Mortgage Charlotte: information, contacts and rates, first time home buyers, jumbo loans, and more.

us gov shutdownOne of the biggest questions regarding the shutdown is how will it affect housing?

As a Realtor, it does NOT directly affect me, but indirectyl? YES. Since most of our buyers need loans,  and the Federal government is active in the lending market, that is where our concerns lie. Specifically prospective buyers’ access to new home loans. After all, more than 90% of all loan activity is underwritten, insured, or owned by the government and its affiliated entities.

Realtors, home buyers, home sellers, mortgage folks-we all want to know, what is the affect on us? 

This is what we know, or think we know, on Day One.  There are a few immediate concerns and the 4506 suspension is at the top of my list because it may affect every loan in process:

•     The IRS has suspended all 4506T processing.  This is the verification process of past income. With no guidance from investors or the agencies on this topic we are basically in a holding pattern and following current procedures that state we cannot close a loan with verification of the W2 or tax returns used in the file.

•    USDA commitments  will cease this morning and any USDA loan in the system without a commitment issued will not be able to close.

•    FHA/VA will continue to insure and guarantee loan files, however any manual request (example: requesting a case number be cancelled to allow a new case to be processed) will not be processed.  Currently both the VA Portal and FHA Connection are up and running so we can order case numbers, however if either system goes down it may take an extended period to get back on line.

•   For existing and new customers who are government employees, verification of employment may be delayed or impossible to obtain during the shutdown.  Those government employees who are furloughed will not be able to close on a mortgage until the government is up and running again.


The 4506 Suspension is the key, one lender says it will process loans without this verification, another lender says no. Stay tuned.


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New VERY Low Money Down Program for North Carolina Home Buyers

The downpayment has always been an obstacle to home ownership, and the state of North Carolina has announced a new “down Payment Assistance” program from the North Carolina Housing Finance Agency. (NCHFA)

The down payment assistance is setup as a 2nd mortgage but requires no monthly payments and there is no interest charged.  There are no fees from NCHFA to obtain it.  The only repayment involved is if you sell or refinance before year 15, you will have to repay all or a portion of the 3%… but with no fees or interest charged! (think: WORST case is Interest Free loan)

There are 2 interest rates offered with this program.  You can visit NCHFA.COM and see their daily rates, at this writing, 4/16/13, the FHA and VA  loans with DP assistance were 3.75, without 3.25%,  a lower rate for people who don’t need the down payment assistance. Both rates are very competitive! check on the website for daily rates.

The requirements for this program are as follows:

  1. The property must be located in North Carolina, and the borrower must occupy the property within 60 days of closing

  2. The qualifying income cannot exceed $85,000 per year

  3. The borrower must be a legal resident of the U.S.

  4. Credit score must be 640 or higher

  5. You must apply for an FHA, USDA or VA loan through a “participating lender”

Note the very reasonable FICO of 640!

There could be other requirements and programs are subject to change, so if you would like to learn more or get “Pre-Qualified”, you can call one of our preferred lenders, Olan Carder with Fairway Independent Mortgage, 980-721-7478.  Fairway is one of the participating lenders with NCHFA and Olan has over 15 years of experience with using FHA, USDA and VA mortgages in the Charlotte area.


Yes, the Housing Market is coming back strong.  For those of you wondering why, take a look!

This is an amazing chart, and diagrams today’s rates, the 20 and 40 year average mortgage rate, and way over on the left approaches the rate I paid on my first home – over 11%. By the way, it was just over  $1100 /mo, plus taxes, interest and PMI in the mid 1980′s.

Home buyers, don’t be fooled by cheap money into buying more than you need! Seriously, if you are single, what reason would you present to buy 3000 square feet or more?  (A single guy bought a 3600 sf listing of mine last month) Think about the differences in the monthly payments that include taxes, insurance, these could easily make your payment $200 higher per month. and Utilities? What would the difference in upkeep be for a 2000 sf home versus a 3000 sf home? 50% higher utility bills in most cases.  If the house needs painting or a new roof? Probably 50% more too.  This is not a time to “over-buy.”

But it has never been a better time to get what you want!  First home buyers? If you plan on being here, staying in Charlotte, you need to find a way to buy.

what $1100 per month buys in a home

Tim Iacona, the author of the chart,  explains,

“Based on a constant mortgage payment of $1,100 per month (what seemed to be a good national average based on this story and others like it), today’s 3.31 percent 30-year mortgage rate will finance a house at almost double the price that the 40-year average mortgage rate would!

While there are clearly other factors involved, it is the Federal Reserve’s asset purchase program that is largely responsible for these freakishly low rates (it is one of their stated policy objectives) and, while the central bank has promised to keep rates low for a long time and to continue buying mortgage-backed securities indefinitely, those actions are by no means guaranteed.”

And Chairman Bernanke this week announced rates will stay extremely low until unemployment is below 6.5% or inflation is above 2.5%. So demand and prices should continue to rise.

The question persists, “Just because I can, does it mean I should?” You decide!

More on Charlotte Communities after the jump.

This week, mortgage rates fell to all time lows, but have ticked up ever so slightly. Check these rates out:

30 year fixed

at 3.31% today low was 3.29%…with the 52 week high at 4.26%…crazy low…

15 year fixed at 2.75%

Jumbo Rates for Luxury Home Buyers

30 year jumbo at 3.81% low at 3.79%  52 week high is 4.41…would you ever think this low for Jumbo loans!


With 25% down payment…3.875 to 4.00

One lender explained, the Federal Reserve began Quantitative Easing  September 13.  Bond prices immediately rose, and interest rates fell

Over the last 3 days, I’ve received emails from a number of our preferred lenders, all with big… all time low, interest rates.

Once you factor in the deductibility of mortgage interest, a smidgeon of inflation, you are borrowing money for free. Almost free then.

Time to LOCK in that rate, buy that home…


Federal Reserve’ s  Mid Month Quantitative Easing EQUALS Mortgage Rate Fall

Great Jumbo Mortgage Rates and More

September 15, 2012

Charlotte NC Real Estate

Just a quick update on local financial market conditions, from one of our mortage partners Friday:

For some crazy reason we had a mid morning interest rate increase, but hang tight you are still looking at a 3.375% interest rate on a 30 year fixed purchase transaction…  It is also unbelievable to think you could get a 30 year Jumbo rate for under 4% but we have it and it is great.

Don’t forget about our extended lock in program and our 100% Doctor loan program with no MI…  Up to 650,000, with 720 FICO

Seriously, these are historic numbers, and  QE3 hasn’t really begun yet…

See you next week



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