Current Home Lending Info Blog for Southern Nevada

As everyone knows, the days of the "have a heartbeat, get a loan" days are over.  However, there is a great way for people who have purchased a home recently to revisit these days, in a way.

Whenever you do an FHA Loan to purchase a home or refinance a home, you are given the option to refinance that loan, usually three to six months after purchasing the home, under a program that is called the FHA Streamline Program.  It follows many of the government guidelines that FHA requires, but the main difference is that if you have done an FHA loan in the first place, you no longer have to have a new appraisal, show current paystubs, show tax returns or W-2's, or even provide a bank statement for that matter.

While there were many people who took advantage of this program that their original loan officers had told them about in January of this year, there are many people who did not have the chance to refinance at that time.  It caused a huge back up of the underwriting turn times for the lenders, and set purchases and refinances back by two to three weeks by the time it took with all of these new loans being put into the lenders pipeline.

The reason I bring this up now is because of all of the refinances that took place in the market, the lenders raised rates to stop the FHA Streamline Refi's from coming in because they did not have the money to close.  Now, with Obama's New Stimulus Plan, he has mentioned that the treasury will be placing an additional $750 Billion into Mortgage Backed Securities, which although many people believe this to be the 10 Year Note, in fact it is actually focused on the government bond programs that are available.

This recent news has caused the rates to become even lower than when the Streamline Refinances were on such a hot streak.  Rates can now be seen at 4.75% for a 30 year fixed rate with no prepayment penalties.  To discuss any homes that you have that you would like to put into the FHA Streamline Program in the Henderson, Las Vegas, North Las Vegas, Summerlin, and Boulder Ciry, Nevada area email us at David@HomeLoansOfNevada.com, or call us today at 702-370-2116.  Have a great week!

Dave J. Schwartz