better. You can view the article here (http://money.cnn.com/2016/09/21/news/economy/federal-reserve-september-meeting/)

 

The real estate market has been raising, which means home values have been increasing around the country as well. This may be your last chance this year to pull cash out of your home for home improvements, pay off deft, or just plain lower your current interest rate or term of your loan.

 

Start your loan now and close by November 30th and have no house payment for December. Now that's a great way to end the year.

The Week Ahead

THE WEEK AHEAD This week, New Home Sales will be released on Monday. Durable Orders, an important indicator of economic activity, will come out Wednesday. Pending Home Sales and the third estimate of second quarter GDP will be released Thursday. The Core PCE price index, the Fed's preferred inflation indicator, will come out on Friday.

MON 09/26 TUE 09/27 WED 09/28 THURS 09/29 FRI 09/30 New Home Sales   Durable Orders   Core PCE

Investors Liked What the Fed's Said?

Investors liked what the Fed said—or didn't say—following last Wednesday's meeting. Both stocks and bonds reacted favorably; meanwhile, the economic data had little impact. As a result, mortgage rates ended the week lower. 

As expected by most investors, the Fed did not raise the federal funds rate. The Fed explained in its post-meeting statement that the case for a rate hike “has strengthened,” but Fed officials decided to wait for “further evidence of continued progress toward its objectives.” Notably, Fed officials remain divided about the appropriate timing to tighten monetary policy. In a rare occurrence, three out of ten voting Fed members dissented from the decision because they wanted a rate hike to take place at this meeting. Conversely, three Fed officials indicated in their forecasts that they do not see a need to raise rates at all this year. Investors were pleased that the Fed did not come out more strongly in favor of tighter monetary policy, and mortgage rates improved following the meeting. 

The housing data released over the past week was mixed. After reaching a multi-year high this summer, sales of previously owned homes in August declined for the second straight month. According to the National Association of Realtors, low levels of inventory are holding back home sales in many regions. Inventories of homes for sale declined 3% from July and were 10% lower than a year ago. 

There are signs that building activity for single-family homes may pick up in coming months, however. In August, building permits for single-family homes increased 3.7% from July, which was the largest monthly increase since June 2014. In addition, the NAHB home builder confidence index jumped to 65 in September, which matched the highest reading since 2005.

John Easterbrook

NMLS# 226555

Mortgage Loan Officer

806 Bidwell Street

Folsom, CA 95630

p - 916.850.6050

c - 916.224.7653

f - 866.370.9735

John.Easterbrook@spmc.com

Direct Access

There’s another little tidbit that could benefit your buyers.  VA will allow cash out refinances (not all lenders do though) of up to 100%!  This is, to our knowledge, the only product on the market that allows this. 

We also have a unique advantage when it comes to VA and other loans – Patty Aguon.  She had (until she became a retail loan officer) been underwriting VA, FHA, conventional, and jumbo loans for the last 15 years.   She also was the Operations Manager and Underwriting Manager for two of the area’s largest loan companies.  Imagine – having direct access to the underwriting manager – now you do!

Check out OUR rates, we’ve got some of the best in town!

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.    

VA is Also Hero of the Loan World

With true 100% financing, eligible vets can take full advantage of the benefit that they’ve earned through their service.  VA does not have a loan limit either.  VA will go 100% to $474,950 and 75% of the purchase price for the difference over up to the purchase price.  For example, using VA, the down payment on a $600K purchase would be approximately only 94%.  No other loan type can touch that!  In addition, there is no mortgage insurance!  There is a funding fee added to the loan, but some vets are exempt – call us for details.  

Check out OUR rates, we’ve got some of the best in town!

Based in Folsom, California, Sierra Pacific Mortgage has 144 offices nationwide. The Easterbrook Team at Sierra Pacific is associated with the #1 office in the nation for SPMC for 2015.  We want to thank you so much for the support.  Come by and visit our office at 806 Bidwell Street in Folsom.  Keep the loans coming and we’ll keep closing them at lightning speed with a positive, smooth, and transparent experience.  Call us at (916) 850-6050.