City of Phoenix $15,000 Down Payment Neighborhood Stabilization Program / Still offering 580 minimum Fico for FHA + Weekly Rates + Market Update

I have been receiving a lot of questions on the $15,000 City of Phoenix NSP. Click here for some helpful documents and information.


While most lenders are now requiring a 620 minimum Fico Score, we can still approve FHA loans to a 580 Fico!

Also please note the HomePath attachment at the bottom, as we are eligible to complete HomePath Financing for eligible homes. With good credit, it can be a great option for investors with a lower down payment and no mortgage insurance.

Mortgage bond prices rose last week applying downward pressure on mortgage interest rates. The bond market got a boost from the Fed announcement (read below) to buy more mortgage debt. There was some profit taking in bonds Thursday afternoon following the run-up in prices Wednesday. Higher than expected core readings of the consumer and producer price indices reignited some inflation concerns. The Fed's continued efforts to pump money into mortgage bonds helped keep mortgage interest rates favorable.

This week the Federal Reserve announced it would pump another $750 billion into purchasing more mortgage-backed securities, the bonds that directly dictate 30 year and 15 year fixed rate Government and Conventional mortgage interest rates. This is in addition to the $500 billion being used between January and June to drive mortgage interest rates lower and help stimulate the economy.

So far the Fed has been able to keep mortgage interest rates relatively low while not destroying the functioning secondary market where investors buy and sell mortgage bonds. The potential negative is that the Fed has become the primary purchaser of these bonds. In the short term take advantage of these advantageous rates. There is uncertainty how things will play out once the Fed begins to unwind those positions in the futures.

For immediate pre-qualifications over the weekend or 2nd opinions on loan scenarios, please call me at 480-225-2987.

Rates for March 20th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.75%, 4.883%APR
30 Year Fixed Interest Only 5.875%, 6.008%APR
15 Year Fixed Conventional 4.375%, 4.488%APR
3/1 LIBOR ARM Conventional 4.375%, 4.437%APR
5/1 LIBOR ARM Conventional 4.125%, 4.238%APR
5/1 LIBOR ARM Interest Only 4.25%, 4.363%APR
30 Year FHA/VA 5.00%, 5.252%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 ARM4.75%, 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) 5.50%, 5.882%APR
5/1 LIBOR ARM (Jumbo) 6.125%, 6.507%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.