Rates + Market Update + Tax Credit as Down Payment

Please make note that Nova Home Loans still allows FICO scores as low as 580 for FHA & VA loans.

Tax Credit
I am sure that many of you have been hearing a lot about the tax credit now being available for use as a down payment on a home, which is great! However, the media spoke a little too soon because we have not received any guidance from HUD as to how it can exactly be used. This should be specified in a new mortgagee letter in the very near future, but as of right now the subject is still grey (see attcahed Mortgagee letter).

Market Update
Mortgage bond prices rose last week helping mortgage interest rates fall. Most of the gains came early in the week prior to the surprise inflation data. Weaker than expected retail sales data along with concern about the health of the banking industry helped mortgage bonds improve. Unfortunately stronger than expected producer price and core consumer price data Thursday and Friday stoked inflation fears which erased some of the earlier gains.

For LSR's or 2nd opinions on loan scenario's over the weekend, please call me on my mobile at 480-225-2987.

Rates for May 8th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%
30 Year Fixed Interest Only 6.00%, 6.113%
15 Year Fixed Conventional 4.25%, 4.383%
7/1 LIBOR ARM Conventional 4.25%, 4.363%
5/1 LIBOR ARM Conventional 3.75%, 3.863%
5/1 LIBOR ARM Interest Only 4.00%, 4.121%
30 Year FHA/VA 5.00%, 5.252%
*30 Day Lock

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%
15 Year Fixed (to $600K) 5.625%, 5.726%
5/1 Treasury ARM 4.75%, 4.851%
7/1 Treasury ARM 5.00%, 5.252%
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
3/1 LIBOR ARM (Conforming) 5.625%, 6.007%
5/1 LIBOR ARM (Jumbo) 6.625%, 6.977%
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.