Weekly Update/Rates + FHA Min FICO Now 600 + Breaking News on Tax Credit

Please make note that Nova Home Loans has raised our minimum FICO score for FHA loans to 600. Secondly, news came down the pipe today in regards to the use of the $8,000 tax credit. FHA announced this morning that first time home buyers can apply the $8,000 tax credit towards closing costs on FHA loans. Please make note this CANNOT be used towards the down payment. More details to follow on how borrowers can gain access to the credit before closing, stay tuned.

Mortgage bond prices had the worst week in a very long time falling precipitously pushing mortgage interest rates considerably higher. Stronger than expected consumer sentiment data started the bond market off on the wrong foot. Debt supply concerns permeated throughout the financial markets with the US Treasury auctioning $100 billion of notes. Escalating oil prices added fuel to the fire. Fortunately it appeared the Fed finally stepped in to stop the bleeding towards the end of the week helping bonds recover a small portion of the large losses from earlier in the week.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, please use call me at 480-626-2202.

Rates for May 29th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 5.00%, 5.113%APR
30 Year Fixed Interest Only 5.875%, 5.988%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
7/1 LIBOR ARM Conventional 4.50%, 4.613%APR
5/1 LIBOR ARM Conventional 3.875%, 3.988%APR
5/1 LIBOR ARM Interest Only 4.00%, 4.105%APR
30 Year FHA/VA 5.25%, 5.502%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 4.75%, 4.851%APR
7/1 Treasury ARM 5.00%, 5.101%APR
*30 Day Locks

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