Shelter Six:  Still Plenty of Strong Conventional Programs Available

On Thursday, the Fed announced $2.3 trillion of aid to help midsize companies and local municipalities (the initial round of aid was for individuals and small businesses).

Conforming lending is stronger and more streamlined than ever, but riskier programs with lower credit scores or higher LTV’s have either disappeared or tightened up greatly.

The perfect solution for today’s Jumbo market is a “Jumbo Blend” with a Conforming 1st mortgage maxed out at $510,400 combined with a HELOC 2nd mortgage.

The Jumbo Blend offers lower rates and payments, allows for as little as 10% down, and has significantly less strict underwriting standards.

Anyone with a rate of 4% or higher who plans on staying in home 3+ years should look into refinancing. Pulling out cash is also a great way to tap into home equity and increase liquidity.

In this environment, consider an Appraisal Contingency of 15-20 days and a Financing Contingency of 20-25 days. It is more important than ever to work with lenders prioritizing purchases.

Rate Update

Last week was a great week for the financial markets with the stock market posting massive gains, the bond market stabilizing, and mortgage rates trickling down near recent lows.

This Week

The coronavirus remains the primary focus, and investors will be watching for news about fiscal stimulus programs. Retail Sales are due out on Wednesday and Housing Starts on Thursday.

April 13, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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